Leaving USA and would like to invest 50k for toddler's future

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lamborghini
Posts: 7
Joined: Wed Sep 19, 2018 1:47 pm

Leaving USA and would like to invest 50k for toddler's future

Post by lamborghini »

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. :sharebeer
stocknoob4111
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Joined: Sun Jan 07, 2018 11:52 am

Re: Leaving USA and would like to invest 50k for toddler's future

Post by stocknoob4111 »

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.
westpac
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Joined: Sat Apr 08, 2023 10:40 pm

Re: Leaving USA and would like to invest 50k for toddler's future

Post by westpac »

vtsax
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asset_chaos
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Joined: Tue Feb 27, 2007 5:13 pm
Location: Melbourne

Re: Leaving USA and would like to invest 50k for toddler's future

Post by asset_chaos »

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, | | Guy
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DeliberateDonkey
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Joined: Fri Dec 24, 2021 9:41 am

Re: Leaving USA and would like to invest 50k for toddler's future

Post by DeliberateDonkey »

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.
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Wiggums
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Joined: Thu Jan 31, 2019 7:02 am

Re: Leaving USA and would like to invest 50k for toddler's future

Post by Wiggums »

I would use VTSAX/VTI.

Another option is a target date fund if you want a fund that adjusts over time.
"I started with nothing and I still have most of it left."
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