Grandkids

[Robandcindy2]

Just wanted to share some good news and a lesson I shared with some folks who would rather "have it now" than save for the future.

First off, our Granddaughter Madison Faith arrived this morning at 8:04. Mom and daughter are doing great!

So this had me thinking after reading a thread at another site. When Cindy and I were young no one in our families were saving much. Really couldn't. IRA's were just coming into being I believe (at least the way my folks talked about them). But what if I could have plunked down $1000 for my kids when each of them were born?

Assuming that when each child was born you invested $1000 in their future. Nothing more, nothing less. Reinvesting those dividends. Now let's pick a stock we know they will use, say Johnson & Johnson (JNJ) for all those boo boos they will get (plus baby shampoo, etc).

$1000 in September 1983 would have given our oldest, Kelly 22 shares of JNJ.
In 1990 Jon would have had 17 shares and Liz 23 shares in 1993.

Today? Are you ready?
Liz would have 136 shares worth $13951 up 1306% in 20+ years.
Jon would have 212 shares worth $21799 up 2195% in 24+ years.
And Kelly?
Her 22 shares turned into 534 shares worth $54766 up 5432% !! (30+ years).

Wish I knew this back then!!

[TomK]

First -- congratulations!

Second -- holy cow! I often wish I had started investing when I was a whole lot younger. Just didn't know a whole lot then. Yes, better late than never. But better earlier than later!

[cannew]

Is this your first grand child? Great news and you are exactly correct. If possible put some money towards the childrens future when they are young. It doesn't have to be $1000, but could be smaller amts.

We started DRIP's for our grandkids and though we haven't put money in every year, they now have over $15,000 accumulated. If they do nothing but leave it as is, in thirty years it will be worth almost $3/4 Million. If they started putting $1,000 a year in they will be Millionaires when they want to retire.

[Jimbo]

Congratulations and good job, I am working on trying to get my boys to understand the "investing & drip" strategies.

Yes if we knew then what we know now. Back in 1976, when i was 15 I had $1000.00 in a savings account from misc jobs. A neighbor tried to get me to invest it in a company GE, instead my stepfather convinced me to buy a BMX bike, a TV and a small stereo. The BMX bike was totaled several months later, the TV junked out and the stereo, who knows.

Trying to make the youngsters understand the Investing is a chore of its own.

Jim

[Robandcindy2]

Thanks!!

She is our second. Both grandchildren are terrific and live relatively close by.

And don't mis-read my post...this is clearly a "wish I had been smart enough" story. (Written discretely on Facebook as a hint to our own kids!!)

I am able to quietly boast that the first grandchild is up 17.4%. First I had him in Vanguard STAR Fund and a little over a year ago moved him into Vanguard Target 2060 (VTTSX):

Holdings-Underlying funds as of 05/31/2014

Rank Fund name Percentage
1 Vanguard Total Stock Market Index Fund Investor Shares 63.1%
2 Vanguard Total International Stock Index Fund Investor Shares 26.9%
3 Vanguard Total Bond Market II Index Fund Investor Shares** 8.0%
4 Vanguard Total International Bond Index Fund 2.0%

(Still a bit of a Boglehead at heart..... http://www.bogleheads.org/forum/index.ph...204d60503d)