Today I’m not going to present a list of high-dividend producing stocks, but rather share my thoughts on the best dividend you can receive…a grandchild.
After recently becoming a grandfather again (welcome to the world Yotam Amichai!), I can confidently say that having a grandchild is the best dividend ever! Talk about compounded joy, increasing yields, and unlimited futures!
To the new parents: While it’s hard to do anything when you’re sleep deprived, try to complete these baby steps as soon as possible:
- Emergency fund – Babies don’t come with instruction manuals, and there are all kinds of unexpected emergencies. Make sure you have sufficient cash to cover them.
- Estate planning and insurance – Now is the time to create a will and prepare guardianship for your child. Make sure you have adequate life and disability insurance.
- Savings – Though it is recommended to begin a savings account for the baby, prioritize your retirement savings. You don’t want to become a financial burden on your child one day.
- Don’t overbuy – While it’s tempting to buy the newest gadget, items can quickly fill your home and empty your wallet. Consider whether a purchase is really necessary before adding another toy to the collection. Just like all holdings in your investments need to work together, make sure all the equipment you have works together.
Teaching personal finance to your children
Make family dinners and bedtime stories a priority. They are the perfect platform to teach financial education, setting goals, and the importance of philanthropy from a young age. The most important thing you can give to your baby is a huge share of love and a stock of emotional security. The bond between parent and child will never mature, so enjoy the tender years as well as the volatile teenage ones! In the long-term, your nachas will only increase.
My final piece of advice to all exhausted parents: While a baby may be a new venture (whether it is your initial public offering or an addition) call in the shareholders (the grandparents) so everyone can enjoy the benefits of the newest dividend! And if you are awake in the wee hours of the night and need some reading material, read my blog on raising children.
Douglas Goldstein, CFP®, is the director of Profile Investment Services, Ltd. www.profile-financial.com. He is a licensed financial professional both in the U.S. and Israel. Call (02) 624-2788 for a consultation on how to set up your American assets to meet your financial goals. Securities offered through Portfolio Resources Group, Inc. Member FINRA, SIPC, MSRB, FSI. The opinions expressed are those of the author and not those of Portfolio Resources Group, Inc. or its affiliates. Neither PRG nor its affiliates give tax or legal advice.
Published November 9, 2022.