St. Louis Newborn Becomes Instant Millionaire, Joins Almost 600 Other Children and Grandchildren Across the Country
For Immediate Release
March 25, 1999
Media Contact: Will Casserly
wcasserly@ricedelman.com
(703) 251-0110
March 25, 1999, Fairfax, VA --Instead of a silver spoon, monogrammed baby blanket, or government savings bond, newly born Steven Konieczny of Missouri received an extraordinary christening gift from his grandparents: $2.4 million when he is ready to retire!
Andrew and Mary Steinhubl of Clayton, MO contributed $5,000 each for little Steven and their four other grandchildren in a new kind of retirement trust fund for kids. Andrew, a former brewmaster at Anheuser Busch, Inc., feels he is providing his grandsons and granddaughter with a comfortable retirement without a great deal of expense on his part. And Mary feels the retirement funds give the kids a worthwhile, solid financial legacy. Steven and his cousins join more than 600 other children from across the nation whose parents and grandparents felt the same way.
In fact, consumers living in Alabama, California, Colorado, Connecticut, Florida, Illinois, Indiana, Maine, Maryland, Massachusetts, Missouri, New Hampshire, North Carolina, North Dakota, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, West Virginia, Wisconsin, Washington, D.C., and even as far away as the United Kingdom, have established these new retirement trusts for their children and grandchildren. It's known as the Retirement Income ? for Everyone Trust™ (RIC-E Trust™), which was begun late last year.
Under the RIC-E Trust™, a parent, grandparent or other adult contributes a minimum of $5,000, and pays a $300 one-time set-up fee to establish the Trust in the name of a child. If the trust's assets were to grow at 10% per year, the stock market's historical annual return since 1926 according to Ibbottson and Associates, the $5,000 contribution would be worth more than $2.4 million by the time a newborn reaches age 65. By contrast, this same $5,000 would be worth only $27,800 if it were used for college after 18 years, assuming the same 10% annual return ? demonstrating the benefit of compound interest if you leave the money untouched until the child's retirement.
Through the RIC-E Trust™, there are no annual income taxes until the money is withdrawn in the child's retirement, and no annual trustee fees, provided the specimen trust agreement is used. And the RIC-E Trust™ does not reduce a child's eligibility for college aid, nor can it be lost through a divorce, lawsuit or creditor's claims.
"Ordinarily, locking away money for so long seems unnatural, because the child will certainly want to spend the money as he matures ? to pay for college, to buy a home, or even to help raise his own kids," said Ric Edelman, creator of the Trust. "But children who have access to money are virtually certain to spend it well before retirement, so we wanted to establish a way to ensure that the money invested today will remain intact for the child's retirement. Even though some people might think that preventing access to the Trust's assets for decades is a problem, it actually is the whole point of the RIC-E Trust™."
"Indeed, the RIC-E Trust™ allows consumers to build an astonishingly large retirement nest egg for the children they love by combining the power of the stock market with the ability to compound returns over very long periods of time," Edelman said. "Ordinary people now have access to the same wealth creation tools that have traditionally been available only to the rich," he said.
The RIC-E Trust™ is offered in Missouri through Wealth Management Advisors, Inc., a financial planning advisory company located in Creve Coeur, MO. It's president, Sherri Weintrop, said the RIC-E Trust™ "is the best program on the market to deal efficiently and effectively with the legal, financial and tax matters which face parents and grandparents who desire to leave a meaningful sum of money to their kids and grandkids far into the future."
Edelman will be in St. Louis on April 29 to present a special RIC-E Trust seminar at the Auditorium at One City Place, Creve Coeur at 7:00 PM. The seminar, sponsored by Wealth Management Advisors, is open to the media. Any members of the public wishing to attend should contact Wealth Management Advisors at (314) 569-3311.
All told, nearly 4,000 financial advisors nationwide offer the RIC-E Trust™ to their clients. Enrollment information on the RIC-E Trust™ can be found on the web site www.ricedelman.com or in Edelman's new book, "The Truth About Money" from HarperCollins.
Ric Edelman, CFS, RFC, CMFC, New York Times best-selling author, syndicated columnist and nationally recognized television and radio host, is one of the nation's most respected and highly successful financial advisors. He hosts a personal finance program on America Online (keyword: Edelman), has produced a popular series of video and audio cassettes and hosted seminars, all on personal finance, and is on the faculty of Georgetown University in Washington, D.C. His firm, Edelman Financial Services Inc., manages almost $1 billion for individuals and businesses across the country and in six foreign countries.
Rescue Your Money, written by award-winning financial advisor Ric Edelman, is your personal investment recovery plan.
