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*breaksracquet
12-06-2011, 06:05 PM
Anyone out there start one of these for their child/children? What sort of information should a new parent be looking for when wanting to start a savings plan? thanks!

OTMPut
12-06-2011, 06:12 PM
mine is a portfolio of property and a monthly saving plan into money market and passive broad based equity index tracker fund. mine is only 3.5y old though.

my philosophy is to avoid as much fees as possible to pay "experts".

SalvadorVeiga
12-08-2011, 02:16 PM
Although I'm an active investor and a market timer using several quantitative models I do agree with OTMPut.

For the "average joe", a passive approach diversified among several asset classes is the best method.

Invest in low cost funds that track indexes such as Vanguard or iShares either ETF's or Mutual Funds across several asset classes such as Bonds, Commodities, Gold/Silver, Equities, Foreign Equities (both developed and emerging markets) and Real Estate.

As a side note I do think that although some markets are poised to decline severely there are other markets that are at the brisk of a secular bull market much alike what happened in USA from 1982 until 2000.

These markets that I believe are in the midst of a beginning of a secular bull are India, South Korea, Taiwan, Indonesia, Hong Kong and also the majority of markets in the Middle East which appear to be ending a secular bear market.

Also very important that you should contribute to the portfolio periodically by X dollars per month or every quarter, etc doesn't matter.

bulldawg
12-08-2011, 02:23 PM
Looks like you're in NC...go to CFNC.org and establish a 529 plan for your child. Works like a 401k = tax-deferred growth, tax-exempt payments for qualified education expenses, etc. Then link a credit card to upromise.com, and a % of your purchases are credited to the 529 plan = free money. I tell all of my clients this same information...not all "experts" are greedy, regardless of what some members of this forum think.

OTMPut
12-08-2011, 05:22 PM
Looks like you're in NC...go to CFNC.org and establish a 529 plan for your child. Works like a 401k = tax-deferred growth, tax-exempt payments for qualified education expenses, etc. Then link a credit card to upromise.com, and a % of your purchases are credited to the 529 plan = free money. I tell all of my clients this same information...not all "experts" are greedy, regardless of what some members of this forum think.

greediness was not what i had in my mind. 50 years of asset allocation has convincingly disproven value of active management (net of fees and risks that it entails) over passive management. therefore i avoid paying management fees to get a portfolio actively managed.

thanks to technology, we have far more tools with a retial investor to help him implement a simple, robust "do it yourself" strategy. of course with tax being so complicated, you need to pay for the experts to optimise from a tax perspective. but again, if you are not looking at tens of millions of dollars in regular investment income, the tax saving vs grief, time spent, fees to expert may not be very worthwhile.