Pinoy New Era Of Investment

$2 a day invested in the market from the beginning of 1931 would have turned into $221,396 by the end of 1960.

Of course your children would do much better than this since, as adults, they'd have the income and the habits to now invest far more than $2 a day.

And they'd have better options than just sticking with one index all the time. They could constantly rotate new money into the best value opportunities in the market.

Yet, even sticking with our simple assumptions, they built significant wealth from such modest investments. Their total invested would have been $21,900, which would have multiplied more than 10-fold in the course of 30 years, even investing through much of the worst bear market in history.

You'd get similar results by the way if you began to invest just $2 a day through the second greatest bear market of all time-that of the 1970s.

In that case, the market peaked in 1968. Yet, if you began to invest even at the beginning of 1970 (when the market was still more than twice the level it would sink to in 1973), your couple of dollars a day still would have created a nest egg of $386,617 thirty years later!

How is this possible to build this kind of wealth? Averaging just $2 a day right through the middle of the two worst bear markets of all time?

After the Depression and deflation in the first case and after stagflation, and the crash of "87 in the second case?

Because, in both instances, your children would have been investing steady, small sums over a long period of time, far longer than a single market cycle. And that means, though they initially suffered temporary losses of a few hundred dollars, they also continued to invest at the very bottom of the market and each time the market began a new bull cycle.

Children, in other words, are great investors in all sorts of markets because they truly are long-term investors who can afford to focus on value.

But you can only help them build that future wealth and financial security by getting them to practice good money habits right away.

As they grow up, their understanding of money will grow in lock step with the considerable growth of their wealth. The key is to let children take advantage of their great strengths as investors by beginning right away ...

Then, let time and compounding work their magic!

Go Back to the Previous Page