Can you imagine if you were afforded the same opportunities that you can provide for your kids? 

The stock market is one of the only investments that is all but guaranteed to expand your wealth over the long term . The stock market has recovered from every crash, EVERY ONE. 

The S&P 500, an index that measures 500 of the largest companies in the United States currently sits at 3,925. Looking at historical data the year I was born the S&P 500 opened the stock market at 164.04. If you invested $100 in the S&P 500 at the beginning of 1984, you would have about $5,345.40 at the beginning of 2021, assuming you reinvested all dividends. This is a return on investment of 5,245.40%, or 11.35% per year. If my parents invested $100 a month over that time frame it would be $550,845. 

What is your stock birthright? Here are some numbers for you to consider for investments of $100 a month based upon the last 60 years. 

2001 (20 years): S&P 500 Total Return: 324% | $100 a month invested: $55,472.33

1991 (30 years): S&P 500 Total Return: 2,039% | $100 a month invested: $264,640.90

1981 (40 years): S&P 500 Total Return: 7,791% | $100 a month invested: $1,011,716.95

1971 (50 years): S&P 500 Total Return: 177,559% | $100 a month invested: $2,483,405.37

1961 (60 years): S&P 500 Total Return: 312.61% | $100 a month invested: $5,790,473.86

Now you see that we all have the potential to be millionaires. Our kids have the potential to be millionaires and so on. These numbers only reflect an investment of $100 a month. Can you invest more? Probably. These numbers also represent the stock market as a whole, the average. 

Some companies such as Apple, Disney and Amazon have returned significantly more over shorter time frames. Now that you have this information what are you going to do to build generational wealth?

Here are some numbers if you invest for your kids future at a 10% return (S&P 500 average annual return).

$100 dollars invested over the next 21 years at a 10% return: $86,664.11

$250 dollars invested over the next 21 years at a 10% return: $216,660.27

$500 dollars invested over the next 21 years at a 10% return: $433,320.54

$1,000 dollars invested over the next 21 years at a 10% return: $866,641.08

Now we can’t predict what a stock like Apple, Disney or Amazon would return over the next 21 years but what would have happened if you had started investing 21 years ago for your kid in well known stocks that were obvious 21 years ago.

$100 a month invested in Disney over the past 21 years: $140,071.24

$100 a month invested in Microsoft over the past 21 years: $203,467.19

$100 a month invested in Amazon over the past 21 years:$1,172,375.13

$100 a month invested in Apple over the past 21 years: $2,717,135.02

Now you can see the power of investing. The worst you could have done for your kid is a nest egg of $140,071 by investing $100 a month in Disney. On the flip side your kid could have been a millionaire by investing in either Amazon or Apple. 

The world would like us to believe that investing is either only for the rich or the geniuses. In reality it is a numbers game. The longer you invest and stay consistent you are almost guaranteed to win. Leaving this money in a savings account would have done next to nothing.

The truth is you should be rich but you just keep giving away your inheritance. Let’s try not to repeat the same cycle with the next generation. 

The next step is figuring out what is the next Apple, Amazon Microsoft or Disney. The other part is staying consistent and not taking your eye off the ball. This is how we build generational wealth.

If you have not opened a custodial account here are some of the apps that are easy to get started, these include STASH and M1 Finance or check your local brokerage.