Millionaire baby

Make your baby a millionaire by 21 – a million awesome reasons

Everybody wants the best for their kids. And what could be better than making your babies financial future secure?

But is it possible to make your baby a millionaire by age 21?

The answer is yes. And what’s more, it’s surprisingly achievable!

How to make your baby a millionaire by 21

I used the super-easy millionaire calculator to calculate how easy it would be to take your baby from zero to a net worth of a million.

The result was incredible.

And no, there’s no need to be a Boss Baby to achieve it.

The two steps you need to follow to make your baby a millionaire by 21:

  1. Invest $1,000 every month into a low cost, general stock market index tracker fund.
  2. Wait for twenty-one years.

That’s it!

Don’t believe – I don’t blame you. This result shocked me. When I plugged these numbers into the millionaire calculator I was not expecting to a child to be able to a millionaire just as they reach legal drinking age in the USA!

Millionaire calculator for baby

Why does it only take 21 years for your baby to hit a million?

As you invest the $1,000 a month, you build up a fund of cash. But that alone would only amount to $250,000. Where does the additional $750,000 come from?

That’s the beauty of long term investing.

On top of this, you earn dividends every year. And on top of that, you can expect capital gains from the return of the stock market increasing in value. These combine and compound up to hugely accelerate your returns. So when your child hits $1m they will be worth a million!

What you need to make your baby a millionaire by 21

The assumption needed to get here are genuinely modest:

First, an 11% nominal average total return over 21 years. The S&P 500 has returned an average of 11% since 1926.

Next, a monthly investment of $1000 a month. This is a lot of money. But for many people it’s way less than the cost of private schooling.

And other assumptions? No, that’s it. Well, okay. It assumes no new taxes are introduced against investments. And it assumes the return is after transaction costs. Last, it trusts that future performance is a guide to the future.

But the millionaire calculator is clear. Save $1000 a month and invest in the S&P500. Wait 21 years. Bingo! Millionaire.

Okay, it’s actually 21.2 years. But I’m sure they can wait a couple more months.

Try the Millionaire Calculator for Yourself

The calculator lets you experiment with all kinds of scenarios.

It’s designed to be super simple and gives you an immediate result on your path towards becoming a millionaire.

Is this too good to be true?

Well… yes and no.

The calculation is right based on these assumptions. If you hit or beat the investing target and asset returns, your baby will be a millionaire by 21. But the calculation does miss out one critical factor.


You see, by the time your son or daughter reaches 21, a million won’t be worth what a million is worth today. Inflation will nibble away at the value. So although they will be a millionaire, it may not buy as much as it does today.

Is that a reason not to invest for your baby?

Of course not! More money is not going to hurt them! Even if a million is only worth a quarter of what it is today, that is a quarter they wouldn’t have for a college fund or seed capital for a future entrepreneur.

Ways to help towards investing for your child to become a millionaire by 21

$1000 a month may be a lot of money for your. That’s because it is a lot of money.

But think. $500 a month still gets you to $1m by age 27. Granted, it would take until age 41 if you only invested $100 each month.

So are there ways to increase the amount you are able to save? Absolutely there are. You can also look to ways to maximise your investment returns.

Here, you should focus on the money you spend on your child and whether there are alternatives. And remember, this isn’t about your baby going without through their formative years. It’s about them having more money than you could have dreamed of at the age of 21.

To supercharge this return you can consider putting the money in a tax advantage savings account, like a Roth IRA in the USA or ISA in the UK. You may even be able to contribute some of the investment into a pension for your baby – although that means they won’t be able to access the money for many years.

Should you invest on a regular basis for your child?

When you are a baby, you aren’t thinking about investing. You’re thinking about where the next feed is coming, and how much screaming you can do.

That’s why you rely on you parents to make this decision for you.

Look at it this way – if you could wave a magic wand, and your parents could afford the investment – wouldn’t you want this $1,000 investment made for you?