Question

Getting ready to set up my 16yo brother with a Roth IRA. Trying to emphasize the importance of saving early and the power of compounding to him. Any suggestions on portfolio splits or index funds to focus on? If you were 16 now, what would you do?  

Answer 1

S&P500 or Total Stock market, set it & forget it

Answer 2

At 16, it needs to be a custodial Roth IRA, right? If it is truly going to be a long term investment, VTSAX is a great place to start.  

Answer 3

A good equity index would work fine for your brother. I’m assuming he has earned income? Cheers to you for getting him on the road to riches so early in life.  

Answer 4

I put mine in a target retirement fund through vanguard. Set it and forget it.  

Comments

What is the ER for that fund?  

Answer 5

Wait til we find the floor in this recent market drop before putting money in. Not saying time the market, but we’re still in a free fall, and no bottom in sight yet

Comments

Then after that, I’d say 25 small cap, 25 mid, 25 large, 10 bond, 10 gold, and then 5% something he’s actually interested in (e sports, virtual reality, space race, etc). Might make him stick with it longer

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Love this whole response. Thanks dude.  

Answer 6

Give your bro more than a Roth. Give him an education. Tell him you will contribute to his Roth as a "company match! " Put in a dollar or 2 every time he does, up to the max for his account. Give him some buy in.