"Many baby boomers who are avidly focused on investing for their own retirement may also be looking to invest for their loved ones. Whether that's in the form of passing down some of their wealth at some day to their heirs (which means the better they do, the better their kids and grandkids will do), or simply adding funds to their loved one's 529 college savings plans, there are plenty of ways to invest in future generations."
"Personally, I'm a fan of 529 savings plans, due to the fact that there are explicit state tax-related benefits to investing in children's education. So, if you live in a state which has an income tax, and are looking to not only save for today (but for the future), this is an excellent vehicle to choose. Now, of course, the question for those willing to put some capital to work for the next generation becomes - which stocks to include in such plans?"
Many baby boomers focus on investing for both retirement and for their loved ones through wealth transfers or funding 529 college savings plans. 529 savings plans provide explicit state tax benefits for investing in children's education, making them attractive for residents of income-tax states. Long-term investment decisions should emphasize diversification and low costs. Vanguard Total Stock Market Index ETF (VTI) offers thousands of U.S. holdings, broad market exposure, and a very low 0.03% expense ratio. Low fees can materially affect long-term returns. VTI can serve as a core holding for multi-decade investment horizons.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]