Opening Custodial Investment Accounts for both of my young kids... (1 Viewer)

[Swaymoney]

I already have my own account through fidelity and 529s for my kids, so will be opening investment accounts for each (2) of them.

What stocks or funds would you folks recommend as long term investments (buy and hold)?

I'm sure individual stocks like Amazon, Google/Alphabet and Disney are great but I'm open to other ideas...

 

[Mrs. Rannous]

I'd just go with a balanced no-load fund. Fideity's got them. Trying to predict how a stock is going to do over the long term is a big gamble if you aren't Warren Buffett.

 

[culdeus]

There is a personal finance thread here for this sort of thing.

 

[ChiefD]

I did the same for my kids. I had them pick a couple of secure stocks, a couple of companies they know, and then a couple of fun risky stocks. I explained the importance of a balanced portfolio. So between the three of them we have a decent mix. I also explained the importance of dividend stocks.

They aready have their 529 accounts, so this was intended to get them engaged and thinking about investing. Nobody ever did that for me, which is why I'm have to work until I'm dead.

They have a unique mix: some Apple, Coca-Cola, Ford, a few off of Todem's list, and a few penny stocks they have researched. It's been fun and all three are pretty good savers at this point. Ages are 16,14 and 12. Started this a couple of years ago.

 

[neal cassady]

Maybe consider a life insurance retirement plan (LIRP). As an example, if you pay $200 a month, on a 5 year old male, to age 64, they could receive 166k tax free, every year from age 65 to 85. That would be 141,600 paid out of pocket, spread out over 59 years. At age 85, they would have pulled out 3,498,768 (tax free). Could be more than that, or less, depending on how the chosen indices perform. If they pass away before age 85, or after, there would be a death benefit paid out as well. A good life insurance agent will know what these are. Many don’t however. Recommended companies would be Allianz and Annexus.

 

[Swaymoney]

I'd just go with a balanced no-load fund. Fideity's got them. Trying to predict how a stock is going to do over the long term is a big gamble if you aren't Warren Buffett.

Appreciate the response, however, do you have a recommendation or explanation for Balanced no- load fund?

There is a personal finance thread here for this sort of thing.

Very true and I may have seen that before, however, not everything in that thread is directly focused at what I'm looking to do and I'd much rather use my time creating a specific post for my specific question, versus weed through info that's not useful to what I'm looking to do.

I did the same for my kids. I had them pick a couple of secure stocks, a couple of companies they know, and then a couple of fun risky stocks. I explained the importance of a balanced portfolio. So between the three of them we have a decent mix. I also explained the importance of dividend stocks.

They aready have their 529 accounts, so this was intended to get them engaged and thinking about investing. Nobody ever did that for me, which is why I'm have to work until I'm dead.

They have a unique mix: some Apple, Coca-Cola, Ford, a few off of Todem's list, and a few penny stocks they have researched. It's been fun and all three are pretty good savers at this point. Ages are 16,14 and 12. Started this a couple of years ago.

Thx for the response and love that idea! Especially the aspect of letting them select companies that are of interest to them, like maybe Nike. You're probably a bit older than me but I agree with you that my parents did not teach me anything about investing for the future, it was live for today and basically leave this world broke. My 2 young ones are 6 and 8. So looking to get them started off a little earlier.

 

[Schmeabs]

I'd just go with a balanced no-load fund. Fideity's got them. Trying to predict how a stock is going to do over the long term is a big gamble if you aren't Warren Buffett.

Appreciate the response, however, do you have a recommendation or explanation for Balanced no- load fund?

There is a personal finance thread here for this sort of thing.

Very true and I may have seen that before, however, not everything in that thread is directly focused at what I'm looking to do and I'd much rather use my time creating a specific post for my specific question, versus weed through info that's not useful to what I'm looking to do.

I did the same for my kids. I had them pick a couple of secure stocks, a couple of companies they know, and then a couple of fun risky stocks. I explained the importance of a balanced portfolio. So between the three of them we have a decent mix. I also explained the importance of dividend stocks.

They aready have their 529 accounts, so this was intended to get them engaged and thinking about investing. Nobody ever did that for me, which is why I'm have to work until I'm dead.

They have a unique mix: some Apple, Coca-Cola, Ford, a few off of Todem's list, and a few penny stocks they have researched. It's been fun and all three are pretty good savers at this point. Ages are 16,14 and 12. Started this a couple of years ago.

Thx for the response and love that idea! Especially the aspect of letting them select companies that are of interest to them, like maybe Nike. You're probably a bit older than me but I agree with you that my parents did not teach me anything about investing for the future, it was live for today and basically leave this world broke. My 2 young ones are 6 and 8. So looking to get them started off a little earlier.

