How best to invest money for my kids
May 24, 2007 3:50 PM Subscribe
My daughters regularly get US Savings Bonds from relatives as presents. Can I do better for them?
posted by mcstayinskool to Work & Money (11 answers total) 3 users marked this as a favorite
My young daughters (ages 1 and 3) receive U.S. Saving Bonds (Series EE "Patriot" Bonds) periodically from relatives. They have a 30 year maturation and I feel I can do A LOT better investing this money than in U.S. Bonds. I also am not fond of having to squirrel away these pieces of paper, as I'm convinced I'm going to misplace one or many of them.
My question is: what should I do? This is their money, not mine, but I want it to grow at a reasonable rate. I expect they will be pulling this money out when they hit college age, whether they choose to go that route or not. So, we're talking about a 15-17 year investment window. We're talking about ~$1K in bonds, which (I think) are worth much less when cashed out, maybe half that. There will be more bonds coming though, and I'm thinking I'll start contributing monthly as well to whatever route I decide to go.
FWIW, the relative would never know these are being reinvested. I think it's very kind that they think of my girls on their birthdays, and I mean them no disrespect. I just think US Savings Bonds are ridiculously conservative for this type of investment.