Wanna really make a difference in your KIDS lives??
When they're born - put a grand away - add a grand every year til they're 63 years old...
Net result at retirement compounded at 9% (so you need 6% reinvested dividend AND capital growth of 3% a year - this is super super conservative and not even realistic! It should be far more over time!)
If you were a long term investor, the worst twenty years delivered a return of 7% a year. This occurred over the twenty years ending in February 2009. The best twenty years delivered an average return of 18% a year, which occurred over the twenty years ending in March 2000.
$2,976,771.57
Tax free MUNI BOND return on that balance PER YEAR at what I earn currently (5%) -- that's $150,000 in income per year NET NET TAX FREE off your silly little $1,000 per year from birth.
WAY better than college!
Last edited by GregWeld; 12-13-2011 at 08:51 AM.
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