jad, 401 k for the kids, sell and buy after a correction ?
i've been thinking about this for weeks, to keep it simple i had the kids go 100 % spy in their 401k, not many other low cost options. After 10 years the money adds up, now what, sell, and hope to buyback down 20 % ? sell 1/2 and hope to buyback or just let it ride another 30 years and have millions and never touch it ?
btw, if its not to much trouble if you funded your 401k monthly for the past 10 years and maxed it out per year , about how much is the balance today after 10 years ? thanks.
hc, my two sons have traditional IRAs and are invested in age appropriate Vanguard Target Retirement, TR, funds that start with the following allocation: 63% total US stock market, 27% total international stock market, and 10% total US bond market. The funds automatically adjust the allocations as they near their target dates. My youngest son now has a 401(k) and is allocating his monthly contribution into a different vendor's TR fund (70%) and a utilities fund (30%), in an nod to where his maternal grandfather made his money.
I really had to encourage them to select funds that wound pretty much run on autopilot. I'm not going to be around to help them. Plus at this point in their lives they usually have me on ignore anyways. The two of them constantly reminded of the following quote from Mark Twain:
"When I was a boy of fourteen, my father was so ignorant I could hardly stand to have the old man around. But when I got to be twenty-one, I was astonished at how much the old man had learned in seven years."
Their older sister is MRDD, and her needs are quite a bit different, don't ask, I can't, and won't elaborate.
thanks bud, my kids are early 30s, why any bonds with a 35 year time frame ? my guess is buffett would say 100 % spy over any bonds from here, no ? btw, when you get your kids out of college debt free, they question you much less, lol. PLUS, the expert RIA in their family who suggested cali muni bonds over spy in a 529 doesnt look too bright so far. scary dude.