Kids accounts: Vanguard Total World Stock

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Pete12
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Kids accounts: Vanguard Total World Stock

Post by Pete12 » Wed May 22, 2019 8:33 am

Esteemed Bogleheads:

My parents are giving my kids (ages 10 and 13) a gift of cash, $3,000 each. Instead of depositing the funds in their savings accounts at our credit union I was thinking of opening UTMA accounts with Vanguard and placing the funds 100% in Vanguard Total World Stock (VTWAX.)

I figured they are young enough to be in a 100% stock portfolio, and in say 40-50 years time who knows what will be happening on the world stage, so perhaps good to be internationally diversified.

I also plan on using it as an educational opportunity to start teaching them about indexing and investing for the long term. I wish someone had done this for me as a kid. I think it would also be pretty cool to explain to them that they now effectively own a (tiny) piece of most every public company in the world.

I realize the funds will be theirs and they can access them age 21 onwards, but with education and encouragement I hope they would hold these funds "forever".

What do you think of this approach?

Best,
Pete

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Re: Kids accounts: Vanguard Total World Stock

Post by Cycle » Wed May 22, 2019 8:37 am

:beer best thing about vtwax is you won't ever have to touch it
Never look back unless you are planning to go that way

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Re: Kids accounts: Vanguard Total World Stock

Post by Huskiez » Wed May 22, 2019 8:38 am

Great idea.

The only drawbacks to keep in mind is that UTMA will count against student loans/ financial aid when it comes time for college and that the money is theirs to do whatever they want with (i.e. it is not yours).

As for the choice of fund, I think it's great.

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Re: Kids accounts: Vanguard Total World Stock

Post by dbr » Wed May 22, 2019 9:16 am

Nothing against the choice and if we assume they don't spend the funds at age 21, it will still happen that these funds will become part of the overall portfolios they build in their adult lives. It might be but probably won't be that this fund choice will be the most logical for them as time goes on. That is always a drawback for any fund that combines asset classes. It isn't a big deal, but it is a small argument for putting their money in separate funds to get those asset classes.

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Re: Kids accounts: Vanguard Total World Stock

Post by harvestbook » Wed May 22, 2019 9:22 am

For education purposes, it's certainly easily explainable--the "simplicity" that is often vaunted here. "Hey, kid, you own a tiny share of every public company in the entire world, around 8,000 of them. When somebody buys manga in Japan or a candy bar in Switzerland or gas at the corner station, you have a piece of the action."
I'm not smart enough to know, and I can't afford to guess.

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Re: Kids accounts: Vanguard Total World Stock

Post by Wiggums » Wed May 22, 2019 9:30 am

Pete12 wrote:
Wed May 22, 2019 8:33 am
Esteemed Bogleheads:

My parents are giving my kids (ages 10 and 13) a gift of cash, $3,000 each. Instead of depositing the funds in their savings accounts at our credit union I was thinking of opening UTMA accounts with Vanguard and placing the funds 100% in Vanguard Total World Stock (VTWAX.)

I figured they are young enough to be in a 100% stock portfolio, and in say 40-50 years time who knows what will be happening on the world stage, so perhaps good to be internationally diversified.

I also plan on using it as an educational opportunity to start teaching them about indexing and investing for the long term. I wish someone had done this for me as a kid. I think it would also be pretty cool to explain to them that they now effectively own a (tiny) piece of most every public company in the world.

I realize the funds will be theirs and they can access them age 21 onwards, but with education and encouragement I hope they would hold these funds "forever".

What do you think of this approach?

Best,
Pete
My kids both have UTMA accounts and the money is invested in the Vanguard balance fund. (Before I found BHs) The fund you selected is fine and I offer this only as an example if something I started 18 years ago.

I had them make deposits at the bank to demonstrate the importance of saving.

Regardless of what you decide, kudos for getting your child off to a great start.

