Back in 2014, we created a dividend portfolio for Baby B1.0 when he was born.
The whole idea was pretty simple - we wanted to take advantage of the power of compounding by investing early and reinvesting all the dividend income received into purchasing another basket of dividend companies.
Our idea back then was to eventually instill a habit and lead by example by teaching him the importance of investing from young which we will be certainly be involving him as he gets older. Since it is evident that his time horizon is longer than us and it is his money that we are helping to invest, we think that it makes sense that the investment is made towards a blue chip stock. After all, when he gets older and started to understand basic things about investing, it's probably more prudent to start with blue chips than small caps. ......