- Bonds - Savings bonds
are a great way to make a gift that serves as an investment for the
recipient’s future. They can also help teach younger recipients about
saving and investing - they can watch the bond’s value grow over time.
- Stocks - Buying
stocks for someone is a great way to give them a gift that will grow into
the future. If you already own the stocks you want to gift, you can
retitle the shares in your brokerage account.
reinvestment - You can set up a Dividend Reinvestment Program (DRIP) in
the recipient’s name. With a DRIP, you make a one-time purchase of stock.
Each time the stock issues dividends, those dividends are used to purchase
- Gifting stocks - Another great way to give stock
is using services like GiveAShare or Stockpile. GiveAShare lets you buy a
single stock in a huge variety of companies. They’ll print a replica stock
certificate that you can give to the recipient. Stockpile lets you buy
fractional shares of companies so you can give an exact dollar amount
- Loyalty Program Rewards - You can redeem points for a
variety of things, such as cash, free travel, electronics, and other
merchandise. The good news is many programs let you gift your points or
miles to other people who have accounts in the program! Better yet,
there’s no cost to you to make the gift.
- Set Up a Trust - Trusts are designed to make it
easy to give future financial gifts to someone while providing some
structure. Unlike cash that can be spent on anything, setting up a trust
allows you to set restrictions, i.e. you can set up a trust that only pays
out if the recipient spends the money on education. You can even set one
up that matches a recipient’s contributions to a retirement account.
- Add Them to Your Will - Specify what the person will receive and talk to them about what you plan to put in your will. Make sure to consult a professional to make sure the document is in order and enforceable.
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