The best plan to invest money for 20 year for my child. Best policies available in market now with low risk?

Question

The best plan to invest money for 20 year for my child. Best policies available in market now with low risk?

Answer 1

Try mutual funds. It is more secure than market and managed by well informed decision makers. You can choose a plan and start the investment.

Answer 2

If you're looking at an educational investment, the best thing to do with the money would be to set up a 529 savings plan. That will allow the money to be tax-free, as long as it's used for college or some form of higher education:

http://www.sec.gov/investor/pubs/intro52...

http://en.wikipedia.org/wiki/529_plan

Answer 3

Usually, if you're investing for a long period of time, I wouldn't worry too much about risk.  However, if stocks are still too risky for you, I would suggest mutual funds.  They are diversified, and thereby have lower risk.  Plus, since they are professionally managed, you don't have to worry about what stocks or bonds to buy or sell.

Either way, if you invest in stocks or mutual funds, you will need to open a brokerage account. I personally prefer online discount brokers simply because they are cheaper. I currently use Firstrade ( http://www.firstrade.com/ ). They are cheaper than big name brokers such as Etrade, Scottrade, Ameritrade, and Schwab. They have excellent customer service and a very easy to use website. I've been using them for years now and have been very satisfied with them.

Firstrade currently has a refer-a-friend program, so if you're interested in opening account with them, email me for a referral code. It's a win-win situation because you'll get your first 5 trades free.

Answer 4

Awh This is my business!

With the economy like it is in the US I'm going to recommend you invest OUT OF US assets. Artifical low intrest rates and high inflation is going to be the end of this country and we don't have time, money, space to start producing. You can't turn malls into factories over night.

But since the dollar is the world reserve currency, though, you're going to see other countries economy's start to fall too. Example, inflation of the the Euro is at an all time high.

So you're going to want to invest into foreign stock, but only the ones who's central banks are battling inflation or raising intrest rates.

The best way to invest at the moment is to invest in that country's currency. So the ones I'm invest in and highly recommend are the Switz Franc (CHF), the Aussie dollar (AUD), Sinpore's dollar (SGD), and even the Chinese R&B (though that one you might have to actually travel there).

For a 20 year run though I would suggest Chinese or commodities like gold, silver, platium. Gold is a good one because right now it's almost $1k an oz and should double so that's good too. Gold has out performed stock 500% so if that doesn't tell you the economy is going down.. Anyway some say it'll hit 5k by 2012 and I don't doubt them.

Whatever you do don't go and buy ANY kinds of bonds or investments in the dollar (USD) because any bond you get the intrest rate will be lower than the inflation rate so you'll actually lose money and that's what a lot of people have been doing..

Anyway if you want more information about investing in foreign stock (and you should) defaintly go to Europac.Net

Not just for your kid, but for yourself too!

:)