Wednesday, February 8, 2012

7 Stocks for Your Child's Retirement

For any of you who are parents, soon-to-be parents, potential parents, grandparents... basically if you have a child or will have a child whose financial independence you care about, this post is for you.

This past September I had a major financial impact that occurred in my life, my son was born. Like most Dads I have since envisioned teaching my son about sports, girls, and of course dividend stocks. What's that? Most Dads don't teach their sons about dividends stocks? Well that's a shame, consider my son a leg up then.

Within a couple of days of receiving his SSN I had opened a 529 plan and custodial brokerage account and set up automatic deposits for each. As I contemplated what his first DRIP stock would be I realized I was approaching this choice as if it was my own portfolio. Or course I wanted to buy a solid dividend growth stock that we could reinvest dividends into for the next 60 years, but I also wanted this to be a great teaching tool for my son. Sure the ALFAC (AFL) duck is funny, but I'm not sure demonstrating DRIP investing to him with a supplemental insurance company was going to grab his attention and get him excited about investing (although I do think it would be a good dividend growth stock to own).  READ MORE

Tags: [MCD] [YUM] [INTC] [XOM] [KMB] [TGT] [PEP]

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