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You are here: Experts > People/Relationships > Retirement Planning > Mutual Funds > mutual funds for 9 year olds.
Expert: Warren Boroson
Date: 3/6/2005
Subject: mutual funds for 9 year olds.
Question
My son has $1,000 and wants to add small amounts on a regular basis.
Answer
Dear Roger Topalian:
One good choice would be Vanguard STAR. Its minimum is only $1,000. You can add to your holdings in $100 increments, or $50 if you join the Automatic Investments Plan. The fund owns a variety of other Vanguard funds, and winds up being about 60% in stocks and 35% in bonds. Morningstar calls the fund "a superior option for one-stop shoppers," meaning: a fund that can be your core holding. Call 800-662-7447 and ask for a prospectus and an application, and when you fill out the application, ask to have the distributions (dividends, capital gains) reinvested.
I hope this helps.
Warren
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