A Little Leftover Money - What to do?

[Figuring It Out]

Hi,

I'm in the beginning stages of moving my family's various accounts to the PP model, and I have a question. My daughter has two accounts, one a custodial account with $8300 in it and an educational saving account with about $700 in it. I've just put the $8300 in PRPFX (yay!), but am stumped as to what to do with the $700, as there is a minimum initial deposit of $1000 for the fund.

Any advice? I'm tempted to consider it her variable portion and buy a gold ETF with the remainder, but I realize that her funds are then unbalanced. I'm looking for simple, and to stick with the PP principles.

Thank you!

[MediumTex]

How about add $300 to the $700 when you can and open up a separate PRPFX account then?

[KevinW]

Yeah, I would just leave it in cash until you reach the $1,000 threshold.  The opportunity cost isn't very much since I imagine you'll reach that amount within a few months.

[pershing83]

I would add the warning... one should have 6-12 mos living expenses stashed away before worrying about investing in much of anything.

Also, I have yet to hear of a 401 or 403 that offer PRPFX as a choice, surely some would, maybe not. In fact, probably not since most of these are handled by the T RowePrice, Fidelity etc of the world.

In looking at my sons' plans they were not particularly attractive, but I will say it appeared their employees had made some effort to keep costs low.

We try to invest as a family with large amounts of PRPFX at the head. But, my boys demand owning stocks and have UTX, BHP, XOM, HOT, CAT. They insist on having stocks to follow and consider HB's PP dull and unexciting even though they own PRPFX.

[Figuring It Out]

Thank you for your replies. I suppose I could add $300 to it, although I prefer not to, because the use of funds are so restricted. It's an Education IRA, and without getting longwinded about it, I prefer to invest in our names rather than my kids' names from this point forward.

We do have emergency savings, and this isn't our kids' retirement funds, rather education funds.

[pershing83]

All things being equal and assuming all get along I think investing should be a famiy matter. Education savings, retirement aand the list goes on should be considered before the older one get, well, too old.

Some may find this not possible, divorce, illness etc but just as an ideal families should invest together, so far it has worked for mine.

A simple example would be the family all investing in the same assets/assets, maybe not so good.

One might might make an argument for all to invest in PP though Idoubt agreement could be reached here..

[MachineGhost]

Any advice? I'm tempted to consider it her variable portion and buy a gold ETF with the remainder, but I realize that her funds are then unbalanced. I'm looking for simple, and to stick with the PP principles.

You could buy EDV with it to balance out the PRFPX a bit. I believe the ratio is 10% to EDV to approximate the PP.

MG

[Figuring It Out]

EDV sounds like a good solution for me - thanks.