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post #1 of 28 (permalink) Old 12-28-2007, 08:11 AM Thread Starter
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Investing for your child

I am posting this as I'm guessing with all the babies born recently a lot of us are wondering about it. I want to get my daughters future started. Lets say I want to open a online trading account for her and start her off with $500. what would be some good stocks to invest for the long term that will grow nicely.




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post #2 of 28 (permalink) Old 12-28-2007, 08:15 AM
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Any of the 30 on the dow would be good. You can also look at qqqq or spy they are parts of the nasdaq and s&p 500 respectively.

Or a 501 college plan would be an idea you can lock in college tuition

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post #3 of 28 (permalink) Old 12-28-2007, 08:31 AM
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Find stocks with good dividend Like Utility/Telecom. Find some ETF's and maybe a high paying dividend fund like PVX. Put them in a drip account like sharebuilder.com or buyandhold.com. Then take a little money every once in a while and try to hit one out of the park with a couple of speculative plays. I could give you some names privately but I don't want to start posting picks.

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post #4 of 28 (permalink) Old 12-28-2007, 08:39 AM
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I would just buy a fiero, those always seem to go up in value.
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post #5 of 28 (permalink) Old 12-28-2007, 08:43 AM
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Look into a 529 plan for college.

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post #6 of 28 (permalink) Old 12-28-2007, 08:55 AM
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I would get a aggressive mutual fund. They are monitored by the pro's 24/7. No work on your part. Plus every 1/4 they will probably mail you a update with a blank deposit slip so you can keep adding. Look into a nice no-load fund, you can make it really aggressive since she is so young and will let it sit for 17 or 18 yrs.
I played the market for years back in the day and overall you will rarely out perform the pro's over time.
T.Rowe Price has really nice funds. Can also use the Yahoo fund screener to help choose one.

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post #7 of 28 (permalink) Old 12-28-2007, 09:00 AM
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I would get a aggressive mutual fund. They are monitored by the pro's 24/7. No work on your part. Plus every 1/4 they will probably mail you a update with a blank deposit slip so you can keep adding. Look into a nice no-load fund, you can make it really aggressive since she is so young and will let it sit for 17 or 18 yrs.
I played the market for years back in the day and overall you will rarely out perform the pro's over time.
T.Rowe Price has really nice funds. Can also use the Yahoo fund screener to help choose one.

Under200
If you went this route I would only do it for the first 9 years. I wouldn't be that aggressive as you get closer to the time Mya needs the money.

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post #8 of 28 (permalink) Old 12-28-2007, 09:00 AM Thread Starter
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Quote:
Originally Posted by Crazy View Post
Find stocks with good dividend Like Utility/Telecom. Find some ETF's and maybe a high paying dividend fund like PVX. Put them in a drip account like sharebuilder.com or buyandhold.com. Then take a little money every once in a while and try to hit one out of the park with a couple of speculative plays. I could give you some names privately but I don't want to start posting picks.
Excellent, then (correct me if I am wrong) the dividends can be automatically reinvested back into the stock?

Guys I want to stay away from the new college plans, as those are locked in for college. If she gets happens to get a scholarship I wanna be able to use the money for something else. Like a lake house for me




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post #9 of 28 (permalink) Old 12-28-2007, 09:04 AM
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saving up now to buy her first Ducati?

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post #10 of 28 (permalink) Old 12-28-2007, 09:05 AM Thread Starter
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saving up now to buy her first Ducati?
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Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.

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post #11 of 28 (permalink) Old 12-28-2007, 09:10 AM
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you can set the mutual fund on a 3 way split similar to a retirement account. It can go aggressive for the first 5 moderate for the second 5 and low for the last 5.
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post #12 of 28 (permalink) Old 12-28-2007, 09:11 AM
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Quote:
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Excellent, then (correct me if I am wrong) the dividends can be automatically reinvested back into the stock?

Guys I want to stay away from the new college plans, as those are locked in for college. If she gets happens to get a scholarship I wanna be able to use the money for something else. Like a lake house for me
smart plan. Personally, I feel the new college plans are for the lazy. Not that it's necessarily bad I just think there are better ways if you are willing to spend the time.

D R I P= Dividend Reinvestment Program. So yes, dividends get reinvested. I saw a couple of other good suggestions here with qqq and spy.

I'll sit down with you in the next couple weeks and help you get this started

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post #13 of 28 (permalink) Old 12-28-2007, 09:12 AM Thread Starter
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Quote:
Originally Posted by Crazy View Post
smart plan. Personally, I feel the new college plans are for the lazy. Not that it's necessarily bad I just think there are better ways if you are willing to spend the time.

D R I P= Dividend Reinvestment Program. So yes, dividends get reinvested. I saw a couple of other good suggestions here with qqq and spy.

I'll sit down with you in the next couple weeks and help you get this started
Cool sounds good.




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post #14 of 28 (permalink) Old 12-28-2007, 09:35 AM
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https://www.brightstartsavings.com/

Pretty foolproof 529 program here with the new age groupings and added flexibility if you want overide those choices.

Pluses are low fees, small minumums for startups and contributions, tax free growth and withdrawals as long as they are used for edumacation, and of course the decuctibility (up to $20k if married and filing jointly).

