Giving stock to your children can be a great way to nurture them into successful investors. But getting the right stock and the best strategies of making a purchase proves to be very difficult. Well, at first, it appears difficult. However, if you contemplate and sink deeper into the matter, you will discover very many potential companies that are suitable for children’s investments.
Luis Espinal, a financial consultant at an accounting firm (Pricewaterhouse Coopers), suggested Toy maker Hasbro, as one of the best companies where children can make investments. If you make a thorough scrutiny of all the companies in the market, you will definitely get the best option that suits your needs.
Otherwise, you may also consider Electronic Arts, a company that makes video games for PlayStation and Nintendo. The best thing is- children are always fascinated by the name “video games”, regardless of whether they play or not. Children merrily feel treasured to have shares in a company that deals with video games.
Invest in Technology Stocks
A senior portfolio manager at a mutual-fund company (Stein Roe $ Farnham), David Brady, admitted that technology stocks have steeply fallen this year, but still emphasizes that Network Appliances and specific computer models can be considered for investments.
“Kids like embracing technology; they look at it as their future, and understand the need to keep up with it,” says David Brady. That aside, do you ever think of Waste Management as a potential source of stocks? Sounds funny, but it’s always profitable. Although it isn’t a big-name company, Waste Management is a steady enterprise, as long as trashes are thrown into the garbage.
Go For Mutual Funds
If you still can’t find the right stock to give to your children, you can go for mutual funds, and then buy into these mutual funds for small investments. Although most of them require subsequent monthly investments of a certain amount, they serve as the best option if your children can comfortably handle them.
When it comes to purchasing stocks, we recommend you do it in a bit of style. Most people approach companies via intermediaries (brokers), but we suggest that you make a direct purchase from the company. It will help save your little money, which you could otherwise give to brokers.
Furthermore, look for companies that allow your kids to invest dollar amounts, instead of number of shares. By that, it becomes easy for children to set aside some money every week, so they buy more shares by themselves.
Besides, you can also gift your children the shares you already own. It is indeed a great gift to them and a relief to you because you will never have to go through the heck of paying taxes.
Want to start investing but do not have the fund? Did you see some movements on the market where you think you will be able to earn big bucks? You can consider getting a loan from a licensed money lender. If you are intending to do so, you can approach our team of experienced staff at the best licensed moneylender. We have the expertise to advice you on which loan package is the best for you. Thus do hesitate and contact us now.