This ONE Deposit Will Turn Your Kid Into A Millionaire

What if you could turn your kid into a millionaire at retirement by simply making one deposit when they are born?

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Disclaimer: Please note that this video is made for entertainment purposes only and not to be taken as financial advice. Always make sure to do your own research.


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#makingamillionaire #millionaire

[davidstephens]

Erin, this is Downer Dave. Lol. I was born March 11, 1958 so I just turned 65. And no, my parents did not deposit $1600 for me 65 years ago. They couldn’t. I remember going over their social security numbers and in the 1950’s my father was barely making $1, 600 a year. They would have to put back a years worth of wages back then. Even $60 a month was half a months pay. The $7, 000 needed now is easier for a couple now than it was back then. And even $7000 is not easy for my daughter that has two kids, two daycare payments, etc. But it is easier for for old granddad so you have given me the goal of $10, 000 investment for my 1.5year old grandson and maybe $15, 000 for my 5 year old granddaughter. Now, do I have to have a custodial or guardian account of some type? How would I open an account for them?
Glad to see you have a sponsor. Keep up the good work Erin. As I keep saying- I love your channel.

[kirklandphil]

That's Awesome, I'm calling my Mom right now as I was born in 1958, let's hope she made that move 😂😂😂

[ralphparker]

My parents bough a life insurance policy for me when I was born. If they had just purchased an index fund instead, I'd be wealthy. But when I die, someone will get (maybe) $10K.

[christophe_atx]

I did this calculation for my coworker when he bought his 19 year old a new car. I told him that car could have been his entire retirement account. Lol
Also on inflation, $1M will not be the same in 40, 50, 60 years but zero will always feel like zero.

[hogroamer]

Or just keep the money in your retirement account and leave it to them in your will/trust. I think it's better they don't see that money in their account. Many young people, that don't understand money, may see six or seven figures in their name and think they don't even need to contribute.

[jenesepatanella]

Sounds great but back then my Dad's salary was about that much for the entire year. He was supporting 2 kids....so I don't deny that it is true, I just don't know how many people could invest that much then or equivalent now.

[Masher]

Still shocked you don’t have more subscribers. Such a good channel. Long time subscriber here. 😊❤

[curtiswfranks]

I do think that being more-conservative with projections is smart, for the reasons which you specified, and the fact that the last sixty-five years have had incredible growth partially due to the advent of digital technologies, which I am not confident can be sustained or repeated. (I am not saying that it will not be so either, though – look at how the Industrial Revolution led straight into the modern world). Additionally, the U.S. is losing its hegemonic status, meaning that the U.S. economy is going to be, relatively speaking, on a down swing – but the timescale for that is on the order of decades or centuries.

[TheFirstRealChewy]

I am conservative. I use 2-4% as my estimate of real return. A real return rate of 7% or more would be awesome!

I'd definitely invest early for my kids. The biggest expenses are a house and retirement. College is optional, you don't need to spend $20K on a wedding, you don't need to buy a new luxury SUV, and no, you don't "need" to have kids.

Count yourself lucky if someone helped you pay for any of the above.

[curtiswfranks]

I did this calculation for my nieces and was totally blown away.

[jdgolf]

Great video. However, the answer to your first question, sadly, is not always, "yes, I'd love to make my kid a millionaire." I work in the auto industry, and it still amazes me how many well paid people still don't contribute to a 401k plan, even enough to get the match!!!!

[LegacyStacker]

Hi Erin! Nice video! Although we should point out that in 1958 $1, 600 would be 3 months of the average gross salary, so it would probably be harder than it seems today. 😎🏆

[brycegardner]

I know this is just and example, but there was no way for someone to invest $1600 in the S&P500 in 1958. And if they did invest in one stock or even fund, the cost of purchasing would have been substantial. We don't always remember that cheap and accessible investing is relatively new. Anyhow, I'm not complaining about your example, just thinking how personal finance has changed is in 65 years.

[toddaustin]

Another awesome video, Erin! TY

Since my kids are 16, 18 and 20 it's too late.

Maybe my wife and I can be like your Mom and do this for our future grand babies once they grace us with their presence.

[lidarman]

I missed this six months ago but your most profound video. The essence of compound interest.

[algoflush]

You can look up Ben Franklin's 200 year investment of $10, 000 into the bank of Boston. It matured in 1998 in the millions.

[allisbookishadventures]

My niece is 13. I just explained compound interest to her mom last Friday because for her 13th birthday I couldn't decide what to give her, so I started a savings account for her at Ally bank so when she turns 16 she'll have some money to put towards a car. I'm contributing $15 a week to the account and I'm doing that for 3 years (or longer if she doesn't need the money for a car). My nephew is 5, so once my niece gets her money I'll start on his account.

[kevinm]

Love your clear and concise videos, keep up the good work!

[scottg]

I can vouch for Ekster wallets. I have one just like this, and it's excellent!

[BeerBikes]

30K Let's GO baaaaby! congrats on the growth of your channel. killing it!