Holiday IRAs: Gifts that Give Back

By CANDICE CHOI
AP Personal Finance Writer

NEW YORK (AP)--It won't have the "wow" factor of an iPhone, but a Roth IRA or other money-minded gift may have more sizzle than you think this holiday season.

There are nevertheless some rules to keep in mind when bestowing such presents — like making sure they don't come off as judgmental or a homework assignment in disguise.

"Don't make it boring or worse -- a chore," said Sheryl Garrett, president of the Garrett Planning Network of certified financial planners, based in Shawnee Mission, Kan.

Ideally, recipients will have recently expressed a desire to get their finances in order. That will let you reference their comments in a card so they know what motivated the gift. If you know the person well enough, today's bleak economic landscape may be reason enough.

Here are some ideas to help spread the wealth this holiday season.

• SESSION WITH A FINANCIAL PLANNER. If cash seems tacky, consider paying for a meeting with a financial planner. This gives the recipient the flexibility to choose how to use the time, whether it's for a portfolio tuneup or to map out a savings plan.

A session can cost several hundred dollars or more, so consider pooling resources with friends or family. Ask the planner if she offers gift certificates so you have something tangible to give.

The Garrett Planning Network, for instance, has certificates starting at $25. The idea is to let people contribute toward a session without footing the entire bill.

• SAVINGS BOND OR CD. As old-fashioned as they seem, they're good starting points for teaching kids about investing.