<prompt> Human: Hey all - my nephews are 1 and 3, and while the savings from multiple people, and while thats wonderful. I want to stash a bit away to give them one hell of a present when they graduate college. A chunk of downpayment on a new car, a trip to Europe, something fun. Maybe not as practical as college but knowing my sister in laws parents they wont pay anything for it. So whats the best way to go about this? Looking at around 20 year investments. Im assuming something like vanguard retirement fund set 20 years in advance? It will be subject to capital gains tax Im assuming as well. Im not sure though. If Im missing something a little better. Its not going to be anything huge. Just about 25-50 a month for each instead of getting them a birthday present they dont need because they have tons of toys!Really appreciate it! And yes I know fun stuff money when they graduate college sounds silly. But I value education, and I think they deserve a reward then. I dont plan on having kids of my own, and 25 on a toy they never use now would be better spent investing to give them something as an adult is my philosophy.  <response>: I like the idea. 25 a month for 20 years is about 6k assuming no growth. I would invest in an index fund, but not a retirement target date fund. A target date fund will not be aggressively invested bc the target is retirement... So there will be too much capital preservation near the end, and not enough equities or bonds. A fund like VTSAX, Vanguard Total Stock Market Index Fund with a .05 expense ratio is something that would be more aggressively invested and you could hope to have closer to 10k or much much more in 20years depending on the markets. If I could go back to the 90s and ask my aunt to invest in the stock market the same way, think how much it would be worth now! Other option is to fund a 529 college savings plan for which they can use for education only, or they will incur additional taxes. 