Need to save $20K in 15 years for a dowry.

[Bahiyaa]

Any advice on what savings/investment products to use?
I did the math and I think it comes out to $111.11 a month but am curious on how to maximize my gains buy investing instead of just saving. I would rather not tap my 401k to pay for this but that is always an option though I don't think it is a very good one.

[edg126]

an investment calculator i played around with showed a need to invest $900 a year with a 7% return to get 20K in 15 years.

My plan for my kids (6 months old) is to invest birthday/gift money. I have it in a fidelity total market index fund (FSTMX) which was recommendations based off of other forums. While this is going to be theirs and in their name, it's total savings I plan on 'regifting' for some travelling in college and marriage.

Once I bump up my Emergency Fund and pay off more equity in my house (which will probably take 2-3 years) I plan on making contributions into that plan instead of just adding gift money. I had ideas of around your numbers too. Maybe $100 a month for each kid.

[snafu]

A retirement fund is the sum that will fund your senior years. The government will not only demand income tax but penalize you severely for early withdrawal so that's a terrible idea. Are you eligible for a ROTH? While you can't withdraw principle, you can withdraw it's profit. As edg explains, you could open an investment account as custodian for DD with Vanguard or any of the low cost, no fee automatic investment programs.

[Spiffster]

A "dowry"? Correct me if im wrong but isnt that an illegal practice? Please dont be offended, but the concept of a dowry is pretty old school, and frankly ridiculous. The money would be better saved towards a college education.

[Eagle]

A "dowry"? Correct me if im wrong but isnt that an illegal practice? Please dont be offended, but the concept of a dowry is pretty old school, and frankly ridiculous. The money would be better saved towards a college education.

In some countries it is still legal and customary. It depends where the OP (Original Poster) is from... Perhaps he/she is from Asia for example?

[Eagle]

Any advice on what savings/investment products to use?
I did the math and I think it comes out to $111.11 a month but am curious on how to maximize my gains buy investing instead of just saving. I would rather not tap my 401k to pay for this but that is always an option though I don't think it is a very good one.

Looks like Edg calculated it out for you.

an investment calculator i played around with showed a need to invest $900 a year with a 7% return to get 20K in 15 years.

[JBinKC]

A dowry!!! I don't want to be facetious but if you are not wealthy enough to pay this extortion of money I would tell my daughter to learn English and register on Cherry Blossoms.

[MakeAStash]

Are you eligible for a ROTH? While you can't withdraw principle, you can withdraw it's profit.

Actually, the reverse is true. Roth contributions can be withdrawn penalty free, but earnings cannot. http://www.rothira.com/roth-ira-taxes-and-tax-issues