I have yet to research this and it doesn't deal with retirement, but I figure you may be able to help.
I want to basically setup a fund for my niece that I will contribute to on a yearly basis and she'll be able to use for her first trip of her own when she becomes old enough. I know when I was a kid I got a lot of savings bonds, but I'm not sure if those are still common and there's probably a better way.
We're talking about 16+ years of contributions of 100+ dollars.
Any suggestions?
Webber you really can do any of the following but to me savings bonds, a roth ira, savings account/CD sounds good
Couple questions do you invest now? Do you know what mutual funds/etfs are and have you used them before?
Mutual Funds usually have superstar investors leading them and are a collection of stocks. They are usually geared to multiple industries to avoid losing to much. They can be invested in Pharma to foods to gold. Funds can normally give you a good amount of return but it is not guaranteed.
ETF's stand for exchange traded funds. You invest in like the S&P 500 meaning all stocks under it. The buy is usually low and you are very diversified. You can look at the exchanges as they will be Large Cap, Mid Cap and Small cap. They are classified based on how much equity the companies have. Small cap you see spikes of up and down growth. Mid you can still see spikes but a little more consistency. Large caps are mainly blue chips which go up and down but are more consistent and have much less movement on both sides.
Bonds have the lowest potential but are normally looked at as the safest. Be careful what you invest in though as some can forfeit it. There are all types you can buy city bonds so the city can do structure upgrades ect but like I said be very careful. Bonds have grades that help you determine what is good or isn't.
How would you go about funds etfs? Start an account with etrade or scotstrade and make it a roth IRA with permission you can put her in as primary and you can take tax write offs at the end of the year for gifting.
Bonds there are multiple way you can buy bonds most are done online now though.
CD's are done through your bank and you can renew and add money to it yearly. Interest rates are very low now though so we are talking pennies you make on your money if you go this route.
<p>I am pretty sure Shack is thinking of PBR.