If you put aside $2000 each year, beginning the year that your child is born, and keep that money invested in the stock market, at age 40, your child will be a millionaire, and at age 70, your child will have over $30 million.
This is contingent upon the market’s past 70-year return of 11% on average repeating itself, but if you, then later, your child work on putting away and investing just $2000 per year each year, there might just be a $30 million nest egg as your child’s reward when they hit 70.
Financial advisors recommend that you set up a trust that your child cannot touch, though, because your child will come into control of a $100,000 party fund on their 18th birthday.
Of course, there is no guarantee that your child will not be just as frivolous with the nest egg at 40 or 50, but with your discipline and your child’s discipline, a fantastic retirement nest egg is possible.
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