MIDYEAR REVIEW OF INVESTMENTS AND PERSONAL FINANCE : Personal Best

We publish advice and insights from all sorts of investment and personal finance experts--much of it contradictory. So to find out what works in real life, we went to the source, asking our readers to recount their all-time best financial decisions. From hundreds of letters, faxes and e-mailings, we’ve selected a few of the most interesting to publish or excerpt. Thanks to everyone who contributed.

Grandson’s Gift Grows and Grows

On Nov. 11, 1983, I made a gift of 326 shares of 20th Century Giftrust to my grandson. The cost was $5,256.

My grandson was 5 years old at the time. He has just had his 17th birthday, and his Giftrust has 2,115 shares and is worth $47,095. Over the 12 years, a single cash deposit of $200 was made. The appreciation of his account is better than 700%.

I chose this fund because (1) I could specify a maturity age, (2) the fund allowed dividend reinvestment, and (3) the trustee pays the income tax due out of the assets of the trust.

I wanted my grandson to learn the importance of investing and to be able to see, by looking at the statements he receives, how time contributes to growth. Giftrust has been my most profitable investment and a fine teaching tool.

Mary B. Lauderdale

Pasadena