Investing is a great way to get your money working for you for the purpose of increasing your wealth and taking control of your finances. While it can do wonders for your own financial situation, one aspect that is often overlooked is what it can do for your children. With the time value of money on your side, you may want to start looking at the possibilities of what you can do with your investment capital for your kids. Here are a few potential investments that you can pass on to your children.
One of the most common investment types in the world is stock. Stocks
represent a share of ownership in a corporation. When you buy stocks, you are
essentially a partial owner of a company. Once you buy the stock, you can do
with it what you wish, which includes passing it on to your children. It's just
like if you started a business and owned it, you have the option of passing it
on to your kids. Fisher
Investments educational videos talk about this to some degree.
If you are investing with the idea of passing your stock on to your kids,
you should look for companies that are poised to be around for the long-term.
Companies that have a long track record of success are the best for this. You
may also want to look for companies that issue dividends regularly so that you
can benefit from the regular income before you pass the stock on to your kids.
Real estate is one of the best investments that you can make right now if
you have the idea of passing
on something to your kids. As the population continues to increase and more
land gets developed, there will eventually be a shortage of available real
estate. Look for land that has good potential for future increases in value.
Starting a Business
Starting a business is another good way to have something to pass on to your
kids. You can employ them while you are still alive and then eventually pass
the company on to your children in your will. You could also give it to them if
you decide to retire.
Regardless of what types of investments you choose to put your money into,
make sure that you look at them through the lens of longevity. If they continue
to grow in value, your kids could have a nice
little nest egg by the time they get older.