This is the third article in a series discussing using the new monthly child tax credit distributions as the basis for investing in your children and their futures.
This article discusses some ways of investing for wealth preservation and growth that are off the beaten path. Being uncommon they do come with drawbacks both real and perceived that deserve serious consideration before spending money, but they may be valuable as part of a larger investment strategy.
At this point I should make an explicit distinction between investment and wealth preservation. Investments are generally made with the intention of creating additional value while wealth preservation methods are intended to preserve existing value.
Cryptocurrencies
Ah, crypto. It has finally broken into the mainstream. It has done very well so far but does it have a future? That is something you will have to decide for yourself.
It may be worth putting away some crypto for your children to use in the future. It is divisible, portable, and promises to interact well with digital purchases.
What to purchase, where to purchase, and how to store it, are beyond my skill to say.
One of the main expected advantages of most cryptos are that they are deflationary in the long run because the number of tokens does not scale with the interest in acquiring or using them. So-called stablecoins do not have this feature.
Precious Metals
On the opposite end of the spectrum from cryptocurrencies are precious metals. They have been universally recognized throughout history as stores of wealth and that will not end any time soon.
Gold has far higher wealth density than silver and a monthly child tax credit distribution payment is probably too small to purchase anything worth talking about. Silver is easier to purchase in appreciable quantities. Due to premiums it may make sense to rotate purchases child by child instead of dividing each month's amount by each child.
For an introduction on purchasing precious metals see my article Buying Precious Metals.
Historically Valuable Antiques
This is an unusual category that probably does not make sense to purchase more than a few items per child total in, but it is worth examining.
Some old-time things keep their monetary value while providing other value as well. Old coins are a good example; they are interesting, can spark historical curiosity in your children, are likely to be treasured more than their actual monetary value, and promise to keep their monetary value in the long term.
One of my treasured possessions is a British tuppence from the late 1700s. It has King George the Third's ugly mug on the front and weighs a ton. It will keep its value indefinitely and I will never not get a kick out of it.
Conclusion
Helping your child find and purchase the right antique to match his interests could be a good use of some of this investment money.
Do you have any ideas in this vein for investing for your children's futures?
Comments
Post a Comment