My children, 8 and 4, have roughly 1700 total in a high yield savings account. I know it isn’t much but as my son turned 8 this week it really hit home that in another 8 years he will be driving. I would like to put this money somewhere else in the hopes of making several thousand dollars more to assist in paying cash for a car when he is of age. Just curious as to where that might be?
2 Likes
I’m just in the process of moving my children’s money over to a vanguard stocks and shares ISA For each of them, something we have here in the UK which will allow my to invest it in index funds for the next 13 years for eldest lad and 15 years for the younger one. Otherwise it would have been sat in a cash ISA which gives me 1% gross tax free per annum.
When you say HYSA, how high is it?
Tom
It was above 2% when I had opened it. Since COVID and the Fed, it is now down to 0.99%. Still higher than a regular savings of 0.01
I suppose @Shibe122 you would have to work out your opportunity cost over the next 8 years. You could find that over the next 8 years index funds don’t do very well over that decade, or you could find post Covid towards the end of 2020 and start of 2021 the market picks up a lot after this slump and you could make some advances.
Would be interested to see what @Jeremy would suggest for this sort of time period?
Thanks,
Tom
1 Like