Proverbs 13:22 “A good person leaves an inheritance for their children’s children, but a sinner’s wealth is stored up for the righteous.”
Here is how you leave a $1M inheritance to your kids when you pass away, even if you are an average working person:
1) Start with $500 and invest it into the stock market (something like the S&P500 that averages 10% annually)
2) Put $500 in every month until you retire. So if you’re 30 now do it until you retire at 60.
3) With compounding interest, that $500/m will be $1.1M when you retire.
4) Put it in bonds before you retire. Preserve it, don’t focus on growing it anymore. By that time, hopefully your house is paid for and your expenses are lower. You also have SSI and maybe 401k money.
When you die your kid(s) inherit that $1.1m.
Now here is where the magic works. Guess what the 30 or 40 year old child who inherits that $1.1M will have if they just continue to put $500/m in it for another 30 years because YOU taught them the value of investing? $22M. If you don’t believe me, plug the numbers into a future value calculator with payments and check yourself. You don’t have to be rich to get rich. You don’t need a gimmick or to be 7 ft tall. You need to be disciplined, focused and consistent.