As an expectant father, I’ve been doing plenty of research on ways to save for college and the financial future of both my child and myself. Motley Fool, one of my favorite sites, put up a series of articles called A Foolish Baby Shower that caught my eye today.
Having recently found out that I’m an uncle-to-be, my thoughts quickly turned toward what stock I’d like to buy as a gift for the little tyke. The way I see it, there’ll be relatives coming out of the woodwork with baby clothes and toys, but I’d like to give him or her something that will create more enduring value, and fewer embarrassing photo moments.
What an excellent idea. I had toyed with the idea of starting some sort of college fund for the kid and asking the relatives to put money into it rather than buying toys. While I don’t think that all of Motley Fool’s choices in stocks are sure buys, I do trust their judgement about 90% of the time. Every body is wrong once in a while and doing my own due diligence is always important.
Of course, there are always the stocks that could be purchased for other reasons. I’ve seen plenty of ads for oneshare.com for shares of Pixar and Disney because they are children’s brands and they have fun children friendly graphical share certificates. That’s a pretty poor way to choose a stock if you ask me. I’ve been an advocate of dividend stocks, and until someone shows me a really solid reason not to be, I will continue to be. As I see it, a DRIP account or two would be perfect for a baby shower type stock gift. Your child gets the increase(hopefully) in value of the share(s) themselves along with the automatic increase in value from the reinvestment of the dividends.
What does everyone else think? Any other great ideas for baby showers and such that are financially sound for the future?