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  1. #1
    Member BigSexyPhoenix's Avatar
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    Jun 2008
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    Any financial Advisors on here? Have a question about Investment Clubs

    I stopped and visited with my financial advisor today about investing a small amount of money for my 6 year old. She recommended an investment club. I don’t know much about them but it sounds like it would be good for him to get into since he doesn’t have much to get started. Any advice?

  2. Member
    Join Date
    Nov 2011
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    Coral Springs, Florida
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    #2
    Instead of an investment club you could use Fidelity. They now allow you to buy many etfs and mutual funds with no minimums so you could buy a small amount each year. Plus you get some diversification even with a smaller amount of money. I think they also got rid of commissions/fees on the ETFs so that definitely is important when dealing with smaller purchases.

  3. Banned
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    Mar 2018
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    Oklahoma
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    #3
    I second that, avoid the investment club, do an etf with fidelity or vanguard.

  4. Member
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    Jul 2007
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    #4
    Investment clubs aren't necessarily bad but most of the ones I know of are family/friend/work related so I'm not sure know how you go about finding one to join where you know the decision makers and agree with their way of thinking. NAIC teaches good fundamentals but I think he/she is a little too young for that stuff.
    I'm surprised she didn't mention setting up an Ed IRA. Or do you already have one? What are you trying to get out of it? I don't mean to imply the replies above aren't good advice but mutual funds and ETF's aren't very sexy. Do you want your 6 y.o. to learn about investing? 6 is a little young but I assume you're not talking large amounts of money and you shouldn't underestimate the insights of a kid. They see the world from a different perspective. Our daughter started around 6th or 7th grade and did really well choosing stock from companies that made products she and her classmates like. That's one way of spotting a trend early and also getting out when it's no longer cool. You choose a stock, analyze it using one of the many online tools available, and buy a little if they look solid. Most online brokerages are going to very cheap or totally free trades now so it's not hard to get in and out with small lots. Google "best online brokerages" to compare pros and cons of the major players.

  5. Member
    Join Date
    Jul 2005
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    Baxter, Mn
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    #5
    I'm far from a pro at investing, but I took my daughters savings and put it in a "scholars edge 529" plan.. Seems to be going well.