Investment Choices for Kids

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Topic Author
EMDW
Posts: 79
Joined: Thu Jul 04, 2013 11:18 am

Investment Choices for Kids

Post by EMDW » Sun Nov 03, 2013 8:13 am

For the upcoming holidays, I would like to contribute to an established 529 plan for nieces/nephews (10 kids, ages 2-10, $100 each) instead of the usual toys. Some of the parents already have a 529 set up already which I will contribute, the others are financially unable to set up this account. I'm looking for long term other choices they can you if needed towards college expenses. Thank you.
My thoughts:
1. Contribute towards an established 529 plan
2. Stocks: S&P 500. Which one through Vanguard?
3. Total stock Market Index but need 3K minimum to open so probably not
4. I Bonds but need a parent/guardian to sign up first on the Treasury direct website which may be challenging
5. Other options.

letsgobobby
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Joined: Fri Sep 18, 2009 1:10 am

Re: Investment Choices for Kids

Post by letsgobobby » Sun Nov 03, 2013 8:36 am

Contribute to established 529s, or with their social open one for them. Or an ESA with Schwab, so you can buy an ETF. A ugma is also nice but again you'll need their social. Regardless with $100 all vanguard mutual funds are out so you'll gave to buy ETFs.

User avatar
BL
Posts: 9228
Joined: Sun Mar 01, 2009 2:28 pm

Re: Investment Choices for Kids

Post by BL » Sun Nov 03, 2013 8:52 am

You don't say how much, but with $1000 you can get a Target Retirement Fund at Vanguard (mostly stock at far end.)

YttriumNitrate
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Re: Investment Choices for Kids

Post by YttriumNitrate » Sun Nov 03, 2013 9:21 am

sari wrote:Some of the parents already have a 529 set up already which I will contribute, the others are financially unable to set up this account. I'm looking for long term other choices they can you if needed towards college expenses.
From a financial aid perspective, it might be better to set up new accounts that you hold but name the kids as beneficiaries.

Also, you have a chance to use these gifts to teach the kids a bit about investing. A quarterly paper statement mailed to each of the kids showing how their investments are doing might have a much bigger impact on their lives than a $100 college fund.

Topic Author
EMDW
Posts: 79
Joined: Thu Jul 04, 2013 11:18 am

Re: Investment Choices for Kids

Post by EMDW » Sun Nov 03, 2013 9:28 am

YttriumNitrate wrote:
sari wrote:Some of the parents already have a 529 set up already which I will contribute, the others are financially unable to set up this account. I'm looking for long term other choices they can you if needed towards college expenses.
From a financial aid perspective, it might be better to set up new accounts that you hold but name the kids as beneficiaries.

Also, you have a chance to use these gifts to teach the kids a bit about investing. A quarterly paper statement mailed to each of the kids showing how their investments are doing might have a much bigger impact on their lives than a $100 college fund.
Are you suggesting the 529 plan or target date/lifestrategy? Not crazy about individual stocks.

YttriumNitrate
Posts: 1093
Joined: Tue Mar 26, 2013 12:13 pm

Re: Investment Choices for Kids

Post by YttriumNitrate » Sun Nov 03, 2013 6:32 pm

sari wrote:Are you suggesting the 529 plan or target date/lifestrategy? Not crazy about individual stocks.
I'm suggesting two things: 1. 529 plans you hold with your nieces and nephews as beneficiaries, or 2. Another investment (it doesn't really matter THAT much what it is) where the kids get regular notices of how their portfolio is doing.

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