In some ways, investing is very similar to dieting or trying to stop smoking. We know what’s good for us – yet it can be very, very difficult to do it.
Why is that the case?
I think it’s human nature. You know you’re not supposed to eat bacon and eggs with cheese on a roll, but you do anyway. You know that fried foods aren’t good for you either, but you eat those anyway, as well. You also know that you are way behind on your retirement savings…and yet you still have trouble getting started.
Today, I want to appeal to my readers who are parents, and who are struggling with starting to save for retirement. Moms, Dads…I want you to pause for a moment and think about the love you have for your children.
If you’ve decided, “I’m so far behind. I’ll never catch up. Why even try?”…please, please, think about your children. If you’re not going to invest for yourself, then for the love of God, invest for them!
Take whatever money you can, TODAY, and start an investment fund for your little one, or perhaps your not-so-little one. (For more on how to set up an investment fund, please see my ebook, The Stock Market is for Everyone.)
I wish my parents had had the knowledge that I have today, and had set up small accounts for my two siblings and me. It’s not their fault, of course. Like most of us, my parents were taught nothing about investing.
I want to illustrate what can happen over your child’s life as money invested at birth compounds.
I’m going to show you investment results if a small amount of money were invested in a given stock in a given birth year. Here we go:
|Year Born||Company||Amount Invested||Today’s Value|
|1980||Walt Disney||$1,000||$164,407 at age 38|
|1981||McDonald’s||$1,000||$245,224 at age 37|
|1982||Walmart||$1,000||$641,352 at age 36|
|1983||Home Depot||$1,000||$475,925 at age 35|
|1984||Apple||$1,000||$423,804 at age 34|
Now I understand that none of these figures would make a child filthy rich had the parents made these investments at the time of the child’s birth. But they sure as hell would’ve given that child a big head start in life – wouldn’t you agree?
You can do the same thing for your child of any age with as little as a thousand dollars – or perhaps even less! Get started by investing $3.99 in my ebook, The Stock Market is for Everyone, which will give you all the basics needed to open an investment account for your small (or not-so-small) child.
Until next time!