The Process, Goal & Policy

The Process 

The hardest part is getting started, which you are doing right now. It's up to you whether to continue.

Here is what to expect.

First, on the phone and sharing computer screens, we’ll set up access in the Gardener’s name on the Fidelity.com website. Fidelity is a popular brokerage website and where I have the endowment money for this project allowing me to easily make transfers to the Gardener accounts.  You will also be able to observe the working picture of the Financial Gardening Project because I grant you inquiry(only) access so you can see the investments in the Endowment account.

Second, the gardener opens a ROTH IRA retirement account in their name on Fidelity.com with the initial $100 gift I gave them. Then I transfer the second $100 to their account online from the endowment. The gardener will never have to pay tax any on the money in their ROTH IRA account. (see footnote)

Investment Goal and Policy

The investment goal:  

Learn by doing.

Invest for long term.  

Plan on not needing this money until you retire, if possible. 

The Investment policy: 

We’ll follow the model of most retirement portfolios by investing in ETF’s (exchange traded funds) and/or Mutual Funds. These are investment instruments that pool together a large number of company stocks and other investments.  These “pools” are put together and managed by professional portfolio managers with very reasonable fees because of the volume. We will use the research tools within your Fidelity.com website to search, filter, select and invest in the   ones we like. 

With time, I anticipate that the “gardener” will take an interest and learn what is needed to take over the task. Because after all, I step back when they turn 26.

Footnote: google  "Roth IRA irs.gov"