If they are younger (10 or below) then I like buying VTI for them. If you want to add some bond exposure or they are older than 10 maybe an 80/20 split between VTI and BND.

 

[Swaymoney]

I'd just go with a balanced no-load fund. Fideity's got them. Trying to predict how a stock is going to do over the long term is a big gamble if you aren't Warren Buffett.

Appreciate the response, however, do you have a recommendation or explanation for Balanced no- load fund?

There is a personal finance thread here for this sort of thing.

Very true and I may have seen that before, however, not everything in that thread is directly focused at what I'm looking to do and I'd much rather use my time creating a specific post for my specific question, versus weed through info that's not useful to what I'm looking to do.

I did the same for my kids. I had them pick a couple of secure stocks, a couple of companies they know, and then a couple of fun risky stocks. I explained the importance of a balanced portfolio. So between the three of them we have a decent mix. I also explained the importance of dividend stocks.

They aready have their 529 accounts, so this was intended to get them engaged and thinking about investing. Nobody ever did that for me, which is why I'm have to work until I'm dead.

They have a unique mix: some Apple, Coca-Cola, Ford, a few off of Todem's list, and a few penny stocks they have researched. It's been fun and all three are pretty good savers at this point. Ages are 16,14 and 12. Started this a couple of years ago.

Thx for the response and love that idea! Especially the aspect of letting them select companies that are of interest to them, like maybe Nike. You're probably a bit older than me but I agree with you that my parents did not teach me anything about investing for the future, it was live for today and basically leave this world broke. My 2 young ones are 6 and 8. So looking to get them started off a little earlier.

If they are younger (10 or below) then I like buying VTI for them. If you want to add some bond exposure or they are older than 10 maybe an 80/20 split between VTI and BND.

Thx for the reply, I'll look into those. They are both under 10.

 

[jwb]

I'd just go with a balanced no-load fund. Fideity's got them. Trying to predict how a stock is going to do over the long term is a big gamble if you aren't Warren Buffett.

Appreciate the response, however, do you have a recommendation or explanation for Balanced no- load fund?

There is a personal finance thread here for this sort of thing.

Very true and I may have seen that before, however, not everything in that thread is directly focused at what I'm looking to do and I'd much rather use my time creating a specific post for my specific question, versus weed through info that's not useful to what I'm looking to do.

I did the same for my kids. I had them pick a couple of secure stocks, a couple of companies they know, and then a couple of fun risky stocks. I explained the importance of a balanced portfolio. So between the three of them we have a decent mix. I also explained the importance of dividend stocks.

They aready have their 529 accounts, so this was intended to get them engaged and thinking about investing. Nobody ever did that for me, which is why I'm have to work until I'm dead.

They have a unique mix: some Apple, Coca-Cola, Ford, a few off of Todem's list, and a few penny stocks they have researched. It's been fun and all three are pretty good savers at this point. Ages are 16,14 and 12. Started this a couple of years ago.

Thx for the response and love that idea! Especially the aspect of letting them select companies that are of interest to them, like maybe Nike. You're probably a bit older than me but I agree with you that my parents did not teach me anything about investing for the future, it was live for today and basically leave this world broke. My 2 young ones are 6 and 8. So looking to get them started off a little earlier.

If they are younger (10 or below) then I like buying VTI for them. If you want to add some bond exposure or they are older than 10 maybe an 80/20 split between VTI and BND.

Second on VTI for this - it's basiclly the entire stock market so no worries about where any one company will be in 20/30/40 years.

 

[fruity pebbles]

I’d probably just do VOO 75% and QQQ 25%

 

[dino259]

I believe a part of the point is to get the kids involved. Do the VTI or an s&p 500 fund for most of it and allow the kids to pick 1 to 4 individual stocks with a small portion.

 

[Dr. Octopus]

Isn’t anyone going to say “Sure, individual stocks like Amazon, Google/Alphabet, and Disney are appealing due to their track record, but it's also a good idea to diversify”?

 

[Snotbubbles]

I already have my own account through fidelity and 529s for my kids, so will be opening investment accounts for each (2) of them.

What stocks or funds would you folks recommend as long term investments (buy and hold)?

I'm sure individual stocks like Amazon, Google/Alphabet and Disney are great but I'm open to other ideas...

I would just go with something like VOO which is an S&P 500 tracker and ONEQ which is a NASDAQ tracker. Just keep it simple.

 

[pecorino]

The shark move is to find gainful employment for the tykes, then contribute their earnings to a tax free Roth.