Fatih Han (@FatihHan91) on getquin

1Yr·

Hi Dear GQ Community,

this is my first time writing here and I would like to hear your opinions on savings plans for my son.

I gratefully accept optimizations 😁

Since his birth in June 2017 I have opened a custody account for Him. There their ETF $n/a (-0.18%) with 50€ saved.

Since September 2022 I have opened a children's account at Ginmon with a savings amount of 150€. Ginmon invests very diversified.

Since December 2022, another 150€ is saved in a children's deposit with Barmenia. These have a savings plan in $n/a (+0.26%)
$WLD (+0.23%)
$LYPS (+0.33%)
$n/a (+0.37%)
$n/a 30€ each.

My question:

Would it make more sense to open a children's account with a broker to manage the savings plans themselves? If YES which ETF's would you recommend for the savings rate of 350€?

Thank you in advance ☺️

26 Comments

Staatsmann@Staatsmann

1Yr

With all the funds I ask myself: What is the goal behind it? Why just these funds? Personally, I would put the entire sum in a world index and done. No rebalancing necessary and the management fee is only a fraction. For example, $VWCE or $VWRL Alternatively, only the $IWDA. Everything else would be too complicated for me personally for their own child.

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Krynt@Krynt

1Yr

All in $IWDA

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Rmann@Epi

1Yr

Unfortunately, I can't see the funds and can't say anything about the costs. Therefore, just in general: When should the son get his hands on the money? In the first case, it is only about 12 years, i.e. a $VWCE would probably be the best compromise between return, security and simplicity. In the second case, one can also be more aggressive and possibly take a $NDAQ. Here, there are more opportunities for higher risk. Here there are more opportunities for higher risk. More ETFs are not needed, since each one is already well diversified.

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Ironman@Ironman2022

1Yr

It's great that you're thinking about this. I can only recommend that you keep a great distance from such complicated, ill-conceived and pointlessly expensive financial constructs. Why an active water fund, why a mining fund? The only ones who earn money are insurance companies and fund managers. A single All World ETF e.g. a $VWCE is completely sufficient in this case and the performance is in all probability much better in the long run! No investment advice.

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