This National Geographic cover from May 2013 feature various babies with the heading “This Baby Will Live to 120.” With that in mind, let’s talk about the power of compound interest.
A one time deposit of $4,000 into a mutual fund would equal $123,948,000 based on the math shown in this video. A person living to 120 years could have earned the equivalent of a million dollars a year.
A dollar a day put into a mutual fund would equal $136,975,000.
If the science is to be believed, each generation is living 30% longer than the previous generation.
So, if you have children or grandchildren born today, a dollar a day put away for them into a mutual fund, along with their willingness to continue to save a dollar a day, could equal a winning lottery ticket.