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re: What investment advice to give a 19 year old?
Posted on 1/4/25 at 9:12 am to Kingpenm3
Posted on 1/4/25 at 9:12 am to Kingpenm3
In the mid 90s, I saved up $5,000 and made my first investment in the stock market: Fidelity Blue Chip Growth. I've never touched it since, and all dividends are reinvested.
It's had lots of ups and downs over the years. The balance now is $114,357. I think it got over $120K at one point.
If the kid may need to draw on the money for emergencies or a big buy like a car or education, I would help them find a HYSA for a chunk of it and suggest putting at least $1,000 of it (whatever they can afford to "lose") in a Roth in a low-expense index fund. Forget the Roth money exists, except when they add some to it on a regular basis. Let it ride.
It's had lots of ups and downs over the years. The balance now is $114,357. I think it got over $120K at one point.
If the kid may need to draw on the money for emergencies or a big buy like a car or education, I would help them find a HYSA for a chunk of it and suggest putting at least $1,000 of it (whatever they can afford to "lose") in a Roth in a low-expense index fund. Forget the Roth money exists, except when they add some to it on a regular basis. Let it ride.
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Posted on 1/4/25 at 9:14 am to BCreed1
Nope. Would not encourage a 19 year old to do calls.
Posted on 1/4/25 at 9:27 am to Kingpenm3
Kid sounds like he has a good dad!
Teach him to have short term and long term money and to fund both. Find some charts to show him how money grows over time. I used the history of the s&p500 to show my kids. Any money he puts into starting a Roth at his age will do well. A Roth allows for withdrawals for purchase of a house.
One of the hardest things for young people these days is learning how to spend less than their income. Inflation has made this very hard on them. He has a good start in that regard. Good luck.
Teach him to have short term and long term money and to fund both. Find some charts to show him how money grows over time. I used the history of the s&p500 to show my kids. Any money he puts into starting a Roth at his age will do well. A Roth allows for withdrawals for purchase of a house.
One of the hardest things for young people these days is learning how to spend less than their income. Inflation has made this very hard on them. He has a good start in that regard. Good luck.
Posted on 1/4/25 at 9:31 am to Kingpenm3
Roth IRA in a S&P500 index fund for sure.
Explain to them money in their Roth IRA will never be taxed and how it could grow to millions if they start this young.
My parents were very investment and money savvy. But they never really encouraged me to start investing at an early age. Wish they had.
Explain to them money in their Roth IRA will never be taxed and how it could grow to millions if they start this young.
My parents were very investment and money savvy. But they never really encouraged me to start investing at an early age. Wish they had.
Posted on 1/4/25 at 10:17 am to SM1010
quote:Is h continuing to work to earn enough to put $5,000 in a Roth at one time? If not, put the max he can.
Roth IRA in a S&P500 index fund for sure.
Explain to them money in their Roth IRA will never be taxed and how it could grow to millions if they start this young.
My parents were very investment and money savvy. But they never really encouraged me to start investing at an early age. Wish they had.
Posted on 1/4/25 at 4:58 pm to NOSHAU
Best thing you can do is point them in the right direction for financial education / enlightenment.
I have 3 kiddos (28, 26, 22), all 3 got the same lessons and tutelage, only 1 really listened. The middle one owned a business and bought her first house before she was 21. Now she is 26 owns about 1.5M in real estate and I don't worry about that one. The other 2 that didn't listen......sheesh. lol
I'd direct them to learn about the wheel strategy. I'd start with YouTube videos from "Invest with Henry" they are free. I am not talking about the paid program or even his picks in particular, always do your due diligence, but the process is spot on. It is better than just about anything you are going to pay for and it will at least pique his curiosity and let his curiosity roam and blossom.
I have 3 kiddos (28, 26, 22), all 3 got the same lessons and tutelage, only 1 really listened. The middle one owned a business and bought her first house before she was 21. Now she is 26 owns about 1.5M in real estate and I don't worry about that one. The other 2 that didn't listen......sheesh. lol
I'd direct them to learn about the wheel strategy. I'd start with YouTube videos from "Invest with Henry" they are free. I am not talking about the paid program or even his picks in particular, always do your due diligence, but the process is spot on. It is better than just about anything you are going to pay for and it will at least pique his curiosity and let his curiosity roam and blossom.
This post was edited on 1/4/25 at 6:37 pm
Posted on 1/4/25 at 5:49 pm to Kingpenm3
Your kid is going to pull that money out in a year or two to go drinking on spring break. Better to impart wisdom when they have a career starting.
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