Ask Terry Questions Investing for my 23 year old daughter

Investing for my 23 year old daughter

By Terry Savage on September 29, 2015 | Investments

I would like to start building a nest egg for my 23 yr. old daughter to continue with. Where should I start? She could pay $50 to $100 monthly.

Terry Says:  Well, the first question is: Does she have a paying job?  If so, you could go to Vanguard and open a Roth IRA, where she is allowed to contribute up to $5,000 a year, if she makes that much.  But opening this type of account requires a $1,000 minimum for the Vanguard Target Date retirement funds.  And then she should have an automatic deduction from her checking account to add to the fund account every month.  That will teach her an important lesson!

If you don’t have that much money to start, go to, (now owned by CapitalOne), where you can open an IRA with no minimum investment, in individual stocks or ETFs, but you’ll pay annual fees and commissions on the purchases.



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