Millionaire by 65: This Deposit at Birth Ensures Your Child Retires with Seven Figures: By applying a little forethought it's easy to take care of the next generations of your family.

336Robin Loc: North Carolina

By applying a little forethought it's easy to take care of the next generations of your family. I wonder why more people don't do it?

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Millionaire by 65: This Deposit at Birth Ensures Your Child Retires With Seven Figures

Selena Fragassi
Mon, January 30, 2023 at 3:02 PM EST

Retirement may not come easy for future generations. With talk of Social Security being depleted by 2035 and more people retiring later in life than they did 30 years ago (76% of Americans aged 65-69 are still working, per Yahoo), a robust, healthy retirement may be out of reach for kids today.

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Yet, there is one way you can ensure your children retire millionaires — if you have some extra cash around when they are born. By depositing $7,000 the day they are born, they will have $1 million by the time they are 65.

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This tip comes courtesy of Chloé Daniels of Quick Money Tips (also host of “The Money Bare” podcast). She explained the math in a Jan. 15 Instagram post, showcasing how compound interest helps grow the initial $7,000 investment into seven figures.

Assuming there is an 8% average return after investing in an S&P 500 index fund, the money will be allowed to grow to this level over time. The chart below shows how it works:

Source: Instagram / <a href="https://www.instagram.com/clobaremoneycoach/?hl=en" rel="nofollow noopener" target="_blank" data-ylk="slk:Chloé Daniels" class="link rapid-noclick-resp">Chloé Daniels</a>
Source: Instagram / Chloé Daniels
If you don’t have $7,000 available, another option Daniels provided is to invest $3,000 initially, deposit $200 a month for 20 years and then let your child take over their own contributions from the ages of 20-45. By 45, they’ll have $1 million (and it’ll teach your kids the importance of investing from a young age).

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Or, if all you are able to to invest is $100 a month from the day they are born until they are 55 years old, they could still retire as millionaires with a total $66,000 contribution from you, according to Daniels.

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pegw

The glories of compound interest.

336Robin Loc: North Carolina

pegw wrote:

The glories of compound interest.

I'm surprised that more people don't do this for their kids, but they don't.

Love compound interest over time.

Jlw Loc: Wisconsin

But with bidenflation that million will be worth about fifty cents

Rose42

336Robin wrote:

I'm surprised that more people don't do this for their kids, but they don't.

Love compound interest over time.

Not everyone can afford it. Especially these days

336Robin Loc: North Carolina

Rose42 wrote:

Not everyone can afford it. Especially these days

No they can't. I would guess we don't need tax cuts for the wealthy if that be the case when we can't
afford to do as little as set our kids up for life.

I wasn't able to either but I made up for it later on. I hope future generations of my family have it
a little easier than I did.

Rose42

336Robin wrote:

No they can't. I would guess we don't need tax cuts for the wealthy if that be the case when we can't
afford to do as little as set our kids up for life.

I wasn't able to either but I made up for it later on. I hope future generations of my family have it
a little easier than I did.

It has nothing to do with the wealthy and their tax rate. Times now are hard. Prices keep going up and wages just aren’t close to keeping up.

I too hope things are easier for future generations but its not looking too good.

336Robin Loc: North Carolina

Rose42 wrote:

It has nothing to do with the wealthy and their tax rate. Times now are hard. Prices keep going up and wages just aren’t close to keeping up.

I too hope things are easier for future generations but its not looking too good.

Yes it does. If you paid less you would have more money and you could take care of your family
better. Part of that is not having tax brackets that pay nothing. Everyone needs some skin in the game.

Rose42

336Robin wrote:

Yes it does. If you paid less you would have more money and you could take care of your family
better. Part of that is not having tax brackets that pay nothing. Everyone needs some skin in the game.

No it doesn’t. Its silly propaganda that our ills would be fixed by the rich paying more. There aren’t enough of them. You people shouldn’t buy into it.

336Robin Loc: North Carolina

Rose42 wrote:

No it doesn’t. Its silly propaganda that our ills would be fixed by the rich paying more. There aren’t enough of them. You people shouldn’t buy into it.

Well a national sales tax is nothing but a tax break for the rich.

Just so you know that prior to Nafta the rich were doing just fine and since then even better but
our budget is ceasing to work because of the tax cuts.

Rose42

336Robin wrote:

Well a national sales tax is nothing but a tax break for the rich.

Just so you know that prior to Nafta the rich were doing just fine and since then even better but
our budget is ceasing to work because of the tax cuts.

No, our budget doesn’t work because our congress critters are irresponsible

Samael

336Robin wrote:

I'm surprised that more people don't do this for their kids, but they don't.

Love compound interest over time.

Wonder what you’d be able to buy 65 years from now with $1 million maybe a car

336Robin Loc: North Carolina

Samael wrote:

Wonder what you’d be able to buy 65 years from now with $1 million maybe a car

That is the problem with capitalism, it becomes predatory because it never lifts the people up. The rich
get richer plan.