Every good investor knows that the future is a pay off of the decisions you make today. If there’s one thing an average millionaire would have learned over the course of time is the art of multiplying money. That’s the basic summary of investing.
As a parent, it’s your responsibility to raise your child to be completely successful, by teaching them what they need to know, by creating or providing a conducive environment for them to thrive and taking decisions that will help them in their finances futuristically. One thing every good parent dread is not being able to provide for their kid. How about going a step further from just providing for them to making them millionaires even before they can read the alphabets. The following are investment options that can make your child a millionaire on arrival.
Investment Accounts
There are some special investment accounts that are created specially for children, you can start by getting accurate information on how they are operated. One of the advantages of such accounts is that they attract little taxation, and when the child becomes an adult (16 or 18 depending on the state laws), the account is then handed over to him/her.
Fixed Deposits
You might want to consider fixed deposits because of the low risk level in comparison with other investment options. Remember the goal isn’t to gamble with the financial future of the child, it is rather to secure it. Fixed deposits are a guarantee safe way to invest because first of all, the principal amount invested is guaranteed, in any case of unforeseen circumstances.
Mutual Funds/ Equity Funds
Mutual funds are another great option to consider because it involves diversification, this means as you invest in these equity funds, they are diversified into several businesses just as the package may come. Although for Equity funds (which is a type of mutual fund), the capital required for individual investors is usually a large amount due to the diversification of portfolio of direct stock holdings which is exactly what reduces the risk of this type of investment.
Insurance
This last type of investment isn’t exactly what may give your unborn child the millions that you desire, seeing that it doesn’t multiply money over time. The reason it is included in this list is to remind you that while you’re investing for the millions you want your child to inherit, you should also remember to stack up some money for his/her education and general welfare. There are several insurance schemes to help you prepare for your child’s future, find one and get enrolled.
Finally, as much as you want to give that beautiful future to your unborn child, always pick the best out of the pack of investment choices, try not to be desperate, so you won’t get cheated or swindled, always go through the terms and policies in whatever agreement you’ll indulge, and consider all possibilities before you agree.
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