LottoStocks and children
LottoStocks democratizes the stock market by encouraging and making easily available stock market ownership by children.
Children are the ideal target market for LottoStocks.
Underage individuals can and should be actively approached, marketed to and encouraged to “play” LottoStocks.
Lotteries encourage illegal gambling by children. LottoStocks is an alternative to both lotteries and any impulse purchases by children. Like adults, children are susceptible to impulse purchases and, like adults, should have a positive alternative to attract their impulse purchase dollars.
At $1.00/unit, cost is no barrier for any child to participate in the LottoStocks program. LottoStocks will, for many underage individuals, be the only venue available to participate in the equity market. Where else can a child open up an equity account for $1.00 and have direct hands-on participation? LottoStocks will enable children themselves to buy, invest, track, make decisions, and learn at the earliest possible age the in's and out's of stock market investing. Making LottoStocks available to children encourages savings and stock market participation at an early age and gets them into the right habits.
Because the investment used -- the Equity Indexed Annuity (EIA) -- carries no down-side risk, LottoStocks is an ideal introduction-level entry point for stock market investing for children. If the Ownership Society concept is a good one, then there should be no hesitation in instilling its values as early as possible.
Indeed, qualified plans such as the Roth IRA are ideal as LottoStocks investment vehicles for children.