@cohodk said: Kid who is maybe 16 or 17 sees a three or four year swoon and makes a lifetime decision that equities are not the way to go. Whatever has performed better will look like the long term winner
That is called market psychology and is extremely important to folks just getting into the market
Which is exactly why he get reasoned and logical input rather than the rantings of chicken little.
Exactly right, Cohodk, which is why I asked here. I could ask on investment forums as well, and may have already , but I like getting a diverse about of info and there are some smart folks here as well. Of course, there are those that think they know everything and everything about other people's situations just from a few things on the internet.
You, and a handful of others, have been very helpful. Someone else that posted, that loves to see their own posts even though they really have nothing of value to add...added just that...nothing of value. I'm used to him doing that, though, which is why I have him blocked now and only see when people quote him. He really doesn't add value on any forum he is on.
$3500 isn't "much" money, but I think I like the idea of splitting between a mid-cap and a S&P500 tracking fund. We'll likely do the buy this week.
...and when the market tanks, no one here will fess up to offering shoddy advice.
It will always be stuff like "who could predict that China would invade Guatemala" or "Geez, I thought we were done with $100 oil."
At any rate, good luck to the young man. Earning money is never easy.
@cohodk said:
That would be scary, wouldnt it Coinstartled?
Since 1987 the sharp drops in the market have been scary to many. End of year slide ruined Christmas for many folks that are hypnotized by the concept that stocks will always go up. It is easy to plan for the future by looking backwards. Prudent though to look forward.
@cohodk said:
That would be scary, wouldnt it Coinstartled?
Since 1987 the sharp drops in the market have been scary to many. End of year slide ruined Christmas for many folks that are hypnotized by the concept that stocks will always go up. It is easy to plan for the future by looking backwards. Prudent though to look forward.
And the "more than many" that were/are not scared, have been richly rewarded.
And no ones Christmas's were ruined. Hypnotized? Haha. Too funny.
I dunno...things were unusually glum around the Christmas eve soiree that i attended. Normally friendly folks were snapping at each other and a fist fight nearly broke out over whether it was safe to warm up corn in a plastic container, using the microwave.
Anyway Coho....the dilemma as proposed by the OP is this. The young investor has a historic perspective of zero. He does not own AMZN at $33 a share or have a million dollar capital gain on APPL (god bless those that do). So any kind of substantial fail will not be cushioned by successful past results.
Dump the $3500 into equities alone, particularly without his input and a sustained bear market could sour him to equities for an extended period.
Well, maybe I believe folk learn more from failure than success. There are some who embrace failure and shortcoming to achieve success and betterment.
We live in a world where so many view failure as the result of others' nefarious actions--blinded and jaded by their ignorance and arrogance-- so I think it's wonderful to expose our youth to all the risks and rewards this great country. The future will be bright.
Timing markets is stupid....Invest it now. NOT in mutual or index funds. Pick a good company or two and buy their stock. Apple, Microsoft, Google, etc. Play for the long haul and watch it grow exponentially (reinvest the dividends).
bob
Registry: CC lowballs (boblindstrom), bobinvegas1989@yahoo.com
One thing that I could never get thru to my young 18yo niece and 23 yo nephew is that starting early with as little as $100 a month for life gets you to almost a million dollars by age 65.
The key is to create a habit of saving. Most things will work out when you are a net saver.
BST: KindaNewish (3/21/21), WQuarterFreddie (3/30/21), Meltdown (4/6/21), DBSTrader2 (5/5/21) AKA- unclemonkey on Blow Out
@AUandAG said:
Timing markets is stupid....Invest it now. NOT in mutual or index funds. Pick a good company or two and buy their stock. Apple, Microsoft, Google, etc. Play for the long haul and watch it grow exponentially (reinvest the dividends).
bob
Well globalisation was great for the three companies named. Going forward though, they are out of new globes.
@AUandAG said:
Timing markets is stupid....Invest it now. NOT in mutual or index funds. Pick a good company or two and buy their stock. Apple, Microsoft, Google, etc. Play for the long haul and watch it grow exponentially (reinvest the dividends).
bob
Well globalisation was great for the three companies named. Going forward though, they are out of new globes.
