Kids Portfolio
Your gift of stock is something that your child or grandchild can enjoy and learn from immediately. And, it is a gift that will reward with huge financial benefits in the future. That’s because of the power of compounding, which adds a lot of oomph to the investments.
Here’s how compounding works: Say that you can afford to put away $2,500 a year from the time that your child or grandchild is five years old until he or she is 18 years of age. That $35,000 investments can be expected to grow to more than $6 million by the time he or she retires at 65 years of age! Click to see the math, which is based on a10% annual growth rate.*
But the best way (if not the only way) to anticipate 10% annual growth is by investing in the stock market over the long term.
To help you implement such a strategy, the editors of The Moneypaper have put together a DRIP stock portfolio for young people. Click here to gain access to that portfolio. If you don’t see companies in that portfolio that appeal to you, you can click on the list of companies available at this site. And, if you still don’t find companies that appeal to you, you can always order from www.directinvesting.com, where virtually every company that offers DRIP investing is available for purchase and enrollment in the company-sponsored DRIP.. By opening a well-diversified DRIP portfolio and investing regularly, you will be building a substantial nest egg for your child based on a relatively small investment. In addition, you will be helping your child take responsibility for his or her future wealth.
*Over the past 75 years, the average annual rate of return for the stock market as a whole has been 11%. Our calculation was based on a more conservative 10%.
Here's how it works:
Your gift is always one share per company and includes enrollment in the company-sponsored DRIP.
We've established an all-inclusive price for each company.
The amount shown to pay includes the cost of the stock, any cost associated with the transaction, the service fee to get the account opened and coded for direct investment, as well as a 10% non-refundable cushion.
We handle all the details until the DRIP account is opened in the name of the child or grandchild.
All you need to do is click on the companies you want to give and tell us to whom to have the stock registered.
Take this opportunity to introduce someone you care about to DRIP investing. It's a gift that will return your generosity many times over--in many ways.
