Investment Options for Our Children

I've been thinking about two different investing options for our children's account.   Once is a conservative approach and one would be an aggressive risky approach.

The conservative approach is to have a diversified portfolio of stock and bonds.  I will use this for our college savings accounts, which we will need in 6 to 12 years.   The conservative approach will preserve capital and deliver growth, allowing our children to have funding for college.  We have already put this investment in place through a 529 college savings plan.

The aggressive risky approach is to have a concentrated portfolio of 4-5 stocks.    The goal is to have these stocks grow at least 20X by time they retire.  So a $25,000 investment would grow to over $500,000. This option is good in theory but difficult to execute.  Of course, the challenge is to avoid having $25,000 go to zero because of poor stock picks.

However, I think it would be worth the effort to try two different concentrated portfolios to benefit our children in the future.  After all, if it fails, our children will still have the rest of their lives to more than make up for the loss.

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This is not financial advice. Please consult a professional advisor.

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