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Posted: 6/16/2015 11:13:52 PM EDT
Back story doesn't matter.

She has $10,000 and it needs to go to work for her.

Where should she put it?
Link Posted: 6/16/2015 11:17:12 PM EDT
Roth IRA? My three daughters each have a Roth in the appropriate Vanguard Target Retirement fund.
Link Posted: 6/16/2015 11:21:24 PM EDT
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Roth IRA? My three daughters each have a Roth in the appropriate Vanguard Target Retirement fund.
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How do you pick the fund? Would an index fund be a good idea? And who can she open an account with?

I'd like to steer her away from high fee outfits.
Link Posted: 6/16/2015 11:28:21 PM EDT
S&P index fund and leave it alone, or just buy Apple, everyone seems to need the newest and best phone every other month seems like a no brainier.
Link Posted: 6/16/2015 11:31:05 PM EDT
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S&P index fund and leave it alone, or just buy Apple, everyone seems to need the newest and best phone every other month seems like a no brainier.
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Who can you get a low fee index fund from?
Link Posted: 6/16/2015 11:35:20 PM EDT
savings bonds
Link Posted: 6/16/2015 11:37:21 PM EDT
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Who can you get a low fee index fund from?
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S&P index fund and leave it alone, or just buy Apple, everyone seems to need the newest and best phone every other month seems like a no brainier.


Who can you get a low fee index fund from?


Vanguard.

That's what most all the pros use.

Link Posted: 6/16/2015 11:41:48 PM EDT
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savings bonds
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Why?
Link Posted: 6/16/2015 11:41:52 PM EDT
I use Vanguard and Fidelity, no issues to report.
Link Posted: 6/16/2015 11:49:05 PM EDT
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Roth IRA? My three daughters each have a Roth in the appropriate Vanguard Target Retirement fund.
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OP: note carefully that earned income is a requirement for IRA contributions:
http://fairmark.com/retirement/roth-accounts/contributions-to-roth-accounts/roth-iras-for-minors/

ar-jedi
Link Posted: 6/16/2015 11:50:05 PM EDT
See about a fund for college?
Link Posted: 6/16/2015 11:50:56 PM EDT
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Who can you get a low fee index fund from?
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S&P index fund and leave it alone, or just buy Apple, everyone seems to need the newest and best phone every other month seems like a no brainier.


Who can you get a low fee index fund from?


read this ENTIRE thread, it has EVERYTHING you need to know in one place:
https://www.ar15.com/forums/t_1_5/1737565_Got_a_Roth_IRA.html

DO NOT STOP ON PAGE 1.
DO NOT STOP ON PAGE 2.
etc...
etc...
etc...

importantly:
https://www.ar15.com/forums/t_1_5/1737565_Got_a_Roth_IRA.html&page=1#i53017017
and
https://www.ar15.com/forums/t_1_5/1737565_Got_a_Roth_IRA.html&page=1#i53017099
and
https://www.ar15.com/forums/t_1_5/1737565_Got_a_Roth_IRA.html&page=3#i53248362
and
https://www.ar15.com/forums/t_1_5/1737565_Got_a_Roth_IRA.html&page=4#i53260461
and
https://www.ar15.com/forums/t_1_5/1672620__ARCHIVED_THREAD____Vanguard__Fidelity__TD_Ameritrade_or_another__For_IRAs__small_time_investing_and_speculating_for_fun.html&page=1#i49699589


ar-jedi

Link Posted: 6/17/2015 12:10:00 AM EDT
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See about a fund for college?
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Not sure if she is going to go. She isn't the studious type.
Link Posted: 6/17/2015 4:50:16 AM EDT
Look into I bonds.



I can't give you a summary off the top of my head, but the .gov made a product so good  for the investor (and so bad for the tac payer) that they actually limit the amount you can buy.




As in, when they first madd the I bond available, the more sophisticated investors were buying "too much."






Link Posted: 6/17/2015 5:15:55 AM EDT
Open a brokerage account with vanguard.  It will likely have to be custodial since she is a minor.

Put it in an Exchange Traded Fund.  Vanguard has plenty of them, super low fees, easy to adjust to your desired risk.

Personally...I would put it in MGK.  Its a good fund for a long term hold and has steady growth.  

Vanguard will have the lowest fees.  

YMMV.
Link Posted: 6/17/2015 9:03:25 AM EDT
vanguard just reduced their rates and they were already the lowest.

vanguard

and vanguard

Link Posted: 6/17/2015 9:19:24 AM EDT
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OP: note carefully that earned income is a requirement for IRA contributions:
http://fairmark.com/retirement/roth-accounts/contributions-to-roth-accounts/roth-iras-for-minors/

ar-jedi
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Roth IRA? My three daughters each have a Roth in the appropriate Vanguard Target Retirement fund.


OP: note carefully that earned income is a requirement for IRA contributions:
http://fairmark.com/retirement/roth-accounts/contributions-to-roth-accounts/roth-iras-for-minors/

ar-jedi

I was going to mention that. She probably isn't eligible for an IRA at this point.

As others have said, I would suggest opening an account with Vanguard (I have one there). They have the lowest fees around and have a nice selection of funds.

As for what to invest in, many would suggest an ETF that mirrors the S&P 500. Some would suggest an income fund that produces high dividends, like DNP Select Income which is producing about 7% right now. Others would suggest things like bonds because they may be more stable. It really all depends on the time frame she plans to leave it, and how much risk she's willing to take.
Link Posted: 6/17/2015 9:24:15 AM EDT
You know, you might get better mileage out of that money by buying a few books / videos that help teach general money management to young people, and then using it to help her stay out of credit card debt as a young person.



