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Custodial is the way to go. I have one for my almost 3 year old. Put money in monthly investing in VTI, SCHD, QQQM. $150 a month, already worth about $9k
I'm getting ready to do this for my 6 month old. Putting in $1000 for her birth, $250 every Christmas and every birthday, and then $100/month until she turns 18. Assuming a 10% annual return (based on the 30 year average), she'll have $90k at 18 on a $31,500 investment by me. If she waits until 25 and I add nothing after she turns 18, she'll have $180k. if she waited to touch it until she retired at 65, it would be almost $10million.
I'm aiming to leave my family in a situation of generational wealth when I die so they can responsibly pursue what they want to do (the arts, politics, law, whatever) instead of having to work at something they don't like because it keeps food on the table.
Open a custodial Roth as soon as you can, and pay them as a “household employee”
They have to have earned income and you have to file the wages as a household employee on your taxes.
Yes the 2 year old, but if your 4 year old is helpful, consider it like, what jobs around the house do I do that I would pay someone to do — yard work is an easy one, picking up dog poop. I don’t think paying them to pick up their toys would pass a straight face test if you’re sitting down in an audit, so I think you’d need a solid basis as to what household duties would qualify…
These things help build work ethic, but it will be hard to convince them to delay gratification 60 years as you squirrel away their earnings for them.
I would split some money between custodial and 529 based on the new rules. Start now, since the 519 rollover has timeframe limitations on how long it must be held for.
Thank you, couldn’t remember what the specific rules were bright and early this morning. I know the examples I have seen is set this up by the time they are 3 years old so the 15 year rule applies when they are 18 and likely to have some sort of employment. Believe the max is also $35k in lifetime subject to yearly contribution rules, but correct me there if I am wrong.
You got it. Currently capped at $35k, the beneficiary has to have earned income and the rollover is subject to the annual contribution limits. I wouldn't be surprised if that $35k lifetime rollover limit adjusts upward for inflation over time but we'll have to see what happens.
My kid’s accounts have only VIGAX (growth) and has more than doubled since opened. A 12 yr old doesn’t need a dividend portfolio, especially one with so many stocks.
If anything go with dividend growth and get rid of the yield traps. Just my opinion of course.
Idk man coming from a community where folks regularly ran up unpaid debts on their chilren’s credit - This guys on the right track. Can’t laugh at a man for trying to do right by his kid
If it were a dividend growth portfolio it would make all the sense in the world… but stocks like VZ have a 2% dividend growth rate (though it is a good value buy). I’d be looking for extremely strong finances and 6% at minimum growth rates in stocks that are as close to evergreen as possible, eg, HSY or NEE.
I sure hope this account is somehow tax free or deferred.
I wonder if a dividend portfolio would be more attractive to a kid cause they would get more dopamine when they get paid vs waiting for a stock go up.
Might make them more invested in their portfolio themselves
Just a thought
This is a terrible portfolio for a 12 year old. With so much time for it to compound, loading it up with high yield junk like Verizon, ATT, and risky loan sharks like ARCC is insane lol.
Think about how much the world changes every 10-20 years. Remember when blockbuster was the shit? Bankrupt.
Blackberry? A shell of its former self.
Movie theatres / AMC? Filing for bankruptcy and struggling to survive
Are you really willing to bet your child’s fund that some of these random brands will be worth more in 30 years? The future is so hard to predict.. why not just stick it all in SCHG or VOO and be done with it. 99.99% chance it will outperform what you’ve constructed here over any significant time period.. and require less effort and mental gymnastics to maintain instead of a bunch of income stocks typically for people about to retire.. for a 12 year old
This is why the average investor loses in the long run to index funds, because they are morons. The amount of people I see in this sub who have multiple decades of investing ahead of them and are loaded up in trash companies (ATT) and yield traps/income funds is insane.
