Dad With ‘Mini Portfolio’ And $1M Investment Plan Wants Son ‘Living Off Of Dividend Income Comfortably’ – Reddit Debates Best Stocks To Buy

Every parent wants to give their child a head start in life, especially if they grew up without financial security themselves.

The desire to break such a generational curse is powerful, but so is the fear of making the wrong move, since a bad investment could derail years of careful planning. This is exactly what a Reddit user is faced with now.

The investor, a dad of a 2-year-old, has asked for advice on building a $1 million portfolio for his son with the goal of having him live comfortably off dividend income by age 34. The poster is determined to set his son up for financial freedom, so he’s already started a “mini portfolio” with a combo of dividend-oriented ETFs and speculative stocks: Schwab U.S. Dividend Equity ETF (NYSE:SCHD), Astra Space (NASDAQ:ASTR), Virgin Galactic Holdings (NYSE:SPCE), and Vornado Realty Trust (NYSE:VNO).

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“We are looking for blueprints or instructions on proper investing for our children. How to create wealth is more important than wealth itself. We really would like to make sure he is financially responsible beforehand,” the dad wrote.

His concerns involve picking the right investments to balance growth and dividends in the next 30-plus years, avoiding costly mistakes, and ensuring his son is financially responsible. The responses to the investor’s post were a mix of encouragement and caution, with many Redditors coming up with suggestions of assets.

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ETFs are Safe for the Long Run

Many commenters suggested individual stocks are too risky for a 30-year investment horizon, and recommended low-cost ETFs instead.

“Not an expert at all, but I’m thinking safe ETFs with high quality companies. Time will take care of everything. Thinking simple: SCHD, [SPDR S&P 500 ETF Trust (NYSE: SPY)],” a comment reads.

A Redditor suggested a mix between dividend-focused and tech assets, which provide both growth and regular payments.

“[Vanguard High Dividend Yield ETF (NYSE: VYM)], [Vanguard Dividend Appreciation ETF (NYSE: VIG)], [Invesco QQQ Trust (NASDAQ: QQQ)]. This is dividend + tech. That’s what I would bet on for 30 years. Dividend low-fee ETF + some growth inform of tech. I personally would pick stocks for the QQQ portion of the fund [(Apple (NASDAQ: AAPL)] + [Microsoft Corporation (NASDAQ: MSFT)] + [Alphabet (NASDAQ: GOOGL, GOOG)] + [Amazon  (NASDAQ: AMZN)]).”