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It’s so easy to turn your teenager into a million dollar retiree before high school graduation

By on March 23, 2021 0

If you’re like most parents, you want to help your kids. You want them to avoid making the same mistakes you made. You want to give them an edge that they can only get through experience – through your experience.

You are no different from other parents. You want your children to be independent at an earlier age than you. You want them to gain the self-confidence that usually comes with independence.

Why?

Because, the sooner you see your children moving forward with confidence, the happier and more relaxed your life becomes.

If you focus on the one thing you can control, you can plant the seeds that will become a powerful force in favor of your child.

What power ?

Consider this: Children, from an early age, love to win. They all dream of being the best player on the team. Adolescence amplifies this very natural, very human desire.

Now life is filled with many different types of games. When you are young, these games are mostly physical. As you get older, your “games” become more and more taxable.

And it’s not just about expensive looking products, from clothes to computers to cars. Sure, it can start that way, but the scoreboard ends up being earnings and savings. Your earnings can lead to these expensive material goods, but your savings are the ultimate measure of wealth.

When your kids feel rich, their self-esteem goes up. And with self-esteem invariably comes self-confidence. And self-confidence, when properly directed, quickly leads to success in many areas.

Why is this important?

No stranger can effectively influence a child who already believes in himself. How many times have you seen a child who was sure to lead the team to victory on his own? Additionally, how many confident children have you seen fearlessly confront those who bully them (or their friends)? Finally, who other than a confident child can willfully resist the dehumanizing weight of peer pressure?

You can be sure of one thing. With that kind of inner strength, your kids won’t drink someone else’s Kool-Aid, they’ll pour theirs for others to drink.

In addition, they will do this at a younger age than their peers. And that will make them leaders.

And when you get older, imagine how much more vibrant and cheerful you will be knowing that your children can fend for themselves. How they are prepared to help their own children benefit from their (and, by extension, yours) experience.

It is now a legacy you can retire on.

Here’s how to do it

Do you know the money your teenager earns from working? Go to your favorite bank, broker or mutual fund and use that income to start a child IRA. A Children’s IRA is like any other IRA, except it is a minor child (this means that a parent or guardian must sign the documents).

Here’s something you might not realize. As an employer that matches an employee’s 401 (k) contribution, you can match the amount that your child contributes to a Child IRA. Many parents and grandparents do (as long as the total annual IRA contribution does not exceed the teenager’s income that year).

Now here’s how to turn your teenager into a millionaire

Starting at age 13, a teenager earns at least $ 6,000 a year (not difficult as you might think). Contribute $ 6,000 to ARI for Adolescent Children. Rinse, lather and repeat until the teenager’s first year of college (or until the age of 18).

So don’t do anything.

Add nothing more and let this ARI child grow until the child reaches retirement age (which will likely be 70 by the time your teenager retires).

Assuming your teen’s Child IRA grows by 8% per year (which is 2-3% less than the historical average), how much will it be worth when your teen retires at age 70?

Prepare yourself: it’s almost 2.5 million dollars! Everything is accomplished before graduation from high school!

This is the power of composition. This is the opportunity that many miss.

Don’t miss it.


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