I Want to open some kinda of savings/ retierment account for my brother?

Question

I Want to open some kinda of savings/ retierment account for my brother hes young and i want to start saving for him ealry, how do i go about doing this

Answer 1

If he has earned income offer to deposit money into a ROTH for the amount he earns up to $4,000. If he doesn't have earned income just open a normal brokerage account or bank account. If you want him to use it for college look at 529 plans.
If you aren't sure he will leave the money alone keep it yourself and gift it to him when he is older.

Answer 2

You will need his SSN and perhaps your parents to open an account in his name. A ROTH IRA is best for him if he has earned income. You use after tax money so the withdrawals later are tax free. You can contribute to a regular IRA but if he has no income, there is no tax advantage to it.

Some credit unions - and I suppose banks (shudder) - offer CDs with add-on features. CDs right now are paying over 5% and you can shop for higher rate, longer term CDs since you don't want him touching the funds for a long time.

If he's really young, there may be a "kid's account" that is geared towards his age group. Our credit union offers classes to teach kids how to handle money and the power of savings. Making him knowledgeable might do more for him that just giving him money.