You know summer is coming to an abrupt end when you have to start making preparations for the new school year. With four grandchildren, it can get very hectic at times. The registration, new outfits, gym clothes, car pools, the list goes on and on. But in the end, the children are ready and sometimes eager to go.

Parents put a lot of planning into the new school year, especially if they are going to new schools, as three out of four of my grandchildren are doing. But do we prepare ourselves for our financial future with the same focus? We probably give it some thought, but not to the same degree we do preparing the children for the new school year. But we should. According to the Economic Policy Institute, which looked at the state of American retirement in a 2016 report, the median working-age family (50th percentile) had only $5000 saved in 2013, while the 90th percentile family had $275,000 saved. Not a pretty picture. People don’t save enough for long enough. How can we as parents and grandparents help? It would make our grandchildren’s lives and future education a lot easier if we funded portfolios for them at an early age and allowed it to compound in value over time.

Using historical averages, $100K invested at an early age would compound in value to roughly $12 million after 50 years and $50 million after 65 years. What a gift and a wonderful legacy to leave them. Not bad for having the foresight to invest for them early. It is never too late, but the earlier the better.