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Recurring investments for long term for child
Investor summaryNeutral
User seeks feedback on a long-term DCA strategy for a child, mixing leveraged ETFs (TQQQ, SSO) with index ETFs (QQQ, SPY).
Bull points
- Long-term DCA into broad index ETFs ensures capital preservation and market-matching returns.
- Small allocations to leveraged ETFs offer asymmetric upside potential without risking the entire portfolio.
Bear points
- Leveraged ETFs suffer from volatility decay, making them highly risky for a 15-year buy-and-hold strategy.
- Mixing leveraged and unleveraged ETFs without a clear rebalancing plan can lead to unintended risk exposure.
Post body
I am planning to make below investments for child's custodial account for long term on fidelity.
25$ per week in TQQQ
20$ per week in SSO
50$ per week in QQQ
50$ per week in SPY
My understanding is in the long term my first two investments are risky and in worst case i can lose all of that money.
However the next two investments will never become zero so i will have something in account 15 years from now. I am not planning on making any changes to these numbers in future .
Does this make sense or its a stupid plan lol ?
Thanks
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