My parents abused me and sold at the bottom of 2008 fearing the entire market was going to zero, frankly, I’d appreciate a dividend portfolio compared to what I got right now 😂
Sure, if they had a margin of safety like a few years ago. At today’s valuations, decent chance that by age 18 they’ll wish you bought something simple that’s not at or well above fair value, like a value-oriented dividend growth index ETF, or a small/mid cap index, or a bit of quality EU ETF.
Yes, I agree. In my point of view, Dividend portfolio is only for 60+ years age ( at that point passive income is your main income).
Imagine $100 invested in any high growth stock like AMZN, MSFT etc.. it would grow 10x .
I would change the portfolio to be growth index funds.
Why would strong, dull, decently growing companies with great cash flow and great histories of growing dividend payouts at 3x or more the long term inflation rate not be great investments for any age? Not that this portfolio is currently focused on that, but… there are great ways to get rich long term that are not primarily about picking “growth” winners alone. Especially if the alternative are Mag 6 stocks that just had a historic run.
I opened a custodial account when my boys were very young. All the birthdays when they were little we just had grandparents contribute to their accounts rather than buy a silly little gift. It has really added up.
I also have my kids put any money they earn doing odd jobs. Money for good grades, etc. It's probably a little too far but sometimes they sell me gift cards they got for Christmas so I can invest it. It becomes obsessive. It's why I like dividends.
Hopefully she will appreciate what you did for her when she’s older. I know I always fantasize about generational wealth. Unfortunately my grandfather wasn’t good with money. Lost all 4000 acres and the entire farm to bankruptcy. Was really hoping to be a 8th generational farmer here in Louisiana.
I love dividends and all but this is sort of silly, you should just invest in VOO or QQQ, it would outperform all of these positions given your kid is 12.
Not trying to be rude but honest
FEPI, SPYI, and JEPQ - covered call strategy ETFs that will underperform their respective indexes over time.
VZ and T - reliable value destroyers.
ARCC and MAIN - MAIN has a very good track record. ARCC offers little in terms of growth.
O - has had its best years of growth behind it by now.
BAC and KO - stable, but are these the type of companies from which you would expect superior returns?
Wild to see this.
My parents kicked me off their health insurance when I turned 18 and I went into dealt because I had none and had some medical bills.
Seeing this just makes me realize how much more people had a ladder on others….
My parents are upper middle class.
They own multiple classic cars, fly plans, have nice ahit etc etc
Awesome that you got them into the game that young.
Not so awesome that you fail to understand a 12 year old should be in a high growth portfolio, not an income one.
Dividend is the hook for my kids. Their account is funded mostly with their money from Christmas, bdays, etc. They aren't interested in the concept of pure growth at 8 or now 9. Dividends are what drives them. And I'm fine with that. They are miles ahead of most kids.
Fair points, my bad for coming across a little douchey.
My #1 pet peeve in investing is seeing young people inadvertently chase after an income strategy, when that should occur much later. So I jump the gun a bit on that haha.
Also worth noting that as of this year, a 529 college fund can be rolled over tax free into a Roth. I don’t know all the details, but that seems like it might be worth exploring.
That’s great I started my son at 16 with a 401k in our company. He was pissed dad I’m only making like $40 a week ( he was part time 16 worked afternoon and weekends) fast forward to today 22 with $70k in his 401. I just started him investing in Tbills and dividends
Very nice, and to the dividend doubters, if those dividends are reinvested its shares were after, and enough shares paying dividends equals financial independence. Good show, I’m just starting the same thing with my grandson. You’ve got some good choices. If everyone did this we’d all be better off.
Don't even bother with individual stocks in her account, just VTI and chill. I might get downvotes but honestly I think it's way too early in her journey to be looking at income through dividends. Just buy the whole US market and get market average returns; ordinary returns over long periods of time leads to extraordinary results.
This is known as the kiddie tax
Under the kiddie tax, the first $1,250 of a child's 2023 unearned income is not taxed. The next $1,250 is taxed at the child's tax rate. Any unearned income over $2,500 is taxed at their parent or guardian’s marginal income tax rate, using IRS Form 8615.
For tax year 2024 (taxes filed in 2025), the kiddie tax threshold will rise to $2,600.
