Illustration: Andy Rementer
How To
How to Build a Million-Dollar Future for Your Kids
Setting your child up for life doesn’t require a windfall — just time, consistency and a willingness to think beyond bonds and birthday cards.
Parents like to tell their children that hard work and ambition will carry them far, and sometimes that’s true. But a well-structured investment account may offer a more reliable path to prosperity than sheer determination.
The simple math involved is deceptively powerful. Let’s say you put $1,000 into an investment account for a newborn today. By retirement age, that kid would end up with well over $1 million if you (or later your child) continue making $100 contributions each month.1 Even accounting for inflation, that remains a solid return on contributions.