1G·

New Savings Plan for Children's Accounts

$VALLD (+0,13%) - I've decided to switch the savings plan for the kids' accounts to the Vanguard FTSE Global All-Cap UCITS ETF. I think the low expense ratio of just 0.07 will definitely make a difference over the very long investment horizon. I also like the extremely broad diversification—even if it is a bit boring.

Unfortunately, the reinvestment version of the ETF isn’t currently available for savings plans at Comdirect—so the distribution version is added to the account, and I either manually reinvest any dividends or use the money to buy the kids an ice cream. 🍧😉

8 Commenti

Wealth-Accelerator@Wealth-Accelerator

Dividends Instead of Allowance 🤷‍♂️

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NichtRelevant@NichtRelevant

@Wealth-Accelerator Absolutely. Actually, that's exactly the right way to make investing appealing to them.

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Wealth-Accelerator@Wealth-Accelerator

@NichtRelevant That's why I don't think a distribution fund is such a big deal for a children's investment account.
You even have the option of using the high tax exemption to tax-neutrally reallocate some of the funds back into a reinvestment fund before your child’s 18th birthday.
Then, when your child turns 18, they’ll have a reasonably profit-free ETF and have learned a lot for life—if everything goes more or less as planned.

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FinanzMechaNik@FinanzMechaNikk

@Wealth-Accelerator Thanks for the 💡 idea! That's pretty clever and practical at the same time. I'll have to run that by my wife 😁

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Wealth-Accelerator@Wealth-Accelerator

@FinanzMechaNikk No big deal 😉
I have some clever ideas every now and then 😋
Despite everything, I’m currently saving up for my son with a dividend-reinvestment fund on Trade Republic because of the “child benefit” promotion.
But that won’t last forever.
I think there’s something to be said for dividends as pocket money 😊

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Epi@Epi

8.5 million in fund assets?
There is a very high risk that the fund will be closed with a
forced sale that could result in tax penalties. Be careful!

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Prometheus@Prometheus

@Epi Man, that ETF has only been around for 3 days. Vanguard is also known for rarely merging or closing funds. Furthermore, it mainly closes failed niche products, not the “building blocks” of its portfolio.

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NichtRelevant@NichtRelevant

23H

@Epi I actually think the low trading volume is due to the ETF’s relaunch. A relatively large amount of money will likely flow into it over the next few months, since it’s simply unbeatably cheap. But I do agree with you that you have to be cautious with low-volume products.

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