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Ask Dave

Some Gift! How To Use It?

Dave tells Jeff why he needs to invest some gift money for his son in an educational savings account.

QUESTION: Jeff has a 9-month-old son just received $1,000 in gifts. Where should they invest it? Dave tells him about the beauties of an educational savings account.

ANSWER: Assuming your sending him to college, the first $2,000 a year I would put to an educational savings account. It grows tax free for his schooling. Put it in a good mutual fund that’s been open for at least 10 years and has a good track record.