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Teach Your Children Well: 3 Top Stocks to Buy for Your Kids

Teach Your Children Well: 3 Top Stocks to Buy for Your Kids

(Dollar Photo Club)

By    |   Thursday, 01 September 2016 06:27 AM

 

Your parents only said it because the cliché is true: To them, it seems like you grew up in the blink of an eye. From first steps to walking down the aisle.

So too should you take that lesson and apply it to your own children. It’s never too early to start investing in their future for them. And in the blink of an eye, your child will be grown and out on their own.

 

So Motley Fool recently spotlighted three stocks it said should “offer long-haul opportunities that make them perfect for a child's investment account.”

The Fool’s picks: iRobot, MasterCard, and Gilead Sciences. Not only solid investment opportunities, but each can also teach your child a lesson.

iRobot's (NASDAQ:IRBT) “earlier this year not only sold its defense and security business, but also ended its early-stage marketing and business development for remote presence products. In doing so, the company ensured it will be able to dedicate 100% of its resources going forward to focusing on consumer robotics,” the Fool’s Steve Symington said.

“In the end, as iRobot's consumer robotics technology becomes more ubiquitous, I think owning shares along the way will prove a great opportunity to teach my children about the concept of recognizing early trends and making long-term investments accordingly.”


MasterCard Inc. (NYSE:MA) may not sound like a very "kid-friendly" stock, but there are two things that make it an ideal investment for your child:

  • Tremendous long-term growth prospects.
  • A great way to stretch your kid's understanding of money and investing.

“Few large companies are as well-positioned as MasterCard to take advantage of global growth and the expansion of the world's middle class over the next 20 years,” the Fool’s Jason Hall said.

“Owning shares of one of the largest payments companies in the world is a great way to help your kid develop a better understanding of finance and money. After all, there are very few places you'll go these days and not see a MasterCard logo on the door, creating plenty of opportunities to talk about how MasterCard works, and how that's tied to the economy at large.”


The Fool’s Todd Campbell offers: “If you want to start an investment account for your children, you might want to seriously consider owning Gilead Sciences (NASDAQ:GILD) as a core holding.”

Gilead Sciences is the top seller of medicine used to treat HIV and hepatitis C, “and with $30 billion in sales and an enviable balance sheet sporting nearly $25 billion in cash, there's a lot of reason to think that this company will remain a leader in the decades to come.”


Experts warn to save for your children now, because life has a nasty habit of getting in your way when you’re busy making other plans.


For example, the number of families saving for college is at an all-time high, according to recent data from Fidelity Investments. But a large portion of parents do not keep college savings separate, leaving money earmarked for education vulnerable to emergencies or luxuries.


Since Fidelity started measuring college savings rates in 2007, the number of families who say they are saving has jumped 24 percent, from 58 percent to 72 percent today. But among those who are saving now, only 42 percent use a dedicated savings account, such as a 529 plan,
Reuters reported.
 

(Newsmax wire services contributed to this report).

© 2019 Newsmax Finance. All rights reserved.

   
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Your parents only said it because the cliché is true: To them, it seems like you grew up in the blink of an eye. From first steps to walking down the aisle.So too should you take that lesson and apply it to your own children. It's never too early to start investing.
stocks, kids, invest, motley fool
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2016-27-01
Thursday, 01 September 2016 06:27 AM
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