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Re: Kids accounts: Vanguard Total World Stock

Post by Pete12 » Wed May 22, 2019 9:58 am

dbr wrote:
Wed May 22, 2019 9:16 am
It might be but probably won't be that this fund choice will be the most logical for them as time goes on.
Do you mind expanding a bit on this? Thanks for your reply.

dbr
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Re: Kids accounts: Vanguard Total World Stock

Post by dbr » Wed May 22, 2019 3:01 pm

Pete12 wrote:
Wed May 22, 2019 9:58 am
dbr wrote:
Wed May 22, 2019 9:16 am
It might be but probably won't be that this fund choice will be the most logical for them as time goes on.
Do you mind expanding a bit on this? Thanks for your reply.
Yes, it's the fact that once one starts to locate funds in different kinds of accounts and one deals with the best choices in a 401k or what one wants in a TIRA or a Roth and what one chooses for the asset allocation and tax efficiency it is simpler to buy each asset type in a pure fund than it is to try to mix out how to do that when one or two of your holdings combine asset types. The world is no longer just hold one universal fund everywhere. It isn't a big deal, but it does matter. The issue in taxable is that once a fund is invested and grows over time you can't liquidate it cost free, so you want to make choices for the long run.

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Re: Kids accounts: Vanguard Total World Stock

Post by TimeRunner » Wed May 22, 2019 3:22 pm

dbr wrote:
Wed May 22, 2019 3:01 pm
Pete12 wrote:
Wed May 22, 2019 9:58 am
dbr wrote:
Wed May 22, 2019 9:16 am
It might be but probably won't be that this fund choice will be the most logical for them as time goes on.
Do you mind expanding a bit on this? Thanks for your reply.
Yes, it's the fact that once one starts to locate funds in different kinds of accounts and one deals with the best choices in a 401k or what one wants in a TIRA or a Roth and what one chooses for the asset allocation and tax efficiency it is simpler to buy each asset type in a pure fund than it is to try to mix out how to do that when one or two of your holdings combine asset types. The world is no longer just hold one universal fund everywhere. It isn't a big deal, but it does matter. The issue in taxable is that once a fund is invested and grows over time you can't liquidate it cost free, so you want to make choices for the long run.
These are taxable accounts and they have no need for bond funds until they are (much) older. Bonds are best held in TIRA or Roth so those can be contributed to by them decades from now to get to their equities/bonds allocation. Total World is a great choice. IMO, most kids don't need bonds. YMMV of course.
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Re: Kids accounts: Vanguard Total World Stock

Post by international001 » Wed May 22, 2019 4:22 pm

Isn't it better to invest in TSM (like VTI):

- On UMTA you don't get the foreign tax credit back
- If you plan to invest a high amount, you will save in taxes more with TSM. Yield is around 2%, so with $50k you'll get a $1k distribution, tax free (up to $1050)

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Re: Kids accounts: Vanguard Total World Stock

Post by dbr » Wed May 22, 2019 4:40 pm

TimeRunner wrote:
Wed May 22, 2019 3:22 pm
dbr wrote:
Wed May 22, 2019 3:01 pm
Pete12 wrote:
Wed May 22, 2019 9:58 am
dbr wrote:
Wed May 22, 2019 9:16 am
It might be but probably won't be that this fund choice will be the most logical for them as time goes on.
Do you mind expanding a bit on this? Thanks for your reply.
Yes, it's the fact that once one starts to locate funds in different kinds of accounts and one deals with the best choices in a 401k or what one wants in a TIRA or a Roth and what one chooses for the asset allocation and tax efficiency it is simpler to buy each asset type in a pure fund than it is to try to mix out how to do that when one or two of your holdings combine asset types. The world is no longer just hold one universal fund everywhere. It isn't a big deal, but it does matter. The issue in taxable is that once a fund is invested and grows over time you can't liquidate it cost free, so you want to make choices for the long run.
These are taxable accounts and they have no need for bond funds until they are (much) older. Bonds are best held in TIRA or Roth so those can be contributed to by them decades from now to get to their equities/bonds allocation. Total World is a great choice. IMO, most kids don't need bonds. YMMV of course.
It isn't about bonds but about what allocation of US to International they want.

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Re: Kids accounts: Vanguard Total World Stock

Post by RetiredAL » Wed May 22, 2019 4:57 pm

The UTMA's for my Grand-kids are at Schwab, so I use Schwab's ETFs, 100% equities, no bonds, for now. I will change that about the time they are 14 or 15.

Do understand the concept of Gain Harvesting UTMA accounts, to make use of the below taxable LTCG income points, thus avoiding or minimizing the tax burden when withdrawals start.

