There are so many different investments you can make on behalf of your children. You can buy property, or stocks, even precious metals and art. Depending on your knowledge and appetite for risk, the choice you make will be far different from one another might make.
Here are some of the pros and cons of some of the main ways to invest.
Investing in property is always a good idea, even if only buying your own home. While the market will sway from time to time, property prices will always bounce back because quite simply the population is always growing. This is always the case if you buy in a desirable area.
Buying property can be an investment for your kids in future years. You may have to deal with rentals in the meantime, but over a 10 or 20 year period, property should always be a reasonably safe bet, as long as you buy a good one! Remember location is everything.
Investing in Precious Metals.
Buying Gold or Silver is a good way to invest your money for growth, but you have to time your purchases right. You can buy bullion and have it stored, you could buy Gold or Silver coins, or slightly more complex you could buy shares in Gold mining companies.
The trick with buying Gold or Silver is to watch long term trends in the price of these metals. Investing with a long term view when prices are near multi year lows, can often work out good. Similarly with investing in Gold mining stocks, to invest only in the largest and most established miners you can buy the GDX ETF, which is a tracker of the top Gold mining stocks on the exchanges.
Investing in Shares.
It is a risky game, but investing in shares can reap great rewards over a long term. The trick is to spread your investment over a few large companies that offer dividends, and not to jump in immediately! Timing is everything on the stock market. If you plan to invest in shares for your children, then wait for the best opportunity. Watch share prices, and keep an eye on financial news. If the market is selling off, and there is fear in the markets, then when this extends for a long period, it can offer a great entry into bell weather stocks for a long term view. It’s called buying a dip. It’s the best place to buy, you certainly do not want to buy the top!
Make use of free websites online and start tracking share prices of some major companies. Get to know their highs and lows, because buying near a low will offer you a better reward than buying near a high.