What would you buy a newborn

Jeffnlu · February 23, 2019 2:24PM

Our daughter had a baby on January 1st of this year. Our first grandchild. I was planning on opening an account for her at my local credit union. Nothing serious, I am thinking maybe $250 - $350 per year. Interest rates are low however, the CD rates are around three percent.

Then I thought maybe I should spend that on coins for her and gift them every birthday. That would seem a gift where maybe in twenty years she would think old Gramps was a pretty cool guy. Even something from the mint each year plus something(s) or other slabbed. Gold, Peace dollars, semi keys?

Any suggestions?
Thanks

PS: although this is our first I will do the same for all of the future grandchildren.

Zoins · February 23, 2019 2:27PM

If you want to give money, I've been thinking along the lines of a brokerage account and giving her shares of a stock like Amazon or Google, or an index fund tracking the S&P 500. I think it's much more important to educate children on investing than having a savings account these days.

For coins, I've thought it would be neat to give them a coin and have it engraved with their name and date, similar to what was done 100+ years ago.

oldabeintx · February 23, 2019 2:34PM

Shares in a fairly aggressive growth fund. I've gifted some coins now and then and the grandkids and kids are not interested. Worth a shot tho, might become a common interest one day. .

RogerB · February 23, 2019 2:42PM

1,000 shares of Amazon with dividend reinvestment.

erwindoc · February 23, 2019 2:43PM

Silver eagles would be a fun adventure. Maybe even a silver brick!

coastaljerseyguy · February 23, 2019 2:44PM

I'd either open an UGMA account or a 529 plan if you want the proceeds to go to the child's education. Vanguard is a good choice since their funds are amongst the lowest expense ratios in the industry and you can't go wrong with the S&P 500 for a long term investment.

santinidollar · February 23, 2019 3:31PM

@RogerB said:
1,000 shares of Amazon with dividend reinvestment.

Amazon doesn’t pay a dividend.

jmlanzaf · February 23, 2019 3:32PM

College fund. Coins secondary

santinidollar · February 23, 2019 3:33PM

I’d go with an aggressive growth fund. Too risky for your taste? Try assembling a small portfolio of solid dividend paying companies and reinvest the dividends in more shares.

BAJJERFAN · February 23, 2019 3:33PM

@santinidollar said:

@RogerB said:
1,000 shares of Amazon with dividend reinvestment.

Amazon doesn’t pay a dividend.

I think he was being a wiseguy.

santinidollar · February 23, 2019 3:34PM

@BAJJERFAN said:

@santinidollar said:

@RogerB said:
1,000 shares of Amazon with dividend reinvestment.

Amazon doesn’t pay a dividend.

I think he was being a wiseguy.

Maybe so. But when it comes to people and their money.......

291fifth · February 23, 2019 3:39PM

DO NOT BUY HER ANY COINS! It is unlikely she will have any interest in them. Buy her some shares in your state's college tuition program if your state has one.

Nic · February 23, 2019 3:39PM

Buy her a gold coin each year? Can't hurt.

DiggerJim · February 23, 2019 3:52PM

@erwindoc said:
Silver eagles would be a fun adventure. Maybe even a silver brick!

I gave my one year old grandson a silver eagle and a silver mint set from the mint for Christmas and will do something similar for his birthday and next Christmas. If he doesn’t get into collecting then he can sell them.

DiggerJim

jabba · February 23, 2019 3:53PM

Education fund

MrEureka · February 23, 2019 3:54PM

I’m also in the equities camp. However, I’d also recommend buying the coolest looking antique “treasure chest” you can find, filling it with old circulated raw coins, and keeping it in a place where it will be seen at family get-togethers. Play it right and it could lead somewhere.

jmski52 · February 23, 2019 4:02PM

I've bought my grandson a 1/4 oz Proof Gold Eagle every year for Christmas and a Proof Silver Eagle every year for his birthday. Now that he's almost 9, he still doesn't pay much attention, but his mom does.

RogerB · February 23, 2019 4:09PM

Actually - an aggressive growth fund from one of the major fund managers would include Amazon and friends.

As to the stock itself - one day it might pay a dividend so best to be on board with reinvestment. Also, the trustee can reinvest mutual find dividends automatically. There will probably be no tax due for a long time so there would be no cash needed for withdrawal.

3stars · February 23, 2019 4:11PM

I bonds

Cameonut · February 23, 2019 4:14PM

Education fund - see your financial advisor to see if you can shelter taxes on it.

I'd skip anything related to coins and bullion until you have funded your education responsibility.

Edited to clarify: I did not mean to say that a grandparent had educational responsibility for grandchildren - my mistake. But I do believe that saving for educational expenses ought to be a high priority.

SmEagle1795 · February 23, 2019 4:20PM

Diapers?

