Originally Posted by Rickt
My wife recently received $10K in inheritance after a family member passed away. We are 53 yeras old with two children 18Yr & 24Yrs old. We do not need the cash as we are self employed with a decent income, investments and assets. My wife wants to invest the $10K with $2.5K for each of the kids and $5K for self. Is this a good idea or it would be advisable to invest the entire $10K in her name? Also which mutual funds would you suggest that she invest in? I was thinking Vanguard's growth funds viz: Vanguard Capital Opportunity, Mid-Cap Growth & Small cap Growth Funds. Any suggestions/guidance would be appreciated. Thanks
I tilt to value generally though am not adverse to an occasional trade into growth. If you are buy-hold then I'd stick with either value funds and/or blend funds. For midcaps (MSCI index), comparing value and growth since 1992 we see:
midcap value CAGR = 11.1%
midcap growth CAGR = 8.3%
You can find plenty of discussion on this at Bogleheads.