Why? Does everyone in the world have everything? Will humankind cease being innovative and more efficient and productive? Will the population collapse?
My biggest mistake was not thinking long term. However the best thing I did was get out of debt and keep what I had. That said If i was young again, I'd put aprox half my savings in stocks (think s&p 500 index fund) and half in precious metals. That's what I'd do today as well. If you believe in America it is stocks. If America starts to fail it is precious metals. That about sums it up.
I'm 75 years old, so there is nothing new about me.
Comments
...and when the market tanks, no one here will fess up to offering shoddy advice.
It will always be stuff like "who could predict that China would invade Guatemala" or "Geez, I thought we were done with $100 oil."
At any rate, good luck to the young man. Earning money is never easy.
That would be scary, wouldnt it Coinstartled?
Knowledge is the enemy of fear
Since 1987 the sharp drops in the market have been scary to many. End of year slide ruined Christmas for many folks that are hypnotized by the concept that stocks will always go up. It is easy to plan for the future by looking backwards. Prudent though to look forward.
And the "more than many" that were/are not scared, have been richly rewarded.
And no ones Christmas's were ruined. Hypnotized? Haha. Too funny.
Knowledge is the enemy of fear
I dunno...things were unusually glum around the Christmas eve soiree that i attended. Normally friendly folks were snapping at each other and a fist fight nearly broke out over whether it was safe to warm up corn in a plastic container, using the microwave.
Anyway Coho....the dilemma as proposed by the OP is this. The young investor has a historic perspective of zero. He does not own AMZN at $33 a share or have a million dollar capital gain on APPL (god bless those that do). So any kind of substantial fail will not be cushioned by successful past results.
Dump the $3500 into equities alone, particularly without his input and a sustained bear market could sour him to equities for an extended period.
Well, maybe I believe folk learn more from failure than success. There are some who embrace failure and shortcoming to achieve success and betterment.
We live in a world where so many view failure as the result of others' nefarious actions--blinded and jaded by their ignorance and arrogance-- so I think it's wonderful to expose our youth to all the risks and rewards this great country. The future will be bright.
PS...you should have had fresh corn.
🌽🌽🌽
Knowledge is the enemy of fear
what was the decision?
Timing markets is stupid....Invest it now. NOT in mutual or index funds. Pick a good company or two and buy their stock. Apple, Microsoft, Google, etc. Play for the long haul and watch it grow exponentially (reinvest the dividends).
bob
Dollar cost average into the S&P 500.
I like 10% in Asian funds x-china
I like 10% at BRIC related ETF's
Put 10% in PM's
One thing that I could never get thru to my young 18yo niece and 23 yo nephew is that starting early with as little as $100 a month for life gets you to almost a million dollars by age 65.
The key is to create a habit of saving. Most things will work out when you are a net saver.
BST: KindaNewish (3/21/21), WQuarterFreddie (3/30/21), Meltdown (4/6/21), DBSTrader2 (5/5/21) AKA- unclemonkey on Blow Out
Agree!
Well globalisation was great for the three companies named. Going forward though, they are out of new globes.
Why? Does everyone in the world have everything? Will humankind cease being innovative and more efficient and productive? Will the population collapse?
Knowledge is the enemy of fear
That's too much to wish for.
With summer almost here, the lost money can be earned back.
Is there a better "problem" than having to decide to invest excess funds? Very exciting.
1) Save, save, save is the first rule to rule them all.
2) Invest wisely
3) save, save, save.
Get the funds in the market, stock or bond. Low fee funds. employ rules 1-3 consistently.
When your son has had a few years, let him pick individual stocks. Till then, bet on the system, not an individual company.
My biggest mistake was not thinking long term. However the best thing I did was get out of debt and keep what I had. That said If i was young again, I'd put aprox half my savings in stocks (think s&p 500 index fund) and half in precious metals. That's what I'd do today as well. If you believe in America it is stocks. If America starts to fail it is precious metals. That about sums it up.
I'm 75 years old, so there is nothing new about me.