December 16, 2024
Five Gifts for Investors
Dear Subscriber,
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| By Nilus Mattive |
I’m sure you’ve been getting plenty of e-mails about holiday shopping right now … and it’s also quite possible you still need gift ideas for someone in your life.
I love cool gadgets … sports equipment … and nice clothes as much as the next person. However, it's also nice to focus on gifts that provide longer-term value and meaning whenever possible.
So, beyond the biggest one — which is time well spent with friends, family and other people you care about — let me give you a few investment-themed ideas to consider giving to someone in your life … several of which you can buy with a simple click of a button or two.
Gift Idea No. 1: An I-Bond
I-Bonds are officially known as Series I Savings Bonds. And like their better-known counterparts — Series EE Savings Bonds — these bonds are NOT marketable securities.
That means you can’t sell them on the open market, and as a result, their value doesn’t fluctuate.
In other words, unless the U.S. government defaults, you cannot lose any of your principal by owning I-Bonds.
However, by holding these bonds you will earn interest — which is comprised of two components: a baseline interest rate and an inflation adjustment.
The Treasury recently announced the latest six-month rates on Nov. 1.
That baseline rate is 1.2%, and holders will earn that for the life of the bond.
On top of that, the latest inflation adjustment is 1.9% for bonds issued through April 30, 2025.
That brings the bond’s composite rate to a total of 3.11%.
That’s way down from the historic yield of 9.62% available two years ago, when I was telling Safe Money Report readers to buy these hand over fist (and was doing the same myself).
But it’s still good … and could certainly get even better in the months and years ahead again.
And I-Bonds aren’t designed to be huge winners anyway. They’re more about safety with decent returns.
That makes them fine gifts — especially for kids since they carry special tax exemption when the proceeds are used for future educational purposes.
You can buy electronic I-bonds from www.treasurydirect.gov.
Of course, you can also consider giving what I consider an even better investment …
Gift Idea No. 2: A Share (or more!)
of a Solid Dividend Stock
It’s no secret that I love dividend stocks, especially for long-term portfolios. But giving stock as a gift might seem a little complicated at first blush.
Fortunately, there are websites out there that make it easy and economical to give even a single share of stock to someone else.
Many will even send a nicely mounted stock certificate right to the person’s home!
That’s a great, tangible way to get somebody interested in investing.
Heck, I can still remember getting a paper stock certificate from Disney as a child. It was a real thrill to see — and hold — my ownership stake, especially when it was colorfully decorated with Disney’s famous characters.
More of a hard asset kind of person? You can always consider …
Gift Idea No. 3: Something
Made of Gold or Silver!
Gold performed tremendously well this past year. And as I’ve been telling subscribers, I think it will continue shining in 2025 and beyond. Same with silver.
So, if you want to wrap something up, there are certainly lots of tangible choices with inherent beauty and a bit of that “wow” factor.
For example, I like pre-1933 St. Gaudens Double Eagles because they’re beautiful antiques … but I only buy them when premiums over spot prices are very low by historical standards.
Modern-day American Gold Eagles are a better bang for your buck, of course. And modern American Silver Eagles are another great option.
You can buy a new release every year for someone or match the date to the recipient’s birth year or some other special milestone.
Lastly, it’s almost certain you’ll find the lowest premiums over spot prices if you choose bullion bars, bricks or coins. One of my personal choices would be 1-ounce bars minted by a well-known producer like Johnson Matthey.
Meanwhile, there’s also a cool gift you can get anyone interested in cryptocurrencies (other than some crypto itself) …
Gift Idea No. 4: A Hardware Wallet
for Crypto Storage
Cold wallets — which are also known as hardware, or hard, wallets — are physical devices that can be used to store your crypto keys offline. They typically look like small USB drives.
In my opinion, hardware wallets are the safest way to store your crypto.
The drawbacks? They’re slightly less convenient to use than software wallets, and they may cost anywhere from $50 to $300. But that’s a small price to pay for extra secure protection over your crypto.
There are several good choices out there now, but a perennial favorite is the Ledger Nano X. It has great storage capacity and allows you to secure, store and manage more than 5,500 crypto assets at once.
Or you might want to consider the Trezor Safe 3. It costs just $79 but has plenty of great security and compatibility features.
And if you want to load it up with the right cryptos, I urge you to check out tomorrow’s Crypto All-Access Summit. This is the first of its kind. And you won’t want to miss it.
Last but not least, for something really economical there’s always …
Gift Idea No. 5: A Good Investment Book!
There are thousands of titles out there to choose from … and your choice will surely depend on the interests of the recipient.
But some classic titles that I always recommended are The Intelligent Investor and Security Analysis, both by Benjamin Graham.
The father of value investing, and Warren Buffett’s mentor at Columbia Business School, Graham knew a thing or two about picking stocks.
And these books are both considered must-reads for anyone who wants to approach investing with discipline.
Of course, these are just five of the many ideas you might come up with.
The main point is to look for gifts that can truly enrich their recipients’ lives for the better.
As far as I’m concerned, any present that helps someone achieve financial independence or discover the joy of investing is a great choice.
Best wishes,
Nilus Mattive
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