| I know, I know. Money - cold, hard cash - is a tried | | | | graduate with a future tax bill. |
| and true graduation gift and not so unique. But that's | | | | - Enrollment in a dividend reinvestment plan. Do you |
| not the kind of money I'm talking about. Why not | | | | or the graduate have a favorite stock that offers a |
| consider money-related gifts that can keep on giving? | | | | dividend reinvestment plan (DRIP)? If a Roth IRA |
| Whether it's a high school or college graduation, any | | | | doesn't work for you, consider buying individual |
| of these ideas can pay dividends for years to come. | | | | stocks that pay dividends and allow them to be |
| - An hour of financial planning. There are a number of | | | | reinvested. Individual stocks are more tangible and |
| financial planners that are fee-only planners. These | | | | easier to track than mutual funds. And DRIPs can |
| planners charge only for the time they spend with | | | | help the investment continue to grow without putting |
| you. No ongoing monthly fees or transaction charges. | | | | in more money (assuming the price goes up!). |
| Just a solid plan. And many of them are focused on | | | | - A contribution to a 529 savings plan. Such a |
| helping people move from one life stage to another. | | | | contribution may be best suited for high school grads |
| Graduation is a huge milestone - and might just be | | | | on their way to college but can also work for a |
| the best time to get a first financial plan in place. High | | | | college grad that wants to go on to more advanced |
| school grads can see how time can work for them - | | | | degrees. It is an investment in their future that can |
| and a mountain of student loans against them. | | | | help them avoid or limit the debt that can come with |
| College grads can look at new job benefits, develop | | | | it. |
| a plan to pay off students loans and get that first | | | | - A charitable contribution in the graduate's name. |
| house. | | | | Does the graduate have special interests or charities |
| - A contribution to a Roth IRA. The recipient must | | | | that they value? Consider making a contribution in the |
| have earned income to be able to have a Roth (or | | | | graduate's name. It's a very personal gift that keeps |
| any other) IRA, and the contribution cannot be any | | | | on giving and not just for the charity. It is a great |
| more than that earned income. But if that test is | | | | way to introduce the recipient to giving as a way to |
| passed, a Roth IRA can be a great start for anyone. | | | | "spend" money. |
| The money can grow for almost forever since there | | | | These are just some ideas of unique graduation gifts |
| are no required distributions. And since it is opened | | | | ideas. What ideas do they spark in you? |
| with after-tax dollars, you are not saddling the | | | | |