I want to invest for my 2 year old daughters future, any ideas?

Question

I want to invest for my 2 year old daughters future, any ideas?

I am currently receiving $158 a month for 3 years from a home I sold and partially financed. The total will be about $6,000 in 3 years and then I will invest what I can afford after that.

I opened a regular savings account for her, But with the current cost of college, and to think of the price probably doubling in 15 or 16 years, I need a plan that will yield the most money.

Is a no load mutual fund better then a 529 plan ? (Texas)

or should I open an IRA in her name?

What is the minimum age for an IRA?

Answer 1

I believe some company req min of 18 yrs old with a earning income.  you should find an finanical planner for more options

Answer 2

Try first investors.

Answer 3

I bought a variable annuity for my daughter when she was two (through Vanguard).  Someday, she can annuitize and have a steady stream of income,

For those who feel they must insure their children there is a death benfit though one hope it would never be used.

Vanguard is low cost, no load and highly rated.

http://www.vanguard.com

Answer 4

1ST thing to do is to only consider companies that you know about.  2)   go online in the financial sites and obtain 10-k's and 10-Q's for those companies and crunch the numbers.  3) After determining te companies that you like as a result, invest. 4)  You might want to consider drip investing to save on commisions.

Answer 5

imo, the best thing to do is provide her a good education and teach her how to handle money properly. a 529 is the best way to invest for college, so i say stick with it. $150 a month from 2-18 should yield a comfortable balance in 16 years, so plow ahead and invest more in your own retirement so she wont have to take care of you.

Answer 6

There is no minimum age for an IRA, but the individual must have earned income in order to make a contribution.  You cannot contribute your earned income as hers.

Answer 7

Re: 529s: http://allfinancialmatters.com/2008/04/1...

http://www.savingforcollege.com/

http://www.collegeanswer.com/paying/lt_f...

Check if your state has one of these - it can dramatically cut the cost of college. You might want to post another question regarding this: http://www.floridastudentfinancialaid.or...