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Was this a dumb move?
Old 11-20-2017, 10:05 AM   #1
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Was this a dumb move?

ItI just moved all my brokerage account PWZ and cash dividends to my Legacy Account resetting dividends in PWZ to cash instead of reinvest. The thought was that it basically assures each grandkid 50k+ compounding in inheritage in index & monthly allowance while in college (1 there now, 2 next year) leaving me my other dividends to spend / donate however I wish. I've been pondering this for a few weeks and decided to just jump in.

Leaves my brokerage account for just trading but severely diminished.

Dumb or not? How do you handled investments set aside just for your kids / grandkids to inherit? Do you separate it out?
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Old 01-10-2018, 04:01 PM   #2
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Updated asset allocation in 3 core accounts:
Lg cap index 67.9%
Sm cap index 5.8%
Int index 18%
Cash / bonds 8.3%

Starting off again with options -- I had sold off all my individual holdings ex BAC to set up legacy account & solidify core account. Plus I don't have 529s. That left my trading account woefully depleted so here I go again
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Old 01-10-2018, 05:01 PM   #3
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Can't help. My financial decisions are designed to make sure DW and I both pass the Pearly Gates with the best possible care and no burden on taxpayers or family. Anything left is the estate for heirs.
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Old 01-10-2018, 05:30 PM   #4
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I think what I'm trying to figure out is what is a reasonable percentage to put into a trading account that includes options. Some people throw clay as a hobby, others garden; I like to travel and trade. But I did come to the epiphany that my investments needs to be primarily in index ETFs
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Old 01-10-2018, 07:00 PM   #5
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I generally limited play money in a trading account to 5%. When I was doing well, I could be happy with my prescience. When things turned badly, it couldn't hurt me too much.
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Old 01-10-2018, 09:09 PM   #6
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Successful investing should be boring. Your's sounds way too exciting for me. If you are trading options, then good luck with the grandchildren's college funds.
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Old 01-10-2018, 09:19 PM   #7
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Thank you, VanWinkle. I subscribe to the Core / Explore investing theory. Hence my above allocation. Furthermore it is not my responsibility as a grandma to pay for their college education. But that aside:
- GS1 has a full ride
- GS2 will start at a JC and the 1st yr is free in California
- 5 more start in the future, hopefully JCs 1st and CSUs average 25k yr Inc housing.
Their parents can swing that (only 1 in college at a time .... I can cash flow it if necessary but DS already set his kids $$ aside)

Growing_Older, 5% for active trading / options sounds reasonable
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Old 01-10-2018, 09:39 PM   #8
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Quote:
Originally Posted by gayl View Post
Thank you, VanWinkle. I subscribe to the Core / Explore investing theory. Hence my above allocation. Furthermore it is not my responsibility as a grandma to pay for their college education. But that aside:
- GS1 has a full ride
- GS2 will start at a JC and the 1st yr is free in California
- 5 more start in the future, hopefully JCs 1st and CSUs average 25k yr Inc housing.
Their parents can swing that (only 1 in college at a time .... I can cash flow it if necessary but DS already set his kids $$ aside)

Growing_Older, 5% for active trading / options sounds reasonable
Agreed, best to you,

VW
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