UGMA account

[gwix98]

I opened up a UGMA account for my 4 year grandson last Dec with $500 invested in VTI. Closing in on 18% plus for 2020. I plan to add at least $500 annually or more depending on the year and my annual performance. I just added another $500 for 2020. I’m hoping his mom can add some over the years as well.

Looking for any other ideas on a more suitable fund/ETF for the next 14 years.

 

[jj]

What's the account for? If it's for education then it's probably not a bad idea to diversify out of stocks as he gets toward college age. Otherwise, keep it 100% stock until he's graduated from college and starts his first job (no kiddie tax) and can realize his LT capital gains at 0% tax rate if he only has half a year of salary.

Yes, VTI is a good choice.

Also, don't forget to tax gain harvest each year along the way. He has $2,200 of income to 'use up' each year.