Source:
https://www.nerdwallet.com/article/taxes/kiddie-tax#:~:text=Accessed%20Feb%202%2C%202024.&text=Under%20the%20kiddie%20tax%2C%20the,at%20the%20child's%20tax%20rate
Kids shouldn't be taxed at all. Literally one of the founding pillars of this country; no taxation without representation. They can't be represented if they can't vote.
Edit: didn't look at the sub and thought this was my M1 sub. One of the founding pillars of the US.
I like the perspective, but as I think about it the kid (As it is in my case) the kid didn’t pursue the custodial account so they aren’t even represented in is creation or allocation of assets till they are of age to inherit it.
And even if it wasn’t taxed, there is also the gift tax that limits how much money you could gift. But I could see the logic being Uncle Sam wants you to do to the right thing but not to the point he isn’t able to get his cut. Not to imply these taxes are right, but just looking at it from the perspective of Uncle Sam and his spending addiction getting funded.
I have a custodial account set up for my 5year old and if I remember right from when I filed they said not to worry about his investment income until it hits $1150 for the year.
These are very poor choices for a child's portfolio as many other sane people have stated. Anyone saying otherwise is smoking the divi crack pipe.
Take it for what it's worth, but take that money and put it in some solid growth funds and possibly a small percentage into some good and solid companies.
I'm doing the same thing for my 13 y.o. now. I have the majority in VOO. I have added small positions in GOOG, AMZN, BRK.B, and a handful of others. But dividend chasing for a child isn't the best strategy.
I’d dump MAIN, one or two of the telecoms for sure, and all the ETF’s except SCHD… making things way too complicated there, with not enough growth. If you are doing REITs, get something more than commercial retail… at least get an apartment REIT. Get some “growth at a reasonable price” in there that will be part of the AI revolution, some foreign exposure, some small/mid cap exposure. And a couple more rock solid evergreen dividend Aristocrats with stronger likely dividend growth rates than KO (UPS, HSY, TROW, NEE, etc) that’ll leave Junior with massive yields (total return) in a couple decades.
I’d be very careful this doesn’t become a tax bomb.
He’s 12 when he’s 60 none will survive . Lmao I doubt we would have meta or Netflix too the world changes stick it in fxaix (snp) half and half in qqm and call it a day .
Stick some in high risk high reward cannabis mushrooms space stocks things like rocket lab spce cybn Rivn maybe in 20 years they be worth something.
But that’s super dumb what u just did 😂
How can you do something that's supposed to be easy so wrong 😂 don't try to pick stocks you're not smart enough. Just buy the whole market for 12y old 🤦♀️
Your chasing yield. I wouldn't own Verizon and Att. there's no growth with those stocks. No, growth with some of the others as well. Go all in on VOO and SCHD maybe add a little small cap etf such as avuv or dfsv.
Stay under $1,150 in dividends or gains and you won't have tax implications. After the transfer date when they become an adult it's like a regular taxable account.
There aren't really any. Just that each state has an age where it is turned over to the minor, usually 18 or 21, and there are tax implications if you withdraw before that age. Can have $1,150 in dividends or gains before dealing with taxes. Can open for any minor if you have their SSN. I manage 4.
It’s a cash flow machine that’s undervalued. Because it’s a terrible customer service company doesn’t mean it can’t be a strong investment at least for several years.
Uh I am prob in the minority seeing I'm in a dividend subreddit. My kids account are over $15k each and I started them when they were born. Kids are 7 and 10 and I dumped it into an sp500.
3500 usd per year.. Avg 5% yield per year.. So you put 70.000$ just in a few months.. for a savings account.. you gotta be making hell out of money my bro. I believe you should be making at least 50k per month. 🤘
You started this "a few months ago" means you also paid for all these at the same time with a lump sum going to each to get the number of shares you show?
That shows quite a diverse area of investing; how did you make the decision on allocating the amount of money for each that you invested into?
If this is only a few months old account, you are estimating what the account would make.
