sphinxmxt
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Gold. Look at it. It’s through the roof. I’ve invested in precious metals before, and trust me; it’s much safer then the stocks in the economy. There will always be a demand for gold. Sure, it might fluctuate at times, but in the long run, it’s a money maker. |
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Angel C
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Best solution would be to open a 529 plan. Contributions to 529 plans also qualify for the $11,000 ($22,000 for married couples) annual gift tax exclusion. You can also contribute up to five years of gifts during the first year totaling $55,000. This is a great benefit when inheritance money enters the picture. Most states do not have an age or time limit for when the money can be used. College can be put off indefinitely, which allows you the opportunity to roll the account over to another child as long as that child is in the same family of the first beneficiary. There's so many more benefits to this plan!!!
If you don't like that idea, how about a Educational IRA? I think they are called Coverdell Education Savings Accounts now. |
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Jiggy Jon
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I believe the inherited money will be legally his in 9 years. Some folks advise you to get CD's please don't listen to them. You might get luck to get a 5% return on a CD and then after inflation of 2-4% he won't walk away with much. Research mutual funds and look at their 5yr 10yr and 15yr averages. The rule of 72 says that if you can average 10% return a year his money will double after 7 years. Best of luck. |
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Alice Lockwood
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A 529 college savings plan is the best bet. The interest and dividends will grow tax-deferred. Depending on which plan you choose, you can also have some choice as to how it's invested.
529 plans are sponsored by each state. You don't have to invest in your own state's plan.
Look for a plan that has low fees. New York's 529 is pretty good.
If you invest directly (without going through a broker), you'll save a lot on commissions.
Call Vanguard. They give good solid advice and also have good products.
With such a long time horizon (10-15 years), you don't need to be very "safe" such as a CD. Also, watch out for taxes. Your child will pay income tax under you until he's 14. That's the beauty of 529 plans - since they defer taxes. |
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Donald B
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This is just a suggestion, please look at every suggestion you get very closely.
I would recommend a DRIP plan, because you have a long-term investment strategy.
They are seldom talked about because brokers make very little money when they suggest them. Yet, they have proven to be one of the best, if not the best, long-term strategy on Wall Street.
The best part is you get solid annual returns from well-known, safe Blue Chip companies like: McDonalds, General Electric, Pfizer, Walmart, US Bancorp.......etc........
They are inexpensive to start and maintain, and your dividends are reinvested for free.
They are perfect for small investors, as well as big investors. They are safe and allow you to not care about whether the market is going up or down. |
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jv262002
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Vanguard Mutual Funds is what I would look into investing. I think if you plan on not touching it for ten years...mutual funds is the way to go.
http://www.vanguard.com/ |
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scottsmylie
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I would put it in a 529 plan with some kind of fund that adjust the risk for that 15 year time horizon if you don't have an education plan set up already. CD's will get you nowhere after taxes and inflation. If you really have the need to keep this liquid (which I don't think you should) look at bankrate.com for some options. Vanguard index funds are also a great option for your time horizon if you don't want to keep it for education and have some liquidity. |
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KB
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What do you want the money to be for?
College? Or anything he wants?
If college, invest in a 529 plan. There's a bunch of great tax considerations with this type of plan. Your bank or financial advisor can help you with this.
Otherwise, I would invest in stocks/bonds for him. If you don't want to deal with the hassle of deciding which stocks/bonds to pick or pay a broker to do this for you, you can opt for a mutual fund or index fund. I don't know how much you are willing to gamble, but considering the market and your time frame, you may want to take a look at stocks/index funds, despite the looming recession. Remeber, you are not planning to use the funds right away, and what goes down must come up.
The worst you can do it put the money in a regular savings account with 2% interest. You'll end up losing, taking into consideration inflation. If you really don't want to put any effort into investing the money, then opt for a high-yield saving account like those offered by ING Direct or WaMu. |
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Shelly
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Look at all responses closely, and do your own research.
About 75% of all mutual funds under perform the stock market. All of them have management fees and some have sales loads. There are some good mutual funds available, but there are better options in my opinion.
DRIP plans are solid long-term investments. Studies have shown the longer you keep them in effect, the better your returns.
ETF's are basically the same thing as mutual funds, except they have lower management fees on average.
I would suggest DRIP plan or ETF. |
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Volatility K
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Don't put it into a CD. They're paying very low rates right now and all you'll do is lock in that low rate for the next 10 years.
Put it into a Vanguard S&P 500 index fund. Given your time frame it will grow MUCH faster and over that time frame there's very little risk.
Also, CDs charge a penalty for early withdrawl. |
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gotkenpo
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I would invest in a fund that morrors the S&P 500. It historically does very well over the long term....15 years is definatley long term |
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Mike S
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Open an account at INGDirect.com |
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Knox
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529 Plan, DRIP Plan
Most mutual funds have too many fees associated with them. |
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youkillme
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Your son will be able to demand the money the instant he reaches the age of majority. You will not be able to lie about it because if you have it in an account which makes an income the IRS will require him to file a return. You need to get an attorney or someone from your bank to draw a trust for the money to be placed in so that at the very least he will have to wait until the specified terms of the trust are met. |
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Don
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A money market is very safe but the return is low. Next would be the regular bond market, this is pretty safe also and the return is a bit better. Next would be a good solid mutual fund, here you need to do a little investigating. This is where I would be because you have plenty of time to make up for a downturn and the rate of return is always better. |
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Randy G
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If it won't be touched in 15 years, then invest in a stock mutual fund. it will get the highest return.
Preferably an institutional mutual fund, the kind that companies invest their 401k plans in, not a retail mutual fund that is normally sold to individuals like you. You can only get the former from certain financial advisers.
Read the book, "The Lies About Money" by Ric Edelman. It will help guide you to set up an appropriate portfolio mix by simply answering a few questions.
Or just ask him yourself: |
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Formerly known as Frank Castle
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ETFs, Mutual Funds and Stocks.
If you need more detailed FREE information then let me know. (I am a Portfolio Manager) |
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ocsurf
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VANGUARD MUTUAL FUNDS!
This will give you the highest return on your investment!
A CD or Money Market account will only give you a minimal return. A Mutual Fund will get you AT LEAST 12-15% a year. |
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Doctor Deth
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spread it out among 4 different mutual funds of different types (small cap, growth, bonds, etc.) go with NO LOAD funds only - you don't pay a sales charge when investing or withdrawing - fidelity, TRowe Price are 2 of the biggest companies with lots of different funds to invest in - you can probably call them and ask for guidance |
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Ken D
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Put it all in the Vanguard GinnieMae fund. It is government insured, earns around 5% currently, and can be sold at any time. |
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Primus Pilus
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Go buy stocks. |
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farfel
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well, no one's mentioned it yet, so i will: GOLD. buy 10 Krugerrands, put them safely away somewhere, and come back in 15 years... |
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mysteriousman
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is there like an edward Jon's or something to that effect around there |
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odie b
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Bonds or cd
No risk |
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alwaysmoose
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You can get a great rate on a CD with that much money for that long of time. |
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E M D
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I'd do a CD, 10000 in a high APY CD for 15 years would be a great investment, and a safe one. |
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Gabfest
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Money market fund or a long term CD. |
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blue_agave0311
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A CD is the only way to go. |
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Barbia
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Bonds are the safest investment option. |
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Bub
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A cd at the bank, it will gain interest |
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