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Re: Kids accounts: Vanguard Total World Stock

Post by carlaqqqt » Wed May 22, 2019 5:17 pm

Pete12 wrote:
Wed May 22, 2019 8:33 am
Esteemed Bogleheads:

My parents are giving my kids (ages 10 and 13) a gift of cash, $3,000 each. Instead of depositing the funds in their savings accounts at our credit union I was thinking of opening UTMA accounts with Vanguard and placing the funds 100% in Vanguard Total World Stock (VTWAX.)

I figured they are young enough to be in a 100% stock portfolio, and in say 40-50 years time who knows what will be happening on the world stage, so perhaps good to be internationally diversified.

I also plan on using it as an educational opportunity to start teaching them about indexing and investing for the long term. I wish someone had done this for me as a kid. I think it would also be pretty cool to explain to them that they now effectively own a (tiny) piece of most every public company in the world.

I realize the funds will be theirs and they can access them age 21 onwards, but with education and encouragement I hope they would hold these funds "forever".

What do you think of this approach?

Best,
Pete
Why not VT? If investing only 3K it will be cheaper, I think. Try: https://www.finstead.com/bot?s=VT

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TimeRunner
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Re: Kids accounts: Vanguard Total World Stock

Post by TimeRunner » Wed May 22, 2019 5:35 pm

dbr wrote:
Wed May 22, 2019 4:40 pm
TimeRunner wrote:
Wed May 22, 2019 3:22 pm
dbr wrote:
Wed May 22, 2019 3:01 pm
Pete12 wrote:
Wed May 22, 2019 9:58 am
dbr wrote:
Wed May 22, 2019 9:16 am
It might be but probably won't be that this fund choice will be the most logical for them as time goes on.
Do you mind expanding a bit on this? Thanks for your reply.
Yes, it's the fact that once one starts to locate funds in different kinds of accounts and one deals with the best choices in a 401k or what one wants in a TIRA or a Roth and what one chooses for the asset allocation and tax efficiency it is simpler to buy each asset type in a pure fund than it is to try to mix out how to do that when one or two of your holdings combine asset types. The world is no longer just hold one universal fund everywhere. It isn't a big deal, but it does matter. The issue in taxable is that once a fund is invested and grows over time you can't liquidate it cost free, so you want to make choices for the long run.
These are taxable accounts and they have no need for bond funds until they are (much) older. Bonds are best held in TIRA or Roth so those can be contributed to by them decades from now to get to their equities/bonds allocation. Total World is a great choice. IMO, most kids don't need bonds. YMMV of course.
It isn't about bonds but about what allocation of US to International they want.
I'm not going down that road - plenty of threads arguing about that. I'm almost 100% in Total World for equities, and I'm a senior. :happy
One cannot enlighten the unconscious.

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Re: Kids accounts: Vanguard Total World Stock

Post by Pete12 » Wed May 22, 2019 7:17 pm

dbr wrote:
Wed May 22, 2019 3:01 pm
Pete12 wrote:
Wed May 22, 2019 9:58 am
dbr wrote:
Wed May 22, 2019 9:16 am
It might be but probably won't be that this fund choice will be the most logical for them as time goes on.
Do you mind expanding a bit on this? Thanks for your reply.
Yes, it's the fact that once one starts to locate funds in different kinds of accounts and one deals with the best choices in a 401k or what one wants in a TIRA or a Roth and what one chooses for the asset allocation and tax efficiency it is simpler to buy each asset type in a pure fund than it is to try to mix out how to do that when one or two of your holdings combine asset types. The world is no longer just hold one universal fund everywhere. It isn't a big deal, but it does matter. The issue in taxable is that once a fund is invested and grows over time you can't liquidate it cost free, so you want to make choices for the long run.
Understood- and thank you!

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Re: Kids accounts: Vanguard Total World Stock

Post by Pete12 » Wed May 22, 2019 7:21 pm

Thank you all for responses. I think for now I will go with VTWAX, we are talking about a relatively small amount per kid in the grand scheme for now. And the purchase minimum for VTWAX is $3,000 which is exactly the amount to be invested! :beer

carlaqqqt
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Re: Kids accounts: Vanguard Total World Stock

Post by carlaqqqt » Thu May 23, 2019 5:14 pm

seriously, why not VT? It's the same thing, but lower fees...

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Re: Kids accounts: Vanguard Total World Stock

Post by Pete12 » Thu May 23, 2019 8:18 pm

carlaqqqt wrote:
Thu May 23, 2019 5:14 pm
seriously, why not VT? It's the same thing, but lower fees...
That would work too!