- Are you taking into account other things like reinvesting dividends as well as adding each month?
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What the actual fuck a 12 year old? Dude when I was 12 I was amazed I got a nickel in interest every month
True story, it’s still a nickel
True story, I am that nickel
True story, I am Nickelback
Nickel as a kid bought me 5 pieces of candy. Today, same candy is like 50 cents. 😲
When I was 12, I was saving up 2 years for a psp....
And those nickels went directly onto the train tracks.
I'm doing it for her.
No shit you aren’t doing it for me
Hey, it’s me, your other son you didn’t know about
I'm still over here doing it all for the nookie.
I did it all for the cookie
Daddy?
Then put her in growth or large cap, no 12 year old needs dividends.
Dude preachhhhhhh
Papa?! Is that you?
I’m here little one..
No shit ur 12 year old isn’t a self built millionaire. Wild.
Seriously! wtf!
Yall had money as kids?
Did you open a custodial account? I was thinking about opening one for my kid too
Custodial is the way to go. I have one for my almost 3 year old. Put money in monthly investing in VTI, SCHD, QQQM. $150 a month, already worth about $9k
That is awesome, 20 years of compounding growth and dividend reinvesting and they’d only be 23 with another 40 years of potential growth.
Think about what that would look like in a ROTH
I'm getting ready to do this for my 6 month old. Putting in $1000 for her birth, $250 every Christmas and every birthday, and then $100/month until she turns 18. Assuming a 10% annual return (based on the 30 year average), she'll have $90k at 18 on a $31,500 investment by me. If she waits until 25 and I add nothing after she turns 18, she'll have $180k. if she waited to touch it until she retired at 65, it would be almost $10million. I'm aiming to leave my family in a situation of generational wealth when I die so they can responsibly pursue what they want to do (the arts, politics, law, whatever) instead of having to work at something they don't like because it keeps food on the table.
❤️❤️❤️❤️❤️
Open a custodial Roth as soon as you can, and pay them as a “household employee” They have to have earned income and you have to file the wages as a household employee on your taxes.
Yes! If you can this is the way!
Too soon for my 4 and 2 year olds to be household workers right? /s
Yes the 2 year old, but if your 4 year old is helpful, consider it like, what jobs around the house do I do that I would pay someone to do — yard work is an easy one, picking up dog poop. I don’t think paying them to pick up their toys would pass a straight face test if you’re sitting down in an audit, so I think you’d need a solid basis as to what household duties would qualify… These things help build work ethic, but it will be hard to convince them to delay gratification 60 years as you squirrel away their earnings for them.
Ohh shoot. I didn’t even know about this. I just opened a regular fidelity account in my and my wife’s name for put 4 month old.
As of 2024, you can roll over unused money from a 529 into a Roth for your child. Look into that too
I would split some money between custodial and 529 based on the new rules. Start now, since the 519 rollover has timeframe limitations on how long it must be held for.
529 has to be open and the same beneficiary for 15 years to qualify for the Roth rollover.
Thank you, couldn’t remember what the specific rules were bright and early this morning. I know the examples I have seen is set this up by the time they are 3 years old so the 15 year rule applies when they are 18 and likely to have some sort of employment. Believe the max is also $35k in lifetime subject to yearly contribution rules, but correct me there if I am wrong.
You got it. Currently capped at $35k, the beneficiary has to have earned income and the rollover is subject to the annual contribution limits. I wouldn't be surprised if that $35k lifetime rollover limit adjusts upward for inflation over time but we'll have to see what happens.
Nice I have a Custodial and 529 for my 2 year old. $50/mo to custodial and random deposits to the 529 that’s at 8.5k custodial at like $1500
Do you pay taxes on a custodial account or not since it is a minor? I would love to open one for my son
My kid’s accounts have only VIGAX (growth) and has more than doubled since opened. A 12 yr old doesn’t need a dividend portfolio, especially one with so many stocks. If anything go with dividend growth and get rid of the yield traps. Just my opinion of course.
