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How Money Works Educator - Guillermo M. Milord

Guillermo M. Milord

HowMoneyWorks Educator

4357 Ferguson Dr.
Suite 180
Cincinnati, OH 45245

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Million Dollar Baby

The gift of a future

It's time to rethink how parents leave a legacy.

Dana with her daughter Hector with his son

Only 20% of children will receive an inheritance.*

Million Dollar Baby™ is a common sense strategy that empowers families to create a legacy for their children without having to be wealthy.

*Source: unitedincome.com
https://unitedincome.com/library/inheriting-retirement-security/

Which legacy plan is more realistic for you?

Option 1

Leave each of your children a $1 million inheritance from your personal savings.

or

Option 2

Grow a $1 million retirement for each child starting with a small fraction of that amount when they’re young.

Either option could create a strong legacy for your children, but option 2 is far more doable for most parents today.

3 Realities

that make leaving a million dollar inheritance unlikely for so many parents:

  • Longevity

    Living longer means parents will need their savings to fund a lengthy retirement.

  • Medical Bills

    The average retiree will spend $122,000 on medical care from the age of 70 to the end of their life.1

  • Long–Term Care

    70% of people over 65 years of age will need some type of long term care services and support,2 which can cost anywhere from $70,000 to over $390,0003 based on the avarage 3.9 year LTC need.4

1. The National Bureau of Economic Research, July 2018 - https://www.nber.org/papers/w24599
2. LongTermCare.gov, October 2017 - longtermcare.acl.gov/the-basics/
3. Genworth.com, 2019 - genworth.com/aging-and-you/finances/cost-of-care.html
4. LTCtree.com, December 2018 - ltctree.com/long-term-care-statistics/

How Suckers Think

The sucker, who won’t even have enough money for their own retirement, hopes in vain to leave their children a small inheritance.

vs.

How Smart Parents Think

The wealthy remove the need for an inheritance by transforming their child’s early years to earning years.

Common Sensethat could be worth over a million dollars

Before Birth

67 Years Old, Retirement Age

Since it’s so hard to leave an inheritance today, why not use the greatest financial asset a child has to build the foundation for their retirement income...

Time...an entire life of it.

3 Simple Money Conceptsthe Million Dollar Baby strategy leverages:

  • Compound Interest

    Compound Interest

    The potential for money to grow with interest paid on interest.

  • Time Value Of Money

    The Time Value of Money

    Money saved today is worth more than money saved tomorrow.

  • Wealth Protection

    Wealth Protection

    Safeguard money from being used until the future with a living trust.

The true meaning of life is to plant trees, under whose shade you do not expect to sit.– Nelson Henderson

Could you save $1 million for your child?

Consider these two hypothetical examples.* What if parents could create a $1 million retirement for their child by leveraging the full life of the child to maximize compound interest growth? And what if parents waited until their child was 18 years old to start saving?

Dana's Example

Dana'sExample

Hector's Example

Hector'sExample

What if you put away $13,000 for each of your children?

Consider this hypothetical illustration:

  • Assumes a one-time lump sum of $13,000 is put away
  • Timeframe 1 shows the account growth for 67 years, starting at birth
  • Timeframe 2 shows the account growth for 49 years, starting at age 18
  • Assumes a 6.5% average annual interest rate, compounded monthly

Timeframe 1

67 years starting at birth

Timeframe 2

49 years starting at age 18

Timeframe 1: A one–time $13,000 lump sum that grows from birth to age 67

67 years starting at birth

$13,000

$1,000,442

Birth

Age 67

Timeframe 2: A one–time $13,000 lump sum that grows from age 18 to age 67

49 years starting at age 18

$13,000

$311,486

Age 18

Age 67

An alternative hypothetical illustration:

  • Assumes a one-time lump sum of $2,500 and $250 monthly for 4 years
  • Timeframe 1 shows the account growth for 67 years, starting at birth
  • Timeframe 2 shows the account growth for 49 years, starting at age 18
  • Assumes a 6.5% average annual interest rate, compounded monthly

Timeframe 1

67 years starting at birth

Timeframe 2

49 years starting at age 18

Timeframe 1: $2,500 + $250 per mo. for 4 yrs that grows from birth to age 67

67 years starting at birth

$2,500 + $12,000*

$1,008,059

Birth

Age 67

Timeframe 2: $2,500 + $250 per mo. for 4 yrs that grows from age 18 to age 67

49 years starting at age 18

$2,500 + $12,000*

$313,857

Age 18

Age 67

* This is a hypothetical scenario for illustration purposes only and does not represent an actual investment in any product. Actual investments can fluctuate in value and there is no assurance that these results can or will be achieved. It does not include performance risks, expenses, fees or taxes associated with any actual investment, which would lower results. Rate of return is an assumed constant nominal rate, compounded monthly. It is unlikely that any one rate of return will be sustained over time. Investing entails risk, including possible loss of principal. Numbers are rounded to the nearest dollar in some cases. Retirement needs vary by income and cost of living—$1 million isn’t an adequate goal for every saver.

According to data from the United Nations, 250 children are born in the world every minute.* Imagine how different their lives would be if every family created a savings plan for their children that couldn’t be touched until retirement age.

*Source: TheGuardian.com, 2018
theguardian.com/global-development/2018/apr/23/population-how-many-people

Dana Talking to Hector

WOW! This would give children greater freedom to explore, fail, and find their purpose throughout their lives all because their parents took this one revolutionary step for them.

Hector Talking to Dana

You start saving before you start walking. I love it! It’s like every child can be born a million dollar baby.

Let's rethink your legacy.

Explore the next step to put the Million Dollar Baby strategy in place. It begins with a conversation you'll love because it's all about one of your absolute favorite subjects – your kids.

Email me Today Set an Appointment Call me: 513.295.7850