Investments as Gifts
When I was little my grandparents gave me several gifts of small savings bonds that matured while I grew up. It was a small gift that grew over time and taught me a little about finance.
I'd like to do the same for my nieces but apparently now it's more complicated---you need SSN and other info and I'm not sure what is allowed. While I can get this info, I'm not sure it's appropriate.
In 2018, is there an equivalent investment vehicle one can give as a gift to a young relative?
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What about something like American Silver Eagle coins? I believe the average price is around -15 and they should (generally speaking) hold with inflation or possibly appreciate in value. Having some shiny silver coins in a safe place is also something a child might appreciate more than a piece of paper. Of course, you could also do gold coins if you were so inclined.
Savings bonds seem to have fallen out of favor as gifts due to the annoyance of both you and the child's parents setting up an online account for the digital bonds. As well as the fact that interest rates have been close to negligible for awhile; though they are finally back over 2% for Series I bonds I believe.
There aren't many other things I can think of that wouldn't require the parents (or an attorney) to setup an account. But I do applaud you for trying to teach your nieces about the value of money and saving.
There's nothing that's as simple as a paper savings bond that has the same kind of simplicity and low risk. Paper savings bonds still exist, but they must be purchased with your tax refund.
If the child is likely to receive other gifts, or a significant gift from you (several thousand dollars or more), perhaps the parents would be able to set up a UMTA account with something like Vanguard. Then you could gift to that account.
Otherwise, my suggestion is to simply gift cash. Encourage the child's parents to start a UMTA (bank) account for the child, and gift them cash; if the parent wishes later on to move it to an investment account, they can do that. I held money in a similar account as a child and eventually used it for college.
Bitcoin (or any cryptocurrency that you think it will value more on the future);
United States Bonds (you can give it to children) www.treasurydirect.gov/indiv/help/TDHelp/help_ug_126-LinkedAccountLearnMore.htm
In 2018, is there an equivalent investment vehicle one can give as a gift to a young relative?
Yes. It is called Bitcoin (or [better] Ethereum). No complicated rules. just make her a paper wallet and send the money to it. It will be more relevant to their future anyway.
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