When we’re first born; we get a social security number.
Use that number to open up a Roth IRA account. It’s a retirement account that isn’t taxed on the end of our life. We put after taxed dollars into this account.
And since it’s a retirement account you can’t touch the money until you’re about 60 years old.
Here’s what to do:
Max out the new borns Roth as soon as possible. Typically there’s a limit to how much money one can put in. Right now that limit is only 7,000$.
Put that 7,000$ into their account, by an index fund like vtsax or voo, and don’t do anything else.
The average return of the stock market is 10% over the course of its life. And this newborn has another 60 years until they can touch the money.
That 7,000$ grows into about 2.5 million dollars. WITHOUT EVER DOING ANYTHING AGAIN
How’s that for a retirement?
And if we did that for every new born?
It’d take time, but eventually people can retire comfortably and not have to worry about the government helping them survive or have to work until they can’t stand anymore.
All good things take time.
Any other ideas?
Joe DiAndrea 