Instructables

How to make $1,000,000+ by the time you are retired ( assuming you are a teen)

Picture of How to make $1,000,000+ by the time you are retired ( assuming you are a teen)
An easy way to put your hard earned cash to work to earn you money.

$$$$

Step 1: Get a Social Security number.

Picture of Get a Social Security number.
This is the official ID number you'll need before you can set up your get-rich investment.

Good news: Chances are your mom or dad already took care of this for you. (They have to enter your Social Security number on their tax return to claim you as a dependent.) All you need to do is find out what it is.

Hint: If you need to get a Social Security number, click here to get one.

Step 2: Head to the bank and open a Roth IRA

Picture of Head to the bank and open a Roth IRA
This special kind of IRA-- individual retirement account-- is your secret weapon. Unlike other kinds of savings and investments, the interest you earn might be completely tax free. That means you get to keep more of your money instead of handing it to Uncle Sam.

Hint: While there's no minimum age for setting up a Roth IRA, you might want to bring one of your folks along with you to the bank. They can help answer questions you might have with the paperwork

Step 3: Put in $10 a week

Picture of Put in $10 a week
It could be from chores around the house or an after-school job. The only trick is that you have to earn it. This is because the money that goes into a Roth IRA has to be taxable income.

Hint: You can claim your parents as your employer if they're paying you to do work around the house.

Step 4: Get a folder and find a safe place

Picture of Get a folder and find a safe place
Time for a little record keeping, just in case the tax man has any questions for you down the line. You'll need a safe place to keep copies of your records-- like the statements showing how much sweet moolah is piling up in your IRA.

Hint: If your folks have a safe deposit box, fire safe or other place with important documents, you could ask if you could keep your IRA stuff there.
 
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Wolf Seril6 years ago
Too bad the economy is going to collapse soon and this will be worthless.
It's comments like that that don't help the economy. Have some faith... otherwise just stuff your money in your mattress and hope for no fires.
i agree think abut it reality is perception so we think something it will happen think walking same with others we have hit some rough spots but this a good way to try so don't worry about it
who's laughing now?
8bit Scammah5 years ago
Realism in thought leads to appropriate planning.
i hear that
8bit Wolf Seril5 years ago
Yup. Time to learn trading.
lioneatr 8bit5 years ago
lol
pkmn lioneatr4 years ago
(removed by author or community request)
iNate pkmn2 years ago
we need to fix that
dont be such a downer.
fegundez12 years ago
Unfortunately if you list your parents as your employer you do 2 things to them. first you kill their tax break for taking care of you, this is in the thousands yearly! also they will have to file tax info on you also take taxes out of your pay like social security disability etc. I commend you on the desire to have a retirement acct but you cant sink your own family to do it. The better way to do this type of thing is to start a business doing something you are interested in, think small to start, for instance you seem to have an interest in the financial world learn as much as you can and set up an internet advice column, blog etc aimed at young persons who have need of this charge nominally for your advice ans put that into your savings. Many universities have their classes online for free, you wont get college credit but you will get college knowledge. Another thing you can do is sell plants to those in your neighborhood, don't try the 10 a yard race mowing gig you will never get anywhere, help people get their homes looking nice, this requires work!! But it will pay well as you get better at it. Just remember to save!! Recycle, and keep learning.
kbawcutt3 years ago
This is a great instructable. Young people like me need to learn that if you save when you're young that compound interest practically works for you
lil jon1685 years ago
if you are 12 (me) and u put 10 $ in the bank till ur 65 u will have over 200K
did you change the average rate of return to 11.5?
bowmaster4 years ago
I'm 15 and I can put in up to $75 a week. How much money will I have when I'm 50?
$32,102
seamaas4 years ago
The maximum contribution you can put in 2010 is $5,000
seamaas seamaas4 years ago
it is $6,000 if you are 50
nerd124 years ago
why don't you post an instructable that shows you how to get the money easily to put in the account.
kachup4 years ago
the price you pay is that you wont enjoy your money much, at 65 the fun you can have is limited.
Keep in shape.
teslafan1004 years ago
Wow.........Cool
squarepants5 years ago
frankly id rather spend the money when im young- when im old i will probably just sleep all day,like i do on weekends. also, when i make my withdrawal ill probably get run over by a car on the way home from the bank cos ill be too slow with my zimmerframe to get out of the way and ill be like "waaaaaaaaaaaaahhhhhhh.....splat!" and so yeah.....uhhhhhhh......yep thats whatll happen
bowmaster5 years ago
I will use my money to buy a new body from a young, dead person. Then I will have my brain put in the body. Then I will start this process over again. I will keep repeating it so I live FOREVER!! MWAHAHAHAHAHAHAHA!!!!!!!!!!!!!!!
lol u funny
I nose it.
save now BEFORE the economy totally crashes
I think it just did... lol
Oops too late
ik lol but start now unntil it is soooooooooooooooooooooo bad
A good name5 years ago
Good idea for people in the USA, not for me unfortunately I'm in Canada :(
This would be a good idea if we actually had money to begin with which we don't. All we have is Federal Reserve Notes. Real money was confiscated by the Government during the 30's to 60's when money was made from gold or silver and thus worth someting of value. Read the articles on unexplainedmysteries.com by Phillip Tilley and all wil be explained.
LinuxH4x0r6 years ago
Or just get an account in Iran with 15% interest (yes, I said 15)
ac1D LinuxH4x0r6 years ago
can we do this without leaving our house? lol
LinuxH4x0r ac1D6 years ago
No, not unless you give me 1/2 of it :P
ac1D LinuxH4x0r6 years ago
i give you 100000$ when ill be 65yo.
tradergordo6 years ago
Hey I like that you are encouraging people (particularly young people) to save. Yes, the power of compounding interest can be a wonderful thing! That said, people should have realistic expectations too, especially older people trying late in the game to save & invest. 11% annual returns is unrealistic in my opinion, particularly if you are investing when prices / peak earnings ratios are high. Still over 50 years you should get at least 7-8%. Next you should consider inflation. $1,000,000 50 years from now will probably be like $65,000 today. You can't retire on that alone. An average, normal sized house will probably cost over $3 million dollars at that time, a new car, $375,000. This is not an exaggeration. If you want to plan to retire in style - you are going to have to be much more aggressive than $10/week. And finally, don't assume the government won't back out of their promise not to tax ROTH withdrawals, if ROTHs even still exist in the future. Although they are probably more likely to get their money in other ways (including depreciating the currency to inflate away debt).
  • consider inflation
In principle, I think investments in stocks 'automatically' adjust for inflation. The "value" of a company (which is what you are investing in when you buy stocks) shouldn't change much just because the value of the underlying dollar changes. Acme Bread company, capable of baking 10k loaves of bread each day, is still going to have a value somewhat relative to the cost of a loaf of bread, regardless of whether that cost is "$0.20" or "$20.00"...
(Presumably, this is part of why stocks seem to do so well over the long term. All other things being exactly equal (which they never are, of course), a stock's value should always go up at the same rate as inflation.
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