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Best place to put $ 1,000.00 for your kids, long view.

ROFL BOX

By ROFL BOX
in Can You Help Me With This?

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ROFL BOX

ROFL BOX 6649

Posted
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If I was gonna put $ 1k into some kind of fund or stock or mutual fund or whatever... something my kids couldn't get their grubbies into until age 30 (when, hopefully, the dumbass will have worn off), what would be a good spot so it would grow as best as one could safely hope for?

 

Roxette is 13, Monster is 11.

 

Given those ages, I don't know if it's going to multiply enough to make much of a dent in college funding.

Aaaand... go.

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bigcigar

bigcigar 1164

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Might be too much, but I knew a guy that was given about that much by his dad, told to learn about investing, and pick some investments around that age. His dad helped of course, but while his brother went flashy, he started reading about warren Buffett and value investing. Ended up getting into investment management as after college and now runs a hedge fund.

That’s probably not your intent (the hedge fund), but I hope to do something like that when my kids are older so they’re more financially literate than I was earlier in my career. It’s a bit different learning about this stuff in your late twenties than understanding investing, time value of money and the market before college. 

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52-80

52-80 19159

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12 hours ago, bigcigar said:

Might be too much, but I knew a guy that was given about that much by his dad, told to learn about investing, and pick some investments around that age. His dad helped of course, but while his brother went flashy, he started reading about warren Buffett and value investing. Ended up getting into investment management as after college and now runs a hedge fund.

That’s probably not your intent (the hedge fund), but I hope to do something like that when my kids are older so they’re more financially literate than I was earlier in my career. It’s a bit different learning about this stuff in your late twenties than understanding investing, time value of money and the market before college. 

That guy's name?

 

Albert Einstein.

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HouTex

HouTex 1867

Posted
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The 529 with an auto draft of whatever you can afford a month is the way to go if it's for education.
But if you just want to gift your kids something that can grow over 20+ years consider a TUGMA account invested in a blue chip stock with auto dividend reinvestment.
My kid's (now 24) MCD stock has a basis of approximately $6,000 and it's now worth about $60k. We just added around $500 a year to the account and stopped when she was around 13. Not sure I would choose MCD today but and any dividend paying stock of a well run company would do.

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Red Six

Red Six 131

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One-hundred thousand dollars is wealth that needs preserving in an index fund.

One-thousand dollars that you are not going to continue feeding is YOLO money.

Pick an up-and-coming stock like Square (for example) and put it all on black. You could come out with $500,000 in 20 years, or it could be worth $0.

I am still kicking myself for not dropping some money I had into Netflix or Google 15 years ago. I also was considering Sirius at the time, which would have panned out, but not nearly as well.

My YOLO money is on Shopify right now, FWIW.

Disclaimer: I have no idea what I'm doing.

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Laga4

Laga4 1270

Posted
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18 hours ago, Red Six said:

One-hundred thousand dollars is wealth that needs preserving in an index fund.

One-thousand dollars that you are not going to continue feeding is YOLO money.

Pick an up-and-coming stock like Square (for example) and put it all on black. You could come out with $500,000 in 20 years, or it could be worth $0.

I am still kicking myself for not dropping some money I had into Netflix or Google 15 years ago. I also was considering Sirius at the time, which would have panned out, but not nearly as well.

My YOLO money is on Shopify right now, FWIW.

Disclaimer: I have no idea what I'm doing.

That's really not bad advice.

If you can add to it on a monthly basis,  go with an index fund or ETF for sure.

If that's all you are going to have for your kids,  why not take a shot.  

Who knows you might pick the next Amazon.  

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SquishMitten

SquishMitten 10408

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If you’re going with that strategy (get lucky and pick the next Amazon/Google/etc), you should split it between a few stocks to give yourself a better chance. And if a grand is all you plan to do, then that’s not a terrible strategy. Any “safe” investment isn’t going to do much (averaging 5% return will only put you at ~$2k by the time they’re 30.

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KYHorn

KYHorn 17069

Posted
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On 8/19/2018 at 4:18 PM, pearlandhorn said:

Utah 529. Helps pay for their college.

Came here to say this (I have one for my 1 year old), but with a teenager, I dunno if you'd get the bang for your buck in this case, unless it was for your grandkids (529s can be transferred). 

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KYHorn

KYHorn 17069

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On 10/8/2018 at 10:20 AM, luke duke said:

 


Do you even compound interest bro?

 

There's not technically compound interest with stocks. You can practically get compound interest with a high dividend stock. Otherwise, I'm not sure if there's an investment vehicle that is giving 5% annual returns right now, but maybe there is since the rose in interest rates (I haven't even bothered looking at rates in line 5 years)

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Guest

Guest

Posted
Posted (edited)
On 8/19/2018 at 9:20 AM, UTPhil2006 said:

Tom Herman national title odds

I think Vegas had Texas at 50:1 at one point. That seems like a decent bet in hindsight, now that there is an outside path to the playoffs two months later.

$1k -> $50k in 6 months.

Edited by Guest
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