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Roth IRA for my grandson

Donna
in Fund Discussions
Some months ago, I asked for suggestions for a fund for my 21-year-old grandson, who wanted to open a Roth IRA. Many people gave me advice and suggestions, which I so appreciated. After talking with my grandson and passing along suggestions, he decided on FXAIX, Fidelity 500 Index Fund. And, my 25-year-old granddaughter (his sister) decided to open a Roth also, and into the same fund. I helped them open their accounts over the weekend. I wanted to come back and say thank you again, and let you know what he (and now she) decided.

Comments

  • CrashCrash
    Marvelous. Thanks for telling us. +1. :)
  • msf
    Congratulations to them. They're in good company, especially starting out.

    Warren Buffett called an S&P 500 index fund “the best thing” for most people who want to invest.
    As part of his remarks offering some broader advice about investing at his company’s first-ever virtual annual meeting on May 2 [2020], Buffett said, “In my view, for most people, the best thing to do is to own the S&P 500 index fund,” which would track the S&P 500.
  • beebee
    A couple of links that I looked at today related to Roth IRAs:

    Are Roth IRAs Overrated?
    We discuss:

    Diversification between tax sources for retirement savings
    It doesn’t have to be all or nothing with these decisions
    The compounding benefits of a Roth
    If you’re at the point of optimizing you’ve probably already won
    Does a Roth make your retirement planning simpler?
    What if you don’t get a tax break on your traditional IRA contribution?
    What’s the tipping point to go from Roth to traditional contributions?
    What does Bill do with his own assets?

    Podcast is embedded in link:
    are-roth-iras-overrated
  • JonGaltIII
    @bee - terrific share on a much discussed subject.
  • CrashCrash
    I did not use Roth. I went with Trad. IRA. It has worked out nicely--- apart from the $5,000 in non-deductible contributions I made--- since in those years, I owed no tax to deduct the contributions against. (Who would have ever dreamed?) But my tax guy is great. Eventually, we WILL get back that $$$, non-taxable. I'm not in a hurry. Our present living circumstances are rather comfortable.
  • JonGaltIII
    All grandsons or grandaughters should be so fortunate. Well done @Donna
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