#Investing #FinancialPlanning #SaveForFuture
Stocks: Potential for High Returns
When it comes to investing $10,000 for your son’s future, stocks can offer the potential for high returns over a 10-year period. By investing in individual stocks or exchange-traded funds (ETFs), you can diversify your portfolio and take advantage of market growth. Keep in mind that the stock market can be volatile, so it’s important to do thorough research and consider seeking advice from a financial advisor.
Why Choose Stocks?
– Potential for high returns over a long-term period
– Opportunity to diversify your investment portfolio
– Ability to invest in companies that align with your values and beliefs
Cryptocurrency: High-Risk, High-Reward
Cryptocurrency has become a popular investment option in recent years, with the potential for high returns. However, it’s important to note that cryptocurrency is highly volatile and can be a risky investment. If you’re considering investing in cryptocurrency, make sure to research and understand the market and be prepared for fluctuations in value.
Why Consider Cryptocurrency?
– Potential for high returns, especially with emerging technologies
– Ability to invest in a decentralized and innovative market
– Opportunity to diversify your investment portfolio with alternative assets
Savings Account: Safe and Secure
If you’re looking for a safe and secure option to invest your $10,000 for your son’s future, a savings account may be the right choice. While savings accounts typically offer lower returns compared to stocks or cryptocurrency, they provide stability and protection of your principal investment. Consider high-yield savings accounts or certificates of deposit (CDs) for potentially higher interest rates.
Why Opt for a Savings Account?
– Safety and security of your investment
– Ease of access to your funds in case of emergencies
– Protection of your principal investment with FDIC insurance
In conclusion, the best option for investing $10,000 for your son’s future depends on your risk tolerance and investment goals. Stocks offer the potential for high returns but come with risk, while cryptocurrency can be high-risk, high-reward. A savings account provides safety and security but may offer lower returns. Consider your financial situation and long-term goals before making a decision. Good luck with your investment journey! 🚀
What’s your acceptable risk level?
Do you own your own business. You can open a custodial Roth and contribute to that on behalf of your child if they have earned income. But I would speak to a tax advisor to get exact details.
I’d go with stocks for growth potential over 10 years, but do your research to pick stable options.
This sounds like exactly the job target-date mutual funds were invented for. The whole point is to put in money and not think about it again until “retirement” or, in this case, “adulthood”. The composition of a 2035 fund right now would be about 70% stock, 30% bonds, with more of that switching to bonds as 2035 approaches.
Im in a similar situation, and do a passive invested index fund. It’s cheap, needs no attention from me and follows the average stock market (S&P 500), which most years increase 10-20%.
I’d probably split it 50-50 in (low expense ratio) aggressive growth and total market funds. Maybe QQQ and VTSAX
S&P 500 index fund
| “I have some experience in investing.”
Ok my man is probably talking about risk horizons. Not an easy answer. Hopefully they give more details.
| “cryptocurrency.”
Oh. He has Robinhood.
Friend, cryptocurrency belongs in the same investment pool as penny stocks or maybe blackjack. If you’re considering crypto alongside savings accounts then you should reframe the question: “if I gamble with this money, will I regret it?”
I could rant about cryptocurrencies giving liquidity to criminals and regimes with few options. Or about the scam exchanges that are in the news annually.
Or I could wax poetic about that sleepy bank down the street. Or that old timey treasurydirect.gov.
10 years is a lot of time in the market should you be considering stocks or index, but if the market dips the year he becomes vested in your gift, he may feel pressure to stay in the market, which might not be your goal.
I would consider the Folgers coffee tin (cafe bustelo at my house) before crypto.
does he plan on spending it at 18? if it’s for college or similar, an S&P500 index fund may be too aggressive for a 10 year timeline.
you could consider a target date fund for 2035. it’ll automatically adjust its risk profile as you get closer to the target date. pretty much ideal for the “i want to invest this money until X date then start spending it”
My company posted a 57B profit last quarter.
We don’t have budget for anything. Headcount, software, nothing.
It’s on purpose.
QQQM is my pick. (I’ve invested money for my kids here.)
Personally, giving an 18 year old a large sum of cash could be considered reckless. I’d invest the 10,000 and sit on it for as long as possible, 20/30 years or longer.
529 or UTMA
Put sp500 into one of the above, gift to man at 18 and be considered awesome.
Like others have stated, a 529 would be a great option. In this regard, all the growth will be tax free if you spend on his education. In the event you do not use all the money for eligible expenses then one day it can be rolled over to his Roth IRA. If you find yourself helping him apply for financial aid, money in a 529 and UTMA will be considered.
One thing that is guaranteed is your need to retire. There is no guarantee he goes to college. May be in your family’s best interest to simply keep the money in your name (if not doing 529) and give a gift like when he buys a house.
Alternatively, put the money in a Money Market Mutual Fund or High Yield Savings account and hang on to it until you know for sure that you don’t need the money.