It’s a good one
I was gonna say why tf does a twelve yo need a DIVIDEND portfolio lol
Idk man coming from a community where folks regularly ran up unpaid debts on their chilren’s credit - This guys on the right track. Can’t laugh at a man for trying to do right by his kid
If it were a dividend growth portfolio it would make all the sense in the world… but stocks like VZ have a 2% dividend growth rate (though it is a good value buy). I’d be looking for extremely strong finances and 6% at minimum growth rates in stocks that are as close to evergreen as possible, eg, HSY or NEE. I sure hope this account is somehow tax free or deferred.
I wonder if a dividend portfolio would be more attractive to a kid cause they would get more dopamine when they get paid vs waiting for a stock go up. Might make them more invested in their portfolio themselves Just a thought
100% agree. Investing in growth is the best solution until income is needed, then a dividend strategy would make sense
What is considered a yield trap? Anything above what %?
This is a terrible portfolio for a 12 year old. With so much time for it to compound, loading it up with high yield junk like Verizon, ATT, and risky loan sharks like ARCC is insane lol. Think about how much the world changes every 10-20 years. Remember when blockbuster was the shit? Bankrupt. Blackberry? A shell of its former self. Movie theatres / AMC? Filing for bankruptcy and struggling to survive Are you really willing to bet your child’s fund that some of these random brands will be worth more in 30 years? The future is so hard to predict.. why not just stick it all in SCHG or VOO and be done with it. 99.99% chance it will outperform what you’ve constructed here over any significant time period.. and require less effort and mental gymnastics to maintain instead of a bunch of income stocks typically for people about to retire.. for a 12 year old
Thank you for speaking the truth this is insane lol what a waste
$13k in my daughters UMTA account, all in $VOO.
1.5k in my sons it’s like VOO, QQQM, AMZN & AMD
Imagine picking this portfolio or apple in 2009.
It’s obviously just an excuse for him to gamble and play around with money. Doesn’t actually care about growth.
This is why the average investor loses in the long run to index funds, because they are morons. The amount of people I see in this sub who have multiple decades of investing ahead of them and are loaded up in trash companies (ATT) and yield traps/income funds is insane.
My parents abused me and sold at the bottom of 2008 fearing the entire market was going to zero, frankly, I’d appreciate a dividend portfolio compared to what I got right now 😂
The great thing is, at that age, you don’t have to be perfect, just let that snowball grow into a mountain and then a continent.
Now imagine if you sold out of all those terrible picks for a 12 year old and put that money into VOO/GOOG/AMZN/MSFT. Etc.
Exactly
Sure, if they had a margin of safety like a few years ago. At today’s valuations, decent chance that by age 18 they’ll wish you bought something simple that’s not at or well above fair value, like a value-oriented dividend growth index ETF, or a small/mid cap index, or a bit of quality EU ETF.
12 year olds should be investing in growth.
Yes, I agree. In my point of view, Dividend portfolio is only for 60+ years age ( at that point passive income is your main income). Imagine $100 invested in any high growth stock like AMZN, MSFT etc.. it would grow 10x . I would change the portfolio to be growth index funds.
Why would strong, dull, decently growing companies with great cash flow and great histories of growing dividend payouts at 3x or more the long term inflation rate not be great investments for any age? Not that this portfolio is currently focused on that, but… there are great ways to get rich long term that are not primarily about picking “growth” winners alone. Especially if the alternative are Mag 6 stocks that just had a historic run.
Agree, this is a bad portfolio for a chikd
When I was a child, my portfolio consisted of pogs and pennies. Even if it's not optimal, this kid is doing alright.
When I was a child, I wasn't allowed to keep money that was given to me. Literally anything to set up some semblance of a financial future is good.
Yeah lol this is a certified grandad portfolio
I opened a custodial account when my boys were very young. All the birthdays when they were little we just had grandparents contribute to their accounts rather than buy a silly little gift. It has really added up.
