What are you waiting for?  Life waits for no one.  It's been a fast year.  I can't believe it's already August and so much has happened.

My old coworker who sold me the subaru impreza?  She had a stroke two friday's ago paralyzing the left side of her body. She's been in the hospital and I went to see her for five minutes.  She's unable to walk and talk at this time.  She's 88 years old.  I had chatted with her earlier in the week about getting her tax documents together to finish her 2023 tax return.

She cried and said she just wanted to go home.  She hated her assisted living facility, which was a nice place.  Anyway her house was a hoarder house so it was reported to the city and had to be cleaned before she could move back in.  It also honestly wasn't for an elderly person and with all those stairs I wasn't sure then how'd she manage.  But now no way.

I hate the fact I've been telling her for the past 7 years to either sell or reverse mortgage the house to get it handicap accessible so she could stay in it.  But she just said in the future.  She never bothered.  So now in a frenzy the family and POA are trying to get a reverse mortgage since she's refusing to sell.  But the truth is I can't ever see her going back.  They might as well sell it.

The same thing has happened with my in laws.  My MIL is upsest over selling their house but truthfully they weren't maintaining it.

I asked my MIL that questiong the other weekend when we saw them. What is she waiting for?  Why isn't she using the money from selling the house to buy new furniture that fits in her new condo?  Why isn't she making her life more comfortable and using the money to turn on the AC?  Why aren't they using the improve the house in little ways to make it accessible?

The answer?  They don't think they are "old" or will need it at 73 and 74.  I have noticed a trend, and it applies I think to most elderly, what are they waiting for?  I say that with the utmost respect, but what was joe biden waiting to step away?  I mean a year ago he knew he wasn't up for the job (same with donald trump).  They are 80 years old.  When is it time to start "retirement" and spending the money you've worked hard to earn?

It feels like now people think that 70 is the new 50 and they have all the time in the world. But 70 is still 70 and it's not young and it's not new.

It's flipping the switch on saving and waiting your whole life to "retire" but then when it's time you don't actually do it.  You hesitate.  You drag your feet.  What are you really waiting for?

I just want to emphasize how investing small amounts of money can work over the long term.  How compounding really makes the biggest difference. I don't think I ever really believed it but as I watch what has happened for my two kids I just am in shock.

First we have been contributing to their Coverdell/ESA accounts since birth at $2k/year.  DK1 is 14 (2010) and has $67499.79 total from $28k in contributions.  Yep you read that right in 14 years she's got more than double.  DK2 is 11 turning 12 soon (2012) and has $52412.22.  That is $24k also doubled.  We will use this in 4 and 6 years along with contributing another $8k and 12k.  If that were all we had saved for college, I think it could easily cover the entire cost of college.

But so many people I do taxes for and know have been "saving" for college talk about how little they have.  I don't quite understand it because $2000/year is $166/month.  That's less than a car payment, less than people's cable bills, less than cell phone plans.  And I just dumped it into VOO or the SP index fund.  No special investments and no special timing just when they were born and january every year I didn't even Dollar Cost Average monthly.  I just dumped it in and forgot about it.  $166/month many people spend that on getting their haircut and colored.  Or they spend it on clothes or a meal out once a month.  Or even lunches everyday (school lunches are $4/day x 20 x 2 = $160/month for 2 kids).

Now DK1 had apple stock given I believe in 2010 or 2011. I can't exactly remember when DH's uncle gave us 2 shares of apple.  It was valued around $250 at that time so he gave DK1 $500.  The value of the stock we've never sold or done anything?  $13,348.  Ridiciulous but reinvest the dividends and hang on through the splits.  She's got 60 shares.  DK2 as well.  

I finally get it. Since DH and I did not grow up with wealth we weren't privy to seeing how generations pass on wealth.  But now we are finally seeing how people grow their wealth, preserve their homes, and pass on just tiny bits of money can make a huge difference.  How a house down payment at 22 started when the kid was born. 

I mean imagine gifting a grandchild $2k/year for 18 years let alone the gift tax $18k/year for 18 years and then when they are 18 @ a 5% return you will have given the kid $531,707.  Half a million dollars from $18k/year at 5% return.  That's lower than investing in VTI and never touching.  Imagine if you gifted them to 22 and they then turned around and used it for college, a car, and a house by age 22 and they got a job?  And they started investing in their own retirement without having to save for the house and car or pay back student loans?

I'm not saying you should but the small amounts properly invested can make a huge difference.  I mean my kids will be getting a huge head start to DH's uncle and $500 gift.  When he passed in 2017 we split the amound DH got from being the executor like $25k into their accounts and they each got $13k invested.  It's not worth about $60k each from his apple stock and VOO.  I can't believe what we are going to be able to give the kids.  It's shocking.

It's not fancy or even timed.  Just bogelhead prinicipals of index fund (just one VOO actually) and reinvesting the dividends.