Question:   My granddaughter, age 21, is graduating from
college this spring and will start to work shortly thereafter.  What would
be a great gift for her?

Answer:   Consider putting money into a Roth IRA in her
name.  The maximum is $5,000.  The money, if untouched until age 66,
could be worth $105,000 at an average 7% rate of return. Alternatively, she
could withdraw the money in 5 years without penalty to purchase her first home.

(Disclosure:  the rate of return is
for illustrative purposes only.  Past performance is no guaranty of future
results.)

Feel free to contact me if you or someone you know has this type of
situation.  Financial Planning and tax planning advice presented here is
general in nature, and individual circumstances make applying these general rules
tricky; thus, the above answer cannot be applied to all circumstances because
the slightest variation could cause a different outcome.