What's conveninet about this program is that anyone can contribute to the plan and if your 1st daughter earns a scholarship it can be used for your 2nd or 3rd daughter.
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post #15 of 28 (permalink) Old 12-28-2007, 11:38 AM
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Definitely consider taxes, whatever way you do it. What may look like a better hopeful growth may turn out to cost you more later in taxes.

You could also consider the PYUWYOB plan and keep all the savings for yourself.

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post #16 of 28 (permalink) Old 12-28-2007, 11:43 AM
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Definitely consider taxes, whatever way you do it. What may look like a better hopeful growth may turn out to cost you more later in taxes.

You could also consider the PYUWYOB plan and keep all the savings for yourself.

(Pull Yourself Up With Your Own Bootstraps)

I do this for my Godson. I personally decided I'll pay the taxes as part of the gift to him. That way I have control if he turns out to be a delinquent, and I'll give him an incredible gift if not.

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post #17 of 28 (permalink) Old 12-28-2007, 11:47 AM
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I would avoid investing it into anything which will become a lump sum when she gets older, the rate of inflation and interest simply make any small investment a waste of time.

Instead, I'd hold onto the money and get her involved in business/marketing at an early age. Kids these days have no sense of money or business, so if you can instill it in your own kid she'll be leaps and bounds ahead of the rest. Do it right and she'll pay her own way through college.
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post #18 of 28 (permalink) Old 12-28-2007, 11:58 AM
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post #19 of 28 (permalink) Old 12-28-2007, 12:03 PM
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Quote:
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I would avoid investing it into anything which will become a lump sum when she gets older, the rate of inflation and interest simply make any small investment a waste of time.

Instead, I'd hold onto the money and get her involved in business/marketing at an early age. Kids these days have no sense of money or business, so if you can instill it in your own kid she'll be leaps and bounds ahead of the rest. Do it right and she'll pay her own way through college.
I like this idea, although proper investment of the money in the meantime needs to be considered. I had a similar idea. Although I know investing and that's what I want to teach my kids. So starting something small that they could continue, under my supervision, was what I had in mind. Hopefully, they'll become the next Ken Griffin

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post #20 of 28 (permalink) Old 12-28-2007, 12:06 PM
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i run my nephews plan thru futurescholar.com
they have a plan in there (im not using it.. looks interesting tho.. i may switch to it) that automatically adjusts their investments by time till maturity..

ie very aggressive with 15+ years left till HS graduation.. then progressively gets more conservative as time goes by.. ending up mainly bonds or whatever by the time they are 17-18

obviously it's configurable.. and you can do all or a portion of the funds in it (it's basically a mutual fund)
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post #21 of 28 (permalink) Old 12-28-2007, 01:54 PM
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CRAZY you are full of Sh#%!

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post #22 of 28 (permalink) Old 12-28-2007, 01:58 PM
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CRAZY you are full of Sh#%!

You and Cruz could be the next Gordon Gekkos of the world.
hah....



we still need to have our talk. Give me a couple of weeks and things should calm down. PM me your number. I'll give you a call

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post #23 of 28 (permalink) Old 12-28-2007, 04:48 PM
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Quote:
Originally Posted by Arch View Post
Definitely consider taxes, whatever way you do it. What may look like a better hopeful growth may turn out to cost you more later in taxes.

You could also consider the PYUWYOB plan and keep all the savings for yourself.

(Pull Yourself Up With Your Own Bootstraps)
There was or is an all vice mutual fund.

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post #24 of 28 (permalink) Old 12-28-2007, 05:03 PM
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Quote:
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Find stocks with good dividend Like Utility/Telecom. Find some ETF's and maybe a high paying dividend fund like PVX. Put them in a drip account like sharebuilder.com or buyandhold.com. Then take a little money every once in a while and try to hit one out of the park with a couple of speculative plays. I could give you some names privately but I don't want to start posting picks.
+1.

That or a Roth IRA, keep giving her $500 a year, she'll be a VERY wealthy woman when she's 65.

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post #25 of 28 (permalink) Old 12-28-2007, 05:11 PM
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My wife and I will be looking into either a mutual fund and or a 529 savings plan. I also play Mega Millions (Hey, you never know and it is only a buck)
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post #26 of 28 (permalink) Old 12-28-2007, 05:26 PM
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Quote:
Originally Posted by HDTony View Post
I am posting this as I'm guessing with all the babies born recently a lot of us are wondering about it. I want to get my daughters future started. Lets say I want to open a online trading account for her and start her off with $500. what would be some good stocks to invest for the long term that will grow nicely.
Tony that is a very good question. I have been doing some research myself.

I know my daughter when she was born, my parents put 5k in a Putnam investment fund or something of that nature. My son I do not know if he has anything that my parents set up and I do not feel right about asking.

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post #27 of 28 (permalink) Old 12-28-2007, 05:32 PM
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I would just buy a fiero, those always seem to go up in value.


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post #28 of 28 (permalink) Old 12-28-2007, 07:05 PM
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After over a quarter of a century watching people invest, I'll teach you a secret. It isn't what you invest in, itis how you invest. Meaning, commit to investing on a regular basis. 85% of failure is due to a lack of that single issue. Amazing... Right after that is diversification. (I have a hard time with this part. Too many pre-IPOs with "friends".) BTW, the single best investment for almost 50% of the people I know under age 50 is paying off all credit cards and auto loans.

Oh, it is way cool that you are thinking so far ahead.

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