Investing My Kids’ Inheritances

I want to invest my kids’ inheritances to hopefully have it grow of course. What’s the best way to do this? I’d like for them to have access to their share of it at their (individual) 21st birthday. It’s currently $18k.

I think the biggest question I have is, how old are your kids? Because if it’s short term, then don’t invest it at all. But if it’s 20 years to go then it’s a different story.

My oldest has 15 years left, my current youngest has 20 years left. They are getting their inheritance at the age of 21 where at that time a portion is theirs to use as a nest egg and the other portion for investing. Currently the money is in CDs but I’d like to see greater returns.

Welcome @Contessa!

Yeah, I definitely wouldn’t leave that money in CDs, which are paying about nothing right now.

Since your kids are SO YOUNG I would probably pick a 100% stock portfolio of index funds. For example you could do something like 70% FZROX (US total market index fund) and 30% FZILX (International total market index fund).

Since they have 15 and 20 years to grow, you could just leave it in those funds for that whole time, when they’re ready for some cash, you sell a portion of it, and leave the rest to grow forever!

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