Author Topic: Investing for my niece/nephew  (Read 2452 times)

Doctah315

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Investing for my niece/nephew
« on: October 30, 2012, 07:21:44 PM »
Hi All,

With the upcoming holiday season I have been considering how to do some more worthwhile giving to the young ones in my fmaily. One idea that struck me is to buy my niece (1 year old) and nephew (5 year old) each a share of VTSMX or similar fund. It wouldn't be a lot to start but if continued for the next 18 years or so could contribute into a significant investment and would certainly be better than another piece of junk and with higher yield than bonds. Anyone have any ideas on how to do this or similar? I certainly don't want to swing the minimum $3,000 for investors shares, is there a way to make it work with ETFs?

Thanks in advance!

grantmeaname

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Re: Investing for my niece/nephew
« Reply #1 on: October 30, 2012, 07:29:02 PM »
For ETFs, the minimum is usually the price of a single share, which for VTSMX's ETF equivalent is like $72 right now. Bonus points if you put it in a 529 for them.

Karl

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Re: Investing for my niece/nephew
« Reply #2 on: October 30, 2012, 07:56:58 PM »
Speaking of 529 plans, and depending on the state, the bigger benefit may come from a directly sold investment for college.  If you live in the same state, you may be able to claim a tax credit and/or deduction.  Also, should one of your young family members not go to college, you can easily switch the benefit to a different family member.