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My daughter who has no interest in investing has $20,000.00 to invest. I was thinking about some version of a Lazy Portfolio but I was wondering shouldn't she be aggressive at her age?
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You could put her in a Vanguard target date retirement fund: https://personal.vanguard.com/us/funds/ ... rgetAnchor
I would probably just put the money in the 2050, 2055, or 2060 fund and call it a day. All of these choices are quite aggressive (approximately 90% stocks), but they will get more conservative (add more bonds) as your daughter gets older.
EDIT: I noticed you mentioned your daughter has no interest in investing. I would sit down with her and let her pick one of the aforementioned target retirement date funds, after giving her some information about each. Even if she's not interested in investing, it is still useful information to know how investing works (e.g. stock/bond allocation, becoming more conservative as you get older, how target date funds work, etc.).
"Beware of little expenses, a small leak will sink a great ship" - Poor Richard
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A lazy portfolio might be good for her - something like 40% US, 40% International, 20% Total Bond.
Best regards, -Op | | "In the middle of difficulty lies opportunity." Einstein
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Call_Me_Op wrote:A lazy portfolio might be good for her - something like 40% US, 40% International, 20% Total Bond.
I like the lazy portfolio as well, although I'd probably be a little heavier on TSM than TISM (personal preference). I'd go with 60% TSM, 20% TISM, and 20% TBM.
With 20k to invest she has more than enough to purchase all 3 funds individually, so I vote to get the lower ERs by buying the funds individually instead of going the Target Date Fund route. She'll have Admiral Shares in TSM from the get-go.
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I'd suggest a target date, but also put $5k
Into an Ira for 2012 and 2013. is she working?
Does she have access to a 401k? You
Want to make sure she takes advantage of
Target date self balances so is truly fire
And forget. For someone with no
Interest it's the safest route
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I also vote the target date fund if she does not want to bother with re-balancing.
If I was in the US I would be tempted to use this fund myself.
Last edited by InvestorNewb
on Thu Feb 14, 2013 9:19 am, edited 1 time in total.
My Portfolio: VTI [US], VXUS [Int'l], VNQ [REIT], VCE [Canada] (largest to smallest)
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I don't think you have shared enough information with us. Before investing, your daughter should have a secure emergency fund. If that is covered then what type of investment vehicles does she have access to? Does she have a company 401k? Does she contribute to a Roth IRA already? The type of portfolio is only part of the equation. Where the money is going is also important and may dictate some of the investment choices.
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jervalaw wrote:My daughter who has no interest in investing has $20,000.00 to invest. I was thinking about some version of a Lazy Portfolio but I was wondering shouldn't she be aggressive at her age?
You need to tell her that investing is also to lose money (in short term), otherwise, she will be very upset if suddenly loses half of her hard-earn money.
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