How to turn $1,000 into over $1 million to bless your grandchildren

I've been thinking a lot about how to leave a lasting legacy for future generations of my family. I want to bless them financially, but I don't want to give them so much money that it hurts them.

I've seen what can happen when inherited wealth is not handled well. It can lead to entitlement, laziness, and financial ruin.

But I also believe that it's important to help future generations.

“A good person leaves an inheritance for their children’s children…” Proverbs 13:22

We will likely be leaving money in a fund to help with the education of future generations with some basic criteria they will have to meet to be eligible to receive it.

However, I want to throw out another idea I’ve been considering. What if you could also bless each of your grandchildren with over $1 million towards their future retirement?

Here's what I’m thinking about:

1. When your grandchild is born, pay them $1,000 for a photo shoot to be used in advertising for your business.

2. Put that $1,000 into a Custodian Roth IRA in their name.

3. Subscribe to Faithful Wealth Builders and follow the basic plan, which has averaged 12.5% annual returns over the last 95 years.

4. If they earn the same going forward, your grandchild will have over $1.17 million in their Roth IRA when they turn 60.

Compound interest is a powerful force. Over 60 years, that $1,000 investment could grow to over $1 million. And because it's in a Roth IRA, your grandchild won't have to pay any taxes on the earnings when they withdraw the money in retirement.

I know $1 million in 60 years is only about $200,000 in today’s dollars if we continue to have 3% inflation, but that’s $200,000 more tax free dollars than they would have had without it. And the even greater blessing might be showing them how to compound their own retirement contributions better over their career.

This strategy is a great way to bless your grandchildren without giving them too much money. It gives them a head start on retirement, but it also requires them to work and save for themselves during their working years.

And it doesn't require a lot of money upfront. You can start with just $1,000 and watch it grow over time.

I haven't actually done this strategy yet, because I don't have grandchildren yet. I would love to hear from other people who have used similar strategies to bless their grandchildren. I simply want to bless my grandchildren financially without hurting them. Let me know what you think!

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