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May 9 - 18 month old set to become millionaire by 16. Mom created investment portfolio.



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 1 month ago '20        #1
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MrDarkCloud  topics gone triple plat - Number 1 spot x3
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May 9 - 18 month old set to become millionaire by 16. Mom created investment portfolio.
 

 
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“We’re trying to set [Dawsyn] up for financial success in life,” says Broadway. “We definitely want her to feel financially empowered and never really have to worry about money if she follows along with some of the things we put in place.”

Among those things are a Roth IRA, a custodial savings account, and a custodial investment account. Between them, Dawsyn has amassed a little over $50,000, with all of that money earning compound interest.

Here’s how Broadway is investing in her daughter’s future and how you can do the same — whether you have $5 or $50,000.

How to Set Your Children Up for Financial Success

Here are three things Dominique is doing to provide for her daughter’s financial future and give her the knowledge she needs for financial success. And you can do the same, regardless of how little or how much money you have available right now.

At 18 months old, Dawsyn’s investment portfolio looks like this:

She has a regular custodial savings account with a bank, where she earns interest on the cash deposit. She has a custodial investment account managed by the financial services company Acorns, with regular contributions each month. She also has a minor Roth IRA, which she’s eligible to contribute to due to her “income” from being a brand ambassador for Finances De·mys·ti·fied.

Dominique and her husband started Dawsyn’s investment portfolio right after she was born. Their initial contribution consisted of around $4,500, followed by regular contributions of at least $2,000 a month, sometimes more. Most of the money currently sits in Dawsyn’s investment accounts in various stocks and has reached $50,000 in 18 months.

Pro Tip

You don’t need lots of money to start investing. It’s better to start early with whatever you have and let your money grow over time with compound interest.

Because Dawsyn is so young, her investment portfolio can afford to be aggressive, with high-risk-high-reward investments like stocks, international equities, and aggressive mutual funds. If Dominique continues her regular contributions of $2,000 a month and is able to benefit from a similar rate of return of 10%, Dawsyn’s portfolio will be worth $1.1 million by the time she reaches age 16. “These aggressive investment strategies and active trading is what’s driving a high rate of return,” says Broadway.

1. Open these three accounts

Broadway recommends three account types for your child.

“You don’t have to do all three,” Broadway advises. “Pick one based on what works for you, your financial situation, and the goals you have for your family and your children.”

Custodial savings account.

A custodial savings account is the easiest to set up and perfect for anyone who’s not ready to start investing yet but wants to put aside money for their children, says Broadway. It can be opened at most banks or credit unions and will let you hold and manage money for your child until they reach the age of maturity.

Custodial investment account.

Another option is a custodial investment account, which is similar to a custodial savings account in that an adult manages the account on behalf of a minor. “The only difference is that in this custodial investment account, you are able to actually start making investments for your child,” says Broadway. And the barrier for entry is lower than what many people a*sume. “Don’t feel like you need a lot of money,” she adds. “You can literally start investing for $5.”

529 college savings plan.

For parents with college-bound children, a 529 college savings plan is a great option to help save for your child’s education. With a 529 plan, you contribute a certain amount of money to be invested in mutual funds or exchange traded funds, with the investment plan tailored to the target date of when your child will go to college. Some states allow you to use those funds for private school tuition as well.

A major draw of a 529 plan is the tax benefits, which may include both federal and state tax write-offs and credits. Different states offer different 529 plans, so be sure to check the details of your state’s plans on the official College Savings Plans Network website. Some state’s 529 plans don’t even require the owner or beneficiary to be a resident.
2. Start investing early

“I tell people all the time, the earlier you start saving, the less you have to save because of the power of compound interest,” says Broadway. “So start small. Don’t feel like you got to have millions and billions and trillions of dollars. $10 a week, $10 a month, just do something.”

You can sign up for a high-yield savings account with no minimum deposit and start earning interest right away on whatever money you have. You can also open an investment account to let your money grow faster. “You could start investing for yourself or investing for your children for as little as $5,” says Broadway.

If you don’t currently have kids but would like to build a savings portfolio for future children, you have options as well. Although you can’t open a custodial savings or investment account in your child’s name until they have a Social Security number, you can open a dedicated savings account under your own name for the purpose of setting aside that money for future children.

