With Christmas less than 24 hours away I thought I would take a moment to discuss my favorite gift giving experience…and I get to make it at least twice a year!  and I don’t even get that much credit for it.  In fact, in terms of “credit” I would be much smarter to buy The Wife a new bag from Louis Vuitton which she swears is an asset.  Nope, it is a gift for my nieces and nephew.  As of the date of this post I have 2 nieces and a nephew (expecting another nephew in a few months to even out the score), and I get excited each time to give them one particular gift whether it is their birthday or in this case Christmas.

It is the gift of money safely invested for them!

Instead of buying them material garbage made in China, every birthday and Christmas I transfer money to their investment account.  I then invest their money in a particularly safe (in my opinion) company and/or broad based ETF with low annual fees and no commission costs from Fidelity.

List of Investments for Family Members

Titling the Gift Account

I keep the accounts titled in my name, but have the statements sent to their parents, so they know exactly what’s happening in the account.  The reason I don’t do a joint account with the niece or nephew is that if in the off chance they are not a responsible adult I want the opportunity not to give them the money (or I can give it to their parent or what not).

Will it ever be a ton of money? Probably not, but I know that my 18 year old future nieces will be much happier with cash for their freshman year of college than the barbie doll that they played with for 35 seconds and forgot about.