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Originally Posted by LS1-IROC
Thanks for the additional info Greg! I'm pretty comfortable with the $10K investment, but I might stagger in like you suggest.
I think I'll keep my current 401K where it's at now for retirement purposes and use this additional money to invest as I see fit and be more liquid. If I can grow this investment I'd like to eventually split some of it off to help my (unborn) child with education. Is that a sound idea, or should I start a separate fund all together for the child?
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Well -- I'm a "buckets" kind of guy. I like control -- and I like to see results -- and I don't like to commingle. So for my kids - I opened separate Schwab accounts for each one - with mom and I as joint tenants... It's easier to see your progress -- and depending on their ages - you may want to be much more aggressive in their accounts than you would your "retirement" bucket.
So - for instance - I might buy a 5 year old - $500 worth of Pandora... or Facebook when it comes out... which are stocks I'd NEVER buy for myself... but these are SMALL purchases that can have big upside potential... and if you have 13 or 15 years before college year one -- you could hit a lucky one.
For me - different "goals" different mindsets - Different accounts...
So now you have 9K for you to play with and 1K for beginning school savings bucket!
I just put two through OUT OF STATE college. The real costs are not just the tuition -- it's the LIVING expenses... they have to eat - drive - books - live somewhere... have a pizza once in awhile... and they have to come home once in awhile or you go there.... Even if you live 5 blocks from the college - they won't want to live at home... Trust me. You won't WANT them home past the freshman year.