I want to make my children millionaires.

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PennyPinscher
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I want to make my children millionaires.

Post by PennyPinscher » Wed Nov 20, 2019 8:25 am

Hello everyone. I'm Zack and I started investing as a broke enlisted military member at the age of 23 after I read the Boggleheads Guide to Investing. I'm now 31 and although I have never earned more than 40k a year, I've gotten my portfolio to $60k~. I wake up every day for the past 8 years excited about saving and investing every penny I can spare and encourage other veterans and military members around me to do the same...almost always unsuccessfully.

The main point of my post: I have two kids, 5 and 6. I want to start them an account now so they can have a head start on life and not have to scrape together pennies like I do. They can't have a Roth IRA from what I've read. Is my only option to start 2 brokerage accounts and when they're older and employed, transfer them over into an IRA in their names? Is there a better option? I could also just do an additional $100 a month into my current portfolio and "call it theirs" but I want them to see individually how my small contributions grew over their lifetime so they too take saving/investing seriously.

Thank you all in advance!

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JoMoney
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Re: I want to make my children millionaires.

Post by JoMoney » Wed Nov 20, 2019 9:36 am

It's good that you're excited and motivated about saving and investment.
It's good that you want your kids to learn.
I'm not sure you gifting them money / investment account is the way that will teach them how to spend less than they earn.
Getting them excited about the stock market, which so frequently focuses on trading, isn't a great lesson either.
I'm of the opinion they should start looking at earning an allowance, and learning to save a small amount of that (even in just a piggy bank).
If you save and invest for your own needs, your kids will inherit whats left from you, and if they've learned to sacrifice and save hopefully they'll manage that wealth in a way that you would have wanted them to.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham

Broken Man 1999
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Re: I want to make my children millionaires.

Post by Broken Man 1999 » Wed Nov 20, 2019 9:38 am

I would concentrate in securing for them a solid education unburdened by student loans before doing anything else. Education is a well-traveled path path to higher earnings. Set your children up for earning their own wealth.

Savings accounts/allowances as they are growing can teach them about savings, delayed gratification, etc.

Broken Man 1999
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Re: I want to make my children millionaires.

Post by Jack FFR1846 » Wed Nov 20, 2019 9:39 am

Too complicated. The kids can't have Roths because they don't have earned income. Look around at credit unions. I know mine (DCU) pays 6.17% on the first $1k in each member's primary savings account. If you're somewhere DCU serves, open an account for each kid.

If you want each of your kids to be millionaires, just give each of them a million dollars. :happy
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student
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Re: I want to make my children millionaires.

Post by student » Wed Nov 20, 2019 9:42 am

Please save for your own retirement first. Given the deficit and the financial issue of Social Security, we probably need to rely on our own savings more. Your kids can always receive an inheritance from you.

livesoft
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Re: I want to make my children millionaires.

Post by livesoft » Wed Nov 20, 2019 9:43 am

First, make yourself a multimillionaire. One has to live long to do that, but it will eventually happen. Second, don't worry about your kids, they will be millionaires soon enough.
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Dottie57
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Re: I want to make my children millionaires.

Post by Dottie57 » Wed Nov 20, 2019 9:44 am

Make sure your kds can have a goodpost high school education. Either college or good trade school.

HEDGEFUNDIE
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Re: I want to make my children millionaires.

Post by HEDGEFUNDIE » Wed Nov 20, 2019 9:45 am

Dottie57 wrote:
Wed Nov 20, 2019 9:44 am
Make sure your kds can have a goodpost high school education. Either college or good trade school.
+1

The best way to make your children millionaires is to develop their human capital.

stoptothink
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Re: I want to make my children millionaires.

Post by stoptothink » Wed Nov 20, 2019 9:46 am

Broken Man 1999 wrote:
Wed Nov 20, 2019 9:38 am
I would concentrate in securing for them a solid education unburdened by student loans before doing anything else.
I would start securing the future for myself. That means both saving more, but also investing in yourself (career). At a portfolio of ~$60k and current income <$40k at 31, OP is moving in the right direction but hardly there. Biggest thing OP can do for their children now is be a role model; helping to secure their financial future will come when they personally have more options (resources). I want to help my children be successful to (financially and otherwise), the best way I can do that is to be successful myself.

MostlyABogleHead
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Re: I want to make my children millionaires.

