Ask Paul: Should we gift our grandson an investment for his 18th?
He is a very good saver. Is this a good idea? Suggestions for other investments would be appreciated. - Nola
This is a ripping idea, Nola. I'd go to a reputable, very low-cost investment manager and choose a growth-style fund with the ability to make extra contributions.
Names here include big managers such as Vanguard and BlackRock.
Something we do for our grandkids is run by InvestSMART.
I am chairman of this company, so obviously biased, but I do like their Fundlater, where you pop in $4000, they add $6000, making it a $10,000 investment, which you then pay off in monthly instalments of $325 over 20 months.
It all depends on your starting amount and whether you want to add to it from time to time. Auto Invest offered by Vanguard is also a great idea.
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