Here's how to help your children or grandchildren retire with £1.2m…
On the day they’re born, you invest £5,000 using a low-cost, systematic investment approach.
Let’s say that, on average, the investment returns 10% per year – roughly the historical average of the S&P 500.
On the first day they can legally retire (their 55th birthday), they’ll have £1,195,892.17 in their account.
No matter how many times I revisit this idea, it always astonishes me.
When you become a parent, you realise life is so much bigger than yourself.
Your priorities change and goals become clearer.
It's a responsibility that's often as difficult as it is rewarding.
But like everything in life, made easier when you plan ahead.
Beyond basic needs, schooling, university and social activities, there's also the legacy you want to leave behind for them.
You want to ensure they're set up for their future so they don't have the same money fears you might have had.
This may seem overwhelming.
So, where do you start?
The simple answer is - start today with whatever you can put aside for them.
Then, let that investment get to work and grow with the power of compounding on its side.
It's how most great fortunes are built and it’s far more powerful than you might imagine.
This week I had the great pleasure of meeting Brian Portnoy, author of ‘The Geometry of Wealth’.
Brian illustrates that true wealth is the ability to underwrite a meaningful life, what he calls ‘funded contentment’. The idea of aligning money to meaning is in stark contrast to our default human instinct to pursue becoming rich.
Is leaving a legacy for your family’s future generations the greatest example of funded contentment?