How to make your kids rich for almost nothing

@budgeters_anonymous

102.3K followers · usually 11.4K views a post

Views

83.8K

Likes

5.2K

Comments

119

Shares

2.6K

Selling · Course / Info

529 plan

Why it worked

The video leverages a common financial topic (saving for children's future) and presents a compelling, albeit simplified, strategy for wealth accumulation. The use of specific numbers and a clear progression from small weekly investment to large future returns makes the concept tangible and aspirational, driving engagement.

Summary

This video explains how to make your kids rich by investing $14 weekly into a 529 plan, which is then converted to a Roth IRA. The strategy aims to grow the initial investment significantly over 18 years, potentially turning a small contribution into millions by age 60.

Structure

1Open a 529 plan
2Invest $14 weekly into S&P 500 index funds
3After 18 years, convert to a Roth IRA
4Stop investing and let it grow until age 60
5The potential for significant wealth accumulation

Product placement

The video discusses opening a 529 plan and investing in S&P 500 index funds, then converting it to a Roth IRA. The 529 plan and Roth IRA are the primary financial products discussed.

On-screen text

How to make your kids rich for almost nothing 529 Plan S&P 500 18 yrs Later $12,500 $35k Roth IRA At 60 $2.3m $656k $25 $1m

Original caption

This takes 5 minutes to do and is one of the best decisions you can make for your kids. #finance #personalfinancetips

More from @budgeters_anonymous

Their other posts in the index, biggest breakout first.

Transcript

You're going to make your kids stupid rich for stupid little money. Very first thing that you are going to do is you're going to open up a 529 plan. Every week, you are going to take $14 and you're going to put it into that account. You can do this. It's $2 a day. In this account, all of this money is going to get invested directly into S&P 500 index funds. If you do this, after 18 years, you will have put in $12,000 $500 of your own money. Because it was invested into S&P 500 index funds, there will be roughly $35,000 in the account. Normally people use this account for education expenses. You're not going to do that. Instead, you're going to convert that account to a Roth IRA. At this point, you are going to completely stop investing. Your kids and adult now, they can invest for themselves. Now the great part about this account is that they can't touch this money until they're 60. But then that $35,000 will now be $2.3 million. which granted in today's value is like $656,000. Still great money. thing if at 18, your kid started to take $25 a week and put it into that. just that little bit would be enough to actually make them a middle class millionaire.