A Baby Investing in Stock Market?

I just purchased the first stock of my daughter a couple of weeks ago and now the stock increased already. How sweet, isn't?  I applied a separate account for her using ITF (In Trust For). Obviously, a baby cannot do anything yet much more decide on her own thus I am investing a portion of my salary for her education. She will have enough to pay for her college tuition fee and at the same time understand the concepts of investing once she reaches the age of maturity.

First stock I bought for her is Ayala Land (ALI). The real estate heavyweight is the largest and most diversified real estate company in the Philippines. I believe that ALI will still be in business 20 years from now and by that time my daughter may perhaps reap the rewards of this stock.

There is no more satisfying and gratifying than to see your children’s future with hope and optimism. I understand the hardships of my parents who endure economic malaise in their lives just to send us to school. My parents are not well versed in the world of investing but they send us to school so that we their children will become successful one day. It is their ‘investment’ for us.

Now, it is my turn to ‘invest’ in the education of my daughter. Literally though I am investing a portion of my salary for my daughter’s education. I have 15 years on my side to slowly increase my investment in education. That’s a lot of time and since time is on my side, I have the opportunity to be prudent in my investing style for my daughter’s education.

Basically, for the purpose of investing for my daughter’s education, I need to find companies that will still be operating 15 years from now. Thus, as a principle I am investing only with blue companies for my daughter. These are stocks of which I can comfortably leave for 15 years without worrying whether the stock market will plunge or skyrocket. Stock market will always have his bad years or so. It is during these times that the blue chips are well positioned to withstand the onslaught of any crisis that will happen in the future.

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Remember the 2008 financial crisis? Oh boy, it was during this time when the stock market dived to its lowest level hence a lot of stock market investors got traumatized by the event. Buying blue chip is not a guarantee that it will continue operating 15 years from now. However, the probability of weathering the crisis is higher compare to small companies who will simply fold during this time.

My daughter is already an investor at his infant age. I believe that by the time she reach adulthood, she already know at least the basics of investing. I don’t know what my daughter will become in the future, but I believe in my heart that she will be better than her parents. I think it will often be like that, in the same way that my parents are proud to what I am and have achieved and will achieve in the future.

Ok, so how did I start? Well, the requirements are the same when I applied plus my daughter’s birth certificate. Since this is an ITF, she is the primary account holder and I am the secondary holder. If you are really serious in applying an account for your kids, then I suggest that you call or email Citiseconline’s Help Desk. They are more than willing to assist you.

Happy investing!