Recently I published a story demonstrating why the rich will stay rich and the poor are always disadvantaged using the current rules.
I also took some steps, to invest some money I had into the kids’ portfolio. This portfolio can not be taken away from them, even if I or they need the money badly.
The new tax year started recently and the market was still quite volatile. I took this opportunity and invested additional money into the kids accounts. I used all allowances for this year (~ $11,000 per child). All the money went into S&P500 fund.
The blue line the three investments I made. For reference: All time high was 250 on January 02, 2020. Low during the COVID19 shutdown was 190. Average of the three transactions I bought shares for 211.1 Today the portfolio is up by 4% or $1,400.
The market volatility is far from over. We will still experience some wild Russian roller coaster rides. However, I don’t see that it will sink below 190 again.
In difficult times such as now, my provider got a little bit greedy. I put the last order over the weekend, when actual price was 205. They closed the order on Monday at highest price of the day at 211. Because of it, I cannot really do opportunity trading with it. If market will be back to 240 in two years’ time it is still 7% a year return.
Assuming that I will continue contribute until they are 18 years old:
- For the older child, in the worst-case scenario its college money or $100,000 college graduation money.
- For the younger one its $150,000 college graduation money.
All sums are in today’s money.
Did you do any trades during the roller coaster or just sat tight?