Quote:
Originally Posted by Broken Arrow
However, if the children don't have a Roth IRA yet, I would look into that first, and stick with ETFs and mutual funds instead....
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I think you can only do the Roth route if the children have earned income this year exceeding the amount of the contribution.
I agree with the ETFs/mutual funds in a regular taxable brokerage account. As for which ones, it depends on the timeline for using the money. If further than 10 years out (first car purchase?) I would suggest
VTI (total stock index ETF) $150
VB (small cap value index ETF) $75
VEA (europe/pacific index ETF) $75
Less than that requires more diversification and less risk.
When dealing with this small amt of money, be careful about trading costs, so open with a low cost brokerage.