Investing

Staying motivated at the start of any endeavor is tough. When your retirement account has $4,031 in it, no doubt it's hard to see the benefit of working hard and contributing to the account. It's easier and more enjoyable, short-term to buy cool toys and go on vacations.

Going from $0-$100k is the hardest part of the journey. Imagine if the first 1/2 mile of a 10-mile run was the hardest. As the race progressed you ran faster and faster with little effort. That 1/2 mile is exactly how it feels saving your first 100k, it's a slog, and why 86% of Americans have less than that in their retirement account.

After hitting the 100k mark, it's easy to stay motivated. I'll show you why.

The below chart shows you accumulating a balance of $3,159,244 in 40 years, not too shabby.

The bottom 50% of Americans by net worth own just 1% of stocks. The top 1% own 50% or 29 trillion in stock. I'm assuming these numbers make many of you upset, and rightfully so.

In 2007 I remember balancing my checkbook on a Friday evening after getting paid and I had a balance of 32 cents. I remember standing in my kitchen feeling happy that I was not in the negative. Then I remember a wave of sadness come over me because of how low I had set my expectations and goals in life. I was 25 years old and broke with no plan. Shortly thereafter I read that in order for an individual to make a positive, lasting change in their life the perceived negatives have to outweigh the positives. This was the turning point for me; I was finally tired of being poor. No one was coming…

Warren Buffet purchased his first stock at 12 years old and has a net worth of $146 billion dollars. Not too shabby. Our 12-year-old son recently started investing the money he earns from splitting firewood into a Vanguard retirement account. His current balance is $960. We reviewed his holdings and performance the other day and he asked an intelligent question; how much money do I need to invest to become a millionaire? So, we broke out the investment calculator and ran different scenarios. Just for fun we ran scenarios based on 31 years of investing or until age 43 (his dad's age)

Scenario #1: Slacker

Starting balance $960

Invest $1,000 per year for 31 years at 8% return

Total = $133,788

You are being held at gun point, and you have 10 seconds to choose whether to send your child to a great 4-year private college or you can give them 11.7 million dollars, but it cannot be cashed until they are 68 years old. What would you choose?

The average price of college has skyrocketed 48% over the last 15 years, leading many families to contributing vast amounts of money into 529 plans. This sacrifice often times leads to more financial stress, a longer working career and stress around the unknown. Will my child graduate college? Will they drop out and spend 100k without getting a degree? Will they be happy? Will they get herpes and acquire a drug addiction? The worrisome questions go on and on.

• The average cost of attendance for an in-state 4-year public school is now $29,910/yr totaling $119,640. The average financial aid package brings this…