Post by MostlyABogleHead » Wed Nov 20, 2019 9:48 am

+1 on education by Broken Man 1999. To take it a step further, start 529 accounts for the kids and put your money there. Some states provide tax benefits when you contribute to 529. Bogleheads wiki has a section on 529 that’s very information on how/why to get started.

DesertDiva
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Re: I want to make my children millionaires.

Post by DesertDiva » Wed Nov 20, 2019 9:49 am

Don’t give them money. Teach them about money and how to use it as a tool. How to earn, save, invest and spend. Lead by example. Your lifestyle and your decisions—your example—will shape their future more than monetary gifts. Many people who give their children money soon realize that their kids expect more and feel entitled, which doesn’t benefit anyone.

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Stinky
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Re: I want to make my children millionaires.

Post by Stinky » Wed Nov 20, 2019 9:50 am

PennyPinscher wrote:
Wed Nov 20, 2019 8:25 am
Hello everyone. I'm Zack and I started investing as a broke enlisted military member at the age of 23 after I read the Boggleheads Guide to Investing. I'm now 31 and although I have never earned more than 40k a year, I've gotten my portfolio to $60k~. I wake up every day for the past 8 years excited about saving and investing every penny I can spare and encourage other veterans and military members around me to do the same...almost always unsuccessfully.

The main point of my post: I have two kids, 5 and 6. I want to start them an account now so they can have a head start on life and not have to scrape together pennies like I do. They can't have a Roth IRA from what I've read. Is my only option to start 2 brokerage accounts and when they're older and employed, transfer them over into an IRA in their names? Is there a better option? I could also just do an additional $100 a month into my current portfolio and "call it theirs" but I want them to see individually how my small contributions grew over their lifetime so they too take saving/investing seriously.

Thank you all in advance!
Welcome to the Forum! Glad that you posted your question.

It's great that you've been investing, and it sounds like you've been doing a very good job. It's awesome that you want to give your children a head start on life through financial gifts.

I have a couple of suggestions for you. First, there is immense value in leading your children through your example. You're being prudent and thoughtful about money - your children need to see that in you. At ages 5 and 6, you can't tell them to read a Boglehead book or start reading this Forum. But what you can do is to show them, through everyday life, how you make thoughtful choices about money. For example, your children are old enough to go with you to the grocery store. You can talk them through what you're buying, why you're buying it, and the choices that you make in deciding to buy some things and not others. It doesn't need to be complicated or heavy-handed; it should be age appropriate. You can do the same types of things when you take them to buy clothes or other items. You can talk assign them chores around the house, and congratulate (and pay) them when they complete a chore.

Second, I think that it would be good to direct your savings for them toward college - either through a 529 plan or in a taxable account. Many states give tax breaks for 529 savings, so you might look there first. Getting your children a good education, and coming out of school with little or no student debt, will give them a solid financial foundation for their adult life.

Keep up the good work!
It's a GREAT day to be alive - Travis Tritt

boglebill
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Re: I want to make my children millionaires.

Post by boglebill » Wed Nov 20, 2019 9:51 am

They can have Roth IRAs! Do they do chores for allowance money? Simple and realistic... $10/week? Not absurd...

https://www.fidelity.com/retirement-ira/roth-ira-kids

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Brianmcg321
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Re: I want to make my children millionaires.

Post by Brianmcg321 » Wed Nov 20, 2019 9:53 am

Read them the book "The Richest Man in Babylon" every night before they go to bed.
Rules to investing: | 1. Don't lose money. | 2. Don't forget rule number 1.

Ed_Sandwich
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Re: I want to make my children millionaires.

Post by Ed_Sandwich » Wed Nov 20, 2019 9:53 am

DesertDiva wrote:
Wed Nov 20, 2019 9:49 am
Don’t give them money. Teach them about money and how to use it as a tool. How to earn, save, invest and spend. Lead by example. Your lifestyle and your decisions—your example—will shape their future more than monetary gifts. Many people who give their children money soon realize that their kids expect more and feel entitled, which doesn’t benefit anyone.
+1.

To further the point, it's easy to say "if I'd only had more $ I wouldn't have been better off and I would not have had to scratch and claw to get where I am. I don't want my kids to struggle like I had to." But oftentimes the struggle is the greatest gift you received because it 'taught you to fish' instead of giving you the fish, as the saying goes.

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Re: I want to make my children millionaires.

