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Dividends as motivation for children

Hello everyone, I have opened a custody account with TR for my kids and am now saving the $VWCE (-0,42 %)

Every now and then the kids get gifts of money. From their grandparents for their birthdays or from us every now and then.

I'm thinking of transferring some of these gifts of money to the custody account and investing them in a distributing ETF or share so that they can see that the money is working. Otherwise, of course, the money will be spent on the 1000th toy.

I am thinking, for example, of the $JEPI (-0,3 %)

(I have the other two in my depot)

Do you have any ideas or suggestions? Thank you very much...

8 Commentaires

MoneyIncinerator@DoppelSchlechtMinus

I wouldn't put anything in the children's portfolio that is optimized for pensioner-friendly high distributions, rather a normal growth-oriented ETF in the distributing variant or something like that. If you had simply taken the $VWRL, for example, that would be more efficient than splitting between an accumulation and a high income strategy.

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DTA@trade_commander_2498

@DoppelSchlechtMinus That's true, of course. But unfortunately, TR doesn't offer $VWRL with the refund and reinvestment of the TER. So my idea was to include a distributor to show the kids that the money is working for them. So more for the learning effect.

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MoneyIncinerator@DoppelSchlechtMinus

@trade_commander_2498 For something like this, I could think of the $GGRP or $FGEQ, for example. They are a bit more balanced and don't cost as much in total return compared to the World.

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S.A.T.@SATNL

Buy 1 share of each from the top 20 of your country and show your children what happens and why.

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six@six

22H

You can see even better how the money works in the accumulator...

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Bardok@AE23

10H

@six I personally don't think so. With my younger cousins, I had to spend ages discussing and explaining over and over again that it would soon pay off and that the accumulator would overtake the distributor at some point (there was also a choice between FTSE all-world Vanguard distributing or accumulating), then laboriously photographed the values every month and sent the screenshots with the step-by-step approach. The thing about young people is that only cash counts. When they see that the value of the ETF is rising and then more money is paid out each quarter, this creates a much greater "reward effect" in their minds and they are more satisfied. That's how I got younger female colleagues to invest in ETFs. (Funnily enough, women are even more into distributors. Just my observation)

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DTA@trade_commander_2498

10H

@AE23 Yes, I'm with you there

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Hu_F_10@Hu_F_10

20H

I think FTSE is perfect. If you want to use the allowance for your child, I would recommend $VHYL and/or $TDIV. Best regards 🖖🏽

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