Investing $500 doesn't sound like a life-changing proposition, but I like to view it in the context of my 7-year-old daughter. If I invest $500 into the market today for her and add $500 annually, this money could grow to more than $1 million in 55 years, assuming 10% annual returns. 

Although some of this money is likely to be used before her retirement -- for college, a house, traveling, and the like -- it nonetheless highlights how a mere $500 can get the compound snowball rolling.

With this perspective, let's look at five stocks that I am confident are magnificent $500 investments for my daughter's custodial account.

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Source Fool.com