You can also open a 529 plan for another child, such as a niece or nephew, Broadway says. If you later have children of your own, you can change the beneficiary recipient.

Whichever way you choose to invest, “don’t procrastinate or feel like you don’t have enough money,” says Broadway. “Just start with what you can.”
3. Talk to your kids about money and let them participate in the process

“My family always talked about money, like, all the time,” Broadway says. “Not in a negative way. And always really in optimistic, positive ways and just showing me that money was a part of our everyday lives.”

She plans to do the same with her daughter. “Having those conversations really early is something that’s important,” she says. “We want finances and investments to be daily conversation pieces in our home.”

Another thing she plans to do as her daughter gets older is to let her participate in the investment process. “One of the things we plan to do with our daughter is making sure she’s involved with these investments,” says Broadway. “As we’re picking stocks, [we] let her pick the stocks.”

For parents who are searching for ways to initiate a conversation about investing with their children, Broadway recommends looking at companies that their kids already use and love. “That’s going to be the best way to pique your children’s interest into potentially investing and owning,” she says.

“I think that as parents, we should be talking more about ownership with our kids,” she adds.

There’s power in being a partial owner of a company instead of just being a consumer, Broadway believes, and she plans to teach her daughter that as soon as possible.
I wish my parents had done some sh*t like this for me. Even something as little as opening a savings acct. image

And I know some n*ggas are gonna read this and be like "She's investing $2000.00 a month and the average person doesn't have that." Even if you set as low as $50.00 for 15 years, that can still bring in like $20k.
+75   



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81 comments
 

 1 month ago '06        #2
philly337  topics gone triple plat - Number 1 spot x1
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Like you said...I mean yea...if you have 2k a month to invest. Most people don't. Most people "might have" $50-$100 a month to invest. People who have 2k a month to invest in their child's portfolio dont need this article for advice...they already know this

If you have 20k in 18 years like your example 20k in 18 years isnt 20k now. It would be equivalent to about 13k in 18 years with inflation.

Not saying dont do this...any saving is great but they're trying to say they're saying some insightful sh*t here and you gotta have money to make money to that level


Last edited by philly337; 05-09-2021 at 09:09 AM..
+63   

 1 month ago '04        #3
Dash 
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Dope parents
+25   

 1 month ago '11        #4
Hooper4eva 
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Bookmarked
+6   

 1 month ago '20        #5
MrDarkCloud  topics gone triple plat - Number 1 spot x3 OP
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 Dash said
Dope parents
Dead a*s.

It seems like most people who have kids these days set them up for a future of financial burden because they themselves weren't financially stable and educated. I wish there were more financially sound people having kids.

You don't even have to be rich, like I said in OP. sh*t, even putting a $1.00 aside can do wonders as the years go on depending on the return.
+20   

 1 month ago '16        #6
MadMarlo 
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Make alot of money and put thousands up every month for your child lol



+56   

 1 month ago '17        #7
S PHX GOD 
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@ @ @
+5   

 1 month ago '16        #8
Blunted Sultan  topics gone triple plat - Number 1 spot x6
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 MrDarkCloud said
Dead a*s.

It seems like most people who have kids these days set them up for a future of financial burden because they themselves weren't financially stable and educated. I wish there were more financially sound people having kids.

You don't even have to be rich, like I said in OP. sh*t, even putting a $1.00 aside can do wonders as the years go on depending on the return.
Don’t forget jealously. “How dare my kid be better off financially than I was, no he has to earn his own money”
+31   

 1 month ago '19        #9
Anomic  topics gone triple plat - Number 1 spot x5
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 S PHX GOD said
@ @ @
ADA is at 1.80 rn
+15   

 1 month ago '09        #10
JaguarPawww 
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 anomic said
ada is at 1.80 rn
ya dig. 5 eoy?
+3   

 1 month ago '20        #11
MrDarkCloud  topics gone triple plat - Number 1 spot x3 OP
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 Blunted Sultan said
Don’t forget jealously. “How dare my kid be better off financially than I was, no he has to earn his own money”
A lot of parents definitely see "struggling" as honorable and a badge of honor. And I'm probably going to get slapped for this but I don't care - sh*t is way too prevalent in the Black community, too.

