My daughter is getting married this summer. She's in her early twenties. One of the ideas my wife and I are considering as a wedding gift is to start an small investment for her. It's not the only gift I'd give, we're likely going to pay for her honeymoon, give a cash gift etc... But I'd like for her to have a start off investment for her new family too. I sure wish someone would have at least sat me down and explained the benefits of investing early in life to me.
So what's the best investment? Start a 401K, open an on-line stock trading account, buy into a mutual fund or maybe just open and fund a standard saving account with some place like HSBC (I think there paying about 5.00% right now.)
I'm open to any and all ideas.
2007-03-16 06:36:46 · 6 answers · asked by Parrothead Steve's 2 in Business & Finance ➔ Personal Finance
You might consider buy her some stock and having the stock issued to you in certificate form for you to frame.
I've found that a framed stock certificate is usually held for a looooong time (and might even get her excited about investing).
2007-03-16 15:07:29 · answer #1 · answered by derek 4 · 2⤊ 0⤋
Depending on how much you want to give her and where you live, perhaps you might consider giving them the down payment to buy a house. They'll pay about the same in a mortgage payment as in rent, but 30 years from now they'll have a lot more than they would with any other kind of investment.
Otherwise, I would suggest starting a CD ladder (1 year, 2 year, 3 year, 4 year, and 5 year) with automatic rollover to 5 years. This way, each year there's a return coming. If they want to take it out, they can use it and continue to get interest yearly. If they don't need it, it can roll over into 5 years again and continue to grow faster.
2007-03-16 10:16:32 · answer #2 · answered by calliope320 4 · 0⤊ 0⤋
She ought to positioned money right into a organisation that she has an activity in. For one situation she would be plenty extra probably to be certain how her shares are doing. Secondly she gets a each year assessment from the organisation which she would locate exciting. be conscious that if she is barely making an investment $500 a somewhat super share will pass to the brokerage fee, and she or he shouldn't commerce out very rapidly (yet another brokerage fee). yet another determination could be to place the money in a CD and do between the attempt investments at fairly much everywhere.
2016-10-01 00:42:12 · answer #3 · answered by ? 4 · 0⤊ 0⤋
If your son-in-law is responsible with investments and financially sound, I'd sit them down and discuss it with them both. He may have some ideas already and be way ahead of you.
If he's an air-head who likes to blow whatever he gets his grubby paws on, I'd set some money aside in ... oh, probably CDs or whatever you can get a healthy, fixed rate on... in my own name, to be used as a "Daddy, I need" account, you know, because he won't help her manage it.
I'm not real happy with HSBC, but would definitely look at a credit union savings account. Credit unions typically have higher interest rates than banks, and generally work with people to finance cars and homes, etc. at really good rates, too.
2007-03-16 06:46:37 · answer #4 · answered by Anonymous · 0⤊ 0⤋
I don't know what to invest in but whatever you do...you should have it fixed so if she breaks up with her new husband he won't be able to get half or all of it. Marriages aren't that stable these days. When some people have a large sum of money it is very tempting for the other spouse to finagle to get it. Let your daughter have control of it.
2007-03-16 06:56:17 · answer #5 · answered by Barbra 6 · 0⤊ 0⤋
I know nothing about money. That's a really nice gift though.
2007-03-16 06:45:32 · answer #6 · answered by nickelback726 4 · 0⤊ 1⤋