Investing for babies involves knotty trade-offs
Should new parents favour financial capital, human capital or something else?
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Investing for babies is a joy even without the tax perks, says the writer.
ST PHOTO: DESMOND WEE
The Economist
Patience, consistency and frugality are fine habits for an investor. They are not, however, common virtues among newborn babies. The little bundles of joy are impulsive short-term thinkers. They are also some of nature’s biggest freeloaders, living entirely beyond their means.
All the same, for new parents with a soft spot for the magic of compounding, like this columnist, a baby presents a tantalising investment opportunity.