There are so many investment plans in the market that we get confused as to which on to go for? My earnings are not much but since I have a child, I want to plan her future. I want to know what's the best plan that works for children? What investments have you done for your little ones?
Long term investments in stocks that pay dividends, which are from companies making products that are used on a daily basis. This could be a portion of the portfolio.
I don't know if it's the best, but we have a 529 for college savings and a seperate mutual fund. At this stage I assume the kids will need to go to some sort of college. If they choose not to, we'll use the money for one of our other kids. We opened the mutual funds just in case one of them didn't want to go to college. We started both accounts with only a few hundred dollars.
Right now we only have a general savings account that we contribute to monthly for our daughter. I have heard that 529 plans are an excellent option as well, but I have not done extensive research on them.
I followed this certain philosophy by an economic adviser here in our country. According to her, everyone, even a child, needs to own their own stock from a stable company. This teaches them to handle their investments well and see their investment grow. She said that by buying your child even a single stock would motivate him/her to save money in order to acquire more stocks. Thinking about it, it does make sense so its definitely worth trying.
You can take single premium pension plan and keep your child as a nominee. At maturity, you can have annuity which will serve as pension for you and as a regular income for your child. or try long duration FD of any reputed bank, currently they are offering 8-8.5 % interest for 5-7 years term.
For children the best is still to save up for their education. Since they won't be using it for another 5 to 10 years or so certificate of deposits are low maintenance investments that won't take up too much time or effort to keep track of. They also earn more interest than just putting the money in a plain savings account.
Educational plan packages is I personally think the best. My sister got my niece a plan when she was still 1 year old has now been paid. My niece is now 10 years old. So, few years from now - she has something to spend for her college expenses. Although this is just my personal opinion. Getting a kid a few shares of stocks which the kid could continue when they grow up is also one of the many options.