Post by flyingaway » Wed Nov 20, 2019 10:58 am

As a somehow successful father with two sons in their 20s, I just want to say that it is best to provide your kids with a good family environment at this time, give them the best education that you can afford and they can achieve. A happy life is worth much more than a million dollars.

(I am pretty sure that at least one of my sons will be a millionaire by his 30 and by himself. He started a Roth account in college when my wife and I did not have (did not have the knowledge of) our own Roth accounts).

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Re: I want to make my children millionaires.

Post by MotoTrojan » Wed Nov 20, 2019 11:08 am

How about a “bank of dad” with their allowance? Biggest lesson to teach would be the power of waiting until you have a larger sum saved and can get something more meaningful. At a certain age you could also add compounding interest as a lesson. Then have them get jobs in high school and match Roth contributions.

MichCPA
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Re: I want to make my children millionaires.

Post by MichCPA » Wed Nov 20, 2019 11:11 am

If you want millionaire children, pay for school and nothing else until they have proven they are capable of handling themselves for a couple of years without any support.

retired@50
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Re: I want to make my children millionaires.

Post by retired@50 » Wed Nov 20, 2019 11:11 am

DesertDiva wrote:
Wed Nov 20, 2019 9:49 am
Don’t give them money. Teach them about money and how to use it as a tool. How to earn, save, invest and spend. Lead by example. Your lifestyle and your decisions—your example—will shape their future more than monetary gifts. Many people who give their children money soon realize that their kids expect more and feel entitled, which doesn’t benefit anyone.
+1
My mom taught me about money and it worked... I've been a saver since I was 10 years old. She took me to the local bank to open an account. I was filing my own taxes based on my earned income when I was 15. She would double check my work before sending in the forms to the IRS. Examples matter - a lot!

Regards,

Nowizard
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Re: I want to make my children millionaires.

Post by Nowizard » Wed Nov 20, 2019 11:17 am

You are to be commended for wanting your children to develop a sense of financial literacy. You are also on the cusp of a debate that often first appears around the time of children going to college. It is one that has to do with funding those costs versus securing the retirement of the parents. There are many thoughts on both sides. At the moment, there is certainly no debate over whether small amounts invested in the name of your children, possibly through an educational account, is a positive start on the greater issue of developing financial literacy and introducing them to the concept of compound interest, among others.

Tim

sjt
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Re: I want to make my children millionaires.

Post by sjt » Wed Nov 20, 2019 11:20 am

DesertDiva wrote:
Wed Nov 20, 2019 9:49 am
Don’t give them money. Teach them about money and how to use it as a tool. How to earn, save, invest and spend. Lead by example. Your lifestyle and your decisions—your example—will shape their future more than monetary gifts. Many people who give their children money soon realize that their kids expect more and feel entitled, which doesn’t benefit anyone.
To add - let your children make mistakes with money. It's better to make mistakes with small sums while young and learn from this than do everything perfectly with a parents help. Through mistakes come experience then wisdom.

Perhaps instead of money being the goal, you should best teach your children how to be happy and live a fulfilling life. Of course, financial stability can be a part of this, but living a fulfilling and satisfying life should be the ultimate goal.

Of course the best way to do this is by example - do not save so much that your life is miserable, be sure to find the balance.
"The one who covets is the poorer man, | For he would have that which he never can; | But he who doesn't have and doesn't crave | Is rich, though you may hold him but a knave." - Wife of Bath tale

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dratkinson
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Re: I want to make my children millionaires.

Post by dratkinson » Wed Nov 20, 2019 11:49 am

Money given to people (heirs, lottery winners,...) who don't know how to make/manage it is often wasted. This is the reason for the often suboptimal experience of lottery winners.

Giving kids the tools (education) to earn their own money, and the experience of seeing it grow (in their own account) and learning to manage it for themselves, is probably the better course.

See: https://www.bogleheads.org/wiki/Accounts_for_children


Teach kids about compound interest and how to use Excel's FV (future value) function to predict how their account will grow each year. By understanding each piece of compound interest, they learn to manage/manipulate each piece... and more importantly... the outcome.
--Beginning account value this year is B.
--Kid invests I this year.
--Compound interest gives them C.
--Ending account value for this year should be B+I+C.

After many years, the portion contributed by C (compound interest portion) will become larger than I (their investment portion).


Lesson. To make C grow faster, they must increase the amount they save each year and wait for time and compound interest to do their jobs.


Lesson. Show them how after they begin working, and contributing to their retirement plans that they can easily become millionaires.

