Hello,
I have a situation that forces me to leave the country for a very long duration.
I would like to get some advice on investing $50k in USA for my toddler's education, etc.
I am looking for a high-rate of return so that by the time my toddler is 16 Years old, her education can be funded with this.
Here are the options that I have thought about:
1) Buy dividend ETF - SCHD
2) Buy all VOO or VTI
3) Buy VTSAX
4) Invest in SP500 (not confident about this)
5) Treasury Notes?
6) Ally Bank CD
Thank you friends, please advice.
Leaving USA and would like to invest 50k for toddler's future
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Re: Leaving USA and would like to invest 50k for toddler's future
Personally, I would do a mix of US Large Caps, US Small Caps and Total International, something like 60/20/20 to be as diversified as possible.
- asset_chaos
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Re: Leaving USA and would like to invest 50k for toddler's future
If certain you'll want the money for child's education expenses and are certain there won't be any other reason or activity to use the money for before then, can you open a 529 account for her? If so, I'd do that. I'm pretty sure you can front load $50k into a 529: I recall you can add 5 times annual gift exclusion in one go to a 529, that may vary by state. In a 529 I suggest picking one of the target commencement date funds that start off aggressive in stocks but gradually get more conservative as the date approaches for spending the money. You don't want it to happen that the day before you write the first tuition check, the stock market halves and all the tuition funds are in stocks.
Regards, |
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Guy
- DeliberateDonkey
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Re: Leaving USA and would like to invest 50k for toddler's future
Do you have a Social Security number? The easy answer is to open a 529 and put the money in an age-based/target-date index fund. If this is for college, I would not use a fixed-allocation strategy of either stocks or bonds.
Re: Leaving USA and would like to invest 50k for toddler's future
I would use VTSAX/VTI.
Another option is a target date fund if you want a fund that adjusts over time.
Another option is a target date fund if you want a fund that adjusts over time.
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