Have you ever wanted to do something truly special for your children or grand children? Well today I want you to help them become millionaires. It will also help you develop a better understanding of how anyone can develop wealth with a steady plan.
One of the most important things I’ve learned about wealth building is that you can never start too early. When children develop strong spending and saving habits it helps them throughout their entire life.
Perhaps you’ve made some poor financial decisions in your life. Or maybe you haven’t always been the best when it comes to saving for your future. Believe it or not it might have to do with how you were raised. Your whole life you’ve been sold on the idea of buying, whether it was commercials on TV or ads in newspapers and magazines. With the constant exposure of being sold on the latest and greatest it’s no wonder why people make poor wealth building decisions. Maybe no one ever sat you down and explained wealth and how to acquire it.
The Lack Of Money!
Here’s how to solve the #1 problem facing business owners and those who want to start a biz…
If you’ve been held back from starting or growing your business because you don’t have the dough to get going…
Go Watch This Free Video Now
**End Sponsored Content**
Are you providing the children in your life with the wealth building knowledge they need?
Some of the greatest wealth builders ever have been taught about wealth from a very early age. There is a reason why rich kids develop rich money habits. The bestselling book Rich Dad Poor Dad was based on this very topic. However you don’t need to be wealthy yourself to help children develop this mindset.
And most importantly of all, you can start today.
The children in our lives have one key advantage that many of us currently lack… Time! A 15 year old today has over 50 years before they reach the typical retirement age of 65.
To start it’s never too early for a child to begin earning income. No, I’m not suggesting your 3 year old son get a job mowing lawns.
There are plenty of ways for your child or grandchild to earn passive income. An easy way to start doing this is to use birthday and other gift money to invest. This can be used for anything from bonds, savings accounts, CD’s, Gold, or even trading accounts. It’s important to get them involved so they can understand how these actions are helping their long term goals.
Invest In the Long Term
The Uniformed Gifts to Minors Act (UGMA) is a way for children to own stocks and securities. This type of account is markedly different from a regular old savings account, essentially it is a trust that allows a minor to receive thousands of dollars a year without having to involve and pay for a lawyer. An account is set up for the child, and a custodian is appointed to oversee the funds and the investments. This type of trust allows the custodian to buy stocks, mutual funds, and other types of securities and assets. The custodian must act in a “prudent manner”. For example a custodian cannot gamble with the money and give the winnings to the child.
It’s easy to set up this kind of account. Just stop by your local bank, call your stockbroker or mutual fund manager to open one for your child or grandchild. A child can receive up to $1900 a year before having to pay taxes on their money. After that though the “kiddie tax” comes into play and the child’s money is taxed at the parent’s highest tax bracket, thus significantly reducing the benefit of this type of trust.
If the tax rules and regulations scare you then try something simpler. Opening any type of account to shelter your child’s money is a great first step. By opening an account that does more than provide a place to store their money your child or grandchild will earn more than just interest. Simple savings accounts are better than nothing but in this newsletter I inform you of the very best options. Consider a savings account at a bank like Salem Five which caters to children and building their wealth. Savings accounts at this bank teach children about money and building wealth. They offer online access because let’s face it our kids are online at younger and younger ages now a days. They also provide monthly articles that cover topics like how to use credit cards, what investing is, how to budget, what borrowing money is all about, etc. It also provides entertaining tools so kids learn good money habits while having fun. There are puzzles, games and calculators to help kids figure out if they can afford that new bike or video game.
The Craziest “Casino” Ever
The one thing about gambling is that at best it usually comes down to a 50/50 chance. And in many cases your odds are much lower.
Though what if there was a way to legally gamble and stack the odds in your favor. Can you imagine being able to bet on every number on a roulette wheel and canceling the losing bets?
Well, I’ve found something that is as close to that as you’ll ever get.
Click here for all the details: https://www.leagueofpower.com/gamble
**End Sponsored Content**
If you want to build wealth for your child or grandchild than a simple savings account won’t be enough. Investment vehicles such as stocks or mutual funds are great choices because multiple studies have shown that the average rate of return for the stock market is 10%. One such choice is a low cost index fund. Index funds are a type of mutual fund that allows investors to invest money with others in a wider range of investments than is typically possible for individual investors. This type of index relies on a computer model with little or no human input in the decision as to what is purchased or sold. This provides the advantages of lower fees and taxes. Many financial companies provide special accounts for children investing in these types of mutual funds, and the minimum investments for these funds are generally quite low.
No matter if you choose to open an account in which a custodian controls the investment path or a savings account to allow a child to choose their own path the most important thing to remember is that your child or grandchild has the most valuable asset anyone can have, time. A child who invests $50 a month for six years before the age of 13 and then never invests another cent will end up with more than $723,000 at age 65. An adult would have to invest nearly $200 a month for 35 years and ensure they get a 10% rate of return on their money to be able to retire with the same amount at age 65. No easy feat.
So no matter what investment path you choose, know that you are ensuring a path to financial freedom. Investments for your children or grandchildren over the long term have proven to be the most successful investing strategy.
Teaching your kids good money habits at an early age will benefit them for the rest of their lives. Learning how to save money isn’t enough. Kids need to learn how to build wealth too. Knowledge gained through experience is best. It is much more powerful than reading about saving and growing wealth in books or in the classroom. But knowledge alone won’t ensure your children or grandchildren build wealth. Taking such steps as opening trusts or other types of accounts will place your loved ones on the path to financial freedom. There can be no greater gift than that.
Keeping Money In Your Pocket,