"The best time to plant a tree was 20 years ago. The second best time is now." - Chinese Proverb.
Parents, as we continue to celebrate Children's Day this week, let's think about the future we're building for our kids. Imagine your child growing up with the security of knowing they have a financial cushion waiting for them when they turn 65. With the 100M65 plan by InvestNaija, you can make that a reality. This specialised InvestNaija product initiative promises to make your child a multi-millionaire by the age of 65 without stress. Let's explore how this game-changing investment plan works and why starting today is the best gift you can give your child.
What is 100M65? The 100M65 challenge by InvestNaija is a financial plan designed to help Nigerians from all walks of life, including children, accumulate a retirement fund of N100 million by the age of 65. This plan utilises the magic of compound interest and duration (long-term investment strategies) to turn small, regular savings into substantial wealth over time.
Long-term Investment Strategy
Imagine setting aside a small amount of money every month for your child's future. The 100M65 initiative encourages parents to invest consistently over the long term. This approach ensures that saving and investing become a natural part of your financial routine, much like brushing teeth or reading bedtime stories.
Evidence and Examples
Consider the story of Amaka, a mother who started investing with InvestNaija for her 5-year-old son. By setting aside just N10,000 each month since his birth and now that he is 5, Amaka has already seen significant growth in her son's investment portfolio which has grown to over N870,000 and guess what? It will be in another 60 years? A whopping N155 million. This long-term, compounded growth strategy means her son will have a substantial fund waiting for him by the time he retires.
Power of Compound Interest
Albert Einstein called compound interest the "eighth wonder of the world." This principle is the powerhouse behind the 100M65 plan. By reinvesting earnings, your child's investment grows exponentially over time. How It Works Let’s break it down with a practical example:
- Initial Investment: N100,000
- Annual Interest Rate: 7%
- Additional Contribution: N10,000 per month
- Compound Interval: Quarterly (4 times a year)
Using these parameters, let’s see how the investment grows over time: By using the power of compound interest, we can calculate the future value of this investment over 60 years: Total Contributions: N10,000 x 12 months x 65 years = N7,800,000.
Future Value: Over 65 years, with quarterly compounding, the investment grows to approximately N155 million. This exponential growth showcases the magic of compound interest, turning small monthly savings into a vast fortune.
Financial Education and Guidance.
InvestNaija not only provides a platform for investing but also educates parents and their children. The 100M65 plan includes comprehensive financial literacy programmes, helping families understand the importance of saving, investing, and making informed financial decisions.
Learning Resources
The InvestNaija, LearnIN module offers a variety of resources, including courses, articles, podcasts and personalised financial advice. These resources ensure that families are not only investing but also learning the principles of wealth management and financial independence.
Real-life Application: Tunde, a father of two, found the platform intuitive and easy to navigate. He appreciated the automatic savings feature, which allowed him to set savings goals for his children and let the app handle the rest. This ease of use has been a significant factor in his consistent investment behaviour.
Key Takeaway
As we celebrate our children, let's give them the gift of a secure financial future. The 100M65 challenge by InvestNaija provides a realistic and effective path to financial independence. By leveraging long-term investments, the power of compound interest, and continuous financial education, we can ensure our children grow up with financial security.
Start today, be consistent, and let your money work for you and your child.
Disclaimers This article is for informational purposes only and is not intended as professional financial advice. Investing involves risks, including the potential loss of principal. Always consult with a qualified financial advisor before making investment decisions.
