Any financial guru's out there for advice?

Steve · #1 05-22-2008, 05:13 PM

So, I'm sitting on top of two economic stimulus checks.

I'd like to think that I am smarter and more responsible than the person that cut the checks.

Realizing that this money is going to have to be paid back by my six month old grandson someday, I'm thinking that I should just lock it up in some sort of investment for say oh, thirty five or forty years in the hope that by the time he's that old he'll have the maturity and presence of mind to not be stupid with what could be a pretty large chunk of coin.

Any suggestions on what would be a good way to go about that so I can start the research?

It's a little tough to figure risk / return benefit ratios over that long a timespan given the way things are in the world right now.

Atoz · #2 05-22-2008, 05:16 PM

You could put in a 529 fund for his college education. Just a suggestion.

Visirale · #3 05-22-2008, 05:24 PM

Quote:

Originally Posted by Atoz

You could put in a 529 fund for his college education. Just a suggestion.

Seconded. My grandma got me a few of these and it's really helped my family fill the gap between scholarships and actual cost of attendance.

FL Knifemaker · #4 05-22-2008, 05:39 PM

Quote:

Originally Posted by Atoz

You could put in a 529 fund for his college education. Just a suggestion.

+1 Or take it to Vegas

iamlowsound · #5 05-22-2008, 05:55 PM

Learn to count cards, go to Vegas.

lowsound

steve21 · #6 05-22-2008, 06:55 PM

College fund, weekend with strippers. You decide.

Steve · #7 05-22-2008, 07:34 PM

His fraternal grandparents where life long music educators. His father has a masters in music and is a seated concert violinist as is his mother. His aunt is an event coordinater at Lincoln Center. He's surrounded by college degrees so all that was dealt with the day the rabbit died.

The little guy will probably end up a musician and we all know how rocky a road that can be. He'll have as good an education as he can earn. What he probably won't have is a financial cushion.

snappytom · #8 05-22-2008, 08:08 PM

However you decide to invest .... watch the fees.

Too many people seek the counsel of a financial advisor and pay too much for mediocre advice. Some are worth it, most are not. Educate yourself a bit and save some money. Every dollar you pay in fees is one less that will be working for you in the future.
Any investment will have expenses, choose those that are at a minimum. Avoid "loads" at all costs. An advisor will not sell you an investment unless they can make money off it. It is easy to do it yourself.

Check out www.morningstar.com ... they usually have some free Investing 101 type info available.

Or a weekend in Vegas ..... in the short term it would be a lot more fun.

MakiSupaStar · #9 05-22-2008, 09:15 PM

Bet it on black.

thejohnkim · #10 05-22-2008, 09:17 PM

Talk to someone about the different types of IRA accounts. a Roth IRA is one good option but there are other good ones as well. Education type investments are usually good choices too.

steve66 · #11 05-22-2008, 09:20 PM

Invest that money in a prepaid college fund.

casualmadness · #12 05-23-2008, 05:48 AM

I used my stimulus check to buy a CD. I matched the amount of the check, dollar for dollar, and got myself a CD. Sure, it's not a huge return. But it's guaranteed. Maybe you should look into that. The longer the term, the more money you make.

playinpearls · #13 05-23-2008, 08:29 AM

or a roth ira....then he'll be rich...who needs college when you're rich?!

MJ5150 · #14 05-23-2008, 08:58 AM

Buy a piece of bass gear. In 35-40 years, it will be vintage and worth a million bucks.

-Mike

wazzel · #15 05-23-2008, 09:08 AM

I used mine for home improvements. An IRA would be a good investment.

Atoz · #16 05-23-2008, 02:06 PM

Quote:

Originally Posted by MakiSupaStar

Bet it on black.

I wouldn't be taking financial advice from you, Wesley Snipes.

/couldn't resist after the "Passenger 57" reference

MakiSupaStar · #17 05-23-2008, 02:15 PM

Quote:

Originally Posted by Atoz

I wouldn't be taking financial advice from you, Wesley Snipes.

/couldn't resist after the "Passenger 57" reference

jwbassman · #18 05-23-2008, 02:38 PM

Quote:

Originally Posted by playinpearls

or a roth ira....then he'll be rich...who needs college when you're rich?!

I second the Roth IRA. Then take all subsequent birthday money and what not an put it in there. I have one for our son and he has over 2,000 in there already. He's only 6.

Say it has and average return 9% and contribute 1,000 a year to it. He'll have around 2.2 Million by age 65. More if he grows up and contributes more of his own money into it when he can work. (Which I'll strongly recommend he does.)

That's what my dad did for me. He didn't open me a Roth IRA, but he got me saving money in an investment at an early age. Around 18. So hopefully I can do the same for my son.

lowb1970 · #19 05-23-2008, 02:45 PM

had to erase....sorry.