A taxable brokerage can also help grow your money for financial goals that are more than 10 years out - a big vacation, a car, a new roof or home renovation. Just remember to move that money into less-risky investments, like bonds, as the date for those goals approaches.
For "a more near-term goal, within five years, they'll probably have a majority [invested] in fixed-income or bonds," as much as 80%, Devin Watts, a financial planner at Fallbrook FI, told MarketWatch. He noted that some investments, such as T-bills, are generally less risky than funds that mimic the broad bond market, "so there's even a risk spectrum" among low-risk investments that people should consider.
Priority 6: Save for your children
If you have children, saving for them comes after meeting your own retirement and other savings goals.
Those who do have the capacity to invest for their kids are giving them a huge advantage in the form of decades of compounding potential ahead. The more time any investor has, the better.
