Stock/Mutual fund gifts for children?

Question:

I usually give my nieces and nephew savings bonds on their birthdays. I've decided that I would like to start giving them either stock or mutual fund investments as gifts instead. I believe that this will better assist their parents with teaching them about money and investing at a young age. I've been trying to do some internet research and am only able to find accounts that require a regular monthly payment or an overpriced, framed "one share of stock." Any suggestions?

Answer:
My grandchildren receive Christmas and birthday stock gifts. The least expensive to way to buy when wanted is through Sharebuilder.com They will allow any size investment, anytime, with a $4 transaction fee. No minimum balances are required. If the children are minors, it is very easy to set up a custodial account for each of them.

You can purchase as little as $1000.00 of Vanguards Star fund, which is a mixture of their other mutual funds and bonds. Very diverse big fund and you can just make the one time purchase and add when you please. www.vanguard.com

Online brokers are often fee-free, but may require a minimum funding level. Scottrade has no maintenance fees, and only charges USD$7 per trade. Other online brokers I have less experience with, but I think one of them is offering the first trades for free.

I suggest you to open a TD Ameritrade account for each of your nieces and nephews and buy them at least $500.00 in cool shares.

Mattel, Disney, Sony, Microsoft, Nintendo, Apple or any other company.

Let them choose the company.

Stock/Mutual fund gifts for children?

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