How would you invest 5k of your Dc's earned money in this current market? Long term as Dc is 8.
In their 529.
Maybe 20% in a gold ETF, maybe 20% in a short-equity strategy ETF, the rest in the S&P. Some of my friends would choose a few shares of a "Disney" or other kid-friendly stock (Nike? Viacom (I think they own Nick)? Bright Horizons?). Then he can learn about volatility as the markets react over the next few months to possible vaccines, surges, continued unrest in cities, etc. You can help him decide when to shift more into the S&P in the inevitable dip. Note that this is ONLY a prospective mix for an 8-year old!
We do a slush fund and a 529 fund. The slush fund is a vanguard index fund that we
put 25 in each month and they contribute birthday money etc as they wish - my kids are 14 and 17
and these both are now close to 40,000. Also for sons birthday we purchased a few stocks as a gift - he helped decide which so that he can learn about investing. So
fat he’s made about100 dollars on disnery and microsoft. Point being I would do an index fund with 4K and take a 1000 and buy some stocks.
Can you recommend any site or resources to learn about investing?
I'm just a ordinary individual investor, but have managed well on my own, all things considered. I always recommend starting on Vanguard's site. It's clearly written, in my opinion, and has a lot of useful information and tools for investors who want to try on their own and don't necessarily need an advisor to start. As a general rule, basic low-cost index funds, ETFs, and target-date funds, like those that Vanguard offers, are really a widely-respected approach for buy-and-hold and for regular monthly contributions. For your DC's money, a 529 is also a really solid choice--NY state's 529 plan gives some good choices for investment vehicles. More generally in terms of priorities, make sure you have a robust emergency fund (3-9 months living expenses), that you are funding your retirement plan(s) (Roth IRA, IRA, 401k, 403b) to the max, then set aside any money you need to have at hand for major purchases, and then look at general brokerage investment vehicles.