People who do end up through college days with CC's, often spend 10k or more in interest trying to get back out of it.




Schools don't seem to be doing a very good job of prepping kids for "how not to go broke" anymore.  Taking 10k away and saying "for your future" seems like a uniquely myopic point of view of an old person.  She's not really even going to understand what's going on with it.
Link Posted: 6/17/2015 9:27:07 AM EDT
Does she have any earned income?  (not likely since she is only 15)  If not then you can't use a Roth IRA just yet (contributions are limited to the amount of earned income or that year's statutory limit).
Getting it in to a Roth IRA as possible would be a great idea, but it will take at best a couple years because of limitations.
In the mean time do as others have suggested by placing the money in low cost index funds through Vanguard or Fidelity in a taxable account.
She can move the money from a taxable account to a Roth IRA as her income allows.
Starting the account when young will do amazing things for her by being a seed that promotes good savings habits and maximizes the ability of compound growth to benefit her.

Above is all a suggestion assuming that she has no instruction from the source of the money (i.e.: grandma said put in your wedding/ college/ first home etc. fund).  If the money was a gift with instruction those wishes should be followed.
Although a bad idea usually, Roth CONTRIBUTIONS can be withdrawn tax and penalty free at any time if there is a future need for the money (any earnings must remain in the account until retirement or pay penalties).
Link Posted: 6/17/2015 11:18:32 AM EDT
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Quoted:


OP: note carefully that earned income is a requirement for IRA contributions:
http://fairmark.com/retirement/roth-accounts/contributions-to-roth-accounts/roth-iras-for-minors/

ar-jedi
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Quoted:
Roth IRA? My three daughters each have a Roth in the appropriate Vanguard Target Retirement fund.


OP: note carefully that earned income is a requirement for IRA contributions:
http://fairmark.com/retirement/roth-accounts/contributions-to-roth-accounts/roth-iras-for-minors/

ar-jedi


She's 15.  It's not hard to create earned income for a 15 year old.
Link Posted: 6/17/2015 11:43:38 AM EDT
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She's 15.  It's not hard to create earned income for a 15 year old.
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Quoted:
Quoted:
Roth IRA? My three daughters each have a Roth in the appropriate Vanguard Target Retirement fund.


OP: note carefully that earned income is a requirement for IRA contributions:
http://fairmark.com/retirement/roth-accounts/contributions-to-roth-accounts/roth-iras-for-minors/

ar-jedi


She's 15.  It's not hard to create earned income for a 15 year old.


Teaching her to falsify irs documents might be a bridge too far at that age. If by "create" you actually work and earn money then ignore my first sentence.  

Kind of hard to give advice. OP says the backstory on the source of money doesn't matter but I would argue that it is the single most important thing in the equation. Without knowing how she got it, it's tough to say much.

Also need to know how mature she is. If she is mature I'd say refer her to some reading and forums and let her figure out for herself what she wants to do with it. Just guide her. My parents never gave me anything other than great opportunities to figure it all out on my own. I'm literally 30 years ahead of most people financially because of it.
Link Posted: 6/17/2015 11:44:46 AM EDT
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+1
Link Posted: 6/17/2015 11:46:16 AM EDT
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You need to talk to my brother.
Link Posted: 6/17/2015 11:57:37 AM EDT
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You need to talk to my brother.
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You need to talk to my brother.


What's he up to these days? And where?
Link Posted: 6/17/2015 11:58:50 AM EDT
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What's he up to these days? And where?
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You need to talk to my brother.


What's he up to these days? And where?

He was back in fucking Lawton, but he's assigned to the Springs right now.

Actually, I think he's home now.
Link Posted: 6/17/2015 11:59:15 AM EDT
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Cute, but there isn't a delivery outfit in town.
Link Posted: 6/19/2015 2:14:47 AM EDT
I wish I had picked up a cheap condo near a college or work when I hit 18... a roommate or two I would have easily paid it off or at least turned a profit.
Link Posted: 6/21/2015 1:47:02 PM EDT
Don't do savings bonds. The rate of return is horrible. What are you wanting to do with this money? If you could get her some earned income and put the money in a Roth IRA I would guess that if she never touches it this ten k would almost be enough to retire on 50 years from now when she is 65. I would invest it with vanguard in their index funds. That is what I do with my family's money.

Now if you want the money sooner like to help buy a house or something like that I wouldn't want to put it in an IRA just open up a regular brokerage account at vanguard (probably an UTMA due to her age) and invest it the same way.

You say she isn't the studious type but what are her plans for life? I am not the studious type either but I went to college and I earn more every single day than I would have had I not gone to school. I guess my point is investing this money into a college education will likely pay far greater returns for her than any investment.
Link Posted: 6/26/2015 11:04:13 PM EDT
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Quoted:
Look into I bonds.

I can't give you a summary off the top of my head, but the .gov made a product so good  for the investor (and so bad for the tac payer) that they actually limit the amount you can buy.


As in, when they first madd the I bond available, the more sophisticated investors were buying "too much."




View Quote


with a cash back credit card.
Link Posted: 6/30/2015 10:19:34 PM EDT
Low cost broad index fund. Like Vanguard offers. Like VTSAX. Reinvest all dividends. Then let it ride.
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