Opening Roth for Son

Bogey1996

Joined: Jan 15, 2003

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I'm planning on starting a Roth for my 16 year old. Nothing big, $750 and yes he has been working for a year so he has made that much.

Any suggestions on what to invest in?

TriAg2010

Joined: Aug 8, 2006

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12:23p, 1/4/24

AG

Fidelity FXAIX.

I'd ordinarily say Vanguard VFIAX, but there is a $3,000 investment minimum.

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txaggie2012

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1:43p, 1/4/24

AG

I'd just throw it in one of the growth etf/funds like VOOG or VIGAX. The funds will probably have minimums

You could also put it into a target retirement year fund

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Kenneth_2003

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In reply to txaggie2012 • 7:40p, 1/4/24

AG

txaggie2012 said:
I'd just throw it in one of the growth etf/funds like VOOG or VIGAX. The funds will probably have minimums

You could also put it into a target retirement year fund

I would agree with a target date retirement fund. Just keep pushing his date out every 5 years or so.

J-Dub

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4:14p, 1/14/24

AG

I suggest opening a Vanguard acct and investing in VFIAX, if you can work through the minimum investment for VFIAX. I did this for both of my kids when they turned 14. I own my own business, so I began employing them and paying them a salary which allowed me to make the maximum Roth contributions annually for each. I just kept dollar cost averaging into VFIAX with a monthly or sometimes weekly contribution. My daughter is now 22 and her Roth has grown to 97k. My son is 19, and his Roth is at 66k. This is a great way to set your kids on the right path.

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2wealfth Man

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6:59p, 1/14/24

AG

FYI - your son will need earned income to contribute. Dividends and interest do not qualify.

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drwong

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In reply to TriAg2010 • 10:25a, 1/21/24

AG

TriAg2010 said:
Fidelity FXAIX.

I'd ordinarily say Vanguard VFIAX, but there is a $3,000 investment minimum.

You can get around the minimums by buying the ETF version (VOO instead of VFIAX).

I set one up for my son last year and have been buying VTI.

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