boglesmkcents wrote:My son just turned 18, is motivated to learn about investing, and I want to help him get started. He has about $6K in a bank MM, so I'll encourage him to invest ~$4K....he has 4+ years of college ahead of him and should not need the assets in the short term.
Does he have a summer job? If so, he can invest an amount equal to his salary in a Roth IRA, which will grow tax-free for years. With $1000, he can start a Roth IRA with Vanguard Target Retirement 2060, which is invested in almost everything you can invest in. (He should be in Target Retirement 2065, which Vanguard has not yet created, but all the Target Retirement funds from 2040 to 2060 have identical investments.) This is the ideal fund for getting started.
Another advantage of the Roth IRA is that Roth IRA investments are not counted as student assets for college financial aid.