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11-20-2017, 10:05 AM
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#1
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Thinks s/he gets paid by the post
Join Date: Jun 2004
Location: Diablo Valley (SF Bay Area)
Posts: 2,705
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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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01-10-2018, 04:01 PM
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#2
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Thinks s/he gets paid by the post
Join Date: Jun 2004
Location: Diablo Valley (SF Bay Area)
Posts: 2,705
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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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01-10-2018, 05:01 PM
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#3
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Mar 2007
Posts: 14,328
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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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01-10-2018, 05:30 PM
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#4
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Thinks s/he gets paid by the post
Join Date: Jun 2004
Location: Diablo Valley (SF Bay Area)
Posts: 2,705
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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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01-10-2018, 07:00 PM
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#5
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Thinks s/he gets paid by the post
Join Date: Jun 2007
Posts: 2,657
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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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01-10-2018, 09:09 PM
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#6
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Thinks s/he gets paid by the post
Join Date: Oct 2017
Location: Tellico Village
Posts: 2,622
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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.
__________________
Retired May 13th(Friday) 2016 at age 61.
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01-10-2018, 09:19 PM
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#7
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Thinks s/he gets paid by the post
Join Date: Jun 2004
Location: Diablo Valley (SF Bay Area)
Posts: 2,705
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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 $$ aside)
Growing_Older, 5% for active trading / options sounds reasonable
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01-10-2018, 09:39 PM
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#8
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Thinks s/he gets paid by the post
Join Date: Oct 2017
Location: Tellico Village
Posts: 2,622
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 Quote:
Originally Posted by gayl
Thank you, VanWinkle. I subscribe to the Core / Explore investing theory. Hence my above allocation. Furthermore it is not my responsibility as a grandma to pay for their college education. But that aside:
- GS1 has a full ride
- GS2 will start at a JC and the 1st yr is free in California
- 5 more start in the future, hopefully JCs 1st and CSUs average 25k yr Inc housing.
Their parents can swing that (only 1 in college at a time .... I can cash flow it if necessary but DS already set his kids $$ aside)
Growing_Older, 5% for active trading / options sounds reasonable
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Agreed, best to you,
VW
__________________
Retired May 13th(Friday) 2016 at age 61.
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