Best Investment for children Future

Question

I have 3 Children, ages 9, 7 and 1 year. lucky to receive $1000 each from their grandparent. I am planning to invest this for there future , what is the best option for long term or might use for college too?

Is it a good option to buy a life insurane.

Answer 1

invest for collage. my mom did that for me when i was just a few months old and i am going now and i wouldnt have the money to pay for it if my mother didnt do this vital thing for me because in the long run it will help me make more and create a better life for myself. so i think you give them each a sepreate bank account and put alittle away for each of them including the 1000.  

Answer 2

Best is to open custodial account at brokerage firm put money into mutual fund that you like and every month add as much as you can. Reinvest all dividends and they will all have money for college, the oldest having the least.

good luck.

Answer 3

I can't fault Theodore's answer. I would also suggest a 529 plan.

And I suggest a well diversified global stock fund for the investment for the long term. Me thinks the world is a changin' and we need to look at the investments over the whole world not just in the US.

A global fund will invest both in the US and overseas.

Good Luck  

Answer 4

Save for college, but if you're worried about their safety then get life insurance during your long term investment.

Answer 5

If you are interested in investing for your children's future, I would suggest that you look into Coverdell ESAs, or Education IRAs.  This way, you can invest for your children without having to pay capital gains taxes.  I would encourage you to invest in either stocks or mutual funds depending on how much risk you are willing to take.  Stocks have the possibility of yielding higher returns but they also come with more risk.  Mutual funds, on the other hand, are more diversified, and thus less risky.  They are also professionally managed so you don't have to worry about what stocks or bonds to buy.  For more information about stocks, mutual funds, and investing in general, I would recommend you to check out Investopedia ( http://www.investopedia.com/ ).  It's a great site for beginner investors.

When you are ready to start investing, I would recommend that you open a brokerage account at Firstrade ( http://www.firstrade.com/ ).  They offer no-fee IRAs, so you don't have to worry about paying setup, maintenance, inactivity, or termination fees.  On top of that, you can also take advantage of their low commission rates.  They are cheaper than the big name brokers such as Scottrade, Etrade, Ameritrade, and Schwab.  Their website is also very easy to use, making them perfect for beginners.  I've been using them for years now and have had no problems at all.  I would definitely recommend that you check them out.