BInvT Forecast

BInvT Forecast

If we continue to contribute 5K to Brandon’s Investment Account annually until he’s Age 18, and the MR averages 7%, he can target to have an Invested Balance of 250K, about 50%/50% of Contributions and Market Return.

The funds would be rightfully his, so long as I continue to invest and we continue to contribute 5K to his account annually. I can imagine an 18 year old having that invested balance. He can either use the funds for college, start his own business, purchase a property, or continue to invest and grow the balance.

If we instead decide to utilize his invested funds and purchase a property instead, and pass the property over to him when he’s of age, the risks would be on us, but he would not be priced out of the property market. This makes more logical sense, but realistically it might not for him. If I pictured myself to be 18 years old again, I wouldn’t even consider caring about properties. Instead, I’d rather use the funds to pay off my college instead of having student loan debt after graduation, invest the funds back to the market, and grow the invested balance. Who would want to have landlord responsibilities at that age, right? I wouldn’t even want to consider paying for my own mortgage. I wouldn’t be ready for any commitment. No, I never focused much on consumerism at that age either. Instead, I started investing my salary right after graduating from college. I plan to train Brandon to become self sufficient by the time he becomes a young adult. Whether he chooses to go to college would be his choice, so long as he becomes self sufficient.

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