Start an IRA for Valentine’s Day

Valentine’s Day is Thursday and for most retailers that means thinking of new and expensive ways to say ‘I love you.’ Romanceher.com sells roses covered in 24 karat gold for $99 each, putting a dozen at about $1,200. They look great in Louis Vuitton’s Valentine inspired handbag, the Salina GM, which goes for about $3,000. And why not tuck in $23 million deed for a Phuket private island in Thailand, just for good measure.

Many romantics would love to shower their loved one with such lavish gifts, but on February 14 most twosomes will go the traditional and ‘affordable’ route: dinner and a movie. The Valentine’s Day pre-fix dinner at Fresco in Midtown Manhattan is $85 per person. Throw in a bottle of champagne and two tickets to the romantic comedy ‘Fool’s Gold’ and your night out will cost about $300. As romantic as those plans sound there may be a more long-lasting gift that will really show you care.

Why not stay in for a cozy home-cooked meal and movie rental and put that $300 into an investment? Opening an IRA in your sweetheart’s name today may be cause for a champagne celebration come retirement. According to Jim Holtzman, an advisor and shareholder at Legends Financial Advisors, in 25 years the $300 dollars invested into an IRA today will become $2,054. At the same rate, $300 dollars invested into an IRA each Valentine’s Day for the next 25 years will compound to $21,932. Think of all the romantic dinners that cash could buy.