Chris Carosa thinks he has a solution for America's impending Social Security funding woes: child individual retirement accounts.
If you've never heard of a Child IRA, that's because officially, it doesn't exist. While an adult can set up a custodial or guardian IRA under current law, the minor must have income that matches or exceeds the amount contributed to it, whether it's a Roth or traditional version.
"We let parents and grandparents save for their kids' college expenses [in tax-advantaged 529 college savings plans] without requiring the child to have income," said Carosa, president of Carosa Stanton Asset Management, a Mendon, New York, firm that manages $30 million in assets. "Why don't we let them save the same way for their kids' retirement?"