Securing your child’s retirement
It may sound like a strange idea, especially when a very small percentage of us have our own retirement secured, but just imagine how you could change your family tree forever! The only problem with the concept is that most people are too greedy or selfish to actually follow through with the plan.
If you are a numbers junkie like myself it doesn’t take too much calculating to figure out the small investment needed to make $1,000,000 when you have 60 years of compounding interest on your side. That’s about the amount of time a newborn child will have until they can retire.
By doing some quick calculations I get the following results for your newborn. If you put an initial deposit of $5,000 into a good mutual fund earning an average of 10% per year (not too hard to find) and let it sit in the fund for 60 years (the age your newborn can retire) then you investment will be worth just over 1.5 million dollars. It’s hard to believe that $5,000 can turn into that much value, but with time on your side money can do some amazing things.
Just imagine the life that your child could have knowing that a good portion of their retirement is already funded. It would give them the opportunity to do so many things in life and even set up their child’s retirement. I realize most of us don’t have that much money around but even $500 will turn into almost $200,000 with 60 years to grow. Just something for you to think about!