According to a recent report from the Brookings Institute, the average middle-income couple will spend about $310,605 raising a child to age 17.
This number is a bit higher than the U.S. Department of Agriculture’s $233,610 estimate from a few years ago… and while neither number includes the cost of college, Brookings does account for future inflation.
You probably didn’t need this statistic to know that raising a child is expensive.
In fact, for nearly 80 years, the U.S. government has made commercials advertising savings bonds as tools for investing in a child’s future… and they’ve featured everyone from Lassie, John Wayne, and even the characters of TV’s Frasier.
(You can watch some of these commercials here.)
I grew up during the Savings Bond era… It still amazes me that a popular gift for a newborn was a piece of government paper promising a return of capital with interest.
And while I don’t want to date myself too much… buying those bonds for a newborn in the late 1970s or early 1980s worked out well.
As inflation and interest rates dropped, the real returns on those bonds, locked into high interest rates, soared… We’re talking annual returns of 18–20% per year.
I even know of a few people around my age whose parents were able to use the returns on savings bonds to pay for college. Not too bad.
But that was decades ago…
With housing, education, and inflation at record highs, the age of securing your future with savings bonds is over… We’re in a New Order of Money.
And whether you’re a parent, a parent-to-be – or don’t plan to become one at all – this new order means you must rethink how you’ll secure your financial future.
Today, I’ll share one method you may not have considered… and one that could be especially rewarding when planning for the future of younger children or grandchildren.
The Gift of Financial Security
Now, as a (foster) parent, and with many friends around my age having kids, I’ve been looking for assets I can gift that will outlast toys or baby clothes… and be worth substantially more in the future.
I’m talking about gifts where even a small initial cost or investment can make a big difference years down the line… and maybe even help pay for college or become a down payment on a starter home.
With that in mind, I think the perfect gift for a newborn or child is what Daily editor Teeka Tiwari calls a Maverick Investment.
Simply put, Maverick Investments offer asymmetric returns… where you invest a small sum for a realistic chance at outsized returns… So you don’t need to risk a lot to make a lot.
And even if it doesn’t return as much as expected, over time, a Maverick Investment can still beat the pants off the returns of conventional assets like stocks and bonds.
Right now, there’s one I’m targeting as the best to buy and hold for multiple decades…
I’m talking about bitcoin.
The original cryptocurrency is still the largest by market cap, even in the middle of a brutal crypto winter today.
This is because bitcoin follows the three qualities of Maverick Investments. It’s rare, real, and enduringly desirable. Here’s what I mean:
Rare: Bitcoin has a maximum supply of 21 million, with the last bitcoin fraction mined in 2140. That makes it rare.
The programmed “hard cap” has helped bitcoin stay the leader of the space, even as thousands of other cryptocurrencies have come into existence.
Real: While you can’t touch bitcoin any more than you can touch the numbers in your bank account, it’s still real. Bitcoin is used for financial transactions at a growing rate.
And it’s allowing a true separation of government from money… offering millions a path out of the deliberate destruction of their fiat currencies via inflation and runaway money printing.
Enduringly Desirable: Today, bitcoin is attracting billionaire investors, family offices, and traditional financial institutions.
They recognize that millions want to invest in bitcoin as easily as they buy and sell shares of stock… and that an estimated 1 billion bitcoin wallets are in use today.
That makes bitcoin very desirable.
Look, I know that sounds insane… especially since bitcoin is down 70% since hitting its all-time high of nearly $70,000 last year.
But as Teeka says, you should view these pullbacks as gifts. Each time bitcoin has crashed, it’s gone on to rally to new highs.
And I’m taking his advice.
Right now, I’m preparing for the holidays. And I can’t think of a better gift for a child than a $100 investment with the potential to return 25–50x your money in 20 years.
That’s the potential Teeka sees with bitcoin. (His price target is $500,000 in the coming years. I think it could easily go closer to $1 million in time.)
This isn’t just idle theory, either.
In 2017, a Brazilian father bought one bitcoin for his toddler when bitcoin was trading under $1,000… The investment hit a peak return of 6,500% last year. And even at today’s prices, that’s still a 2,000% return in about five years.
I don’t think his toddler will have any problems paying for college.
A Small Investment With Massive Upside
When it comes to raising kids, some things never change… But when it comes to investing with an 18-year outlook, the modern era has supplied a modern solution.
With supply chain shortages still wreaking havoc and with inflation increasing the costs of necessities while asset prices crater, consider buying bitcoin for your loved ones.
The crypto is the clear choice for turning a small gift into a meaningful amount of capital over the next decade and beyond… By the time today’s newborn is ready for college, they’ll likely have the option of paying with bitcoin, too.
As any parent will tell you, you want your kids to have better opportunities than you did. My generation had savings bonds. Today’s generation has bitcoin.
Those who invest in bitcoin now for their children’s future – or even their own – will be on the path to a brighter financial future.
Again, I understand no one is interested in crypto right now. But the best time to buy a world-class asset is when it’s hated.
So view the current pullback in bitcoin as a gift that will keep on giving. Your kids and grandkids will thank you for bucking the crowd and making a Maverick Investment.
Analyst, Palm Beach Daily
P.S. While bitcoin is my top Maverick Investment for securing a long-term financial future… Teeka has discovered an asymmetric crypto opportunity that could turn a small sum into a five-figure monthly income.
It has nothing to do with Ethereum’s Merge or a bitcoin halving… and all but the heaviest hitters in finance are even talking about it right now.
But investors that prepare for it could have a shot at collecting a five-figure monthly income from just a handful of crypto investments.
That’s why Teeka is hosting a free online event tomorrow night at 8 p.m. ET, where he’ll reveal…
Exactly what’s happening…
Why this market event has left him wildly bullish on crypto in 2022…
And how a handful of $250 crypto investments could set you up for monthly crypto income of $10,000 or more.
This will be Teeka’s first LIVE crypto event of the year, so you don’t want to miss it.
Click here to reserve your spot.