Newborn Investment Ideas
 

Just had our first son a couple of weeks ago and I need to figure out the best way to invest a $5000 gift he received. The obvious choice is finding some sort of college fund (I know of the Ohio plan, but need to research to find the best plans), but I'm not sure if there are other good ideas I'm missing.

Any suggestions for particular college funds or other ideas?

Re: Newborn Investment Ideas
 

Look at 529 plans in your state. Find the one that has the best investment choices and best fees, and allocate the money aggressively. Some of these plans have accounts that are age based and reduce the stock allocation as the child gets closer to college, which I think would be a good way to do things. 529 plans are tax deductable if you use them for college so you won't pay any tax when you take the money out.

Re: Newborn Investment Ideas
 

research 529's i know they can be good but i think theres penalties u have to worry about and limits on the amount in can grow to or used


But if u have an IRA for yourself put it in there bc it doesnt matter if you end up growing it to more money then is needed for his education and you can take money out of your IRA for educational purposes with out penalty so that seems to be the way to go (theres a chance it might just be for roth but i dont think so)

AND CONGRATS ON BECOMING DAD!

Re: Newborn Investment Ideas
 

[ QUOTE ]
research 529's i know they can be good but i think theres penalties u have to worry about and limits on the amount in can grow to or used


But if u have an IRA for yourself put it in there bc it doesnt matter if you end up growing it to more money then is needed for his education and you can take money out of your IRA for educational purposes with out penalty so that seems to be the way to go (theres a chance it might just be for roth but i dont think so)

AND CONGRATS ON BECOMING DAD!

[/ QUOTE ]

You can put way more money into a 529 plan than an IRA.

Re: Newborn Investment Ideas
 

but i think you dont want it to grow to more then the cost of the education bc if its more and u take it out and dont use it for education theres like a 10% penalty or something, i dont remember exactly but if u want more specifics pm me and i could get a hold of the info but i know they can be great to especialy for grandparents to set up

Re: Newborn Investment Ideas
 

Chinese yuan also known as Renminbi. The currency, not the country or the stock market.
Much better, would be spending the 5K on Chinese language lessons when he turn 2 years old, or whatever.
Honestly, for someone with a long term outlook, like a baby, these are the most conservative investments I can think of.

Re: Newborn Investment Ideas
 

I meant turns, not turn. Please do not report me to the Spelling Police as the Punctuation Police are already chasing me in another thread.
Great, on further review I think I should have put a comma after Yuan.
Can anyone tell me if I spelled Renminbi right?

Re: Newborn Investment Ideas
 

Thanks for the responses guys. I'm currently researching the 529 plans and will post whatever I end up with in case it's of any interest. I think a 529 will be good because when he turn 18 he can use it for college.

I'm still considering a few alternatives as well.

DDD - I believe you did spell Renimbi correctly. I won't have to alert anyone.