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Post by chang on Apr 19, 2024 14:58:19 GMT
My stepson has a fledgling investment account with only $28k or so in it now. Opened it a few years ago so it’s done pretty well. It’s ~ 60% VOO, 40% VEA. Very simple.
He’s ready to add another $5k to it. Just wondering what people think would be a smart thing to do. I’m inclined to just add to the existing funds according to their existing percentages (more or less), unless anyone has a good reason to do otherwise.
He’s 31 - long time horizon.
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Post by richardsok on Apr 20, 2024 0:12:07 GMT
My stepson has a fledgling investment account with only $28k or so in it now. Opened it a few years ago so it’s done pretty well. It’s ~ 60% VOO, 40% VEA. Very simple. He’s ready to add another $5k to it. Just wondering what people think would be a smart thing to do. I’m inclined to just add to the existing funds according to their existing percentages (more or less), unless anyone has a good reason to do otherwise. He’s 31 - long time horizon. Since you ask --- by all means continue with your plan, just as you intend. But I'd use the moment to create a learning opportunity. In yr shoes, I'd not only want to build his portfolio, but also to give him tools to understand the rudiments of investing. Pick one: PLAN A Of course you expect to add your $5k into SPY or whatever. But give him a choice -- SPY, AOA, ETY, PFF, XLE, BFOR, GNT, any five or six different funds you've pre-selected. "I'm thinking of adding $5k into one of these for you. Here's the pros and cons of each. What do YOU think?" And discuss. PLAN B Lay a book down in front of him: 'The Only Investment Guide You'll Ever Need" by Andrew Tobias. Tell him "I'm going to give you $5000 to invest, but you have to earn it. You have to carefully read this book and then discuss it with me intelligently. As soon as you do, you get yr $5k and we'll invest it together." If he won't read a short and simple book for $5000, you've got a bigger problem than you think. -------------------. I did something just like this several times with my own daughter, and she always found ways not to cooperate, I long ago concluded in my next will I have to have a trusted executor control the estate FOR her. I love her dearly. She has many abilities, but I've learned with investing that she is hopeless. Good luck. |
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Post by yakers on Apr 20, 2024 4:24:20 GMT
IMHO nothing wrong with the original AA, it looks OK to me for 31 year old. Ther are more active and possibly better ways to proceed and many many worse. Not everyone wants or needs to be an investor. If he can stay with the AA until or near retirement I say go ahead.
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Post by chang on Apr 22, 2024 6:59:10 GMT
I added about half to VOO on Friday before the close; it was an ugly day and buying the dip seemed like a good idea. Futures are up this morning; I’ll probably add the rest of it today.
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Post by Norbert on Apr 22, 2024 15:40:19 GMT
My stepson has a fledgling investment account with only $28k or so in it now. Opened it a few years ago so it’s done pretty well. It’s ~ 60% VOO, 40% VEA. Very simple. He’s ready to add another $5k to it. Just wondering what people think would be a smart thing to do. I’m inclined to just add to the existing funds according to their existing percentages (more or less), unless anyone has a good reason to do otherwise. He’s 31 - long time horizon. Since you ask --- by all means continue with your plan, just as you intend. But I'd use the moment to create a learning opportunity. In yr shoes, I'd not only want to build his portfolio, but also to give him tools to understand the rudiments of investing. Pick one: PLAN A Of course you expect to add your $5k into SPY or whatever. But give him a choice -- SPY, AOA, ETY, PFF, XLE, BFOR, GNT, any five or six different funds you've pre-selected. "I'm thinking of adding $5k into one of these for you. Here's the pros and cons of each. What do YOU think?" And discuss. PLAN B Lay a book down in front of him: 'The Only Investment Guide You'll Ever Need" by Andrew Tobias. Tell him "I'm going to give you $5000 to invest, but you have to earn it. You have to carefully read this book and then discuss it with me intelligently. As soon as you do, you get yr $5k and we'll invest it together." If he won't read a short and simple book for $5000, you've got a bigger problem than you think. -------------------. I did something just like this several times with my own daughter, and she always found ways not to cooperate, I long ago concluded in my next will I have to have a trusted executor control the estate FOR her. I love her dearly. She has many abilities, but I've learned with investing that she is hopeless. Good luck. I tend to agree with yakers on this one. It's not important that our children make investing a kind of hobby like we have. My daughter and her husband are ambitious professionals. They don't need my advice, but I would urge them to stay focused on their careers and their family. What does matter, however, is that they invest for the future. I just think that it doesn't matter whether they use broad index funds, or not. If anything, I might suggest to chang that he follow a generous "matching" strategy with his stepson: offer to double or triple any money that he sets aside to invest. No free lunches. But, chang doesn't need my advice either. N. |
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