I was thinking money being needed at age 21 versus between ages 18-22 is a similar enough horizon. As for withdrawal window, OP could (and in my opinion, should) pay out the "bribe" over a couple years rather than as a big lump sum at age 21 that itself may create problems for someone who needs a bribe to stay clean. In any case, my point is that a 100% VTI allocation at age 2 is fine, but probably too risky at age 20. Thus, I would opt for a gradual de-risking glide path over either being conservative with just bonds or aggressive with just stocks throughout the 20 years.I don't think that the investment horizon and withdrawal rate match that of a 529, unless the money will be used for college. It's just as likely that the child will save the money for a home down payment, or to start their own retirement fund.Ignoring the off-topic aspects, I'd consider mimicking a 529 plan's age based portfolio since the investment horizon and withdrawal rates will be similar.
Statistics: Posted by Doctor Rhythm — Sun Aug 18, 2024 9:02 pm