How to give the gift of an investment
When thinking about purchasing gifts for many people these days, we are stuck with the thought, "What do you get someone who already has everything?"
In recent years, rather than giving material items many people have started purchasing experiences, such as hot laps in a racing car or sky diving.
Maybe it's time to think even further outside the square.
How about one of these gifts that keep on giving.
1. Investing in a listed investment company (LIC)
By purchasing units in an LIC, you are investing for the medium to long term.
The potential capital growth and distributions will allow the investment to grow over time, and literally keep on giving.
These investments give you access to a diversified portfolio of Australian shares, without having to worry about selecting the individual stocks to invest in.
Over a reasonable period of time, this gift could grow to a sizeable investment.
2. Gifting a parcel of bank shares
Many analysts believe bank shares are reasonably priced at present.
Many other stocks are also good buys at the moment. In a similar manner to the LIC, this is a medium- to long-term investment. Again, capital growth and dividends allow the investment to grow and keep on giving.
This option gives you complete control over the selection of the individual shares purchased.
However, you won't get the same level of diversification as you will by using the LIC.
3. Donating to a charity on behalf of a family member or friend
Although this won't provide any personal benefit to the receiver of your gift, the knowledge that they have transformed people's lives can be a great feeling.
Even children enjoy being a part of charity giving.
Donations can be made to many charities, such as Oxfam and World Vision, by donating dollars.
It is worthwhile checking exactly how much of your donation goes to the cause you wish to support, and how much is used for administration fees and other expenses.
Alternatively, you may package gifts such as a hamper of food or toiletries, or toys for the kids. These donations can be made via many charities, such as the Smith Family or Operation Christmas Child.
In a world where many of our friends and family have everything they need, it can be a great opportunity to help those who are less fortunate.
As you finalise your Christmas shopping, keep in mind these three gifts that keep on giving.