How Just $10,000 Can Turn Kids into Millionaires

As a father of six kids, yes six, it is my responsibility to teach my kids how to manage and multiply their money. Most parents, like mine, taught me how to work, make money and spend it. They did not teach me how to manage or multiply my money. I had to learn how to do that on my own, and thankfully, I did learn.

Now, it is my responsibility to pass on what I’ve learned to my children. Hopefully, since they are learning about money as children and not as a twenty five year old as I did, they will be much more successful with their money. If I do a good job teaching them, they may be able to become millionaires as well, and we can keep building family wealth and our ability to help other people in need.

Lately though, I’ve been thinking a little differently. Sure I can teach my kids how to manage and multiply money. They may even become millionaires, but what if there was a way I could virtually guarantee they would become millionaires. And, I could do it for just $10,000 per kid.

Well, it turns out, that idea isn’t so far fetched. I first got the idea last year while out on a walk in downtown Salt Lake City. I’m sure it was a chilly evening since March is usually cold in Salt Lake. After a bit of work and pondering, the idea started to have legs, and it is continuing to evolve.

Now you may be thinking, $10,000 can’t make someone a millionaire. And, you would be dead wrong. In fact, $10,000 can make someone a multimillionaire, if you start soon enough. The problem is, we all wait too long to get started on our investing. Many Americans wait well into their 30s or 40s to begin investing and saving for retirement. While it’s better late than never, the real opportunity to build wealth needs to start much sooner especially if you are going to turn $10,000 into a $1,000,000.

I know it sounds little like magic or hocus pocus, but it really just boils down to time…and economic and political stability. Let’s indulge ourselves a bit by assuming economic and political stability will exist in the future. Then we just need to concern ourselves with what happens when we invest $10,000.

According to Investopedia, the average growth rate for the S&P 500 dating back to 1928 is 10%. At 10% growth, it takes money about 7.2 years to double your money, which allows us to multiply our money like this over a 70 year period.

  • Initial Investment: $10,000
  • 7 years: $19,487
  • 14 years: $37,975
  • 21 years: $74,002
  • 28 years: $144,210
  • 35 years: $281,024
  • 42 years: $547,637
  • 49 years: $1,067,190
  • 56 years: $2,079,651
  • 63 years: $4,052,651
  • 70 years: $7,897,470

Now, why did I use a 70 year period for this example? The answer is simple. Because if you put $10,000 into an investment fund the year a child is born, allows it to grow in this manner. The number years mirror the child’s age. Are you getting the picture yet? $10,000 in an S&P Index Fund could become $1,067,190 by age 49 based on historical returns.

Now I know that sounds like a long time however, based on statistics, the average population life expectancy worldwide is approximately 70 years. In theory even with economic downturns, $10,000 will turn into $1,000,000 within a person’s lifetime between 49 and 70 years. If everything goes well, $10,000 could even make a person into a multimillionaire. So let’s look at the chart a bit differently based on age.

  • Initial Investment at birth: $10,000
  • Age 7 years: $19,487
  • Age 14 years: $37,975
  • Age 21 years: $74,002
  • Age 28 years: $144,210
  • Age 35 years: $281,024
  • Age 42 years: $547,637
  • Age 49 years: $1,067,190
  • Age 56 years: $2,079,651
  • Age 63 years: $4,052,651
  • Age 70 years: $7,897,470

Time for some questions.

  • “If you could make your kids into multimillionaires, why wouldn’t you?”
  • “How would it change a your child’s thinking if they KNEW they were going to be a millionaire?”
  • “If money were not an issue, what would your children and grandchildren do to help others? How much good could they do?”
  • “If there were more millionaires, with good hearts and values, how would our world change?”

I came from financially challenged family. The idea of being a millionaire was not in my head nor in my vocabulary. The possibility of being a millionaire was a foreign concept to me. At age 25, that all changed, and along with it how I thought about money and myself. The perception of who I would become grew together with the possibilities of what I could accomplish in life.

