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To: Apollo who wrote (14306)	1/6/2000 11:12:00 AM
From: Mike 2.0	Read Replies (1) \| Respond to of 54805

their accounts or trusts. The difference is highly important. Trusts dictate when and under what circumstances a child will "get" the money. A gift account shifts to the child at a certain age, which may be decided by the parent but it may be within a range, like 18-21 or similar. Those with QCOM fattened accounts would do well to discuss matter with a trust attorney.

To: Apollo who wrote (14306)	1/6/2000 11:46:00 AM
From: BI*RI	Read Replies (1) \| Respond to of 54805

OT: Kids & Investing My reaction to posters that they were going to wait and "surprise" the child with the result of years of investing is that it would be better to expose them to the process as it unfolds. My parents invested their adult lives, but never shared it (the process) with me, or even talked about it. I had never invested a cent through the age of 45. I figured my mandatory contribution retirement plan would be good enough. Until I inherited the results of my parents' efforts, I thought stocks and portfolios were for well-to-do snobs. They left a little for my children. After two years, when my son turned 18, the money was his. He wanted "to take a year off before he went to college". Which meant using the money, and, given his unmotivated demeanor in high school, probably never going to college. Rather than loosing him to a near-term life of surfing, snoboarding, and skateboarding, I told him that if he went to college, graduated with decent grades in four years, and left his money in investments, that I would match his portfolio as a graduation gift. So far, the money has grown from 3.5K to 6.5K at year's end. Better yet, he follows it's growth daily (even asks about where to find info on companies on the web), which means that he gets to watch stocks like EMC and TLAB, as well as Tyco and Abecrombie and Fitch over at least a four year period. (His choice of Gillette, which I was told to buy because they sent him a razor on his 18th birthday, was finally sold at his request). <ggg> The better news is that he did fine his first year, almost making Dean's list. He just called me five minutes ago to tell me he had gotten his first semester grades for this year, and he got all B's. He was very smart kid, who was not a great risk for success in college. Hell, he never even studied enough to get his drivers license while in high school. But so far, it's turning out very well. I believe that the motivation that came from the investment offer is partly responsible. I also like very much that he is developing a responsible attitude for investing which I never had. (I should say that I broke even with my money trading penny stocks for two years, during a great bull market). A bonus is that the motivation and rewards of responsibility have also become internalized. For example, at the end of last year he was recommended by his English professor as a tutor candidate at the school's Academic Center. To my surprise, he followed through with it, even taking some of his one day off a week this summer to go for training. He tutored last semester for credit, and next semester will do so for pay. He's even talking about graduate school. Well, my personal experiences aside, my opinion is to share the value of investing with your child as early as you believe that the concepts and rewards can be appreciated. I think that my children should have been encouraged sooner than they were, and the fact that I had no exposure and a negative attitude cost me greatly. Thankfully, life is an ongoing educational process, and it's never too late to learn. Marc

To: Apollo who wrote (14306)	1/6/2000 12:13:00 PM
From: Uncle Frank	Read Replies (1) \| Respond to of 54805

>> OT...advice to kids about money I've been following this topic with interest and have to offer my .02. There is no one right way, whether you're talking about investing or life. I have dear friends of 30 years who have 7 beautiful daughters. Six of them breezed through wonderful childhoods, and achieved outstanding success academically, athletically, in their careers, and with their own families, while one of them fell prey to every possible problem in life. How can that be, when each was raised in the same privileged, loving household? The answer is obvious to those of us who have raised families. Each child is a new universe, to be dealt with in a unique manner. I have been discussing investing with my family since I became addicted in the early 90s. My daughter opened an ira while she was in college, using money from her part time job. Now that she is on a career track, she contributes the max to her 401K, and regularly moves excess cash from her checking account into stocks in her trading account, which more than tripled last year! I've encouraged my 22 year old son to do the same, but he has put most of his earnings into his 1970 fj40 Land Cruiser. Love them, teach them, but most importantly, listen to your kids, Stan. They'll tell you who they are if you just listen. uf

To: Apollo who wrote (14306)	1/6/2000 2:15:00 PM
From: erickerickson	Respond to of 54805

OT -- Kids and money (& kids in general) My $.02. What has worked very, very well for my daughter (15 years old) is "Give the kid informed choices". A suggestion: Consider telling your young that you have set up this account. You'll be willing (eager) to bore them to death with details anytime they want to talk to you about it. If you're willing to shell out money for certain expenditures, list them.. e.g. Buy first car (perhaps when they become gainfully employed, need it for college (NEED, not WANT), etc). Help with down payment on 1st house (buy first house?). Schooling for grandchildren... etc. If your willing to turn over entire responsibility to them, state in very clear terms what the conditions are, if any. For instance... has to be X years old has "made own way" for Y years has taken your tutelage for Z years in investing. they manage the account (buy/sell) but it remains in your name for W years. whatever other conditions you want to put in there. Young can consider it a job, they're getting paid for it, aren't they? It's perfectly reasonable to create a contract that they must fulfill to get the rewards. I'd suggest putting it in writing for future reference though, avoids confusion later... I think it's important that your young have control over fulfilling their parts of the contract (obviously, if one of your conditions is that they turn 25, they can't hurry it up!!!). One other thing, if you do anything like the above, be clear that this is to increase YOUR comfort level. I've always found it useful to avoid anything that sounds like "it's for your own good". That's what they told the tom cat before his operation... Finally, it's their life, their decision, their responsibility. If you take away the responsibility for consequences, you take away their ownership of their own life. They'll resist (I know I did) and rightly so. So, my last advice is that once the decision has been made, LET IT GO. Take joy in your offspring's ability to live their own life instead of worrying about pleasing parents. Have you seen anything sadder than adults who still are looking for their parent's approval? Especially when they don't get it? It'll be much better for both them and you if they take your counsel, then make their own decisions. BTW, free advice is worth what you pay for it <G>. P.S. When I was growing up (and I didn't appreciate this for YEARS), my parents discharged their parental duty when I was doing something really stupid by telling me (once) why they thought it wasn't in my own best interests. Then they shut up and didn't tell me "I told you so" the times I fell flat on my face. This made it much, much easier for me to stop doing what I was doing sooner, didn't need to PROVE them wrong in the same way I would have if they kept bringing it up.... Anyway, as you can tell you've touched a spot several of us consider very important, as evidenced by the replies!! All the best Erick P.S. Kids ARE resilient. It's amazing how many of our mistakes they survive <G>. P.P.S. I'll be glad to exchange PMs with you if you want..... P.P.P.S. The above notwithstanding, I am completely aware that what works with one child may not work with others. Nothing above may be reasonable for your family, I offer it only as a statement of what has worked well so far with my only child...