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Started By
Message
Best thing to do with $2000 for 10 years
Posted on 9/22/16 at 7:50 am
Posted on 9/22/16 at 7:50 am
We just had our first child and my grandfather wants to give us $2000 for the baby but he doesn't want it touched for 5-10 years. He initially wanted us to open up a savings account for the the baby because he thought it would be drawing 5% interest (He's 92 and hasn't caught up with the times 
). I realize that $2000 isn't a lot, but what is my best option if I want it to sit 10 years and draw interest?
). I realize that $2000 isn't a lot, but what is my best option if I want it to sit 10 years and draw interest? 
12
Posted on 9/22/16 at 8:02 am to ForeverLSU02
I'd put it in VTSAX (total stock market fund at Vanguard)
Posted on 9/22/16 at 8:13 am to The Easter Bunny
He'd have to purchase the ETF, VTI, since he wouldnt have the minimum investment for VTSAX (or VTSMX)
Posted on 9/22/16 at 8:30 am to OneMoreTime
ETFs: VTI (total stock market) or IVV (s&p 500)
Posted on 9/22/16 at 9:20 am to ForeverLSU02
Your child doesn't know anything about the money and grandpa is old.
Beer and coke
Beer and coke
Posted on 9/22/16 at 9:54 am to ForeverLSU02
SSW (Seaspan Corporation) maybe. It's a deep sea freight company, and deep sea freight has been hurting with a slow global economy. If the global economy picks up, they should do well.
They've got a lot of debt, but tangible book value is $17 and dividend yield is > 10%. Shares are currently just under $14. I expect the dividend to get cut some, but the yield would still be really good. Do some research to see if there are risks I'm not seeing and to decide if you're comfortable with it.
They've got a lot of debt, but tangible book value is $17 and dividend yield is > 10%. Shares are currently just under $14. I expect the dividend to get cut some, but the yield would still be really good. Do some research to see if there are risks I'm not seeing and to decide if you're comfortable with it.
Posted on 9/22/16 at 7:30 pm to Omada
Put it in a 529 and write it off on your State Income Tax as a deduction
Posted on 9/22/16 at 7:56 pm to ForeverLSU02
Why ten years? What's a 10 year old going to do with 3 grand.
Put it in a 529.
Put it in a 529.
Posted on 9/22/16 at 9:50 pm to TigerintheNO
quote:I don't ask questions I just do what I'm told, especially with this certain grandpa.
Why ten years?
Posted on 9/23/16 at 10:15 am to Omada
quote:
SSW (Seaspan Corporation) maybe. It's a deep sea freight company, and deep sea freight has been hurting with a slow global economy. If the global economy picks up, they should do well.
They've got a lot of debt, but tangible book value is $17 and dividend yield is > 10%. Shares are currently just under $14. I expect the dividend to get cut some, but the yield would still be really good. Do some research to see if there are risks I'm not seeing and to decide if you're comfortable with it.
Posted on 9/23/16 at 10:54 am to southernelite
What's the problem, and why the downvotes? Gramps wants the kid to have more than $2k in 10 years. It's a great start to the kid's college fund, or it could buy the kid a car one day. You're not going to find interest rates that will outdo inflation, so having it earn interest over that time can lead to that money being LESS valuable in 5-10 years. So instead of offering a joke response of hookers and blow, I proposed a stock. Is it perfect? Heck no, which is why I said "maybe." But as is, tangible book value is about $3, or about 20%, higher than current stock price. They also have a great dividend yield that can be cut in half and still be a great yield. And in 5-10 years, the global economy should be in better shape, which means more shipping and better days for the company.
It's not perfect. But it's a heck of a lot more helpful than joking to use it on coke, and it has multiple ways to be profitable.
Posted on 9/23/16 at 11:46 am to ForeverLSU02
Probably put it in some Apple Stock
I bet you at least make a double
I bet you at least make a double
Posted on 9/23/16 at 1:06 pm to ForeverLSU02
Open her an account at a credit union. My 2 year old has her an account at the teachers credit union which always has great interest rates. She will be a member for life.
Posted on 9/23/16 at 2:31 pm to Omada
Putting 2k into one random company isn't very sound investment advice and is barely preferable to buying 1000 lottery over the next ten years.
I'd go with a pretty aggressive growth ETF or Emerging market ETF.
I'd go with a pretty aggressive growth ETF or Emerging market ETF.
Posted on 9/23/16 at 2:58 pm to ForeverLSU02
My grandparents invested money for me in MIGFX (Massachusetts Investors Growth Stock Fund) for a few years as a "College Fund". It has made a good bit of money over the years. I still haven't cashed the whole thing in yet. Waiting until I either buy a house or go back to grad school.
Posted on 9/23/16 at 3:04 pm to ForeverLSU02
GOOG or AAPL stock after the next stock crash after elections.
Posted on 9/23/16 at 3:05 pm to ForeverLSU02
Bonds.
This post was edited on 9/23/16 at 3:06 pm
Posted on 9/23/16 at 3:50 pm to southernelite
quote:
Putting 2k into one random company isn't very sound investment advice
Cool, so go downvote and frown upon the two AAPL posts. I'm just offering a suggestion, one that he doesn't have to take but could be lucrative. I also never said nor implied that the entire $2k should be invested into SSW. I did say that further research should be done before making the decision.
quote:
barely preferable to buying 1000 lottery over the next ten years.
Yes, let's ignore the fact that my suggestion could be profitable through stock price appreciation, dividends, or even in liquidation. Let's also ignore that the research I suggested would help determine if I'm suggesting a lottery ticket or an opportunity. But perhaps we can talk about how you're suggesting either an emerging markets ETF or aggressive growth fund, which would make money whenever the global economy picked up, just like a certain company that leases out container ships would but without the dividend and excess tangible book value.
Posted on 9/23/16 at 4:06 pm to TheOcean
quote:
Bonds.
the whole new ibonds system is a complete load of confusing arse shite. i'm considering the bond monies my kids have as gone pecan.
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