Now, I have six children. My oldest is headed of to college in the fall. My youngest is six. I look forward to how they will use the principles and the money they will be empowered with to help others in need and to change our world for the better.

With a bit of work and vision, it’s possible to change the financial outlook of our families, our children, our country and the world. Now what will you do? A great option to start is with a Vanguard S&P Index Fund.

How to Survive Being Away from Your Family and Kids for Work

2017 has found me in a much different situation than anything I have experienced. I am 46, soon to be 47 in November, and I am for the first time working in a different state from where I live. My family resides in Franklin, TN while I am currently working in Salt Lake City, UT. Not exactly how I would have planned things, but it is nonetheless where I find myself. One thing I know for sure is that I am in the center of God’s will, and that is absolutely the best place to be no matter what the circumstances are. However, it does present it’s challenges, and there are many.

Beginning January 2, 2017, I started commuting from Franklin, TN to Salt Lake City, UT for my new COO gig with Financially Fit. In my previous position with Dave Ramsey, travel was very limited with only 2-3 trips per year. Now, I travel 2-3 weeks a month. Normally, I begin my commute early Monday morning with my lovely wife dropping me off at the airport around 5:30 AM. After a long week, she picks me up Friday night around 9:30 PM where we then finish off the evening with a rather late night out. With 6 kids at home from ages 5-17, it can be a little difficult to say the least. My wonderful wife has done an amazing job holding down the fort and keeping the insanity of our lives in balance…if there is such a thing with 6 kids. 🙂

As a husband, father and professional, this new lifestyle is requiring to me step up and adjust my game. Not to mention my new company is a startup which presents all sorts of challenges. The stakes are extremely high. Employees depending on my doing a good job…long hours of the startup. 6 little lives depend on me doing a good job as a father, and 1 amazing woman depending on me as well. Demanding? Yes. Challenging? Absolutely. Impossible? No.

So here’s how I’ve adjusted my parenting, husbanding, and professional game. I’m just beginning, but I’m happy with the results so far.

  1. Be Intentional. Whether its work, the kids or your spouse, be intentional. Don’t let any time slip away from you. When I’m home on the weekends, I start early and end late. Cooking Saturday morning breakfast with my girls. Yard work our projects with my boys. Campfires and smores. Taking the kids to school every morning and putting them to bed every evening. As soon as I get off the plane Friday evening, its spouse time. A late night snack, dessert or a movie, she gets my full attention. Whether I’m in Salt Lake City at work or in Nashville, focused intensity is the most important thing. My Salt Lake work schedule is typically 8:00 AM till 10:00 PM. I like it that way and I keep my life simple. No TV. No distractions. My Nashville schedule is a little different. Work starts at 8:00 and goes till 5 or 6, with a dinner and family break from 6-10, then the day closes out with a little work from 10-11. This week, I’ll be sending my first surprise “care package” home to the kids and my wife, being sure to leverage Gary Chapman’s 5 Love Languages in the notes and gifts I send everyone.
  2. Keep Life Fun. I’m probably more focused on fun family time and keeping life exciting that I ever have been. When I’m home, we’re always finding fun things to do on the weekends or during the week. Cooking together. Walking the neighborhood. Spring break to Salt Lake City for snowboarding. Family games like Mafia, Pokemon, etc. Anything the kids enjoy is fair game.
  3. Cut Back the Distractions. Since I am spending a lot of time in Salt Lake City, I want the time away from my family to count. I’ve chosen a simple lifestyle. No car. No TV. No frills lifestyle. It’s allowed me to keep my thoughts much more clear and stay more focused on productivity than every before. The clarity and direction I see now is extremely refreshing, and I’ve found it to help me be even more focused and productive when I’m at home with my family.

2017 has been an interesting journey so far and I have plenty to learn before I can say I’ve figured it out.