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Re: Kids accounts: Vanguard Total World Stock

Post by scornovaca » Fri May 24, 2019 9:37 am

I would recommend using just the vanilla S&P 500 fund for this purpose. UTMA/UGMA accounts are still taxable and you need to take that into account. For 2019 up to $1100 of income is tax-free, so when the account values are relatively low you can use pretty much any fund(s). However, as you approach larger amounts (for a fund yielding %2, ~$55,000), then income beyond that amount *might* become taxable. That is a naive view, however, as it doesn't take into account capital gains distributions from the fund as well as capital gains from selling the fund itself. The Vanguard S&P 500 fund has not distributed capital gains for quite some time and is highly unlikely to do so in the future. Furthermore, in that same timeframe, all dividends delivered have been 100% qualified. Why is this important? Taxability of the income from this fund (assuming any sales of the fund is long term gain as well) is greatly reduced if not zero for the tax brackets associated with UTMA/UGMA accounts (the upper bound before qualified dividends and long term capital gains become taxable is around $4600 -- Spirit Rider has a number of posts on this topic, I won't repeat them here). So, use a highly tax advantaged fund (VFIAX) and periodically tax gain harvest to ensure maximal tax basis and you will set these accounts up for growth and practically zero taxes.

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Re: Kids accounts: Vanguard Total World Stock

Post by MnD » Fri May 24, 2019 10:38 am

Pete12 wrote:
Wed May 22, 2019 7:21 pm
Thank you all for responses. I think for now I will go with VTWAX, we are talking about a relatively small amount per kid in the grand scheme for now. And the purchase minimum for VTWAX is $3,000 which is exactly the amount to be invested! :beer
Great. Might as well get them started out without the mental accounting and complexity of treating US and ex-US as different asset classes.
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Re: Kids accounts: Vanguard Total World Stock

Post by lakpr » Fri May 24, 2019 10:53 am

Vanguard Total Stock Market Index (VTSAX) hasn’t distributed any capital gains either, for at least a decade now and possibly longer

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Re: Kids accounts: Vanguard Total World Stock

Post by LinusP » Fri May 24, 2019 11:35 am

For myself, I've separated out my Total Stock and Total International holdings, for basically the reasons dbr gave. But I absolutely think Total World Stock (VTWAX) is the way to go as an educational thing for kids. In my opinion, it's far more important for it to be simple and easily explainable than to be fully optimized for tax efficiency - if they grow up to be Bogleheads (and I hope they do!), they can optimize themselves later.

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Re: Kids accounts: Vanguard Total World Stock

Post by Pete12 » Fri May 24, 2019 7:21 pm

LinusP wrote:
Fri May 24, 2019 11:35 am
For myself, I've separated out my Total Stock and Total International holdings, for basically the reasons dbr gave. But I absolutely think Total World Stock (VTWAX) is the way to go as an educational thing for kids. In my opinion, it's far more important for it to be simple and easily explainable than to be fully optimized for tax efficiency - if they grow up to be Bogleheads (and I hope they do!), they can optimize themselves later.
Great point and education is my main goal at the moment.

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Re: Kids accounts: Vanguard Total World Stock

Post by dbr » Fri May 24, 2019 8:26 pm

I think a three fund portfolio of US and OUS stocks and a bond fund would offer better educational experience in investing than a fund where there is nothing to see.

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Re: Kids accounts: Vanguard Total World Stock

Post by LadyGeek » Fri May 24, 2019 8:27 pm

The wiki has some background info: Accounts for children
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Re: Kids accounts: Vanguard Total World Stock

Post by international001 » Tue May 28, 2019 4:03 pm

scornovaca wrote:
Fri May 24, 2019 9:37 am
I would recommend using just the vanilla S&P 500 fund for this purpose. UTMA/UGMA accounts are still taxable and you need to take that into account. For 2019 up to $1100 of income is tax-free, so when the account values are relatively low you can use pretty much any fund(s). However, as you approach larger amounts (for a fund yielding %2, ~$55,000), then income beyond that amount *might* become taxable. That is a naive view, however, as it doesn't take into account capital gains distributions from the fund as well as capital gains from selling the fund itself. The Vanguard S&P 500 fund has not distributed capital gains for quite some time and is highly unlikely to do so in the future. Furthermore, in that same timeframe, all dividends delivered have been 100% qualified. Why is this important? Taxability of the income from this fund (assuming any sales of the fund is long term gain as well) is greatly reduced if not zero for the tax brackets associated with UTMA/UGMA accounts (the upper bound before qualified dividends and long term capital gains become taxable is around $4600 -- Spirit Rider has a number of posts on this topic, I won't repeat them here). So, use a highly tax advantaged fund (VFIAX) and periodically tax gain harvest to ensure maximal tax basis and you will set these accounts up for growth and practically zero taxes.
That's was my point as well. If what you want to optimize taxes, you have to make sure that your dividends never go over $2050. Otherwise, you may be better off gifting your kid after he is 18 (he'll likely have a lower tax bracket than yours)

