HCM 2017 Roth IRA Award for Local High School Students
Hengehold Capital Management has partnered with three local high schools, Elder, Seton and Oak Hills, to fund Roth IRAs for eight students per school with an initial deposit of $250. The purpose of the award is to further the principles and lessons taught at each school in courses related to Personal Finance and Financial Literacy.
The purpose of the financial courses at each school is to empower and equip the students with money management skills to avoid debt, budget with intention, build wealth, and share that wealth. The goal is to help students build a foundation of personal finance skills for success in their personal lives and for the business world.
HCM wants to give the students a real world experience by managing and growing a Roth IRA account. So we created the HCM Roth IRA Award.
WHAT IS A ROTH IRA
William Victor “Bill” Roth, Jr. was an American lawyer and Delaware Senator. He was a member of the Republican Party and World War II veteran. Roth was an outspoken proponent of the American dream and noted to Dr. Gobind Daryanani that, “If you work hard and save hard, you can have a good retirement income that allows you to leave something to your children.” He worked with the Senate Finance Committee to develop his namesake IRA which was established by the Taxpayer Relief Act of 1997. The basic premise of a Roth IRA is that you can invest after-tax dollars and those dollars can grow tax-free which was in line with Roth’s preference of wanting to attract both young investors as well as seasoned ones. The Finance Committee was eager to see younger working Americans starting their retirement investing earlier with even small amounts of money, thus developing a culture of saving. Here is an article explaining a Roth IRA and how it works.
CRITERIA - APPLICATION PROCESS
In order to be considered for this award, you need to meet the following criteria:
- You are a current student at Elder High School, Oak Hills or Seton High School
- You are taking or have taken an Economics, Personal Finance or Financial Literacy course
- You have or had a job that generated taxable income (necessary for opening an IRA)
- You must complete an online application - click here.
HCM Roth IRA Awards will be given to 8 different students, at each school, who meet the criteria and are chosen via the school's selection committee. HCM will open Roth IRAs with an initial contribution of $250 for these qualified and selected students. These accounts will be opened at Charles Schwab & Co. as "custodial" accounts with the parent or guardian as custodians of the accounts. More detail will be shared with the students and parents/guardians at the presentation lunch/dinner in February.
- Deadline for submitting application is January 23,2017. Click here to complete application.
- Winners will be announced on January 27th.
- Awards will be presented to students and parents in late February at an HCM sponsored lunch/dinner. Exact time and location TBD.
- In March, the HCM advisors will meet one-on-one with the students and parents to set-up accounts.
If you have questions, please contact either Steve Hengehold, firstname.lastname@example.org.