New and advice sought

[Schmitty]

I'm new to investing and am looking for some advice from experienced investors. The situation: I have 15k stashed away for my 7yr old. What can I put it in that will provide healthy returns yet is safe? It would not be touched for 11 to 14 years. Any thoughts are much apprecitated. Thanks!

[dczech09]

529 college savings plans are a great investment. Just do not mistake a Coverdell ESA as a 529 plan because they are not the same. The 529 will allow you to grow the money tax deferred for the amount of time you put it in. Also, the withdrawls are tax free. These are state-sponsored investment plans that will invest the money in stocks, bonds, and money-market securities based on your risk tolerance and time. If you are concerned about the risk, don't be. You've got at least 10 years to let the money grow and chances are, it will grow by a long-shot. Do not invest in a regular savings account as inflation and tax will eat your returns.

I have a 529 for my nephew and it is great. Look it up online and check out some of the big mutual fund names like T Rowe Price, Fidelity, Vanguard, and TIAA-Cref.

[dczech09]

I should probably also add that withdrawls are only tax-free if they are made for college expenses. I assumed that is what you're saving for.

[jIM_Ohio]

Try this thread

http://www.savingadvice.com/forums/investing-banking/50669-questionaire-people-starting-retirement-planning.html

there is another one which follows that up

http://www.savingadvice.com/forums/investing-banking/50734-investment-risk-questionaire.html

"healthy returns yet it is safe"

I would suggest an equity position no higher than 40%
A 40-60 stock bond allocation is suggested.

I say this in general terms knowing the following:

1) this is for a kids needs and wants
2) it is not for retirement
3) the time horizon for the money is within 10-20 years.

If the time horizon is less than 10 years, knock the equity position down to 20%.

For 40% equity position, look up Vanguard Wellesley
For a 20% equity position, look up T Rowe Price Spectrum Income

If you want an alternative to either look up Permanent Portfolio.

I own both spectrum income (in my IRA for my retirement) and Permanent Portfolio (in my taxable account for general investing).