UnThreaded | Threaded | Whole Thread (24) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: wcfenton Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 74759  
Subject: Re: Roth for daughters - what fund Date: 1/24/2004 10:28 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
sierrasprings...

To encourage daughters (23 and 21) to begin to save and become familiar with investing I opened a Roth for each and told them I would match their own contribution each year up to $500 each. Obviously I am hopeful that they will continue to put in funds and learn about investments. Not knowing what to do, I purchased Vanguard Wellington and Vanguard Total Stock Index for the Roth accounts - any suggestions re what I am doing - what to put in for the very long haul and how to manage this re changes ? Thanks - I am a new member here with limited knowledge re investing.

Excellent! In my opinion, the two funds are perfect (VTSMX) and (VWELX)and the Roth IRA is the best choice for an investment vehicle for them as well. Well Done!

Because they are still very young, I believe the larger portion of their porfolios should be in the broad-market stock fund (VTSMX). This is the risker of the two, but that's what youth is all about - they can stand the risk. It's a tradeoff - generally speaking, more risk equals a higher return over time.

http://www.quicken.com/investments/charts/?p=VTSMX%2C+VWELX&B1=Go&choice=on

If you haven't checked out the neat little "Risk/Reward Chart" provided by Vanguard, I've provided the link for you:

http://flagship5.vanguard.com/VGApp/hnw/FundsStocksOverview?type=PIWANTTO4

Again, I think these young ladies are very fortunate to have you as a parent!

Regards,
Bill
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (24) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
2013 Feste Award Voting Begins!
Who will win the 2013 Feste Award? Vote now for the Fool that most exemplifies the Fool Community mission of Learning Together!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Tax Strategies

TMFPMarti-Feeling Good
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement