What Investment/fund/savings can I do for $20 each (2 kids under 1y) a month?

Question

What Investment/fund/savings can I do for $20 each a month:

Looking to invest $20 a month for each of my 2 kids that under 1yr.

I will continue to add to it the next 20/30yrs and then they can add to it (take it over) for there 401k or IRA so they will have a head start on there retirement.

With 2 new kids, just moved into a new house (I m 34:have a 401k/IRA-not much but I am contributing) For a little while $20 a month is all I can do and I also do 529 plan for both of them.

Answer 1

From Vanguard Funds

"The minimum initial investment for the Vanguard 529 Plan is $3,000. Once established, there is a $20 annual maintenance fee on balances less than $3,000 per 529 account."

http://www.vanguard.com/us/accounttypes/...

Check around.

watch for account fees and "annual portfolio fees!"

You should pay ZERO in "portfolio fees" (like Schwab ripp off)

Account fees can be waved after a min is deposited. AT $20.00 a month, you may want to just put the money in a separate savings account until you have a balance to avoid account fees.

Answer 2

Since you are already doing a 529 plan for each of them, then your best bet is to stick with a high yield savings (3-4% for most on-line savings accounts) or a high yield money market account.  Most brokerage firms will offer these money market accounts that have exposure to the market and typically earn more money than a standard savings account (however, some have a minimum that you can add every month).  Your kids should feel privileged for having a parent that cares so much about their financial future.  Good luck.