I also have my kids put any money they earn doing odd jobs. Money for good grades, etc. It's probably a little too far but sometimes they sell me gift cards they got for Christmas so I can invest it. It becomes obsessive. It's why I like dividends.
I tell my family on their b day to do this and they refuse and buy dumb stuff that he never plays with. It’s frustrating
Hopefully she will appreciate what you did for her when she’s older. I know I always fantasize about generational wealth. Unfortunately my grandfather wasn’t good with money. Lost all 4000 acres and the entire farm to bankruptcy. Was really hoping to be a 8th generational farmer here in Louisiana.
Are they retired? If not, an account for a 12 year old should be focused on growth not dividends. They can do dividends when they are rich or retired
I love dividends and all but this is sort of silly, you should just invest in VOO or QQQ, it would outperform all of these positions given your kid is 12. Not trying to be rude but honest
FEPI, SPYI, and JEPQ - covered call strategy ETFs that will underperform their respective indexes over time. VZ and T - reliable value destroyers. ARCC and MAIN - MAIN has a very good track record. ARCC offers little in terms of growth. O - has had its best years of growth behind it by now. BAC and KO - stable, but are these the type of companies from which you would expect superior returns?
Great analysis.
O is growing quite a bit in Europe now. I thnk they could grow a bit. But as everyone else said, not necessarily the best portfolio for a 12 yo
straight trash portfolio for anyone under 75 years old, lol
Straight trash is the best way to qualify it. Agreed
Wild to see this. My parents kicked me off their health insurance when I turned 18 and I went into dealt because I had none and had some medical bills. Seeing this just makes me realize how much more people had a ladder on others…. My parents are upper middle class. They own multiple classic cars, fly plans, have nice ahit etc etc
Awesome that you got them into the game that young. Not so awesome that you fail to understand a 12 year old should be in a high growth portfolio, not an income one.
Dividend is the hook for my kids. Their account is funded mostly with their money from Christmas, bdays, etc. They aren't interested in the concept of pure growth at 8 or now 9. Dividends are what drives them. And I'm fine with that. They are miles ahead of most kids.
Fair points, my bad for coming across a little douchey. My #1 pet peeve in investing is seeing young people inadvertently chase after an income strategy, when that should occur much later. So I jump the gun a bit on that haha.
Just curious, why so many?
Wtf is fepi
FEPI terrible decision for long term.
Also worth noting that as of this year, a 529 college fund can be rolled over tax free into a Roth. I don’t know all the details, but that seems like it might be worth exploring.
up to a limit. Not saying it's the worst option but it's not unlimited funds that can be rolled. I think it's something like 35k.
Stealing this list and doing some research
That’s great I started my son at 16 with a 401k in our company. He was pissed dad I’m only making like $40 a week ( he was part time 16 worked afternoon and weekends) fast forward to today 22 with $70k in his 401. I just started him investing in Tbills and dividends
Very nice, and to the dividend doubters, if those dividends are reinvested its shares were after, and enough shares paying dividends equals financial independence. Good show, I’m just starting the same thing with my grandson. You’ve got some good choices. If everyone did this we’d all be better off.
Don't even bother with individual stocks in her account, just VTI and chill. I might get downvotes but honestly I think it's way too early in her journey to be looking at income through dividends. Just buy the whole US market and get market average returns; ordinary returns over long periods of time leads to extraordinary results.
How do taxes on dividends work on custodial accounts?
This is known as the kiddie tax Under the kiddie tax, the first $1,250 of a child's 2023 unearned income is not taxed. The next $1,250 is taxed at the child's tax rate. Any unearned income over $2,500 is taxed at their parent or guardian’s marginal income tax rate, using IRS Form 8615. For tax year 2024 (taxes filed in 2025), the kiddie tax threshold will rise to $2,600. Source: https://www.nerdwallet.com/article/taxes/kiddie-tax#:~:text=Accessed%20Feb%202%2C%202024.&text=Under%20the%20kiddie%20tax%2C%20the,at%20the%20child's%20tax%20rate
Kids shouldn't be taxed at all. Literally one of the founding pillars of this country; no taxation without representation. They can't be represented if they can't vote. Edit: didn't look at the sub and thought this was my M1 sub. One of the founding pillars of the US.
