Richardcyoung.com

The Online Home of Author and Investor, Dick Young

  • Home
  • How We Are Different
  • About Us
    • Foundation Principles
    • Contributors
  • Investing
    • You’ve Read The Last Issue of Intelligence Report, Now What?
  • Your Survival Guy
  • The Great Reset
  • COVID-19
  • My Rifles
  • Dividends and Compounding
  • Your Security
  • The Swiss Way
  • Dick Young
  • Debbie Young
  • Key West
  • Paris
  • Dick’s R&B Top 100
  • Liberty & Freedom Map
  • Bank Credit & Money
  • Your Survival Guy’s Super States
  • NNT & Cholesterol
  • Work to Make Money/Invest to Save Money
  • Your Health
  • Ron Paul
  • US Treasury Yield Curve: My Favorite Investor Tool

Intelligence Report: How $10,000 Grows to $28 Million

May 6, 2022 By E.J. Smith - Your Survival Guy

By Lightboxx @ Shutterstock.com

Your Survival Guy wants your grandchildren to be as rich as Croesus. How can you help them do that? Get them on the path to riches by putting time on their side. It’s time that’s the key ingredient to compound interest. As Dick Young wrote to you back in July 2016:

How $10,000 Grows to $28 Million

I’m assuming each of my grandchildren invests $10,000 at age 25 with a goal of compounding that investment for either 30 or 50 years. Each will purchase 500 shares of a stock (at $20/share) with a long history of paying dividends and offering an initial 4% dividend yield. Using an early retirement age of 55 means 30 years of compounding. With all dividends reinvested, the end value would be $410,114, with a 30th annual dividend of $6,345.

But here’s the miracle of compounding. If allowed to compound for another 20 years, until age 75, the end value of the original $10,000 investment rounds off to … well, about $28,000,000. Yes, million.

I am assuming 10% long-term dividend growth (seven of this month’s Top 10 meet or beat 10%), and long-term capital appreciation of 6% (just a simple historical norm for stocks, nothing special). The annual dividend on the original 500 shares compounds to about $47,000 after 50 years. Not a bad increase from the first year’s $400-per-year dividend.

I made it a point to see that our children understood this math years before they began investing. And I am doing the same for my grandchildren. Regardless of the profession they choose, I have a high degree of confidence that each will achieve millionaire status. And I obviously do not think the job is terribly difficult.

Action Line: And for those children and grandchildren about to graduate from college, there’s no more important time to teach them the value of saving. You can help by giving them a free copy of my Special Report: How To Invest After Graduating College.

P.S. Look at my table below to compare her success to someone who begins his investment savings at age 22 at double the savings rate of your granddaughter, saving $1,100 each year. Even though he’s saving twice as much each year, when he turns 64 he’ll have half as much as your granddaughter simply because you helped put time on her side with your early generosity (I’ve used a long-term expectation for stocks of 6% growth per year).

So, how do you save money for your grandchild? Easy, put time on their side.

Originally posted on Your Survival Guy. 

If you’re willing to fight for Main Street America, click here to sign up for the Richardcyoung.com free weekly email.

Related Posts

  • The Final Richard C. Young’s Intelligence Report
  • You’ve Read the Last Issue of Intelligence Report: MTI and RAGE Gauge
  • You’ve Read The Last Issue of Intelligence Report, Now What?
  • A Million Here, A Million There
  • Author
  • Recent Posts
E.J. Smith - Your Survival Guy
E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998.

E.J. has trained at Sig Sauer Academy in Epping, NH, NH, where he completed course-work in Practical and Defensive Handgun, Conceal Carry Pistol, Shotguns, Precision Scope Rifle and Kidnapping Prevention.

E.J. plays a Yamaha Recording Custom drum set with Zilldjian cymbals. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris.

Please get in touch with E.J. at ejsmith@yoursurvivalguy.com

Click here to sign up for my free monthly Survive & Thrive letter.
Latest posts by E.J. Smith - Your Survival Guy (see all)
  • Are You Fairly Wealthy? I’m Listening - March 21, 2023
  • Your Survival Guy’s BEST Insider’s Guide to Key West - March 20, 2023
  • For Whom Is Your Portfolio Serving? - March 17, 2023

Dick Young’s Must Reads

  • What Do You Know About Rho-Kinase?
  • Hungarian Hardliner Viktor Orban Shows European Globalists the Way
  • FARM AMERICA: New York City’s Finest Cheesemongers
  • You May Be Surprised by America’s “Least Woke City”
  • You’ve Read The Last Issue of Intelligence Report, Now What?
  • Your Survival Guy Prefers Bombardier’s Global Express 7500
  • The Claremont Institute: Protecting the American Way of Life
  • The Three Best Retirement Decisions I Ever Made
  • Richard Feynman Solved the Space Shuttle Disaster Mystery
  • Your Best State on Guns, Plus the 8th Wonder of the World

Our Most Popular Posts

  • Pushing Back at ESG
  • Your Survival Guy’s BEST Insider’s Guide to Key West
  • Cheap Reliable Heating – a Life Saver
  • Are You Fairly Wealthy? I’m Listening
  • Biden Has Lost Control of the Northern Border Too
  • Who'd be Nuts Enough to Have Put Money into SVB?
  • Get Well Soon Taki
  • For Whom Is Your Portfolio Serving?
  • SPIES ON CAMPUS: The Chinese Have Invaded the Quad
  • Washington Is the Systemic Risk

Disclosure

RSS Youngresearch.com

  • Are You Fairly Wealthy? I’m Listening
  • Treasury Studying How to Increase Deposit Insurance
  • Your Survival Guy’s BEST Insider’s Guide to Key West
  • For Whom Is Your Portfolio Serving?
  • Who’s to Blame for Banking Vulnerability?
  • Mortgage Market Not Expected to Settle Down Soon
  • Are You Living Your Best Life?
  • Were Silicon Valley Bank’s Motivations for Taking Losses Pure?
  • Will the Black Swan Usher in Digital Dollars?
  • Major Rail Merger Gets Approval

RSS Yoursurvivalguy.com

  • Are You Fairly Wealthy? I’m Listening
  • How Long Is Your Water Supply Chain?
  • Your Survival Guy’s BEST Insider’s Guide to Key West
  • Be Wary of Those Who Wrap Themselves in Capes
  • For Whom Is Your Portfolio Serving?
  • ESG: Are Markets Ready for “A Needed Dose of Reality?”
  • Was Silicon Valley Bank a Victim of ESG?
  • Are You Living Your Best Life?
  • March RAGE Gauge: Will the Black Swan Usher in Digital Dollars?
  • Gretchen Whitmer Reviving Forced Unionization in Michigan

Who’d be Nuts Enough to Have Put Money into SVB?

Are You Fairly Wealthy? I’m Listening

Get Well Soon Taki

A Cashless Society Is A Debacle for Americans

How about Hiring Erik Prince to Crush the Drug Cartels?

Key West’s Best Burger

Copyright © 2023 | Terms & Conditions | About Us | Dick Young | Archives