2007-03-24 09:07:21 · 7 answers · asked by caz 2 in Business & Finance ➔ Investing
If you have a long time horizon (if he's not yet a teenager and you're looking to college) your best bet would probably be mutual funds. Stocks tend to go up more than other asset classes over the long term and aren't too risky if you are properly diversified and have time for market fluctuations to cancel each other out. One easy way to buy mutual funds is to open a brokerage account and buy exchange traded funds--these are mutual funds that trade on the stock market-- there are a lot of them, but two that track the S&P 500 (a list of the biggest US stocks) are the SPDR fund (SPY) and the iShares fund (IVV).
Also if your kid is a bit older and you want to get him interested in the process you might buy stock in Disney, and a few other companies he knows about and is interested in (just don't stick all of your money into one stock.)
Good luck.
2007-03-24 11:34:29 · answer #1 · answered by Adam J 6 · 0⤊ 0⤋
Index fund in a Coverdell account, also known as an education IRA. I'm assuming its for education. An index fund will grow roughly 10% a year and double every seven years. Indexes also have volatility, but the trend is upwards, so don't let the occasional correction scare you. I would blend four investments, a large-cap fund, a mid-cap fund, a small-cap value fund, and a foreign value fund. All are available from Vanguard I'm sure.
2007-03-24 11:41:12 · answer #2 · answered by tyates999 2 · 1⤊ 0⤋
For a child, you should invest in their saving account.
2007-03-24 09:45:04 · answer #3 · answered by Young and Famous 3 · 1⤊ 0⤋
If you set up a trust fund for your child, you would deposit money into it and then manage it yourself or pay someone to manage it for you. The trust fund is set up to become the property of your child, but he or she can't take control of it until reaching an age you specify. (The age can even be something as wacky as 40.) Some trust funds are set up to give your child a set amount each year, while others give them the full amount --once they reach the required age.
2007-03-24 10:09:53 · answer #4 · answered by Anonymous · 0⤊ 1⤋
My mother started savings bonds for grandkids they can only get them when 18 and the interest is good too.
2007-03-24 09:18:45 · answer #5 · answered by cleopatra 2 · 1⤊ 0⤋
Maybe a 529 plan.
2007-03-24 09:24:58 · answer #6 · answered by uptwospeed 3 · 1⤊ 0⤋
Parenting courses and tolerance.
2007-03-24 09:17:11 · answer #7 · answered by SquirrelBait 5 · 0⤊ 0⤋