What should I do with DS' money?

[jackie011]

DS (5) has a savings account.  A few years ago, when the balance reached $1500, I bought a CD.  He's getting close to that amount, again.  Should I buy another CD or is there something else I should be doing with his money?  This is money he receives from relatives at the holidays and money my FIL gives me from time to time to put in his account... his "rainy day" money or money he may use to pay for a car one day.  (ILs have a different account designated for college/educational expenses)

I don't anticipate needing this money for at least 7-10 years.  I know nothing about investments, other than ILs have an Edward Jones guy that calls from time to time, trying to get our business. 

[jlt19]

I put similar type money for my kids in mutual funds at Fidelity. FXAIX is one that follows the S&P 500. Or FZROX is a zero cost fund that is a total market fund.

I wouldn't use an advisor for this. The amount is too small to account for the fees, imo.

[farmvillelover]

Dec 31, 2019 18:47:17 GMT -5 jlt19 said:

I put similar type money for my kids in mutual funds at Fidelity. FXAIX is one that follows the S&P 500. Or FZROX is a zero cost fund that is a total market fund.

I wouldn't use an advisor for this. The amount is too small to account for the fees, imo.

This is what I do for my kids since we don’t fund their 529s anymore. The funds are also at Fidelity and are in VTI, VOO, FSKAX and FXAIX. Basically all SP and total market funds (etf and mutual funds). The accounts are earmarked for them but are in our names.

[steamboat185]

We also have a brokerage account with VTI and similar for my 6 year old.

[jackie011]

Dec 31, 2019 18:47:17 GMT -5 jlt19 said:

I put similar type money for my kids in mutual funds at Fidelity. FXAIX is one that follows the S&P 500. Or FZROX is a zero cost fund that is a total market fund.

I wouldn't use an advisor for this. The amount is too small to account for the fees, imo.

Excuse my ignorance- is that something I can do on my own? Just move money around online?

[jlt19]

Jan 1, 2020 10:48:16 GMT -5 jackie011 said:

Dec 31, 2019 18:47:17 GMT -5 jlt19 said:

I put similar type money for my kids in mutual funds at Fidelity. FXAIX is one that follows the S&P 500. Or FZROX is a zero cost fund that is a total market fund.

I wouldn't use an advisor for this. The amount is too small to account for the fees, imo.

Excuse my ignorance- is that something I can do on my own? Just move money around online?

Absolutely. You just open an account at Fidelity.com, then you link your bank account. It may take a few days for that to be verified, then once it is, you transfer he money into Fidelity. It'll allow you to use it immediately, so you find the fund you want to purchase (there will be a search bar on every page in Fidelity) and click buy. Put in how much money you want to spend and it'll purchase the corresponding amount of shares on the next business day.

It's actually really easy, I promise!

[jackie011]

Jan 1, 2020 10:58:10 GMT -5 jlt19 said:

Jan 1, 2020 10:48:16 GMT -5 jackie011 said:

Excuse my ignorance- is that something I can do on my own? Just move money around online?

Absolutely. You just open an account at Fidelity.com, then you link your bank account. It may take a few days for that to be verified, then once it is, you transfer he money into Fidelity. It'll allow you to use it immediately, so you find the fund you want to purchase (there will be a search bar on every page in Fidelity) and click buy. Put in how much money you want to spend and it'll purchase the corresponding amount of shares on the next business day.

It's actually really easy, I promise!

Great! Thank you! I’ll check this out. This sounds like the perfect thing for this money right now.

[Wallflower]

Jan 1, 2020 11:45:06 GMT -5 jackie011 said:

Jan 1, 2020 10:58:10 GMT -5 jlt19 said:

Absolutely. You just open an account at Fidelity.com, then you link your bank account. It may take a few days for that to be verified, then once it is, you transfer he money into Fidelity. It'll allow you to use it immediately, so you find the fund you want to purchase (there will be a search bar on every page in Fidelity) and click buy. Put in how much money you want to spend and it'll purchase the corresponding amount of shares on the next business day.

It's actually really easy, I promise!

Great! Thank you! I’ll check this out. This sounds like the perfect thing for this money right now.

Also, I have found the support at Fidelity to be really helpful. If you get stuck, just reach out to them and they will walk you through the process.