Difficulty: Moderately Easy
Instructions
Things You'll Need:
- Set-up a brokerage account for the benefit of your child
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Step 1
Set-up a brokerage account for the benefit of your child.
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Step 2
Set-up an automatic deposit into the account monthly in the amount of $65. Which works out to about $15 per week. Select two or three balanced mutual funds which the money will be invested in automatic. Historically a balanced portfolio of stocks and bond will return 6-8% over the long term.
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Step 3
Make monthly deposits of $65 as soon as your child is born and continue to do so until your child is out of college and then hand over the automatic deposit responsibility to them to continue. If they continue until 65 and we assume an annual rate of return of 7%, then your child will be a millionaire at retirement. Now that is a great retirement gift you helped create for your child.
Comments
askapeach said
on 11/5/2009 Saving is important as is teaching your children the value of money.
moonsun55 said
on 8/30/2009 sounds good.
stefyspeak said
on 8/10/2009 Nice, short, to the point. This illustrates how easy it really can be to save, not only for your child's retirement, but for young people out of college. They don't have to just depend on the employer's 401 -they can help themselves -perhaps to retire earlier than planned!5*
QuinnBee said
on 7/9/2009 Gosh, I wish my parents would have done this for me... :D Gives me an idea for my future children... *****
edwarde said
on 7/6/2009 What a great article. I wish more people would look at their finances with their children in mind.