Author Topic: Where would you put $400/month you don't need for another 15+ years?  (Read 2740 times)

tag

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Pretty straight forward question...

We have 4 kids and are putting aside $100/month/kid for the future. Might be for college, their weddings, their house down payments, their trip abroad.....don't know yet. Could even be one or all kids don't get any of it depending on which path in life they choose :) We just know that we want to be able to help support them in the future if we end up choosing to do so.

Our kids are 6, 4, 2 and baby so we wouldn't be offering any of them any of this for many years.

I have no idea where to put this money for the time being and would so appreciate any suggestions yall have!

cincystache

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Re: Where would you put $400/month you don't need for another 15+ years?
« Reply #1 on: December 31, 2016, 03:07:49 PM »
short answer: VTSAX

long answer: I would max out all of your retirement accounts and pay off all debt but the mortgage before saving a dime for the kids.

The greatest financial gift you can give your children is NOT being a burden on them in your old age.

sol

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Re: Where would you put $400/month you don't need for another 15+ years?
« Reply #2 on: December 31, 2016, 03:12:27 PM »
15 years?  I'd go 100% stocks, but most financial advisors would put you somewhere between 10% and 40% bonds.  They do that to temper volatility and help you stay the course, though, not because it's mathematically optimal. 

VTSAX is a good choice.

tag

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Re: Where would you put $400/month you don't need for another 15+ years?
« Reply #3 on: December 31, 2016, 07:18:27 PM »
Thanks to both of you. Zero debt, mortgage is paid. Should have mentioned that. Will research your suggestions.

tag

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Re: Where would you put $400/month you don't need for another 15+ years?
« Reply #4 on: December 31, 2016, 07:21:37 PM »
Oh vanguard. Duh. Didn't know it by its acronym. We've got money there. Thanks again...

Carrie

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Re: Where would you put $400/month you don't need for another 15+ years?
« Reply #5 on: December 31, 2016, 08:02:35 PM »
Maybe look into putting half into a 529 plan if you can get some tax benefit in your state.

Hey It's Me

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Re: Where would you put $400/month you don't need for another 15+ years?
« Reply #6 on: December 31, 2016, 11:08:19 PM »
529 if your state offers a tax incentive for sure. In NY you get to deduct up to 10K annually from your state income taxes for 529 contributions

mohawkbrah

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Re: Where would you put $400/month you don't need for another 15+ years?
« Reply #7 on: January 01, 2017, 11:45:00 AM »
i'll PM you my bank account number and sort code. i look forward to seeing the direct debit from you

soccerluvof4

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Re: Where would you put $400/month you don't need for another 15+ years?
« Reply #8 on: January 02, 2017, 05:12:40 AM »
I agree with those that suggested VTSAX

Vertical Mode

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Re: Where would you put $400/month you don't need for another 15+ years?
« Reply #9 on: January 02, 2017, 06:23:55 AM »
I'm with sol, 100% stocks. VTSAX is a good choice for efficiently accomplishing that.

Frugalman19

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Re: Where would you put $400/month you don't need for another 15+ years?
« Reply #10 on: January 02, 2017, 06:59:24 PM »
short answer: VTSAX

long answer: I would max out all of your retirement accounts and pay off all debt but the mortgage before saving a dime for the kids.

The greatest financial gift you can give your children is NOT being a burden on them in your old age.

Im a financial advisor and I use that quote on a weekly basis, so good. I heard it once from my mentor 10 years ago and this is literally the only other place ive seen it. Awesome.

boarder42

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Re: Where would you put $400/month you don't need for another 15+ years?
« Reply #11 on: January 03, 2017, 07:34:38 AM »
529s would be a no for me. it doesnt say college it says multitudes of things and 529s have penalties when not used for schooling costs.