Investing on behalf of a child...

--amadeus--

Hiya,

My little lad is as tight as a ducks backside and still has over €400 in 1st communion money from last year sitting in his piggy bank. I have suggested putting it in the bank but he's a bit meh about that. However when I mentioned shares he got quite excited at the prospect and is keen to turn himself into the next Warren Buffett by putting €300 into shares...!

So what I have agreed with him is that I will draw up a list of 5 or 6 companies with a brief bio of them and some financial highlights (turnover, graph of stock price over the last year, that sort of thing). From there he'll pick a company and I'll buy the shares for him.

Now I've often toyed with the idea of directly investing but I never have so some general and some specific questions, if that's ok...

- Any ideas about where to invest? I'm thinking Coca Cola, Unilever, Microsoft - big companies with predictable profits and growth. I'd expect him to hold the stocks until he's 16 or 18 (he's now 9) so long term growth is the aim. Anything I should specifically look for, am I on the right track?

- I am with AIB as a personal and business customer so I was going to set up and use thier online trading system. I know there is a thread on online trading options but this isn't for day trading, it's to do an occasional buy & sell (for both of us). Is AIB the best idea or are there other options (ease is important)

Thanks!

Jim2007

Good idea!

I would go with companies he can associate with as it is more interesting, say Kelloggs, Campbells soups, the Mouse and so on....

Jim

fudgie101

You gotta spend money to make money!

Thargor

My little lad is as tight as a ducks backside

Im ringing social services :pac:

displaced dub

--amadeus-- wrote: »

Hiya,

My little lad is as tight as a ducks backside and still has over €400 in 1st communion money from last year sitting in his piggy bank. I have suggested putting it in the bank but he's a bit meh about that. However when I mentioned shares he got quite excited at the prospect and is keen to turn himself into the next Warren Buffett by putting €300 into shares...!

So what I have agreed with him is that I will draw up a list of 5 or 6 companies with a brief bio of them and some financial highlights (turnover, graph of stock price over the last year, that sort of thing). From there he'll pick a company and I'll buy the shares for him.

Now I've often toyed with the idea of directly investing but I never have so some general and some specific questions, if that's ok...

- Any ideas about where to invest? I'm thinking Coca Cola, Unilever, Microsoft - big companies with predictable profits and growth. I'd expect him to hold the stocks until he's 16 or 18 (he's now 9) so long term growth is the aim. Anything I should specifically look for, am I on the right track?

- I am with AIB as a personal and business customer so I was going to set up and use thier online trading system. I know there is a thread on online trading options but this isn't for day trading, it's to do an occasional buy & sell (for both of us). Is AIB the best idea or are there other options (ease is important)

Thanks!

Its a great idea................but. That small an amount of money and the fees associated with trading it might imo be better served in a highish interest savings account.

I have both my kids childrens allowance in accounts paying 3%ish since they were born.

If say you were to top up the amount and get together a bigger pot then yes invest it.

But its good to see you kid has an interest and unlike most of the arrogant shi*head teenagers walking around he understands that there is no money tree out the back of the house.