i also have limited cash :(
2006-07-02 10:23:58 · 15 answers · asked by babydol702002 2 in Pregnancy & Parenting ➔ Parenting
Definitely take out some personal time to research this and get informed. Although you say you have limited cash, that's ok. You can get started very modestly and try to increase the "my kids fund" as you go. If you accomplish what you say you want to do here, it may be one of the best decisions you'll make in your life.☺
2006-07-02 10:32:24 · answer #1 · answered by -:¦:-SKY-:¦:- 7 · 0⤊ 0⤋
No matter how little money you have to save - seek the advice of a financial advisor. We did the same for our kids when they were first born, and now they are in their 20's. You'd be surprised how the 'limited cash" investments grow over 20 years.
2006-07-05 16:31:10 · answer #2 · answered by Anonymous · 0⤊ 0⤋
babydol702002,
I guess that we all have limited cash in some form or another. It's certainly a relative statement. The fact that you'd like to "invest money" for your kid's future indicates to me that you are smarter than the average bear.
It's not clear whether you are interested in saving money for your child's/children's future specifically for their education or whether you are simply trying to give them a head start on buying a home, car or an early start on their retirement savings. Regardless, my answer is pretty much the same since you sound as if you're not oozing with money...
The IRS does give tax breaks on the distributions of money in Qualified Tuition Programs (like 529 plans). Additionally, your state may even give you a tax deferral on the contributions made to their own plans (i.e. Maryland's College Savings plan). This may be something for you to consider.
All things considered, I believe that advice given by someone much smarter than I (possibly Robert Kiyosaki or David Bach perhaps...?). Invest in yourself first. Be as certain as you possible can that you have provided your desired retirement for yourself first. Why? Sounds pretty selfish, doesn't it? Not really.
First of all, if you haven't taken care of yourself, it's likely that you'll have only your children to help you. This is an unfair burden that you'd be placing on them. Not to mention that you have a lot less time to secure your retirement than your children have to repay their college loans (I got no help from parents and have paid my loans off myself with great pride...).
Maybe you're thinking that you'd never allow yourself to be a burden to your children. That's great. So you ended up investing what would have been for their future and have plenty of money left over. Now you have the option and ability to help contribute to the well being of your children. Perfect!
The plan that I'm recommending isn't good for everyone. It will require some discipline on your part, but it could serve as insurance for your children while maintaining the possibility of having some upside for your children's future.
Wishing you the realization of your definition of success!
Michael
2006-07-02 18:06:32 · answer #3 · answered by ForeverLearning@AnythingReal 1 · 0⤊ 0⤋
The best way that I know of is to buy one share of Wal-mart stock for each child you have. Do not buy it until like January or February, because that is when the stock price is really low. You can get a share of stock for about $50 maybe less. You just have to watch the market to see when it gets low, then buy one share for each child. The stock splits in half every December, so if you have one share now, next year you will have two and the year after that you will have four and so on. By the time they are grown, they will be able to go to college on the interest of the stock alone.
2006-07-02 17:29:55 · answer #4 · answered by sharptooth3 2 · 0⤊ 0⤋
Go visit you bank. They have professionals that can advise you on how to invest based on your needs, wants and levels of risk. But the simplest way is to just start an RESP, it's like an RRSP but dedicated to post-secondary education.
2006-07-02 17:26:29 · answer #5 · answered by Patrick B 3 · 0⤊ 0⤋
You do like I did, and open an account for each child, a savings account, and put $10 here and $5 there, over the years it adds up.
2006-07-02 18:25:51 · answer #6 · answered by amyvnsn 5 · 0⤊ 0⤋
Visit Dave Ramsey's website, and then find an "endorsed local provider" under investing. There's lots of other great finanical info there too. Good luck!
2006-07-02 17:28:51 · answer #7 · answered by UserJoe9 3 · 0⤊ 0⤋
Talk to your bank or talk to a Financial Adviser at an insurance agency or the like. Most big insurance companies can help you with this.
2006-07-02 17:30:44 · answer #8 · answered by John34 4 · 0⤊ 0⤋
go to your local bank and open a account but ask the cleak what can of accounts he have making money cd´s etc.whatever he/she said and what suit you will have a future for your kids...
2006-07-02 17:27:19 · answer #9 · answered by henry_arnold2002 1 · 0⤊ 0⤋
The bank a druh druh
2006-07-02 17:24:50 · answer #10 · answered by DJ Vendetta 3 · 0⤊ 0⤋