Hello, I would like to put $5,000 for each of my kids into some sort of an investment account. What is the best vehicle for doing this. Ultimately, when they graduate high school they will have money to invest, spend, or whatever they need at the time.
Terry Says: Well, if you want the money to go toward college expenses, you should open a 529 college savings account. Simply go to Vanguard.com or call 800-VANGUARD to get more information. They will invest the money appropriately based on the age of your grandchildren. The gains will come out tax-free — and can be used for college expenses at any school in any state. BUT, if you don’t think they will go to college (a big mistake, it will impact all their future earnings), then you could buy individual stocks for them. Check my website in a couple of weeks. I’m working on a fabulous story for investing small amounts in individual stocks for children.