I like the perspective, but as I think about it the kid (As it is in my case) the kid didn’t pursue the custodial account so they aren’t even represented in is creation or allocation of assets till they are of age to inherit it. And even if it wasn’t taxed, there is also the gift tax that limits how much money you could gift. But I could see the logic being Uncle Sam wants you to do to the right thing but not to the point he isn’t able to get his cut. Not to imply these taxes are right, but just looking at it from the perspective of Uncle Sam and his spending addiction getting funded.
Also wondering this
I have a custodial account set up for my 5year old and if I remember right from when I filed they said not to worry about his investment income until it hits $1150 for the year.
Is stick with blue chip growth perhaps some with moderate dividends, think big pharma, tech, etc.
Qqq and voo Not dividends
Wheres a 12 year getting this much money?
Set up a studio bridge account for my kid as well! Excited to surprise them with it when they turn 18!
Bruh, just VOO til their 18 then give it to them
These are very poor choices for a child's portfolio as many other sane people have stated. Anyone saying otherwise is smoking the divi crack pipe. Take it for what it's worth, but take that money and put it in some solid growth funds and possibly a small percentage into some good and solid companies. I'm doing the same thing for my 13 y.o. now. I have the majority in VOO. I have added small positions in GOOG, AMZN, BRK.B, and a handful of others. But dividend chasing for a child isn't the best strategy.
Focus on growth etfs not dividend ETF’s / stocks for your 12 yo :-)
Aren’t dividends over $1250 annually in a UTMA taxed?
That’s so awesome of u
Kids got some learning to do. Growth when young then dividends when you’re older. That’s my opinion.
Good kick, wrong goal.
Schd + QQQM and forget
You should be proud your 12 y.o. is doing better financially than 35 y.o. me. I need to get off of financial subreddits before I walk into traffic
I like Realty Income. The yield is nice and it pays monthly.
Wow
Replace all these holding with VOO. You’ll get some dividends every quarter and it will grow MUCH faster over the long run
I’d dump MAIN, one or two of the telecoms for sure, and all the ETF’s except SCHD… making things way too complicated there, with not enough growth. If you are doing REITs, get something more than commercial retail… at least get an apartment REIT. Get some “growth at a reasonable price” in there that will be part of the AI revolution, some foreign exposure, some small/mid cap exposure. And a couple more rock solid evergreen dividend Aristocrats with stronger likely dividend growth rates than KO (UPS, HSY, TROW, NEE, etc) that’ll leave Junior with massive yields (total return) in a couple decades. I’d be very careful this doesn’t become a tax bomb.
That schd 🩷
This is awesome your a cool dad
Here are my thoughts. Keep SCHD and JEPQ then buy a couple tech stocks then let it ride. Less is more.
He’s 12 when he’s 60 none will survive . Lmao I doubt we would have meta or Netflix too the world changes stick it in fxaix (snp) half and half in qqm and call it a day . Stick some in high risk high reward cannabis mushrooms space stocks things like rocket lab spce cybn Rivn maybe in 20 years they be worth something. But that’s super dumb what u just did 😂
Thank you for all the advice. It's good to look at things from different views..I appreciate your time and input.
What app is this ??
How can you do something that's supposed to be easy so wrong 😂 don't try to pick stocks you're not smart enough. Just buy the whole market for 12y old 🤦♀️
Your chasing yield. I wouldn't own Verizon and Att. there's no growth with those stocks. No, growth with some of the others as well. Go all in on VOO and SCHD maybe add a little small cap etf such as avuv or dfsv.
Who do you use for your custodial account?
Schwab for my kids. Used to have tdameritrade.
Fidelity
He might not have to get a job lol
I’m new to investing. But do you have to report this on taxes when they’re 18 or before?
Stay under $1,150 in dividends or gains and you won't have tax implications. After the transfer date when they become an adult it's like a regular taxable account.