Example. If they (single) begin working at age 25 and contribute $115/wk* from their paycheck to their IRA, they will have $1M at age 65. $1.3M = FV(.07/52,40*52,-115,0). Note: this contribution is slightly less than they are allowed to contribute to their IRA/yr (115.38 = $6K/52).


Lesson. If they (married) and their spouse max their IRAs + employers' retirement plans, they will have ~$11M (=FV(.07/52,40*52,(-6000-19000)/52*2,0) in 40yrs (age 65). Employer matching contributions + after-tax contributions + taxable account investing will push the total higher.


You will need to repeat these lessons often. I suggest every January, when you review their account(s) with them for the previous year.
--Show them how their account grows from the small contributions trickling into it while they are children,
--and how compound interest increased their account value,
--and how THEY can grow their account value faster as adults. ...If they do the work.


Lesson. May want to reinforce the lesson every time you+them make a contribution to their account---you (plural) are doing this so compound interest will have a larger principal to work with.

Explain how you do the same thing (make periodic contributions) when you save for your retirement.


Bottom line. Give kids the tools (education) to make money, and your example of how to manage it. Mistakes are a part of learning.


Welcome.
Last edited by dratkinson on Wed Nov 20, 2019 11:52 am, edited 1 time in total.
d.r.a, not dr.a. | I'm a novice investor, you are forewarned.

KyleAAA
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Re: I want to make my children millionaires.

Post by KyleAAA » Wed Nov 20, 2019 11:50 am

There are probably tax consequences to watch out for. I would ask a CPA. That said, a smallish portfolio of a few thousands dollars isn't going to generate much in the way of taxes for you or them. They must have earned income to contribute to an IRA but if they get a part time job in high school, you could contribute to their IRA and let them keep their own earnings. I'd be inclined to go that route as the simplest.

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Watty
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Re: I want to make my children millionaires.

Post by Watty » Wed Nov 20, 2019 12:11 pm

HEDGEFUNDIE wrote:
Wed Nov 20, 2019 9:45 am
Dottie57 wrote:
Wed Nov 20, 2019 9:44 am
Make sure your kds can have a goodpost high school education. Either college or good trade school.
+1

The best way to make your children millionaires is to develop their human capital.
One other really good thing to do is to make sure your finances are rock solid and that they will not need to support you even if you live to be 95 and spend a long time in long term care.

I know people that have had to financially support their parents and they love them but that can be financially hard especially for a spouse that sees a lot of the families resources being used to support the inlaws.

If you save a lot in your accounts then not only would you be more financially secure but they would inherit it some day or you could give them money when you are older and financially secure.

InvestingGeek
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Re: I want to make my children millionaires.

Post by InvestingGeek » Wed Nov 20, 2019 12:27 pm

Dave Ramsey's daughter wrote a book about making kids financially savvy if that's your intent. I got it at the local library and it was a good read with some practices worth implementing. Setting them on the track to earn their own money, and then save, spend and give out of it is a good way to get them started. Then later, your can introduce them to index investing.

If you're thinking of creating an account for them that'll grow, it might hurt their college financial aid chances later if they have too much in their names. I'd recommend building your own wealth, and making them financially smart. That way, when you give them a ton of your money later in life, they'll know how to handle it smartly and make it grow even more.

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Re: I want to make my children millionaires.

Post by friar1610 » Wed Nov 20, 2019 12:56 pm

PennyPinscher wrote:
Wed Nov 20, 2019 8:25 am
Hello everyone. I'm Zack and I started investing as a broke enlisted military member at the age of 23 after I read the Boggleheads Guide to Investing. I'm now 31 and although I have never earned more than 40k a year, I've gotten my portfolio to $60k~. I wake up every day for the past 8 years excited about saving and investing every penny I can spare and encourage other veterans and military members around me to do the same...almost always unsuccessfully.

Military retiree here. As an aside, be sure to tell your fellow military members to avoid First Command like the plague. Then make sure they read "Bogleheads Guide..." just like you did. Best wishes to you.
Friar1610

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celia
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Re: I want to make my children millionaires.

Post by celia » Wed Nov 20, 2019 1:14 pm

Household chores don't count as earned income. That is just learning to contribute to the family as you can. The earned income needs to be something reported on their taxes and earned within the U.S.

