Investment fund for the grandkids???

[mlevimadden]

What mutual or index funds are people liking?

I just do a total market or S&P500 fund for most of my fund purchases. Vanguard are hard to beat for the 0.04% expense ratio on most of them.

VTI/VTSAX is a total market fund
VOO/VFAIX is an S&P500 fund

 

[NevadaMike]

I do not like active Fund managers or commission based financial advisors. This eats up growth unnecessarily and with the timeline you have it will be substantial 30 years from now! We have a trust set up for our kids education and some is 529 as mentioned and some is not based on contribution limits. If you are a set it and forget it guy I would suggest the Vanguard target date funds and let it ride after you talk to them about how you should hold it. Target date funds adjust risk based on when you want it available. Vanguard is also known for some of the lowest fees in the industry and as I mentioned this will result in a substantial increase over 30 years vs paying someone to "manage" your funds.

 

[cornfedkiller]

529's are after tax accounts, so you pay your income tax on the money that goes into it.

Got it! I was wrong in my understanding of it then. Thank you for correcting me!

 

[dubbeltap69]

The only problem with contributing directly to a Roth for young children is they need to have earned income to be eligible to contribute. Definitely not a bad strategy, but not one I’d do as a grandparent without the parents consent and agreement on strategy, since you’re front loading the tax burden.

Thanks for this information. I was unaware of that requirement.

 

[Crghss]

Use Vanguard ETF’s (Vanguard usually has lowest fees)
Spilt between S&P 500 and Tech.
Something like VOO and VGT

Just a general idea but where I’d start.