A Motley Fool Baby Shower
As an expectant father, I’ve been doing plenty of research on ways to save for college and the financial future of both my child and myself. Motley Fool, one of my favorite sites, put up a series of articles called A Foolish Baby Shower that caught my eye today.
Having recently found out that I’m an uncle-to-be, my thoughts quickly turned toward what stock I’d like to buy as a gift for the little tyke. The way I see it, there’ll be relatives coming out of the woodwork with baby clothes and toys, but I’d like to give him or her something that will create more enduring value, and fewer embarrassing photo moments.
What an excellent idea. I had toyed with the idea of starting some sort of college fund for the kid and asking the relatives to put money into it rather than buying toys. While I don’t think that all of Motley Fool’s choices in stocks are sure buys, I do trust their judgement about 90% of the time. Every body is wrong once in a while and doing my own due diligence is always important.
Of course, there are always the stocks that could be purchased for other reasons. I’ve seen plenty of ads for oneshare.com for shares of Pixar and Disney because they are children’s brands and they have fun children friendly graphical share certificates. That’s a pretty poor way to choose a stock if you ask me. I’ve been an advocate of dividend stocks, and until someone shows me a really solid reason not to be, I will continue to be. As I see it, a DRIP account or two would be perfect for a baby shower type stock gift. Your child gets the increase(hopefully) in value of the share(s) themselves along with the automatic increase in value from the reinvestment of the dividends.
What does everyone else think? Any other great ideas for baby showers and such that are financially sound for the future?
Technorati Tags: invest, baby, baby shower, children, stocks, drip, motley fool, foolish
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Brady said,
Wrote on April 14, 2006 @ 11:10 am
It seems to me that dividend stocks are typically considered good investments for people with really low risk aversion such as retired people. They tend to have really low gains and don’t even always declare dividends either. In the long term of course, anything is going to accumulate money unless the risk is too high and it collapses. Perhaps bonds or CDs might be nice?
Government bonds are really easy for people to buy (when compared to stocks or even CDs) as well and a long term bond will have a pretty decent guaranteed return rate. Then by the time the bonds are muture you can cash them in and reinvest in a slightly higher return area or diversify the balance with some higher risk stocks combined with some low risk mutuals.
Haha… anyways… Not like I’m an expert just trying to recall some of the info I learned in financial management and accounting.