Roth IRA for kids

Abrinkman · October 7, 2020, 5:42pm

I am a newbie. After starting the course I got my ira going😁Opened Roth IRA for my kids 13, 16 I am self employed and will use their income paid by me to invest in these funds. I would like to start with a vanguard target retirement fund as I am looking at safe growth for their accounts. Should I go with an earlier target date for them rather than the age 65. Does it ever make sense to mix different target dates? Thank you! Love the course

ashfrica · October 8, 2020, 4:39am

That’s awesome! I’m sticking to a target date of 65 but if you want to be more aggressive then you’d choose a later date so that it doesn’t auto rebalance to too many bonds until later on. An earlier date would be more conservative as the stocks to bond ratio will be smaller earlier on.