Brain may be coming back online.
I like giving money to my grandkids, but setting up some for income was to bring things to parity, after the
younger ones got their money right away, and the older two $5000 at birth, and the rest over years.
Before just lately, each had received $32,225. What messed me up are their balances now:
10 months $37,559
4 years $66,581
9 years $72,818
12 years $75,817
Brain saying 12 year old should have 3X what the 4 year old has was way out of line.
I try and pick the best stocks at the moment, mostly growth, with just a little div growth mixed in.
4 year olds money had the best timing. Hit NVDA right on the money, up $10k on 60 shares. Up 632% on
AVGO, 263% on LRCX, 102% on QQQ, etc.
Don't think that should have any bearing. I'm thinking market returns is how I should catch up.
Ignoring the little guy, here is what I am looking at if each started off with $32,225.
4 year old: 4 year S+P return 52.25% $49,062 Ahead because of stocks selection. Good luck?
9 year old: 9 year S+P return 259.27% $83,549 Behind almost $11,000.
12 year old: 12 year S+P return 296.55% $95,563 Behind almost $20,000.
Using holding 60 years, minus their age now, 59,56,51,48 in a compound interest calculator, $0 added
annually, with 8% annual return:
1 year old $3,529,409
4 year old $3,651,535 ( Using the account value now of $66,581 = $4,955,421 )
9 year old $4,232,069
12 year old $3,842,634 |
