Parker's second birthday
Sunday was Parker’s second investing birthday.
God willing, she’ll have 90 or more to come.
But this second milestone feels major because we’re already seeing substantial progress. Money is piling in her accounts. Our investment strategy is cooking with hot grease, or avocado oil if you prefer.
My point is that since we started Parker’s investing journey on Oct. 20, 2022, her gains say that what we’re doing is working. Her growing account balance has given us plenty of incentive to keep going.
It’s also a pleasant reminder that my daughter is now cruising along down the simple path to wealth.
After two years of investing, Parker has surpassed $25,000.
Her Uniform Transfers to Minors Account (UTMA) has amassed just shy of 137 shares of the Vanguard High Dividend Yield Index Fund ETF, ticker symbol VYM. As of Sunday night, the current value was $18,157.49.
She also holds a little more than 53 shares of the Vanguard Total World Stock Index Fund, ticker symbol VT. Its current value is $7,026.77.
Two-year total: $25,184.26.
Now that we know what we’re doing with money, my original goal of giving Parker a six-figure, appreciable asset as her high school graduation gift doesn’t seem so far off.
But remember, we started with a little more than $6,000 that I had saved for Parker from the start of 2000 through the end of 2021. Subtract that upfront money and Parker’s two-year balance would be $19,184.26
Still, I’m calling this milestone our second gulp from my $25,000 potion. Again, the current two-year bull market has helped grow our gains tremendously. But we’re sold on stock market investing after unintentionally jumping in at the start of the market’s relentless rise.
Someday we’ll see how much of a stomach Parker has for a bear market. Honestly, I’m not sure how I’ll respond either. I’ve never experienced one. But I’m not built to budge. And I’m getting the hang of this game.
That’s why I preach so much to you about money and investing, Parker. You’re receiving an education on money management and wealth building that should arm you for life. That’s worth more than however much money we amass for you and your future children.
Parker has put in the grunt work we call learning since she was 8 years old. On the same day that I began transferring her savings from the bank to the stock market, we buckled down.
I sat Parker down at the kitchen table, flipped open my laptop and fired up “Trappin’ Tuesday’s.” To her left was “The Wall Street Journal Guide to Understanding Money & Investing.” She thumbed through the book while listening to Wallstreet Trapper and chowing down on a pizza Lunchables and yogurt for her afterschool snack.
Since that day, Parker has been required to read every Money Talks post and personal financial books handpicked by me. She’s happily listened to the podcast Million Bazillion, as well as co-hosted the Money Talks podcast. She’s watched money documentaries, YouTube videos and Instagram reels. And of course, she’s forced to hear me preach about money.
She can intelligently discuss with you inflation, taxes, tithing, timing the market, dollar-cost averaging, delayed gratification, the compound effect, credit, debt, Roth IRAs, multi-family home investing and more.
Parker has learned a lot in two short years.
God willing, her new Money Talks mindset will serve her well for at least the next 90.
Happy Financial Literacy/Money Talk Beneficiary Birthday #2, Parker! Great Job and keep it up - - Rich Dad!!
Impressive !