Why I invested my daughters' savings on one of the market's worst days - Business Insider

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Since I was planning on opening the account anyway, buying stocks at a bargain price seemed like a great idea

. The money is a general savings fund that I plan to give them when they're young adults.

Since they're only 1 and 5 right now, the money has plenty of time to grow. I wanted to leverage the historically higher return rates of the stock market for my daughters, rather than letting their savings earn just 1-2% interest in the bank. Despite my interest in opening the account, the task kept getting pushed to the back burner. Then, the coronavirus and its economic impact pushed it back to the front of my mind. As I listened to continuous news of stock market drops, I realized that now is as good a time as ever to. With the markets down, stocks are cheaper. .

To be clear, I wasn't gleeful about the idea of potentially profiting off an economic downturn. I have no idea if this will be the right choice in the long run. However, since I was planning to invest anyway, doing it now while prices are down was particularly appealing. I wasn't very concerned about an additional drop, since I plan to have the money invested long term.

I opened the account over the weekend, and the girls' contributions — $2,000 total — were added on Monday, the same day

 

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