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How Rich Would You be if You Chose Apple Inc. (AAPL) Stock Over Kids?

Apple Inc (NASDAQ:AAPL) Apps

Apple Inc. is one of the most popular stock nowadays. So, it won’t’ be a surprise, if you might want to know how rich you would be if you invested in Apple’s stock rather than in raising a child. Well, now you can know, says a report from Fortune. The site “WhatIfIBoughtAppleInstead” asks if the user has ever pondered how different their financial situation would have been if they had invested in Apple stock rather than in having a child?

What if you bought Apple stock?

WhatIfIBoughtAppleInstead is a website that invites parents to give the details of their family income, their child’s birth, and what they paid for the college education of their child, and in turn, the website calculates how much money would the parents have made if they invested all that money in Apple’s stock instead.Apple Inc. (NASADAQ:AAPL)

In recent years, Apple Inc. shares have soared, and it was all due to the success of the iPod followed by the giant success of the iPhone. Now, the tech giant is one of the most popular and the biggest firms in the world in terms of market cap. And is currently worth nearly $600bn.

Several assumptions are involved in the calculation by WhatIfIBoughtAppleInstead. At first, it calculates the monthly cost of raising a child from the information received from the US Department of Labor. In addition, it estimates the cost of raising a child to 18 based on the income level, and adjusts Apple’s stock price based on the dividends and stock splits. The latest closing price is used as a basis for valuing the investment.

Some limitations, but still good

Apple-tracking site 9to5Mac reported one major limitation – Apple did not go public until Dec. 1980, hence, the calculator only extends as far back as 1981. Therefore, if your child was born before 1980 then it would be quite impossible to estimate how rich you would be. In addition, there is no way to calculate an investment return on any shares sold before the latest trading day.

Despite this, one thing is certain – any investment in Apple stock for a long period would have provided big returns. The Cupertino-based firm did have some difficult years in the 1990s, and many people got out of the stock at some point. In the past few years, Apple’s share price has fallen within a narrow band. But, early investment would have given huge returns.

For instance, if you and your wife with nearly $111,000 in gross family income paid an average of $50,000 annually for four years of private college for your child born in January 1981, and invested in Apple’s stock, then you and your wife would own more than $48m in Apple Inc. shares together.

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Aman is MBA (Finance) with an experience on both marketing and Finance side. He has work as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, playing PC games and cricket.

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