Part I: How to set your kids up to become millionaires
I know the subject line sounds a little heavy, but there's actually a path for your kids to become millionaires!
Now, this isn't some "get rich" scheme or something that happens overnight. Instead, it's a strategy not everyone knows about, but the tools are right in front of us.
And, the answer is a Roth IRA for kids! Before you close this email just hear me out.
Imagine you have a kid that is 8 years old. And, for the next 10 years, you contribute $5,000 to a Roth IRA. So, by the time they are 18 years old, with the help of compound interest (assuming a 7% return) the balance in their account would be about $69,082.24.
Bankrate Calculator with a 7% return.
And, now, if you let that money sit without contributing anymore, the magic of compound interest (assuming a 7% return) would generate a balance of $1,552,459.16 by the time they are 65 years old!
Bankrate Calculator with a 7% return.
Pretty cool, right? Your next question is probably, "Where can I find $5,000 a year or any money, at all, to contribute to my kid's Roth IRA?"
Well, I'm glad you asked because I have something else to share. But, it'll have to be in the next post. So, stay tuned for Part 2.