That said, I agree that being a good financial role model will be the best for them over the long run. Stay away from those fancy cars and elaborate vacations. :D Just like when traveling on an airplane, it is best to secure your own face mask before you put it on others. The best gift you can give your kids is to not be a financial burden on them in your old age.
:sharebeer

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Re: I want to make my children millionaires.

Post by Gnirk » Wed Nov 20, 2019 1:23 pm

Here is what my parents did to encourage me to save:
We were given an allowance...mine was 25 cents per week in 1954. We could spend it, or we could save it. If we saved it and deposited it in my savings account, my parents would match it. However, it had to stay in the savings account. I did the same thing for my kids, although their allowance was larger!

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Re: I want to make my children millionaires.

Post by Presintense » Wed Nov 20, 2019 1:59 pm

retired@50 wrote:
Wed Nov 20, 2019 11:11 am
DesertDiva wrote:
Wed Nov 20, 2019 9:49 am
Don’t give them money. Teach them about money and how to use it as a tool. How to earn, save, invest and spend. Lead by example. Your lifestyle and your decisions—your example—will shape their future more than monetary gifts. Many people who give their children money soon realize that their kids expect more and feel entitled, which doesn’t benefit anyone.
+1
My mom taught me about money and it worked... I've been a saver since I was 10 years old. She took me to the local bank to open an account. I was filing my own taxes based on my earned income when I was 15. She would double check my work before sending in the forms to the IRS. Examples matter - a lot!

Regards,
This. Don’t give them fish. Teach them to fish.
Performance = Potential - Distraction

Thegame14
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Re: I want to make my children millionaires.

Post by Thegame14 » Wed Nov 20, 2019 2:39 pm

Education is always key, I would open a 529 account and put in $50 a month, it wont pay for all of college, it may only end up paying one year of college, but small amounts over long periods of time add up, and lessening their student loan burden would be a big help in life.

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Re: I want to make my children millionaires.

Post by LilyFleur » Wed Nov 20, 2019 4:03 pm

JoMoney wrote:
Wed Nov 20, 2019 9:36 am
It's good that you're excited and motivated about saving and investment.
It's good that you want your kids to learn.
I'm not sure you gifting them money / investment account is the way that will teach them how to spend less than they earn.
Getting them excited about the stock market, which so frequently focuses on trading, isn't a great lesson either.
I'm of the opinion they should start looking at earning an allowance, and learning to save a small amount of that (even in just a piggy bank).
If you save and invest for your own needs, your kids will inherit whats left from you, and if they've learned to sacrifice and save hopefully they'll manage that wealth in a way that you would have wanted them to.
At your income level, your children will hopefully be eligible for financial aid for college. Under current guidelines, the children's own accounts and your brokerage account could hurt their chances for financial aid. Tax-deferred retirement accounts do not count against them.
We let the children earn allowances when they were young.
Now, one of my children is out of college and working full-time. I told him I would match his contribution to a Roth IRA. I'm really happy that he saved very carefully right away, and we will be opening a Roth for him and fully funding it for this year!

dacalo
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Re: I want to make my children millionaires.

Post by dacalo » Wed Nov 20, 2019 4:15 pm

Better for your children to be money smart but have to start from scratch than be money dumb and blow all the money prematurely.

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Nate79
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Re: I want to make my children millionaires.

Post by Nate79 » Wed Nov 20, 2019 6:38 pm

boglebill wrote:
Wed Nov 20, 2019 9:51 am
They can have Roth IRAs! Do they do chores for allowance money? Simple and realistic... $10/week? Not absurd...

https://www.fidelity.com/retirement-ira/roth-ira-kids
Um, no they can't.

Jags4186
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Re: I want to make my children millionaires.

Post by Jags4186 » Wed Nov 20, 2019 6:41 pm

You have a little bit of a late start but you can give your kids $50 million with only a $3000 seed.

https://paulmerriman.com/turn-3000-50-million/

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scubadiver
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Re: I want to make my children millionaires.

Post by scubadiver » Wed Nov 20, 2019 6:57 pm

Welcome to the forum and thank you for your service.

If you want your children to be millionaires, the best way for them to get there is through their own efforts. To that end, teach them the value of hard work and education. Be a good and supporting father and have faith that when the chips fall, your children will be fine.

soccerrules
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Re: I want to make my children millionaires.

Post by soccerrules » Wed Nov 20, 2019 6:57 pm

Glad you are on a good path yourself. My thoughts will be similar.

