How do I invest for my daughters future?

Question

I am currently receiving $158 a month for 3 years from a home I partially financed, I decided to open a savings account for my 2 year old daughter with this money. I will have approximately $6,000 in 3 years. What and where should I put this money so it does the most good for her future? I want her to be educated and financially independent.

Answer 1

Lots of states have 529 savings plans.  Also, a Series EE U.S. Savings Bond (educational savings bond) is generally a pretty safe bet. Whatever you do, be consistent and disciplined: when putting money away, treat it like a monthly bill, and pay it as though you would lose something precious if you didn't.

Answer 2

View It Now    FinanceExtends (dot) com

Answer 3

History has shown that common stocks, and good mutual funds that invest in them have been the best way to gain an after inflation and taxes "nest egg."  Most good no load, low cost mutual funds require a minimum of $2500 to start with.  But, if you agree to have a minimum of $50 electronically transferred from your bank account (each month until you reach their usual minimum of $2500), T. Rowe Price will let you start with only $50.  Go to troweprice.com for more information.  

Some people may also suggest Fidelity and Vanguard.  I believe Fidelity has a similar program but I don't know the dollar amounts required.  Vanguard does NOT have a program of this type.