Financial Tunes

What kind of investments could I get for my newborn daughter for long term financial gain?

I want to give her a good if not great start once she is 18. I hope to have a good enough investment to at least pay for college, but I would love to find one that would have her set up financially even after college. I know very little about investments, so any help would be greatly appreciated. Thank you!

Public Comments

1. If you want to help save for college check out UPromise. When you use your credit card at certain stores a percentage goes into a fund for your child. Your family members, and friends can also sign up to have a percentage of their purchases go into the fund for your child.
2. Donate to a 529 savings plan.
3. by asking people you know who are good with money and have experience you should be able to hook up with a decent financial advisor , i would ask him or her about college savings plans for your daughter..most of them have a decent amount of choices to invest the money in. probably one with a fund of funds that has asset allocation and diversification across both domestic and foreign investments as well as value and growth investments in small,mid and large cap companies..continue to add to the account and when she's old enough for college with a little luck you should be able to make a real dent in her college costs..
4. 529 plan is a good vehicle for college savings. ESA (Educational Savings Account) is also something you might want to look into. You can also start a custodial account for her where you are the trustee. Problem with this type of account is that the child will get control of the account when they turn 18 or 21 (depends on the state). I would probably keep a small amount here to take advantage of the income tax savings but keep the bulk in an account that you own and control. You can move it into a trust for her to have on your death or you can gift money to her as she gets older.
5. Not that I'm saying anything different here that the previous answers really, but you really have 4 general options, three of which are intended for college or other schooling, and one of which doesn't necessarily. There are 529 plans, Education Savings Accounts, and Custodial Brokerage accounts for use most applicable to paying for schooling (and not only college, just depends which one you choose). These three are all great ideas with their own particular advantages and disadvantages, depending on your situation and preferences. There is also the option of a Custodial IRA, which is somewhat similar to an ESA;, but not necessarily intended for educational expense uses. If you check almost any brokerage firm or otherwise website, you can find pretty detailed information for each of these account types. And as for specific investments, (not just account types-you're most likely going to want to invest the money into something), you can probably get some sort of initial advice from some sort of investment consultant with whatever company you choose. Their titles are probably going to differ from one place to the next, but most companies are offering an initial consultation for no fee. There are a lot of good, safe, choices available to you that also allow for respectable growth. Also, do some research on your own on mutual funds, stocks, money market funds, even government bonds and notes. It doesn't hurt to get yourself more knowledgeable in the process, right? Hope this helps!
6. invest in stock market. you can reduce the risk of losing money these ways: Good Stock Pick for Unlimited Profits Framework http://www.stock-investment-made-easy.com/good-stock-pick.html How to Find Good Stocks That Will Survive 2008 Market Crash http://ezinearticles.com/?How-to-Find-Good-Stocks-That-Will-Survive-2008-Market-Crash&id=880879 How to Pick Good Stocks That Can Make You Rich in The Long Run http://ezinearticles.com/?How-to-Pick-Good-Stocks-That-Can-Make-You-Rich-in-The-Long-Run&id=864890
7. If you are saving for college expenses, you should take advantage of federal tax breaks aimed at families saving and paying for college. These include the following: Qualified Tuition Programs (529 plans)—Earnings grow tax-deferred and distributions are tax-free when used for qualified post-secondary education costs. Coverdell Education Savings Accounts— Earnings grow tax-deferred and distributions are tax-free when used for qualified post-secondary education costs. May also be withdrawn tax-free for primary and secondary school expenses. However, don't invest more in these than she will need for college. Additional funds should be invested in a UGMA or UTMA . You can read more about these at: http://www.savingforcollege.com/ I may also add that you should also be putting the maximum away for your own retirement now in 401k's and IRA's, before saving money for your child. If you max out your retirement investments now, you can put in less later on, and have more money to donate to your child then. Also if it turns out your child is not college material, you won't have to pay the withdrawal penalties from a 529. Your daughter can always borrow money to fund her college, you can't borrow money to fund your retirement. Get your retirement squared away first; the last thing your daughter wants to do is have to support you in your old age, because you didn't plan ahead.