Wouldn’t it be a warm, fuzzy feeling to know that you kids or grandchildren will not have to worry about money, and they can retire millionaires? You don’t have to dream about it. It can easily happen.
Once teenagers are gainfully employed they can begin contributing to an IRA. If $4,000 is invested each year between the ages of 16 and 21 and not another cent after they are 21 years-old, their tiny retirement fund will grow to over two million dollars by age 65 - $2,045,042 to be exact. That’s assuming an annual 10% return on the investment, which the stock market has historically done on average.
Better yet, put the money in a Roth IRA and that money will be 100% tax free.
Millionaire Money Habit: Invest early and let compound interest take care of all of the work. With your advice and the help, you and your children can live comfortably knowing their future will be free of money worries.
4:23 pm on January 17th, 2008 1
I’ve yet to deliver my first (and maybe only) child in less than 3 weeks but I opened an account for him 3 months ago that gets $100/month. We plan to invest it to further grow it. I’m just excited for what’s in store for our child after years and years of saving and investing as little as $100 a month!
6:24 pm on January 24th, 2008 2
Great read! This is something I am trying to impress on my kids.
Best Wishes,
D4L