Hello  All -

Am thinking of setting up a retirement account for my kid who is only 4 months old. This will be a very long term project that is expected to last 65 years. Now,  I'm not sure of the process to do this but this looks like a great start due to bargain price. My expectations of him is that he cant touch it until he is 65 years old. I also expect him to earn his retirement as well.

Thinking of starting off with a BANG:

• Start with $5K with 1K to 2K yearly until 18 years old.
• return of 7% to 9% annually

What do you guys think? is that doable ?

You already started a 529 plan?

Retirement? What is his income?

I fundamentally disagree with that strongly. But its your child,  you can choose the lessons you teach. It won't be a lesson i ever teach my kids. Including my 3 week old.

Im sure the intentions are good,  i just think the lesson is horrible and detrimental.

And of course its possible,  assuming your baby earns 5 grand this year and 1 to 2 every year after.

Buy stock, NOW

If you belong to NFCU or possibly other CUs, open an account in their name. Years of "service" with banks, esp credit unions can get you some benefits. Ive been able to get lower rates on loans etc and higher rates on CDs by being a +20 year member.

I think it could be a great idea. IF you educate him him on the power of compound interest, budgeting and the importance of being skilled and motivated over the years. Don’t just hand it to him. You could set it up as a trust fund that he  Inherits IF he has become a journeyman or engineer/doctor/lawyer or something and has been employed as such for at least five years and saved 10% of earnings. If he fails then it goes to some other beneficiary.

A relatively small investment now could really grow massive in 65 years!  It would be a really cool real world object lesson.

My son is 17 days old. ive already started a 529 and im thinking of starting a general account and only investing in index funds such as SWPPX. Basically just keep it simple. when he's old enough i plan on having him pick some fun stocks teaching him about the market in real time.

Time in the market + compounding interest = less worry later *assuming we are all still around and have a monetary system

I did that for my kids. 50 bucks per paycheck to each of their accounts all in an s&p index fund. At 6%, after 60 years is about 700k. A nice start towards retirement...