hi everyone
if you wanted to put $100,000 away each for a set of 15-year grandsons to get on their 30th birthday would balance index (vbiax) be a good fund to put it in.
thank you
joe
putting $ 200k away
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Re: putting $ 200k away
Not a bad choice. Since 15 years is a long time, you could also forget the bonds and put it all in VTI (total us stock market) without a huge risk.
43% Total Stock Market | 53% Consumer Staples | 4% Short Term Reserves
Re: putting $ 200k away
Assuming it's going into a taxable account, I'm not personally a fan of any balanced funds in taxable. I would just do 60% VTI/40% BND and revisit once a year. Who will pay taxes on the dividends by the way?
Re: putting $ 200k away
I would go with the most mainstream and largest Vanguard funds and make your own blend because the tax treatment will probably be better as the above poster said. So something like VTSAX/VBTLX(VTI/BND) in whatever percentages you want. Vanguard target date funds or life strategy funds might be subject to large redemptions or Vanguard changing marketing/sales strategies.
A good diversified way to not have any bonds but not be solely in the United States market is VTWAX/VT. This is a representation of the total global stock market. Right now United States stocks are considered expensive and International is a value but people have been saying that for years...
A good diversified way to not have any bonds but not be solely in the United States market is VTWAX/VT. This is a representation of the total global stock market. Right now United States stocks are considered expensive and International is a value but people have been saying that for years...
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Re: putting $ 200k away
For a 20 year time horizon, I like Total World Stock Index. Who knows where we are in 20 years. Turnover and taxes are relatively low and there is broad diversification at low cost. Any of the options listed above are OK. I do worry about bonds in taxable.
Good luck!
Good luck!
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Re: putting $ 200k away
You can reduce your grandsons sequence of return risk by investing 100% stocks. This reduces the risk most people in their 20s face of the stock market doing exceptionally well while they have money little to invest, and then poorly in their 30s and 40s when they have more to invest. Do a 60/40 mix of vti and vxus for diversification. You might also consider reducing the age to like 28 which would be around the age many people consider buying a house.
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Re: putting $ 200k away
thank you for the good ideas, it will be taxable. my daughter, their mother will oversee taxes. I also like the 28-year-old idea even though it drops the investment time to 13 years but that does not mean they will take it out in 13 years. just trying to find a way to auto rebalance and i think with the shorter time frame that some bonds are important.
thank you
Joe
thank you
Joe