Child's UTMA fund - invest in the S&P 500?

[jeromedawg]

Hey guys,

We just had a UTMA fund recently opened for our kid. Currently the defaulted fund is SPAXX. Should I go ahead and just put all of it into the S&P 500 index fund instead?

[nereo]

assuming that the money is going to sit in that fund for a long time (10+ years) I think that's a fine place to invest it.

Ultimately you have to decide for yourself.  But in a similar position I'd probably put it all in either in the total market index or the SP500.

[jeromedawg]

assuming that the money is going to sit in that fund for a long time (10+ years) I think that's a fine place to invest it.

Ultimately you have to decide for yourself.  But in a similar position I'd probably put it all in either in the total market index or the SP500.

That's what I was thinking - can 'afford' the 'risk' at this point in time since it's ultimately for him and he won't be doing anything with it for a really long time (at least, I think haha) :)

[Dezrah]

Out of curiosity, what is the purpose/intention of the UTMA?  College savings?  Future house down-payment?  General tax-advantaged asset transfer?

[jeromedawg]

Out of curiosity, what is the purpose/intention of the UTMA?  College savings?  Future house down-payment?  General tax-advantaged asset transfer?

Probably college savings, for the most part.