I fu*ked with this article because mom (and daughter are Black). AND, she's dropping knowledge on how to do it yourself. She and husband have bread, obviously, since they're casually dropping 2k back into their daughter monthly. BUT, you can legitimately accomplish the same goal with just $1.00.
+27   

 1 month ago '19        #12
Anomic  topics gone triple plat - Number 1 spot x5
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 JaguarPawww said
ya dig. 5 eoy?

+2   

 1 month ago '04        #13
killadre  topics gone triple plat - Number 1 spot x2
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If you have a LLC you can make your kids employees with “taxable income” and contribute to a Roth IRA. It’s a lot more wiggle room for your than a 529 and it was pretty easy to setup.
+23   

 1 month ago '20        #14
MrDarkCloud  topics gone triple plat - Number 1 spot x3 OP
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 killadre said
If you have a LLC you can make your kids employees with “taxable income” and contribute to a Roth IRA. It’s a lot more wiggle room for your than a 529 and it was pretty easy to setup.


Good info!
+7   

 1 month ago '17        #15
Ifeellikekobe  topics gone triple plat - Number 1 spot x2
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If Dominique continues her regular contributions of $2,000 a month






These statements get me every time. Might as well buy that baby their own condo.
+19   

 1 month ago '13        #16
North!!!  topics gone triple plat - Number 1 spot x8
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Beautiful culture
+7   

 1 month ago '16        #17
Fastrap87  topics gone triple plat - Number 1 spot x2
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father not pictured or mentioned in headline....pretty strange


+17   

 1 month ago '20        #18
blackpillblack 
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Father? Wtf is that?

This bad bi*ch don’t need no man.. wtf is a father going to bring to the table.. other than extra rules..
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 1 month ago '04        #19
abstractq 
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I don't see how this is much different than just taking that 2k a month and investing it yourself and then just giving your child that money

Seems like 529 propaganda or some sh*t
+2   

 1 month ago '11        #20
QuietPack 
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 MrDarkCloud said





I wish my parents had done some sh*t like this for me. Even something as little as opening a savings acct.

And I know some n*ggas are gonna read this and be like "She's investing $2000.00 a month and the average person doesn't have that." Even if you set as low as $50.00 for 15 years, that can still bring in like $20k.
Don't feel 2 bad. It feels good af to come from nothing and make something. I enjoy stuff now I couldn't imagen if this was the norm growing up
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 1 month ago '19        #21
Hungsolow 
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You have parents out here teaching kids to hold guns and learning rap songs and this parent is on a whole new planet.

+10   

Top 10 most propped recently  1 month ago '18        #22
9shots92bricks  topics gone triple plat - Number 1 spot x1
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 MadMarlo said
Make alot of money and put thousands up every month for your child lol



Lol basically
+1   

 1 month ago '18        #23
BlackjesuS  topics gone triple plat - Number 1 spot x1
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This is cool.

My dad left me a mortgage. Someone posted somewhere about getting a credit card in the kids name when they are born...prolly go that route instead
+5   

 1 month ago '04        #24
Tastemaker331  topics gone triple plat - Number 1 spot x18
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 BlackjesuS said
This is cool.

My dad left me a mortgage. Someone posted somewhere about getting a credit card in the kids name when they are born...prolly go that route instead
For what reason?
+1   

 1 month ago '20        #25
Detr0it 
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 MrDarkCloud said





I wish my parents had done some sh*t like this for me. Even something as little as opening a savings acct.

And I know some n*ggas are gonna read this and be like "She's investing $2000.00 a month and the average person doesn't have that." Even if you set as low as $50.00 for 15 years, that can still bring in like $20k.
A coworker and I had the conversation years ago about how our parents didn't tell us all the keys to financial freedom because they generally didn't know for themselves. As they learned, we learned, but it would be after student loans, unpaid bills, repos, etc. With the internet, we have access to information that they never did (those of us born in the 80s and 90s). As I learn, I do better, but I already have game plans set up for my kids to have better head starts than my brother and I could even imagine.
+13   



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