06/17/2020
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This is possible with proper planning. You may think it should be harder, but it's really this simple.
Are you ready?
Isn't it crazy how many folks don't know that $1239.19 per year invested in the S&P 500 earning 7% for 28 years would allow them to give their 28-year-old child 100k on their bday?
We have a serious lack of education, discipline, and ability in our community regarding the Time Value of Money calculations.
That's just $103.26 per month in a simple S&P 500 ETF to make that happen.
Step 1 - Create a Budget to find $103.26
Step 2 - Tell your family that you're going to invest $103.26 every month (treat this like your cellphone bill)
Step 3- Go to vanguard . com
Step 4 - Set up an investment account (regular taxable account)
Step 5 - Set up automatic contributions of 103.26(pick the best date for you)
Step 6 - Invest in the ETF VOO until you get to 3k then convert to VFINX
Step 7 - Don't touch it
Boom now you have the option to gift your child $100,000 on their 28th Bday.
You want to give your kid a million by 28?
No problem! Everything remains the same except for your monthly contribution.
100k = $103.26 per month
500k = $516.33 per month
1M = 1,032.66 per month.
*How did I come up with 7%? "The S&P 500 Index originally began in 1926 as the "composite index" comprised of only 90 stocks. According to historical records, the average annual return since its inception in 1926 through 2018 is approximately 10%–11%. The average annual return since adopting 500 stocks into the index in 1957 through 2018 is roughly 8%."
Even Warren Buffet recommends the S&P 500.
