Give a “Money Printing Machine” Gift to Your Kids

Imagine giving your child a magical gift that doesn’t just entertain them but also secures their future. A gift that grows and flourishes, just like they do.

Picture this: you hand them a money printing machine like below. exactly follow like older used to say ” Itna Paisa Kamao ki aane wali 7 Generation Ghar Baith Kar Kha Sake (Generate wealth in a manner that ensures financial security for the next seven generations)”

And with this Article, today we are going to make such machine with almost no effort…

Please note that, this isn’t just a dream but a tangible reality. Let’s dive into how you can create this financial marvel for your child and watch it turn into a wealth-generating machine over time.

The Magical Gift of Investment Growth

Investment growth is often called the eighth wonder of the world, and for good reason. It’s the process where the returns on your investments start generating returns themselves. This snowball effect can turn even modest monthly contributions into a substantial fortune over time. The earlier you start, the more powerful the effect becomes.

Setting the Stage: A 1-Year-Old’s Financial Journey

Let’s consider a scenario where you decide to start investing for your child when they are just one year old. You commit to a Systematic Investment Plan (SIP), investing ₹10,000 every month in a diversified mutual funds (Note** – Please discussed with your advisor while selecting the right fund). Historically, right categories funds have delivered robust returns, and aiming for a 15% annual return over a long period is quite reasonable. Early start gives better value but must start at any age of your children.

The Power of SIPs and Annual Birthday Boosts

Now, let’s make this even more exciting. Every year on your child’s birthday, you add a special gift of ₹50,000 into the investment pool. This annual top-up, combined with the regular SIP, will significantly amplify the growth of the portfolio.

Following Calculation is based on 15% return for 25Yrs.

FV (SIP) = 3,28,40,737

FV(Annual) = 1,64,35,598

FV (Total) = ₹3,28,40,737 +₹1,64,35,598=₹4,92,76,335

The Gift of Freedom

By the time your child is 25 years old, they will have a substantial corpus of over ₹4.9 crore, all thanks to your foresight and disciplined investing. This money printing machine will ensure that your child has the financial freedom to choose their career path without the pressure of financial constraints. Whether they want to pursue higher education, start a business, or take time to explore their passions, they will have the means to do so.

How can this investment benefit in the long run? At 25, with a conservative equity return of 10%, the annual amount reaches ₹49 lakhs. This equates to approximately ₹4 lakhs per month. A young adult can withdraw 50% of this, around ₹2 lakhs monthly, for personal expenses, while the remaining 2Lakhs amount go into reinvesting to continue growing and offset inflation. These strategic steps can be pivotal in shaping a successful career.

Changing the Narrative

Many of us were driven to join the corporate world out of necessity, to make ends meet. But with this financial strategy, you can alter that narrative for your child. They won’t be forced into a job just for survival; instead, they can make choices that truly resonate with their interests and aspirations.

A Brighter, Freer Future

Investing early and wisely not only secures your child’s financial future but also empowers them with the freedom to live life on their own terms. By starting a SIP and adding annual contributions, you are essentially gifting them a money printing machine that will keep growing, ensuring they have the resources to pursue their dreams and passions.