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Re: Kids accounts: Vanguard Total World Stock

Post by CommitmentDevice » Tue May 28, 2019 4:28 pm

LadyGeek wrote:
Fri May 24, 2019 8:27 pm
The wiki has some background info: Accounts for children
+1 to this. In particular, it might be worth exploring how you could track down a small job (sweeping, weeding, data entry) for your kids so you could make Roth IRA contributions on their behalf. Having that money in a Roth would be more valuable, plus it would "complete the learning loop" by having them experience earning --> saving --> investing

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Re: Kids accounts: Vanguard Total World Stock

Post by lostdog » Tue May 28, 2019 5:17 pm

MnD wrote:
Fri May 24, 2019 10:38 am
Pete12 wrote:
Wed May 22, 2019 7:21 pm
Thank you all for responses. I think for now I will go with VTWAX, we are talking about a relatively small amount per kid in the grand scheme for now. And the purchase minimum for VTWAX is $3,000 which is exactly the amount to be invested! :beer
Great. Might as well get them started out without the mental accounting and complexity of treating US and ex-US as different asset classes.
+1

I agree. Get it in their heads at a young age that there is no separate asset class for international. They're not committing treason investing their money outside of the U.S. like some on this board think.
Total World Stock and Total World Bond. The simple two fund diversified portfolio. "Simplicity is the master key to financial success."

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Re: Kids accounts: Vanguard Total World Stock

Post by maj » Tue May 28, 2019 5:25 pm

You do not have enough to open two accounts for each child, one domestic and the other international.

Your plan for small kids is excellent.

Just do it.

peace

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Re: Kids accounts: Vanguard Total World Stock

Post by Pete12 » Sun Jun 02, 2019 8:32 pm

I pulled the trigger and placed the orders for VTWAX. Went with the mutual fund rather than the ETF so the entire sum could be invested with no cash left over. Expense ratio difference will be immaterial for now.

Just had a great discussion with my kids about this. My 13 year old especially was very interested and had a ton of questions. They both thought it was so cool that they will indirectly own a tiny piece of most every public company in the world. We even got to talking about Mr. Bogle and his big idea in starting Vanguard to help regular folks invest and get their fair share. We are going to look at the fund once a month and see how it is doing.

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Re: Kids accounts: Vanguard Total World Stock

Post by siamond » Sun Jun 02, 2019 10:43 pm

Well done, OP. You did the right thing imho, just have those youngsters own the world with no bias. My sons are 10 years older and they do the exact same thing...

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Re: Kids accounts: Vanguard Total World Stock

Post by DB2 » Sun Jun 02, 2019 10:49 pm

Pete12 wrote:
Sun Jun 02, 2019 8:32 pm
I pulled the trigger and placed the orders for VTWAX. Went with the mutual fund rather than the ETF so the entire sum could be invested with no cash left over. Expense ratio difference will be immaterial for now.

Just had a great discussion with my kids about this. My 13 year old especially was very interested and had a ton of questions. They both thought it was so cool that they will indirectly own a tiny piece of most every public company in the world. We even got to talking about Mr. Bogle and his big idea in starting Vanguard to help regular folks invest and get their fair share. We are going to look at the fund once a month and see how it is doing.
I think this is the best fund for them. Getting them started this young with investing is truly invaluable.

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Re: Kids accounts: Vanguard Total World Stock

Post by Wiggums » Mon Jun 03, 2019 4:33 am

Pete12 wrote:
Sun Jun 02, 2019 8:32 pm
I pulled the trigger and placed the orders for VTWAX. Went with the mutual fund rather than the ETF so the entire sum could be invested with no cash left over. Expense ratio difference will be immaterial for now.

