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Investing for Babies Future

Etrade-pile-of-cashYou’re doing everything you can to make sure that your baby has a strong foundation for a happy and healthy life. You’re feeding his body and brain and making plans for his early years, his education, even his college years. You might consider making one more investment in your baby’s future:Take a brown bag lunch to work every day. If you save $10 a week by skipping those lunches out and invest it for your child, your little one will have a little fortune awaiting him when he turns 18: almost $50,000 if you’re getting a 15 percent return on your money. If your child keeps up the monthly contributions once he’s gainfully employed, he’ll have in excess of five million dollars in time for an early retirement at the age of 50. Not a bad return on the price of lunches out, is it?

To make this scenario work out, there are a few decisions you need to make:

  • What kind of account will you set up? An IRA is one option. The IRA provides you with a tax deduction in its traditional form, but a Roth IRA, which is taxed at the time of deposit rather than withdrawal, allows your child to withdraw money without penalties for any reason, unlike the traditional IRA.
  • What are you going to put in the account? A mutual fund? CDs? Stocks? An index fund? An interest bearing checking or savings account? Remember that you’re making a long-term investment, so you have time to weather the ups and downs of the market, and the stock market has proven to be the most profitable place to park your money, so long as you’re not risk averse. An index fund allows you to follow the market without making any bets on a particular stock. A mutual fund can diversify your portfolio without much time or trouble spent on your part.
  • Who will own the account, you or your child? Are you the owner, the guardian? Or are you the custodian, holding the money for your child? If you own the account, you also pay taxes on it. If your child does, you still control the account until your child is 18 or 21, but dividends and withdrawals are charged at your child’s rate, which can be a great savings for you. If you are interested in being a custodian, look into the Uniform Gift to Minors Act (UGMA), which allows you to give gifts of money, stocks, life insurance, and annuities to your child while you are alive, and the Uniform Transfer to Minors Act (UTMA), which allows you to control the money until your child is as old as 25 and to give your child other assets as well, including real estate, paintings, jewelry, and patents. Remember when selecting a UGMA or UTMA that neither can be used to pay for the support of your child as they grow up.

No matter which answers you give, a bank, mutual fund company or brokerage discount or other institution will be able to help you set up the account of your choice. To make sure that you get the advice and the account you need, do your homework and shop around. Not all financial institutions and their representatives know how to meet the special needs of parents looking to secure the financial futures of their children.

While you’re underwriting your child’s future dreams and ambitions, make sure that you take the time to educate him or her about saving, investing, financial responsibility, and the beauties and potential of compound interest. Let him witness, or even participate in, the decision making process as soon as he is able to. Obviously, your child is now many years away from caring about or understanding wise investments, but by planning ahead for his dreams and by sharing your plans with him, you’re not only giving your child security, you’re also giving him the opportunity to gain skills and knowledge that will serve him, and his own children, well.

This came from

http://www.parentingweekly.com/baby/baby_information/investing_baby_2.htm

Check our of website at http://www.ridgepoint.org/parents/

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Having Prayer In Your Life

a_family_that_prays_together_stays_together

Just this week my daughters went with my husband to wrestling practice where he is a coach. I was relaxing at home alone where it was nice and quiet. While enjoying the quiet I got a phone call from my husband where he told me I needed to rush to the ER since our oldest daughter got hurt while playing. While my husband was running the practice, the girls were playing and my oldest injured her mouth. She knocked out one of her teeth and cut open the inside of her mouth really bad. At the time she was hurt, she was scared and in pain and crying. After we got home from the hospital we were able to sit down as a family and lay hands on her and prayed over her.  The next day my daughters pain was almost gone and we saw the dentist and she said that Evelyn should be in pain but she wasn’t.  Evelyn told her dentist it was because God was answering the prayers we have been praying over her as a family. We started at a very young age with our children to pray with us even if they can’t even talk yet.  Its a great way to get them in the habit of praying. My girls are 6 & 7 and they love to pray for each other. It melts my heart to hear the girls praying out loud.

Make sure you are regularly praying with them or having them see you pray on a regular basis so you are setting an example for them. Prayer is simply being with God and having a conversation. Children need to know early in their lives that they can talk to God just like they talk to Mommy, Daddy, or a best friend. They need to understand that God is there and attentive to what they have to say. Try to include your child in prayer or make sure they see you praying a few times a week. It doesn’t have to be a long prayer.

When they get older and can remember phrases, these websites have some great prayers you can teach your children.

http://christianity.about.com/od/prayersforspecificneeds/qt/bedtimeprayers.htm

http://christianity.about.com/od/prayersforspecificneeds/qt/morningprayers.htm

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Investing in our children

We all need to invest in our child/children. One way that doesn’t cost anything is the power of prayer. We can take the time each day to pray over our children. There are so many scriptures in the Bible that we can use. As parents let’s take the time to speak truth each day over them. One passage that we can say is from Ephesians 3: 17-19. It says. “These children are rooted and established in love, we pray that they may have power with all the saints to grasp how wide and long and high and deep is the love of Christ towards them, and to know this love that surpasses knowledge, that they be filled to the measure of fullness of God.” Some other verses can be found at the links below. So lets all take the time even if it’s 5 minutes or an hour each day to pray over our children. They are the next generation of leaders.

http://alishagratehouse.com/how-to-pray-for-your-children

http://noahhutchison.com/christian-living/scriptures-to-pray-over-your-children/