1. High-yield dividend stock
Don't just buy shares of any well-known stock. Instead, buy a high-yield dividend stock. This is an excellent option for several reasons:
For one, these stocks tend to give out a dividend that is much higher than the average. That means Dad gains from the price increase of the stock itself. And he also gets a nice bonus every quarter when the dividends are paid out.
Second, the downside risk of dividends is usually small. Of course, there is a risk with all stocks, but if a company is sharing some of its profits with investors, the chances are good that it has a secure business model. Some of the companies that have high-yield dividends include IBM and AT&T. Check out our list of top dividend stocks for more ideas.
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2. Savings fund
If you want to play it safe and not buy stocks, you could just set up a savings fund for your dad. You can put a lump sum into an account, or you can pay in installments for a specific amount of time. Either way, that money will earn interest, especially if you put it in a high-yield savings account like Ally Bank or Wealthfront. Plus, your dad will have the option of depositing more money into the savings account for when he needs it.
3. Personal finance books or news subscriptions
Another great gift for Dad is a personal finance book or a subscription to a finance newspaper.
This could be a good option if your dad already invests and wants to learn more about the markets. There are tons of options out there. If you're going to give Dad access to a top-notch investor magazine, consider a subscription to Investor's Business Daily or Barron's.
Or if your dad is more interested in current events and economics, you could consider a subscription to The Economist or Bloomberg Businessweek. And of course, you can't go wrong with a subscription to the *Wall Street Journal* for cutting-edge investing and finance news.
Check out our other recommendations for the top financial magazines.
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4. Shares in a mutual fund
This is a gift that any dad will appreciate, finance guru or not. Buying shares in a mutual fund is a great investment gift that could also possibly give your dad an excellent return.
- Mutual funds are great because they are a diversified asset class. Your money goes into a large pool of assets. They can include anything from stocks and bonds to exchange-traded funds (ETFs) and commodities.
- One of the best advantages of a mutual fund is that they are very liquid. This means you can sell your funds and turn them into money very quickly. Just make sure you and your dad are aware of any management fees or fees for withdrawing funds.
5. A session with a financial advisor
If your dad doesn't yet have his finances in order or hasn't talked to anyone about his investments in a while, it might be a good idea to pay for a session with a financial advisor. A financial advisor does a lot more than just give you advice on which stocks to buy. They can also help you sort out your budget, tell you which life insurance makes the most sense for you, and help plan your financial future.
There are a lot of different types of advisors available. We suggest looking for the right one for Dad using the Paladin Registry.
Give Dad a gift he can enjoy for years to come
There are many creative ways to give money for Father's Day, and you no longer have to give yet another mug this year. By giving your dad shares of a mutual fund or a session with a financial advisor, you're helping him gain financial autonomy. With management fees for stock brokers and robo advisors at all-time lows, now is the time to give your dad a financial gift.
Trust me when I say that is a gift he will never forget.
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