When it comes to investing…
Your kids have a great advantage
TIME!
Introducing the children in your life to investing is a great way to teach him or her about money and, in the process, you and the child will be building a truly meaningful legacy. Why? Kids have a great advantage when it comes to investing—TIME.
Can you afford to NOT do this?
Were you to invest just $50 a month from the time a child is one year old until he or she reaches the age of seven ($4,200 total over six years)—and never invest another cent—your child’s retirement fund, at age 65, will be more than $281,179. To prove the value of TIME: If the child were, instead, to wait until the age of 30, and invests $2,000 every year until retirement age ($70,000 total over 35 years) the accumulated amount will be about $658,000. Both are calculated based on an annualized rate of return of 7%, which is a conservative estimate of long-term results from stock investments.
This section of the Website is devoted to improving on those long-term results and provides tips on how to reduce the impact of taxes on the child’s earnings.