Investing From the Cradle to the Grave

NEW YORK ( TheStreet) -- It's the American way to grow up striving for a good education so you can have a successful career and a happy and prosperous family life. Along the way, investing and wealth preservation should be considered a necessity.

We can all learn from the "E-Trade Baby" of the commercial, who shows us how easy it is to invest in the stock market. He clearly shows how important it is for new parents to focus not only on their own investments and wealth management, but also give their children a head start in an economic environment that will always appear promising but will likely remain challenging.

As a stock market strategist I cannot give tax advice, but I know there are investment products that will give your children or grandchildren a head start and can be made with pretax dollars. Some products provide life insurance, funding for a college education and can become a starter retirement account to benefit the child.

In one strategy, parents can buy their children Indexed Universal Life insurance policies and overfund them. The extra cash value will built over the years and can be used for college expenses or provides a starter retirement account.

When do you talk stocks with your children? You can start by mentioning a stock by name when you dine at an eatery that is owned by a publicly traded company.

For example, you can explain that YUM! Brands ( YUM), which closed Thursday at $69.84, owns three different fast food chains: Kentucky Fried Chicken, Pizza Hut and Taco Bell. Eventually, your children may want to know that the stock has a buy rating according to ValuEngine, but is 18.2% overvalued. You can tell them the stock tested and held its 200-day simple moving average at $68.88 on Wednesday. You can explain that you used a GTC limit order to buy weakness to that moving average in you self directed IRA account. You can also explain that you have a GTC limit order to sell strength to a semiannual risky level at $79.28.

Once your children are in high school, you should advise them to join a school investment club if offered as an elective.

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