Tuesday, January 22, 2008

There's No Reason For Your Kids Not To Be Millionaires

There's no reason, because I'm telling you now how it works.

If your 20-year-old child saves only $65 per month at 12% average annual returns (such as a long-term growth mutual fund) until he/she is 65 years old, at retirement they will have approximately $1.34 million. They must put the money in every single month and they can never take money out of the account.

Now that's not hard, is it?

Example taken from Financial Peace.