How should I invest my children’s money? They are at a very young age and each have a chunk of money?
April 12, 2009 by How Savings Bonds Work
Filed under High Yield Investing
Can you answer koaz’s’s question about Bonds?:
I would like a very high yielding investment if possible. Willing to take some risk to double their money.
How Much Is My Savings Bond Worth
I would like a very high yielding investment if possible. Willing to take some risk to double their money.
How Much Is My Savings Bond Worth
Bonds Feedback: Municipal bonds are a nice way to go for a long-term low-risk high yield investment. The triple tax deferment on them means that a 6% yield is really more like 9-11% depending on your tax bracket!
Bonds Feedback: I may get slammed for this but you should put the money into a low cost index fund of the stock market. This is your opportunity to do the “buy low” part of “buy low, sell high”. If you are investing for at least five years, and better yet ten years, this would be a good way to go.
Bonds Feedback: Put the money in a 529 plan. You can choose an age based portfolio or a risk based portfolio. If you want a more aggressive investment you can choose an investment allocation in line with that objective. The money grows tax free if used for higher education purposes. The child can use the money for books, tuition, transportation or housing expenses. Bottom line is you can go aggressive on the investment, do it tax free, and give the gift of education; a gift that will last a lifetime.