Hemispherical · February 23, 2019 4:29PM

@Jeffnlu Congratulations Jeff n Lu!

Being grandparents is a wonderful thing. You can spoil them rotten... then send them home to mom and dad.

What we have done for our grandchild was to setup a joint savings account with me, my spouse, and grandchild (will need a SSN) as owners. This is where you can sock away whatever amount of $$$ without worrying about the gift tax limitation and you can turn around and invest it into anything you want for the grandchild, such as CDs, stocks, etc. Your risk tolerance will be your guiding light on what to do with these monies.

Separately, we send various gifts, such $$, PM (ASEs), clothes, toys (and more toys and more clothes) etc. to the parents for the grandchild.

Enjoy the moments! The little ones grow up so quick!!

TwoSides2aCoin · February 23, 2019 4:44PM

Shower her (or him) with love. The world seems to have a shortage of that and it costs nothing but selflessness. On a side note: it can't be bought.

Raybob15239 · February 23, 2019 4:52PM

Birth year proof set. Other than that, 529 plan.

Smudge · February 23, 2019 5:13PM

A binky (pacifier). Edit to say just kidding, gold binky, No 1/4 oz gold Eagle each year would add up over time.

Edthelorax · February 23, 2019 5:59PM

@TwoSides2aCoin said:
Shower her (or him) with love. The world seems to have a shortage of that and it costs nothing but selflessness. On a side note: it can't be bought.

We always say "You can't spoil a child with Love."

Congratulations!!! A girl and she is a Capricorn too!! It doesn't get better than that!!

I personally would go with a birth year coin, proof ASE, 1/10 platinum Eagle, 1/10 AGE and start an account. The interest on a savings account would be lucky to keep up with inflation. Everything goes in cycles and precious metals is only part way through the up cycle that started in 2000 IMHO.

Goldminers · February 23, 2019 6:19PM

Born in January, How about one of these Canadian 1/4 ounce .999 silver coins with crystal.
https://online.kitco.com/buy/31076/2018-1-4-oz-Silver-Coin-Birthstones-January-9999-31076

Then each new grandchild can get one for their birthday month. Not too expensive and limited mintage. But you may have to get a crystal ball to know which other months you will need before they sell out. LOL.

Or this is pretty nice, It is a 2018, but the love started before she was born
https://online.kitco.com/buy/31074/2018-1-4-oz-Silver-Coin-Celebration-of-Love-9999-31074,

Chances are they will have something similar for future years.

The rest of the funds is probably best in education fund or similar to many above recommendations.

Insider2 · February 23, 2019 6:20PM

@Raybob15239 said:
Birth year proof set. Other than that, 529 plan.

Birth year proof set. Plus something else. My father was born in 1921, Wish they had put away a set of new coins.

cameonut2011 · February 23, 2019 6:25PM

@Jeffnlu

Those telling you to put the money into her education (e.g. a 529 plan) are well meaning, but you should consult an expert before you do. I don't know what current financial aid regulations are or what they will be when your grand child becomes an adult, but about a decade ago for every $1 you saved in one of those plans, you would lose more in potential financial aid and grants. Obviously that doesn't apply if your family is rich and doesn't need financial aid, but if you do, you may be undermining your purpose.

I would avoid coins or stick to bullion if you must. There are other options like mutual funds, inflation adjusted bonds, ETFs, etc., that offer better opportunities (although with a building housing bubble, I would probably go with the second for at least the next couple of years but I am a pessimist).

Intueor · February 23, 2019 6:33PM

Congratulations! Our first and only granddaughter (9) is the most precious thing we can ever hold.

What do you give a gift?

Just for fun: If you use this projection as a guide, maybe Gold and Spam.

ms70 · February 23, 2019 6:45PM

@RogerB said:
1,000 shares of Amazon with dividend reinvestment.

Amazon doesn't pay dividends.

Goldminers · February 23, 2019 6:58PM

@ms70 said:

@RogerB said:
1,000 shares of Amazon with dividend reinvestment.

Amazon doesn't pay dividends.

Roger's post clearly in jest. It would take $1.6+ million to buy 1000 shares of Amazon, and dividends are a joke as well. The OP said $250-$350 a year. LOL

bobsr · February 23, 2019 6:59PM

At 250 to $350 per year, a full diversified portfolio. 1/10 oz gold coin and balance in stock leaning towards real estate.
Bob Sr CEO Fieldtevhs

RYK · February 23, 2019 7:05PM

1 share SPY/VOO/IVV

derryb · February 23, 2019 7:15PM

Gold (size of your choice) or Platinum eagle proof each year from the US Mint.

The downside to stocks is the fact that they will have to be held so long (or constantly monitored/traded) for a newborn. Good Alternative is an ETF that invests in short term t-bills that reinvests itself.

