Make Your Grandchild Wealthy With $1000

Make Your Grandchild Wealthy With $1000:
A Grandparent’s Guide to Making your Grandchild a Millionaire

In the decades ahead, as a result of mortality and inheritance, an estimated $20 trillion will be passed to the next generation.

How can we provide for our grandchildren in the best way?

1. We can provide a way for our grandchildren to grow into controlling money so they know how to benefit from it.
2. We want to avoid taxes for ourselves and them as much as possible.

The Best

Invest early and often. This is the most important advice every grandparent has for the younger generation. Those who are lucky or wise enough to follow this advice turn out to have a happier life by any measure. You may not be able to convince your loved ones of this common sense. Even some of our best schools now understand that this lesson needs to be taught to all, early, just like sex education. Speaking to individuals about their money is the last taboo our society has yet to confront. Unlike sex education, our culture has to make a commitment to make this education universal.

Until it does, you may be able to actually make this happen for your grandchildren as your legacy.

$1,000, invested at birth can be worth about $1,233,274 at age 65. $3,000 at birth can get them about $3,699,823. $5,000 can become about $6,166,372. That is worth about a $1,000,000 in today’s purchasing power.

How cool would it be if you made it possible for them to not have to worry about their retirement? Social Security? You don’t know what the future will bring. You DO know they have a lot of time before retirement. You have the ability to help them get a jump on things. They get a head start on their way to a comfortable life.

If you started them out early, they will have already seen the power of compounding by the time of their first job. Compounding can turn that $1,000 or $5,000 into their lifetime security fund. They can start their Roth IRA or company Roth IRA and know how to earn 12% on their money. Some mutual funds holding stocks have earned 12% historically. At their job, they can contribute $3,000 a year ($120,000) and have another $1million tax-FREE to assure them of long-term care if they need it.

One advisor said: “Obviously, starting early for grandchildren might make all the difference for the next generation. This might become a financial legacy that the present generation can give to the younger generation without leaving assets in a will. But for you and me, the hard fact is that it is TIME and not anything else that we can currently change, that makes compounding work. Look at what a single gift of $1,000 at birth can do for a child.”


Baby's Birth $1000
Age 10 $3,000
age20 $10,893
age 25 $19,788
age 30 $35,950
age 65 $2,347,857

“WOW! That is amazing. Even if they start investing later in life, they can’t make up the time by putting in a little more money, or following advice to ‘buy low, sell high’ or to ‘pick winners and let them ride’?”

Another way to look at this Gift of a Lifetime is that your $5,000 investment before age 5 could allow your grandchild to have what I call a “Wealth Reserve.” They would have a Wealth Reserve of about $50,000 by age 22. That would allow them to start a home, business or go to graduate school if they like. You have the peace of mind of knowing that you have provided the financial foundation for their entire life. If they don’t spend it right away, they can avoid interest expenses when they buy things on time and have enough to insure their retirement needs.

A Wealth Reserve can help your loved one “self-insure” their insurance needs. They can buy insurance and other financial services for less because they have a reserve that covers the high deductibles of insurance policies. They insure for the catastrophic risks like businesses do. They pay less in premiums and fees because they have the reserves to cover the smaller expenses.

In the past, parents and grandparents purchased small insurance policies on their loved ones in the mistaken belief that an insurance policy provides for their financial foundation or guarantee of their future insurability. Neither of these beliefs is true. Sometime in the past these solutions may have been useful to young poor families but not lately.

Child mortality was high when you grew up. Insurers came to collect pennies each week from your parents to pay for a $1,000 or $5,000 death benefit. These small policies provide little benefit when they might be used some 85 years later. I recently cashed mine in for a couple of hundred dollars. Even cremations cost more than the total death benefit today.

Today, almost any child will be insurable by the age they need to have life insurance to protect those who depend on them for financial security. There is no benefit to purchasing a policy at birth to maintain insurability, as some carriers contend. When your grandchild gets married and needs insurance to protect their family, they will need a lot more coverage than the best of the child policies. Also, many employers now provide life insurance, even if your grandchild has a medical condition that would require a higher premium for coverage. The employer’s group rate takes this into account since employees do not obtain full underwriting.

Wouldn’t it be better to provide a Wealth Reserve of about $36,000 at age 18 for your grandchild’s college expense? If they are not interested in college, the $50,000 at age 22 would help them start a business or buy a home or at age 65, provide a pre-paid retirement.

The best part: You don't have to be wealthy to act wealthy. Give $1000 today. We show you how to start.

Find more about The Gift of a Lifetime at
http://www.theinsidersguides.com/gigiofli.html