Just had a great discussion with my kids about this. My 13 year old especially was very interested and had a ton of questions. They both thought it was so cool that they will indirectly own a tiny piece of most every public company in the world. We even got to talking about Mr. Bogle and his big idea in starting Vanguard to help regular folks invest and get their fair share. We are going to look at the fund once a month and see how it is doing.
+1
Congratulations

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Re: Kids accounts: Vanguard Total World Stock

Post by miamivice » Mon Jun 03, 2019 6:52 am

DB2 wrote:
Sun Jun 02, 2019 10:49 pm
Pete12 wrote:
Sun Jun 02, 2019 8:32 pm
I pulled the trigger and placed the orders for VTWAX. Went with the mutual fund rather than the ETF so the entire sum could be invested with no cash left over. Expense ratio difference will be immaterial for now.

Just had a great discussion with my kids about this. My 13 year old especially was very interested and had a ton of questions. They both thought it was so cool that they will indirectly own a tiny piece of most every public company in the world. We even got to talking about Mr. Bogle and his big idea in starting Vanguard to help regular folks invest and get their fair share. We are going to look at the fund once a month and see how it is doing.
I think this is the best fund for them. Getting them started this young with investing is truly invaluable.
While investing is good, at a young age, the emphasis should be on savings. Investing $3,000 won't make the kids rich. Saving $250,000 over 10 years will.

Up until about now (age 40), most of our net worth has been a result of savings rather than investment returns. It's starting to flip, but that is only because of a hearty savings habit rather than special knowledge about investing.

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Re: Kids accounts: Vanguard Total World Stock

Post by DB2 » Mon Jun 03, 2019 9:43 am

miamivice wrote:
Mon Jun 03, 2019 6:52 am
DB2 wrote:
Sun Jun 02, 2019 10:49 pm
Pete12 wrote:
Sun Jun 02, 2019 8:32 pm
I pulled the trigger and placed the orders for VTWAX. Went with the mutual fund rather than the ETF so the entire sum could be invested with no cash left over. Expense ratio difference will be immaterial for now.

Just had a great discussion with my kids about this. My 13 year old especially was very interested and had a ton of questions. They both thought it was so cool that they will indirectly own a tiny piece of most every public company in the world. We even got to talking about Mr. Bogle and his big idea in starting Vanguard to help regular folks invest and get their fair share. We are going to look at the fund once a month and see how it is doing.
I think this is the best fund for them. Getting them started this young with investing is truly invaluable.
While investing is good, at a young age, the emphasis should be on savings. Investing $3,000 won't make the kids rich. Saving $250,000 over 10 years will.

Up until about now (age 40), most of our net worth has been a result of savings rather than investment returns. It's starting to flip, but that is only because of a hearty savings habit rather than special knowledge about investing.
Agreed. They (should) come hand in hand. Learning solid investing at a young age should include teaching saving.

I'm in my 40s but only started investing recently; I've been saving in cash since my 20s, but I missed out on a 10-12% S&P average return each year. I would/should have FAR, FAR more money today if I had been taught or saw the light of investing at a younger age.

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Re: Kids accounts: Vanguard Total World Stock

Post by Pete12 » Mon Jun 03, 2019 9:56 am

miamivice wrote:
Mon Jun 03, 2019 6:52 am
While investing is good, at a young age, the emphasis should be on savings. Investing $3,000 won't make the kids rich. Saving $250,000 over 10 years will.
We've been working on the savings habit already- they both have savings accounts at our local credit union. When they get money for birthdays etc. they are allowed to spend a bit but save the rest. I take them to the credit union to deposit their cash and checks, the staff there are so nice and make a fuss of them each time. We also use the coin counter machine which I think is their favorite part! I agree it's so important to get this habit going at an early age. We are lucky our credit union has a great program for kids, they always get a sticker and goodies such as pencils and erasers when we visit the branch!

GAAP
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Joined: Fri Apr 08, 2016 12:41 pm

Re: Kids accounts: Vanguard Total World Stock

Post by GAAP » Mon Jun 03, 2019 11:16 am

If you really want to teach them about investing, then some of that money should go into a bond fund so that they can learn about diversification and how different investments can act differently all the time.

My personal choice would be VT (the equivalent ETF) and BNDW (Total World Bond ETF).
“Adapt what is useful, reject what is useless, and add what is specifically your own.” ― Bruce Lee

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