Here’s our Club Mailbag email [email protected] — so you send your questions directly to Jim Cramer and his team of analysts. We can’t offer personal investing advice. We will only consider more general questions about the investment process or stocks in the portfolio or related industries. This week’s question: Hi Jim, I love being a member of the club. We recently were blessed with our first grandchild and set up a UGMA account. What is your “crystal ball” for investing with a 20-year time horizon? Individual stocks or an ETF with a tech focus? Probably put in $5,000/year for her. Thanks for any recommendations you can give. —Regards, Mike The first thing Jim Cramer recommends to investors who are just starting to build a portfolio is to put the first $10,000 into a diversified stock index fund, such as an exchange-traded fund (ETF) that tracks the board-market S & P 500 index. We looked at the biggest three S & P 500-tied ETFs in last week’s Mailbag commentary . This advice is the same if the portfolio is for you personally or for the benefit of your grandchild in the form of the aforementioned UGMA account , which is a type of custodial account that allows adults to save and invest money on behalf of a child without the time and expense of setting up a formal trust. You also could think about — given a long-term investment time horizon — adding something a bit more growth-oriented, such as an ETF that tracks the tech-heavy Nasdaq 100, which tends to be more volatile than a broad-based S & P 500 fund. There will be some overlap. Remember, owning two ETFs doesn’t necessarily increase your diversification. In this case, you would be increasing exposure to large-cap growth stocks. Whether one or both of these type of ETFs becomes your starting point, you can also start thinking about individual stock ownership. Obviously, we love Apple (AAPL) and Nvidia (NVDA), our only two “own it, don’t trade it” names. Given that designation, these are the…
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