30 Dec 2020
I just opened up a custodial account for my 13 year old. I've got 11k to invest. I've helped him save all his birthday/holiday money since he was born. Any investment suggestions?
Around the age of 8, I opened up a savings account and put his money in there because I didn't think better to invest it. Better late than never! He'll probably get access to it at 18, but I doubt he'll ask for it. Thank you very much.
An index fund?
But i still think is better to let the kid develop a saving habit and let him invest on his own.
When i was young, i see my bank book grow from few hundred to $1k+. I was so excited. Feel like a millionaire that time😆. Make me want to save more.
As a parent l, i would rather guide him to develop a saving, investing and hardworking habit rather than give him 1 lump sum.
Maybe DCA the 11k into a diversified all world etf or the s&p over 4-5 months then continue adding on your position from his birthday and holiday money then maybe when it’s time for university you can pay it in full for him, that’d give him a great head start with no debt.
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