Your child is 18 years old. You want them to retire with a lots of money! Is there a simple way? I mean, a simple formula for success with minimum pain.
Yep, there is! Always pay yourself first. Save a small amount of money from each paycheck, put it in the bank until it builds up and then invest in blue chip growth stocks that average 10% annual growth. If you save $20 per week for the 47 years until retirement, you will have $700,000 in your accounts. If you can manage $30 dollars per week to age 65, you will have over a million dollars.
There is a catch. The weekly savings can not be touched. It is not for impulse purchases or any other kind of use. $20 or $30 per week is manageable and over the years as you earn more, it becomes easier.
You need to set aside money on a weekly basis without fail. The suggestion is $30 per week but more or less is dependent on your earnings and level of commitment.
Never miss a weekly contribution. No exceptions! This is a habit. Make a special trip to the bank each week to deposit your money.
Never touch your cash or investments. Never, never, never. Figure out different ways to solve you day to day financial problems as though your “set-aside-savings” don’t even exist.
Invest your accumulating cash in solid blue chip growth stock for the “long pull”. Forget the stocks that promise to make you rich in 20 days.
Enjoy the success of your program. The money totals will grow and you can take pride in what you are accomplishing.
If you 5 Grasshoppers had started saving $30 per week at age 18 and stayed steady with your commitment, the following totals be sitting in your bank accounts:
Grasshopper No. 1 – $182,425.
Grasshopper No. 2 – $165,676.
Grasshopper No. 3 – $136,276.
Grasshopper No. 4 – $ 52,555.
Grasshopper No. 5 – $ 27,817.
Start today. Pay yourself first. Never deviate from your plan. Never withdraw from you accounts. Invest wisely. Have fun! it works! Use the concepts of disiplined savings, compounded growth, and long term “focus”.
Love,
Dad