Teach by showing them what you are doing
Let them earn an allowance and teach them to save 15%, maybe donate to charity and live within their means.
As Teenagers make sure they understand budgeting, savings and work.
Consider having them pay for a portion of trips they take with school/church/friends or pay for part of their music/cheer/sports/theater teams/classes
Consider possible parent 401k-- you match 25% of what they put in bank with stipulations it has to stay in their for X time.
Help them understand the costs of having an auto. Have them pay for some of the expense (gas, insurance)
Help them earn good grades and scholarships for college/trade (if you have means to pay for it --do it)
Introduce them to Low Cost Index Investing
Don't be a financial burden to them when you get old.
Gift them money later in life if you want to and see them enjoy it
Leave an inheritance if you can.
Don't let your outflow exceed your income or your upkeep will be your downfall.

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Re: I want to make my children millionaires.

Post by GoldenFinch » Wed Nov 20, 2019 7:20 pm

Brianmcg321 wrote:
Wed Nov 20, 2019 9:53 am
Read them the book "The Richest Man in Babylon" every night before they go to bed.
This book is my favorite investing book for young people because it is easy to read and written like a fable. I think your kids are a little young for it though. I would read them children’s books about the importance of saving money and the difference between wants and needs. As they get older you can introduce them to more investing topics and teach them about Boglehead ways. You are on the right track and your example will benefit them tremendously. Best of luck and keep reading here!

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Re: I want to make my children millionaires.

Post by surfstar » Wed Nov 20, 2019 7:22 pm

Dad ?

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Re: I want to make my children millionaires.

Post by abuss368 » Wed Nov 20, 2019 7:27 pm

PennyPinscher wrote:
Wed Nov 20, 2019 8:25 am
Hello everyone. I'm Zack and I started investing as a broke enlisted military member at the age of 23 after I read the Boggleheads Guide to Investing. I'm now 31 and although I have never earned more than 40k a year, I've gotten my portfolio to $60k~. I wake up every day for the past 8 years excited about saving and investing every penny I can spare and encourage other veterans and military members around me to do the same...almost always unsuccessfully.

The main point of my post: I have two kids, 5 and 6. I want to start them an account now so they can have a head start on life and not have to scrape together pennies like I do. They can't have a Roth IRA from what I've read. Is my only option to start 2 brokerage accounts and when they're older and employed, transfer them over into an IRA in their names? Is there a better option? I could also just do an additional $100 a month into my current portfolio and "call it theirs" but I want them to see individually how my small contributions grew over their lifetime so they too take saving/investing seriously.

Thank you all in advance!
Welcome to the forum!

I also want to "thank you" for your service to our great nation.
John C. Bogle - Two Fund Portfolio: Total Stock & Total Bond. "Simplicity is the master key to financial success."

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abuss368
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Re: I want to make my children millionaires.

Post by abuss368 » Wed Nov 20, 2019 7:28 pm

I would consider opening a College 529 plan for each of them. The gift of graduating college without loans (or lower debt) would be a great way to help them get started. They will thank you many times over as the years go on.
John C. Bogle - Two Fund Portfolio: Total Stock & Total Bond. "Simplicity is the master key to financial success."

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PennyPinscher
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Re: I want to make my children millionaires.

Post by PennyPinscher » Thu Nov 21, 2019 8:57 am

Wow! I did not expect so many genuine responses to my post! I should have added my income is so low because I'm currently working part time while working on my bachelor's degree. I don't intend to be broke forever!

After reading every single reply, I have decided on doing a pair of 529's and continuing to focus on my own wealth. Getting them into and out of college without a full burden of debt is probably the best thing I can do for them.

I appreciate everyone taking the time to respond to my question, I'm blown away!

ncbill
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Re: I want to make my children millionaires.

Post by ncbill » Thu Nov 21, 2019 10:46 am

Dottie57 wrote:
Wed Nov 20, 2019 9:44 am
Make sure your kds can have a goodpost high school education. Either college or good trade school.
And use the military to pay for the above.

ROTC scholarships, join the state National Guard (covers tuition/fees in many states for public schools), or enlist & use GI Bill afterwards.

If the OP elected to participate in the latter they should be able to transfer it to one of their kids.

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Re: I want to make my children millionaires.

Post by RadAudit » Fri Nov 22, 2019 10:21 am

PennyPinscher wrote:
Thu Nov 21, 2019 8:57 am
I have decided on doing a pair of 529's and continuing to focus on my own wealth. Getting them into and out of college without a full burden of debt is probably the best thing I can do for them.
That's probably one of the surest ways to help make them become millionaires. Hopefully, they'll figure out a way to stay millionaires.
FI is the best revenge. LBYM. Invest the rest. Stay the course. - PS: The cavalry isn't coming, kids. You are on your own.

