Where To Put A Little Girl’s Money
The other day, we found out that the child that my wife and I are expecting is going to be a girl. She is our first child so you can imagine the excitement. A little girl. Wow.
When I heard the news, my focus immediately went to learning how to raise a little girl and learning how to provide for a little girl. One of the many aspects of these questions is how to provide financially for her. My little girl is still not even born yet, but being a financial minded person, I am already asking the question: Where should I put my little girl’s money?
My little girl’s money is long term focused. It might help her pay for college or it may even help her pay for retirement. Either way, we’re talking a long term time horizon. Where should such long term money be placed?
The Good News
Fortunately, one of my favorite investors, Jim Rogers, also has a little girl and he is making plans to provide financially for her as well. In a recent speech in Vancouver, Rogers talked about his little girls.
In his speech, Jim Rogers mentioned three things about his girls. First, they are learning Chinese. They are learning Chinese because Rogers believes the next century pretty much belongs to China. Second, his little girls are getting our of the US Dollar. This is because the U.S. government is broke and refuses to change its ways (can you say Freddie/Fannie bailout?). Lastly, his girls are buying commodities. Despite the recent correction in commodities, Rogers is fully convinced that we are in the middle of a long commodities bull market. Since he was one of the few who correctly called the approaching bull market years ago, I think he has earned your ear.
What is the point of talking about little girls and their money? Well, the point is a little girl has a long term focus. A little girl looks to the future with no record of the past. The reality is that today’s economic environment is different from the past.
Jim Rogers says you should put your money in China and in commodities (still). You should also get your money out of US Dollars because of the fiscal policy in the United States. It’s a shame that our government has a six month view of the economy and they are trashing the currency of the world (for now) while they do it.
It will be very interesting to see if the commodities bounce from the recent correction and take off even higher as Rogers predicts. I’m heavy in natural gas so I’ll profit handsomely if it happens. I’m sticking with Rogers today even though most of the CNBC “experts” will tell you oil is heading south of $100. Nevermind that they predicted $150 oil just weeks before. If I’m wrong, hey, I’ll still have my little girl to look at!
Good luck and happy investing.