What Fund To Buy Vanguard UTMA
What Fund To Buy Vanguard UTMA
Hi Bogleheads. I opened UTMA accounts for each daughter (3 years old and 1 year old) without thinking about the Vanguard limits on mutual funds. The accounts will have $1,500 and $700 each. The girls are half Chinese and these were red envelope gifts. They will each probably receive additional gifts but this isn't something where they will get large gifts regularly as the family isn't wealthy.
What I wasn't thinking about is the $3k limit for VTSAX. Ideally I didn't want to buy VTI for them because I want 100% invested which I've found hard to do with ETFs.
What would you do in this situation? I could contribute enough for each to have $3k now. Or is there a different fund you'd recommend I can buy at Vanguard that doesn't require a $3k minimum?
What I wasn't thinking about is the $3k limit for VTSAX. Ideally I didn't want to buy VTI for them because I want 100% invested which I've found hard to do with ETFs.
What would you do in this situation? I could contribute enough for each to have $3k now. Or is there a different fund you'd recommend I can buy at Vanguard that doesn't require a $3k minimum?
Re: What Fund To Buy Vanguard UTMA
You could give enough cash to have a integral number of VTI shares with no leftover cash. Use a limit order to buy to make it so. Although I've heard that Vanguard now supports fractional share purchases of ETF. But also nothing wrong with topping up their accounts to at least $3,000.
Re: What Fund To Buy Vanguard UTMA
Wouldn't it be easier to just deposit the money in their 529 accounts?EinAustin wrote: Wed Jul 17, 2024 3:33 pm Hi Bogleheads. I opened UTMA accounts for each daughter (3 years old and 1 year old) without thinking about the Vanguard limits on mutual funds. The accounts will have $1,500 and $700 each. The girls are half Chinese and these were red envelope gifts. They will each probably receive additional gifts but this isn't something where they will get large gifts regularly as the family isn't wealthy.
What I wasn't thinking about is the $3k limit for VTSAX. Ideally I didn't want to buy VTI for them because I want 100% invested which I've found hard to do with ETFs.
What would you do in this situation? I could contribute enough for each to have $3k now. Or is there a different fund you'd recommend I can buy at Vanguard that doesn't require a $3k minimum?
Re: What Fund To Buy Vanguard UTMA
At Vanguard, you can buy fractional shares of their ETFs. You just order a dollar amount.EinAustin wrote: Wed Jul 17, 2024 3:33 pm Hi Bogleheads. I opened UTMA accounts for each daughter (3 years old and 1 year old) without thinking about the Vanguard limits on mutual funds. The accounts will have $1,500 and $700 each. The girls are half Chinese and these were red envelope gifts. They will each probably receive additional gifts but this isn't something where they will get large gifts regularly as the family isn't wealthy.
What I wasn't thinking about is the $3k limit for VTSAX. Ideally I didn't want to buy VTI for them because I want 100% invested which I've found hard to do with ETFs.
What would you do in this situation? I could contribute enough for each to have $3k now. Or is there a different fund you'd recommend I can buy at Vanguard that doesn't require a $3k minimum?
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Re: What Fund To Buy Vanguard UTMA
I believe vanguard target date fund only have a contribution minimum of $1,000. You could choose one with the highest equity allocation and then transfer to VTSAX when you are able.
VT + BNDW + Duration-matched TIPS fund (TPAW)
Re: What Fund To Buy Vanguard UTMA
I didn't realize you can buy fractional shares. I've always used the calculator to buy shares closest to the amount of money I have to invest and then there is money leftover. I'll check that out.exodusNH wrote: Wed Jul 17, 2024 3:40 pmAt Vanguard, you can buy fractional shares of their ETFs. You just order a dollar amount.EinAustin wrote: Wed Jul 17, 2024 3:33 pm Hi Bogleheads. I opened UTMA accounts for each daughter (3 years old and 1 year old) without thinking about the Vanguard limits on mutual funds. The accounts will have $1,500 and $700 each. The girls are half Chinese and these were red envelope gifts. They will each probably receive additional gifts but this isn't something where they will get large gifts regularly as the family isn't wealthy.
What I wasn't thinking about is the $3k limit for VTSAX. Ideally I didn't want to buy VTI for them because I want 100% invested which I've found hard to do with ETFs.
What would you do in this situation? I could contribute enough for each to have $3k now. Or is there a different fund you'd recommend I can buy at Vanguard that doesn't require a $3k minimum?
Re: What Fund To Buy Vanguard UTMA
There are competing ETFs with much lower share price. May make it easier.
SCHB is $64
SPTM is $68
SCHK is $53
SPLG is $65
If you weren't at Vanguard, Fidelity and Schwab mutual funds often have no minimums.
SCHB is $64
SPTM is $68
SCHK is $53
SPLG is $65
If you weren't at Vanguard, Fidelity and Schwab mutual funds often have no minimums.
Re: What Fund To Buy Vanguard UTMA
I just did similar for my son. Opened UTMA at Vanguard and bought fractional shares of VTI. Very straightforward.
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Re: What Fund To Buy Vanguard UTMA
If you hold VTSAX, you can buy more shares and then transfer them to the children as a gift. I did this recently, not even thinking about the fact that the initial transfer was under the minimum.EinAustin wrote: Wed Jul 17, 2024 3:33 pm Hi Bogleheads. I opened UTMA accounts for each daughter (3 years old and 1 year old) without thinking about the Vanguard limits on mutual funds. The accounts will have $1,500 and $700 each. The girls are half Chinese and these were red envelope gifts. They will each probably receive additional gifts but this isn't something where they will get large gifts regularly as the family isn't wealthy.
What I wasn't thinking about is the $3k limit for VTSAX. Ideally I didn't want to buy VTI for them because I want 100% invested which I've found hard to do with ETFs.
What would you do in this situation? I could contribute enough for each to have $3k now. Or is there a different fund you'd recommend I can buy at Vanguard that doesn't require a $3k minimum?