Thanks in advance for any advice on this.
My son is in college and working part time. With that said, I would like to get him started on investing for his future.
Is a Roth the best way to get started?
Wife and I will make a little deposit to get it started and he will put a small amount in each paycheck.
Thanks again,
NN
07, 23 Key West, Twin 115 Yammys
“Coastal Bound”
That is what I would do in this case.I do this for a living and almost never get this question.
I agree a Roth is probably best from all I’ve read. I opened a Coverdell account for my kid as soon as we got his SSN from the state. He’s got a decent savings account now at age 6, and I would like to check on further investments for him. However, I don’t think a minor can possess a Roth. I gotta dig deeper.
You’re a good parent. Your child will appreciate it!
‘14 Key West 203FS w/ Yamaha F150
"Kiss my ass, I bought a boat; I’m goin’ out to sea." (Jimmy Buffett covering Lovett)
Dear Double…A Roth IRA is a good choice of accounts. Bear in mind that the account is merely a basket designed to hold investments, and not an investment itself. The Roth IRA(Individual Retirement Account)allows for investment growth without taxation based on short or long term capital gains, or interest and dividend income that accrues from investments. This enhances the compounding of growth. Money invested within a Roth IRA must be held in the account for a minimum of 5 years AND until age 59 1/2 to avoid income taxes on the accrued gains. Money contributed to Roth IRA can be withdrawn at any time without income taxation, but growth will be taxed if it fails to meet both holding requirements as stated above. Your son should take a few elective courses in finance to gain the basic understanding of asset classes, capital markets, and modern portfolio theory and risk management. Time is on his side. You have great parental instincts.
Sol Mate
Mako 20B
225 Optimax
Thanks everyone, gonna go to Regions monday and get this started.
Think we will get started with some Southern Company stock.
By the way, when I mentioned this to him, I was quite surprised at how excited he was about it. That was cool.
NN
07, 23 Key West, Twin 115 Yammys
“Coastal Bound”
That’s great. Be sure to show him how $1000 invested for 40+ years can turn into 10-40k.
Redfish Baron Extraordinaire
quote:
Originally posted by 23SailfishThat’s great. Be sure to show him how $1000 invested for 40+ years can turn into 10-40k.
Thanks 23, that will be done.
07, 23 Key West, Twin 115 Yammys
“Coastal Bound”
Dear Double…Why would you choose a single company as an investment? The Southern Company, SCE&G, Con Edison, etc., etc. are great Utilities, and as such are required to pay dividends to shareholders, but a single stock is the antithesis of diversification and thereby risk management. Please consider a diversified, no load, low expense ratio, stock index mutual fund. Vanguard has a S&P 500 Index fund that will expose his investment to the 500 largest and most long term successful corporations in the USA. Southern Co. is one of those 500 corporations, and if it’s performance sucks because of poor management, interest rate volatility, or policy meddling by a hostile administration, his investment isn’t devastated. Read up on John Bogle the founder of Vanguard before you spend the money. It can’t hurt.
Sol Mate
Mako 20B
225 Optimax
Thanks Bossdog, not going with Regions due to the annual fees. Also, not going with straight SO either. Have been on the phone with Fidelity, Ameritrade and Vanguard.
Haven’t decided yet, but it will be diversified.
NN
07, 23 Key West, Twin 115 Yammys
“Coastal Bound”
I hooked my kids up with Vanguard mutual funds a few years ago. Now that they’ve had part time jobs we’ve helped them start Roth IRA’s with Vanguard as well. In order to contribute to a Roth, they have to have earned income.
Boat drinks, Waitress I need 2 more boat drinks!
quote:
Originally posted by DoubleNThanks Bossdog, not going with Regions due to the annual fees. Also, not going with straight SO either. Have been on the phone with Fidelity, Ameritrade and Vanguard.
Haven’t decided yet, but it will be diversified.
NN
07, 23 Key West, Twin 115 Yammys
“Coastal Bound”
Or you could get a little crazy and dump that money into energy right now…
Redfish Baron Extraordinaire
Bamboozle Outrigger Corp. on the ground floor,it’s gonna be HOT!!!
quote:
Originally posted by capehorn 16Bamboozle Outrigger Corp. on the ground floor,it’s gonna be HOT!!!
Going Public so soon:smiley:
Must be some good stuff!!
NN
07, 23 Key West, Twin 115 Yammys
“Coastal Bound”