Another alternative is an annual payment into a pre-paid college tuition fund through your state if they offer such a thing. I did this for our daughter in Florida and was glad I did.

Jeffnlu · February 23, 2019 7:29PM

Good suggestions all, I like the idea of a yearly proof set or Eagle. Along with an account, I'll check with my financial guy about funds versus cash and maintenance needed.
Meanwhile, here is the lil cutey.

BryceM · February 23, 2019 9:06PM

Well, that is what life is ALL ABOUT. Give her the gift of your time and attention. Other than that, something set aside for college or marriage or whatever is the best plan. If you must do coins, do a yearly 1/4 oz AGE that can be easily liquidated isn't a terrible idea.

Paradisefound · February 23, 2019 9:53PM

@Jeffnlu ..... she is a cutie indeed Congratulations!
This maybe a good set from US Mint .... 2019 dated proofs.

1Mike1 · February 24, 2019 12:09AM

With the exception of family love/unity, hands down a higher education is one of the best things you could give her. Sorry to say I think the coins would eventually be tossed aside and forgotten.

Edthelorax · February 24, 2019 12:10AM

Wow! She is so wonderful! Holding her head up at 7 weeks is a great sign. Enjoy every second of time you get to be near her.

She definitely deserves a little silver or gold.

Swampboy · February 24, 2019 12:14AM

@Cameonut said:
Education fund - see your financial advisor to see if you can shelter taxes on it.

I'd skip anything related to coins and bullion until you have funded your education responsibility.

My grandkids' education is their parents job.
My job as grandfather, as I say, is to have fun with the grandkids. If at anytime they're not having fun I turn them over to their parents to fix.

To the OP; I like @MrEureka's thought on this topic.
When I asked a similar question here over ten years ago 'big and shiny' was suggested and that was a fruitful suggestion.

Congrats on your granddaughter @Jeffnlu

cameonut2011 · February 24, 2019 12:21AM

@RYK said:
1 share SPY/VOO/IVV

The post above is the most practical advice in this whole thread.

MattTheRiley · February 24, 2019 12:21AM

How about putting together a 1/10oz gold eagle set. Buy a 2019 and a 1986 this year, a 2020 and 1987 next year, until the set is complete, etc...

air4mdc · February 24, 2019 12:35AM

We did birth year sets for the grandkids.....another one on the way the way this St. Patrick’s Day.
Because of long distance we only see them about every two months or so. Really stinks believe me.
I’m not sure if there still around but our family always bought US Savings Bond at births and baptisms. My kids cashed them in for college useages.
Most kids I knew cashed their savings in before college. Well before. Me included.
Unfortunately I have seen grandparents ruin grandkids by spoilage and interfering with the parenting of the parents. Not saying this would be the OP’s case.
Best advice I could give would be that you include them in a will or trust with stipulations.
Congratulations on your first grandchild.

SurfinxHI · February 24, 2019 1:11AM

Diapers.

Then a 528 savings plan, with an eye toward college. Try Utah state.

TurboSnail · February 24, 2019 1:15AM

I asked the same exact question for my daughters when I first joined this forum. I ended up with two completed silver proof sets and two completed sets of ASE .

But in the end, they were happier with two completed sets of my little ponies toys collection instead. One set we played with while the other set I kept in the closet as spare.

As an investment , the value of our silver collection went down . But if we sell some of our extra my little ponies toys that are still in mint package on amazon or ebay, we would earn 10 times more than we put in.

FullStrike · February 24, 2019 1:29AM

If you want to gift some Coins, get a new roll of Lincolns each year. Get them from your Bank at face value.

Anything above 50 cents, do it in Cash , Stocks ....... anything but Coins at a premium.

ricko · February 24, 2019 6:22AM

A growth account for future education is a great idea... Along with that, I give all the newborns in the family an ASE the year they are born. Cheers, RickO

CommemDude · February 24, 2019 6:52AM

My grandfather gave me some indian cents and a few Peace dollars he pulled from circulation; they have little value but I remember him every time I see them. So I would suggest you give her a silver eagle every year and put the money into an equity index fund.

Had I understood the rising line of the S & P index chart, along with the value of staying in the market through down times, I would be have had beaucoup bucks today.

dpoole · February 24, 2019 6:56AM

I'd echo the suggestion for a 529 tax-deferred college fund for each grandchild as they come along.

Every Christmas, I've also given each grandchild since the year of their births the annual proof American Silver Eagle, just for the cool factor.

3stars · February 24, 2019 11:45AM

High dividend ETFs such as KBWD, MORL, or MRRL. Over the years the compounding from reinvesting will be very worthwhile.

What would you buy a newborn

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