Best longer term investment for a small child?

Question

I have a 3 year old son.  We have put some money into a savings account and mutual funds in his name, so that when he's older he can make a deposit on a house, buy a car, pay College Fees, etc, etc.

Given that the money isn't going to be touched for 15 years does anyone want to suggest alternative investments that might give a better return than mutual funds?  Please keep the suggestions sensible, medium risk is OK for some of the money but I don't want to have to tell my son he can't go to College because I blew the money on a business start up or golf course in the Sahara.

urbancoyote · Accepted Answer

Pacific rim, especially Japanese, balanced growth mutual funds such as EWJ or the Japan Fund.

Consider FVL, an American mutual fund that consists only of stocks ranked #1 for timeliness by Value Line.

The best possible use for that money as a teenager and a young adult will be for college and graduate school.

gdf888 · Answer

Partial 529 plan. Money you conrtibute can be tax deductable. Earnings are tax free. yeah its a mutual fund but you can direct risk according to age of child. Some plans have very reasonable fees...

golferwhoworks · Answer

You already have the best investment going for your child. just pick mutuals with a 10 year track record of making money and you shoud be just fine.

purefire41 · Answer

check with some local mutual fund advisors........many of those can be set up with small monies.........check out long term funds.......since you re waiting a few years........many of those have very low risks.

steph · Answer

i'm sure you can get savings bonds.. those are good i think..
or those education savings plans..

kinda like RRSP's but for kids

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Best longer term investment for a small child?

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