Shallowpockets
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Re: I want to make my children millionaires.

Post by Shallowpockets » Fri Nov 22, 2019 10:39 am

Teach them, and example it yourself, about SPENDING. That is the crux of it. Whether or not they become millionaires, they can learn to LBYM and thus have control.
Its all about the spending. There are scores of millionaires who botched it. See movie stars and sports stars. It is not uncommon to have lottery winners be broke again within 3 years.
It is all about the spending.

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Re: I want to make my children millionaires.

Post by ohai » Fri Nov 22, 2019 10:45 am

OP, in my opinion, you should develop your kids academic potential to the point of near obsession, similar to but not necessarily as extreme as Tiger Mom. As a $40k earner, there's not much you can do yourself to contribute to your kids' wealth. However, Ivy League graduates are getting $200k+ packages as new hires. Over their careers, they can very feasibly accumulate net worth between $5 and $10 million in today's money, and very easily $1 million to $5 million. Human capital is also a real resource that your kids will benefit from.

Secret tip: any kid can be a top student up to age 18. Work ethic, culture, and role models are 90% of what counts up to this point.

dknightd
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Re: I want to make my children millionaires.

Post by dknightd » Fri Nov 22, 2019 11:26 am

Presintense wrote:
Wed Nov 20, 2019 1:59 pm
Teach them to fish.
and camp, and enjoy the outdoors. Teach them to be happy, and enjoy life, and learning.
Teach them there is more to life than money. Teach them they need some money to enjoy life.
Likely your 5 and 6 year olds will be millionaires one day. Inflation is a powerful thing ;)

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LiveSimple
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Re: I want to make my children millionaires.

Post by LiveSimple » Fri Nov 22, 2019 12:26 pm

Give the kids the character, the wisdom and then the resources, in that order.

From richest man from Babylon ? book ?

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Wiggums
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Re: I want to make my children millionaires.

Post by Wiggums » Fri Nov 22, 2019 1:58 pm

Broken Man 1999 wrote:
Wed Nov 20, 2019 9:38 am
I would concentrate in securing for them a solid education unburdened by student loans before doing anything else. Education is a well-traveled path path to higher earnings. Set your children up for earning their own wealth.

Savings accounts/allowances as they are growing can teach them about savings, delayed gratification, etc.

Broken Man 1999
I agree. This is the path we followed for our children.

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Re: I want to make my children millionaires.

Post by Katie » Fri Nov 22, 2019 2:49 pm

Echoing the themes posted above - the best way to help your children become millionaires is to model the behaviors you want to see in them. Teach them about saving for a goal and working to achieve it. Let them know while you will have enough to make sure they're always fed and have a place to live, you need to live below your means and know where your money goes.

Secure your own financial security and then, when they're older, you'll be in a position to help them with once you've seen them demonstrate that they are responsible with their money. Think how you would feel if you put money in their names for years, only to see them blow it on an overly expensive car or something you consider wasteful (or even harmful) to them.

By saving for yourself, you'll be in a position to help them with school or a house down payment or even help them start a business when the time is right.

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Re: I want to make my children millionaires.

Post by marcopolo » Fri Nov 22, 2019 2:51 pm

abuss368 wrote:
Wed Nov 20, 2019 7:28 pm
I would consider opening a College 529 plan for each of them. The gift of graduating college without loans (or lower debt) would be a great way to help them get started. They will thank you many times over as the years go on.
Not to single you out, but a general comment on the numerous post suggesting 529 plans.

I fail to see how that makes much sense.

I am a huge fan of education, and using 529 plans to fund them in appropriate situations. I have been involved in numerous threads arguing in support of using 529 plans.

But, this is not one of those situations. 529 plans are great if you have well funded your own retirement, hopefully maxing out tax-deferred space, AND are likely to be paying for you kids education. Neither of those conditions appear to be true here. The OP seems unlikely to be maxing retirement opportunities, and at their income, savings level, as well as being in military, is quite likely to be getting substantial aid.

I would think directing any available savings to retirement accounts would be a much better use of those dollars than a 529 plan.

Secure your own air mask first.
Once in a while you get shown the light, in the strangest of places if you look at it right.

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