Birthday Bonanza: Part 1

This week, I will be running a series of posts titled “Birthday Bonanza”.  In this series, I will discuss how investing $1000 for your child at the time of his/her birth, or soon thereafter, can result in considerable returns by the time your child turns 18!

Enjoy…and please share your comments!  Whether you have a question, or have actually done this, I would love to get a discussion going about investing in the stock market and how it can benefit our future generations!

Dollar birthday cake

I got the idea to write this series one evening while listening to one of my favorite podcasts on investing.  One of the listeners had written in asking how they should invest money for their three-year-old son.

The host of the show was taken aback that this father had the wherewithal to even consider investing for his son at such a young age!  Most parents are not thinking that way when their child is three.  I know I wasn’t.

Last year, as many of you know, I wrote a short beginners’ guide titled The Stock Market is For Everyone.  In it, I stress the importance of taking responsibility for your financial freedom through smart investing.

Having heard this podcast, I became inspired to write this “Birthday Bonanza” series for the blog.  My aim here is to encourage – hell, to implore – parents to start investing for their children as soon after they are born as possible.

Nearly 18 years ago, my daughter, Mia, entered the world.  It was, of course, one of the happiest days of my life!  I’m thankful that I have always been in a position to provide for her financially.  It never dawned on me at that time, though, to open an investment account on her behalf.  Had I done so, the amount of wealth I could have generated in her first 18 years of life could have been substantial.

Two years ago, I opened a custodial account for her and purchased six shares of Facebook (NASDAQ:FB).  Better late than never!

After listening to that podcast, I went back to the year my daughter was born – 2000 – and
looked at potential companies I could have invested in back then.  Had I purchased $1000 worth of Amazon (NASDAQ: AMZN) stock, for instance, how much would that investment be worth today?

Quite a lot, in fact!  My $1000 investment in early 2001 would have grown to $116,000 in 2018.

Imagine what your life would have been like had you started out at age 18 with $116,000.  As a result of an initial investment of $1,000 – which was well within my budget at that time – I could have made this possible for my child.

So…how about you?

Like every parent, you want to take steps to ensure that your child has a head start
in life.  I have good news – you can do this!

The future results of an investment you make today could put your child in a different socioeconomic bracket.  The higher a child’s socioeconomic bracket, the greater his or her chances of success.  This is not my opinion…this is a fact.

Regardless of your own socioeconomic standing, you still have the power to change that of your child – with just $1000!

Keep reading this week to learn more.

 

6 thoughts on “Birthday Bonanza: Part 1

  1. Really good post! I wonder how many people will (or can) actually do this kind of thing for their kids? Unfortunately in this day and age, not everyone has $1000 to invest for their kids when they are born. Even if they do, the chance that the parents won’t need to dip in to it before the kid reaches 18 is slim 😦 I got to 18 and had nothing at all to my name (parents were poor, same old story). I started investing myself though (thank goodness) and everything turned out ok 🙂 This is the portfolio I used if you’re interested: https://obviousinvestor.com/my-investments/growth-portfolio/

    Just found your website so still looking around, enjoying it so far. Thank you for the posts. Keep up the good work!

    Mark
    https://obviousinvestor.com

    Liked by 1 person

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