Investment for the future of my child?

I have a child due shortly, and would like to know what are my options for investing for its future, kindly advise

For college investing, there are several options. Two that I particularly like are:

1) A 529 college savings plan. This is tax-advantaged account for college. You can open one with a wide variety of firms (such as www.vanguard.com or www.fidelity.com). Within these 529 plans you can invest in mutual funds, individual securites, CDs, etc.

When choosing mutual funds, your asset allocation (how you divvy the money up amonth the various types of stocks and bonds) and your costs will determine most of the risk and return. I would encourage you to use low-cost index funds. In particular, you can use a fund-of-funds which diversifies your money into various other funds, making investing much simpler. For example, Vanguard has a few "Lifestyle funds" with varying degrees of risk. Check those out.

IMO, you can use a moderate or moderate-aggressive portfilio (50 - 70% stocks) up till the child reaches around 13 or 14. Then, change to a more conservative mix (30 - 40% stocks) up till they are ready for college. These numbers are just my opinion, and you should match your asset allocation to your own risk tolerance.

2) U.S. Savings bonds. I-bonds can be purchased directly from www.treasurydirect.gov with no costs. The earnings are tax-deferred. However, the earnings are tax-free if used for college expenses. Both you and he/she can have your own account and save money. Then, you can gift your I-bonds to your child while in college, all done electronically. Savings bonds are more conservative, so you will get less earnings than a mutual fund through a 529 plan.

IMO, the 529 plan is best if you start early. I-bonds are best if you start saving for college when the child is a teenager. Or, you can do the 529 plan and then have the child contribute some to I-bonds when he/she is old enough to get a job.

One last thing. If you do use a 529 plan, it is recommended to hold this account in your name, not the child's name. Assets in your child's name reduce their eligibility for financial aid much more than assets held in your name. Also, your child could skip on college and use that money to buy him/herself a new car if the money is in his/her name.

If you would like to learn more about investing or mutul funds, you can email me @ derobake@yahoo.com. I am not a financial rep, though.

dear sam ,
as per my view investment is working as a trouble shooter for you and your family it secure not life of only your child but you and your family. man it give you a better future. enjoy your present and by making an investment secure your future. for your child 's future the most important thing is education for that lots of plans i suggest you to go for unit links insuarance plan which gives better return on your investment because equity is a risky investment but only in short term for lon g term it is abest and become less risky so
i suggest you to invest in ulip insuarance child plan which cover your life gurantee and your childs edu gurantee
for further advise for invest ment plans of various companies mail me i will guide you