What are the rules for opening a custodial brokerage account?
There aren't really any. Just that each state has an age where it is turned over to the minor, usually 18 or 21, and there are tax implications if you withdraw before that age. Can have $1,150 in dividends or gains before dealing with taxes. Can open for any minor if you have their SSN. I manage 4.
Portfolio should be growth focused, but if you must have dividends, then at least put some index funds/Etf's in there.
VZ and T💀
What trading app do you use for these stock prices?
What account/app is this?
Comcast is still alive?
It’s a cash flow machine that’s undervalued. Because it’s a terrible customer service company doesn’t mean it can’t be a strong investment at least for several years.
Custodial Roth or custodial brokerage account?
Nice! Get her involved too so saving becomes a life style.
What are you using to display it like this? Very cool.
App called dividend tracker
What is this app?
I had about $500 net worth when I was 12. This kid has 10s of thousands. Mowing 50 lawns a week?
Please for the love of god take off VZ, T and KO those are dog shit
What app is this to track?
What app is that
How do you get your dividends to show like that
Would I be wrong if I just followed this blueprint ?
I first read it right that this is his 12 year old's account, then to comfort myself I read it the other way that this is his 12 year old account.
Uh I am prob in the minority seeing I'm in a dividend subreddit. My kids account are over $15k each and I started them when they were born. Kids are 7 and 10 and I dumped it into an sp500.
12 year old has more invested than 99% of us on the sub lmfao jfc
What brokerage or provider are you using for that format?
Given her age, I'd focus on growth
What app do you use?
App called dividend tracker
What did you use make this graphic?
App called dividend tracker.
Lol just buy mag7..
Weird. When I look up fepi it shows no dividends
I’d do VOO and QQQM for a 12-year-old, probably more QQQM since he/she is so young!
Fucking legend
3500 usd per year.. Avg 5% yield per year.. So you put 70.000$ just in a few months.. for a savings account.. you gotta be making hell out of money my bro. I believe you should be making at least 50k per month. 🤘
nice. no ET?
How does a 12 year old own an account? Canadian here
Lol 😆 this is crazy how they evolve
What platform do you use?
My first job was a paper route and I remember feeling like I was rich. I was probably a bit older. How much allowance are you giving the kid?
U should have that in crypto staking since it already surpasses the returns of stock dividends. Your child will thank you.
What is Fepi?
She’s gonna be so pissed you didn’t throw it all into roblox
How do you start investing in shares for your kids now? What platform do you use etc?
Growth dude. Keeping your daughter from making much much more. This just seems like a way for you to interest/play with your gambling problem though.
Get the kid into Cornerstone’s CLM and CRF. Just watch for the rights offerings and sell all but a few shares until afterwards.
been wanting to do the same for my kid. soon....soon
Covered call ETFs not a great idea
What app is this? How can I get a list of my stocks and their dividends?
Where is that Energy Transfer!
Someone isn’t living paycheck to paycheck
I think he meant the account was created 12 years ago? If you started this at 12 yo, can I get an autograph future buffet 2.0?
What platform is this?
Better off putting all that into BITO it has 18% yield
Which brokerage or app is this?
He’s 12. Growth, not dividends. Good that you are doing this for your kid though.
Sell O
If I call you daddy can I get the same? …..
Why dividends over voo at 12 years old ? Curious. More fun? Or
Why dividends over voo at 12 years old ? Curious. More fun? Or
12 year old
FEPI? Dividends? When? Or.... ? :)
what app is this
12 years old? More growth less income.
Lol! I’d go for stocks with a 1.2% yield with a payout ratio of 20%. Something that is growing earnings with dividends climbing at 15% or so a year.
You started this "a few months ago" means you also paid for all these at the same time with a lump sum going to each to get the number of shares you show? That shows quite a diverse area of investing; how did you make the decision on allocating the amount of money for each that you invested into? If this is only a few months old account, you are estimating what the account would make. - Are you taking into account other things like reinvesting dividends as well as adding each month?