Well, a company called Stockpile is making it a lot easier. You can get the gift cards in Kmart or buy them online. These gift cards which come in denominations of $25, $50 and $100. http://www.freep.com/story/money/pe...015/10/17/buy-stock-with-gift-cards/73881282/ But if the recipient isn't interested in buying stock it has a way of converting to a regular gift card at specific retailers.
I'm not sure something like this would be that successful to be honest. I think it's a good idea in principle and as maybe a novelty gift but I'm not sure people will be that thrilled if they got this as a main present.
I was thinking the same thing. Not everybody would think this was a good gift. I do like the fact that if the recipient doesn't want to buy stock with it then it can be used as a regular gift card is some places.
I've often thought about this stuff. Not as a "normal" gift but rather investing a bit of my younger siblings instead of buying some crap they don't need. The main problem really is that a) it doesn't make a great gift on it's own. and b) in order for investments to become something you need to invest quite a bit. Certainly more than I'm ready to gift. Anything is better than nothing but unless you hit a jackpot a $100 investment once a year will not turn into much even if you gift that much every year from birth to their 18th birthday.
It's a good opportunity to introduce someone into investing. Even a $100 head-start can still mean a lot for most of the people, especially for those looking forward to making even more money.
It's a bit like buying somebody s lottery ticket, if they make money, it wins it will be the best present they've ever had. If it doesn't, it becomes the worst.
I like a DRIP. Say you are a grandmother and want to pass on more than just money, also your investment philosophy. A broker account for a grandchild with a stock with DRIP might be a good start. Most folks just consume, living from paycheck to paycheck
I think one of the greatest gifts you can give anyone is a well-funded investment account - the younger the better. Probably a good idea to set the account up at a full-service firm (or at least a discount brokerage account that you control for them) and have a good portion of the money already invested appropriately for them.
The thing is, unless you are incredibly rich then you won't be handing out gifts worth thousands and thousands. And making buys with a couple hundred per year... barely worth it. I guess some mutual funds that have no commission to buy them might be a good way to go forward, though often they have higher maintenance fees but at least you could get something everytime the child gets a gift. (Christmas, birthday etc) Also just as important as it is to help them get started, it's to give them knowledge of investing. To make them interested in finances... now if only I could figure out how to make that happen to my brother who is in desperate need of some control over his spending...
It's a pretty nice idea and I like how it can be used as a regular gift card if need be but I don't think someone would be too thrilled in receiving this as a gift. It would feel almost like a joke present I can imagine.