Investing and the Single Parent

Recently one of the many things I've been getting into is "investing"...

And like most things, I research as much as I possibly can before making an informed decision.

Investing and finances is no exception... and while I don't personally have a lot of money to invest, I do put away a little bit from each paycheck.

And trust me, I am the first person to admit that I'm NOT an expert when it comes to investing.

However, I did write a bonus book that's a companion to my Single Parent Survival Guide book that talks about investing for your child. It's got some great tips about investing, creating Wills and other important things to make sure your child is taken care of.

Today as I was researching some inexpensive investments I wanted to share with you a Single Parenting tip.

What I shared in that book is what I've personally done for my daughter...

Being that I am not an expert, I wanted to consult someone who was.

This lead me to setup a meeting with a Financial Advisor.... someone who knows how to listen to my goals and help me invest in the best things to meet them.

When I sat down with a Financial Advisor he tried to sell me a "college fund".

This is all well and good, but then it hit me...

What if my daughter wants to go to a "trade school", like to become an Auto Mechanic or a Hair Dresser?

I mean, hey, it's 2008 and she's going to be 20 in the year 2023!

There was one alternative that I found called the UGMA... That's just fancy financial talk for the "Uniform Gift To Minors" act... It's basically a custodial fund for minors...

The financial advisor agreed that considering our circumstances, this was the best way to invest money for my daughter.

It gives her the flexibility to do what she wants with the money... And since my daughter is currently four years old, chances are she won't be touching the money any time soon.

As with most investments, there are good aspects and there are not so good aspects.

In fact, I have yet to find an investment that doesn't have risk!

If you'd like to research this one a bit further, check out the Wikipedia page for the UGMA.

Of course, you'll want to take into MANY considerations... such as what you can afford to invest (after you've invested in yourself), your child's age and how soon they'll reach a time when they can touch the money and as it fits into your monthly budget.

I recommend taking some time to think about investing for your child... It will lay a healthy attitude about money and give them a financial "buffer" when they are ready to leave home, go to college or start a career.

So, as you're investing for your child and your child's future, remember that we're in this together, learning lessons along the way.

Talk to you soon,

Oh yeah, in this blog I mentioned my book about preparing for your child's financial future. I should let you know that it's a bonus book when you download The Single Parent Survival Guide. If you'd like to learn more about my Book and the bonus books it comes with, check it out here.