TJ and Robert Webster discuss building generational wealth through family businesses and Roth IRAs for kids. Pay children up to $12,000 yearly tax-free, then invest it: $200 monthly for 10 years at 12% grows to $44,000 by age 18 and millions by retirement through compound interest.
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Hey, this is TJ again with solutions by tj and I'm so glad that you're here again. We are going on with this series where I have my mentor, Mr. Robert Webster coming to us showing us not only how to build wealth, how to keep our money, but how to expand our money and how to even make our children rich. So now we're getting into generational wealth in this thing. So stay with this series because it's going throughout the week. Watch this video all the way to the end because guess what? You know the best part is always at the end. Make sure that you like this channel. Subscribe because I'm giving you all the goods. Why not? Okay. All right, so Let me introduce Mr. Webster. He is awesome. I believe in what he's saying and so that's why I brought him directly to you. Hey Robert, how you doing?
I'm better than amazing. How about yourself?
I love that. I love it. I'm good, I'm good.
Awesome. Thank you for having me on again. Hello everybody, it's Rob Webster, the financial Robin Hood ready to bring you some financial secrets. So I'm gonna go ahead and share my screen. I want to show you guys something.
I helped a young lady the other day. I helped her bring home an extra $700. 700 plus. It was like $720 in her take home pay. She has an 8 year old and she one of her financial goals is she said, I want to be able to leave a legacy of for my child. So I said, you know what, let me show you something really, really small that you can do. I said, you know, you're a business owner now. You have the income shifting membership. So you know what you can do? You can pay your child a wage. That's right. Uncle Sam will let you pay your children up to $12,000 a year and the child won't owe taxes on that money. And now that becomes a business expense for you. So I said, you know what you do? You got an extra 700 plus. All right, take 200 of that, all right? And open up a Roth IRA for your child. A Roth IRA for a minor child. And put that 200 in that Roth every month. He's 8 years old. Do that for the next 10 years and you're paying him a salary. I took her to this investment calculator and I showed her. Okay, so the Roth is starting out with $0 in there. So we're going to go ahead and run these numbers. I'm going to show you exactly what it looks like. So she's going to put that $200 in there for the next 10 years, we're gonna say she's gonna get a 12% return. All right? It's easy to get anywhere between 10 and 15% nowadays because actually America's on sale. So you should be in a position where you're buying right now. So she's. So she gonna take 500 and put 500 on her car note and pay that off real quick, but she's gonna take 200 and pay her child a salary every month. So she do that for the next 10 years, the child is going to have $44,000 in that Roth IRA by the time the child is 18 years old. So now if she's talking to the child and explaining the child, explaining to the child how compound interest works for the next 10 years, hopefully the child is going to want to continuing to put $200 in his Roth IRA. But let's say that they don't. All right, let's say that they don't. Let's say the child doesn't put anything else in there, and the money just sits in that IRA until the child is 60. So that'll be another 42 years, okay? So we're gonna move, we're gonna remove this 200 and we're gonna put zero dollar zero in there for the next 42 years. Now, for the next 42 years, put no money in there, okay? Look at what they have in that account.
So when they turn 60 years old, they'll have 5 million, 5.1 million, $5.2 million when they turn 60 years old, just from their mama putting in $200 a month for 10 years.
For 10 years.
Wow.
Now let's say the child understands that. And the child says, you know what? I'm Gonna continue putting $200 in there, all right, for the next 42 years. Because I want to be a multimillionaire, okay? I really want to make some money. I want to leave. Chip, they read the Bible, and they read that part where it says a wise man leaves an inheritance for his children's children.
Yeah.
All right? So they want to keep putting 200 in there. Now they're gonna have 7.6 million in their account. Now let's do another example. Let's say the child doesn't put anything in there, all right? Until they get 40 years old, they start thinking, you know what? My mama taught me about this. And I got like 40 something thousand in there when I was 18. And I haven't been putting anything in there. So we're gonna say when they're 40 years old, so they got 20 more years to their 60. So for 20 years, all right, we're going to say they're getting a 10% return. And we're going to also say they learned the income shifting membership, and now they're putting, say, 300. No, we're going to say $400 in there for 20 years. Because they know they got to catch up. All right? They got to play catch up. So they're going to put $400 in there for 20 years.
All right, you got 110% versus 10% up there.
Oh, oh, yep. Okay, let me fix that. There we go. 10%.
Now that's half a million. Okay? You see, we have to learn how important compound interest is. All right? You see, if we want to start to change how our generations are, then we have to start changing what we're doing in this generation. If you ever wondered.
The people that are watching, if you ever wondered why you graduate college and some people graduate with you, but they're able to go on a three to six month hiatus after they graduate college, but you have to graduate and go get a job was because somebody knew something that your parents might not have known. And it's time for you to learn it here right now, today. Cash flow strategies that build wealth.
That is amazing. I love that. I love that. I love that. I love that. I love that you gave all of those different scenarios. I mean, for all of us who are doing what we do right now, right? So we're in the Get Money challenge, meaning we are going for direct business with title companies, just to let you know what that means, Robert. So people are going from making, you know, three, four, $5,000 a year, and I'm pushing them to start making 10 to $20,000 a year. So with that increased income, you need to set your child up, too. Don't forget about your baby now, because that's a tax write off. Your child can be a $12,000 tax write off. And if you put that money like he said and invest it just like he said, I don't know about you, but nobody set me up for the time I'm 60 years old to be a multi freaking millionaire. They ain't even got to touch it again. You do it for 10 years, they don't have to touch it again and be a multimillionaire. So, hey, I hope y' all like this. Listen, we have another one coming because I want to show you the breakdown of how you enter your expenses, how you go through this thing and set everything up so that when it's your tax time, you can maximize your taxes and give your tax strategist the all of the information that they need in order to set your business up correctly and for you to get the benefits you so deserve in this lifetime. God bless you all, and I'll see you all on the other side. Thank you so much.
