<prompt> Human: A while back I read an article regarding creating a retirement account for your young children. The gist of the article was that if a parent was to put a lump sum of around 4 to 5 thousand into a fund that reinvested the interest. When the child was to retire at 65 they would have a substation amount possibly a million.Is the idea of this article correct? Advice on where to invest?  <response>: Math: at 7 annual growth, given 65 years to grow without being touched or taxed, the growth rate is over 81x. So 1M divided by 81 tells us you need to drop in more than 12k to get a million bucks. This doesnt account for inflation.So if you dropped in 5kyear for the first three years of the kids life, the kid could see a million bucks at age 65, if the account is never distributed or reduced for taxes. But because the growth and dividends will incur taxes, the total cost of the account isnt just the initial lump sum, it includes the annual tax costs - which could become substantial as the account grows in size.Since there isnt a qualified US retirement account for babies, because no newborns have legitimate taxable compensation, this needs to be a taxable account, at least at first. Over time some of it could be put into an IRA, as the kid grows up and has taxable comp. 