They had it in their savings and just moved it to their Schwab account. Now looking to invest. If they have an emergency, I would be their emergency fund. I'd like them to see growth so they get excited about investing and start saving a percentage of their monthly pay checks when they graduate. If they open Roth IRAs, they would have the same question ... Would you put it all [by all I mean whatever is in the stock market] in a single broad market index fund or would you split it up somehow?

2 ...

Report Post

Posted by Oenophile Brah

The Edge of Sanity

Member since Jan 2013

7544 posts

Posted on 8/20/16 at 4:30 pm to amgslg

Gotcha.

That's great they have a family buffer, but self reliance has it's own reward.

I like the idea of having 2 funds, 1 large cap & 1 mid/small cap. I know they're with Schwab, but Vanguard has excellent low-cost funds to consider. Once they reach 10k/fund, they should qualify for Vanguard's extra low cost admiral shares. That's a nice near-term incentive for them to shoot for. That would be an excellent way to start saving for mid/long term. If they're house hungry, they may want to lower their risk and keep a portion in a low return savings account.

0 ...

Report Post

Posted by Ric Flair

Charlotte

Member since Oct 2005

13693 posts

Posted on 8/20/16 at 7:56 pm to amgslg

I would probably just put $2000 or so into the Vanguard s+p 500 fund to start, and have them contribute 10% a month or so from their paychecks. I would do it in a Roth. If the kids cars aren't going to last another 5 years or so, or if they break down and you would expect them to replace their current vehicle, I'd keep it in cash.

0 ...

Report Post

Money Talk - Replies to Post

Return To Board

Page 1

Return To Board