Anon :09 here again. If your children are young, you can afford to go with riskier investments (for example, stock mutual funds) because they have SO much time for the market to recover, and when it does, it'll pay off big for them. In a down market like this, the smart investors are buying stock dirt cheap. It's the dumb investors that wait until the market is hitting new highs before buying stock at top dollar. But again, use a mutual fund - don't buy individual stock. A mutual fund will get you a virtual basket of stock which lowers your overall risk. Many advisors will recommend American Funds, Franklin Templeton, etc. - stay away from proprietary funds (funds owned by the company that is advising your financial decisions) as the advisor is usually getting a bigger kickback by recommending them and there is then a bias that may go against you.
at 1:15 AM on Mar. 4, 2010