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For his birthday, what's the best long-term investment the I can start for my 18-yr-old brother? |
I'm thinking perhaps an IRA, but there are so many other options. I have $500.00 to start with and would be able to contribute each following year. Thanks. Your first option should be to fund fully a retirement account. If you do this, and you have extra cash, then one of the best things you can do is open a DRIP Plan. Consider a mutual fund. There are a wide variety of funds ranging from conservative to aggressive. I would recommend a fund that focuses on large cap stocks. Many online brokers offer no fee funds An I-bond is a very safe investment. Would be inflation protected and would guarantee that a profit would be made which is important given the uncertainty of the economy . present him a computer with internet - you will investing on his knowledge. he will earn more and pay you back also handsome divident. You can't start an IRA for another person - they have to do it and must have earned income to contribute. Consider U.S. Savings Bonds along with a copy of "Investing For Dummies." Getting him to educate himself on the basics of investing is the greatest gift you could give him. |
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