DD 22 wants to know about investments..

[pb4uski]

Quote:

Originally Posted by RenoJay This is a great “natural consequences” teaching opportunity. Let her put a small sum into her stock pick and see how it does, and perhaps put a similar small sum into a diversified ETF. Agree that in five years you’ll determine the winner.

Or just show her the Beat Boho thread and compare Boho and nunnun's performance.

[Doc0]

How about doing some paper trading using her stock BRK.B and VTI maybe GOOG AMZN and SPY

Go back as many years as you want and pull off prices in Jan of each year and spend some "paper money" the same amount for each stock to buy some shares and put it into google finance or yahoo finance, the results will speak for themselves. Show her how to do it then let her play with it

I'm a fan of Phil DeMuth books

[FreeBear]

Maybe encourage her to buy her "hot" stock, BUT front your own money for her to buy a comparable stake in your favorite broad market stock index fund or ETF. Maybe fund her to start ROTH IRA with an index fund.

You can get together regularly (say annually) over dinner and drinks and trash talk, I mean discuss the performance, of each others pick (hot stock vs boring index). You can even place "bets" on who does better over a given year or, better yet, decade. The loser picks up the tab.

This could be a great opportunity to talk about "hot stock picking" vs buy and hold indexing. At the minimum, it will be a great excuse for daddy and daughter time over the years!

[atmsmshr]

Quote:

Originally Posted by Walt34 This is copied from an email I sent to my sister a while back and to one of DW's cousins who has two sons just graduated from college. The books I found helpful are these: The Millionaire Teacher by Andrew Hallam How a Second Grader Beats Wall Street by Allan S. Roth These first two are the ones I absolutely recommend. I also have read these: Predictably Irrational by Dan Ariely – I found this very interesting! The Four Pillars of Investing by William J. Bernstein Why Smart People Make Big Money Mistakes by Gary Belsky & Thomas Gilovich Your Money & Your Brain by Jason Zweig The Investor’s Manifesto Preparing for Prosperity, Armageddon, and Everything in Between by William J. Bernstein A Random Walk Down Wall Street by Burton G. Malkiel And if you really want to get deep into behavior issues with money– Thinking, Fast and Slow by Daniel Kahneman, the only psychologist to win a Nobel Prize in Economics. It’s probably more than most people want to get into but I found it fascinating. It’s also a rather thick book.

Just gift wrapped hard copies of Random Walk and Four Pillars as Christmas gifts for the kids (all in their early 20's).

Walt - just looked closely at your holiday cheer avatar - you field dressed Rudolph!?!

[Walt34]

Quote:

Originally Posted by atmsmshr Walt - just looked closely at your holiday cheer avatar - you field dressed Rudolph!?!

I don't think it is Rudolph specifically, could be any deer. Here's the full size image. I just searched on "strange Christmas photos" or similar and stumbled across it.

I think it's funny. DW thinks I'm demented.

[MikeD]

I do not have any children. But like many others, I was one once. I remember being 22 yo. I noticed some old people were better at life than others. I did not wonder why and only thought about my incredibly smart wife and me.

She and I are completely different in many ways and alike in many ways. We use each other's strengths for our decisions. I have never had an unexpressed thought and my wife barely speaks but when she does I make sure to listen.

One of the approaches I use on people who are younger than me (Most people younger than me don't like to read, apparently.) is to mention that time will go by regardless of what their actions are.

I unsuccessfully tried to get a young co-worker of mine to go to community college with the argument of "Eight years from now you will be eight years older and if you go to one or two classes a week you'll have more money and be eight years older. If you don't take classes, you'll just be eight years older." I scored big with the others in the room but failed to convince my younger friend. I taught him microprocessor programming instead. He doing OK but not great. That was in 1982.

Also, I could not listen to my parents very well at that age. My parents also did not listen to me and my Dad expected to tell me what to do in the form of advice. If I did not do exactly what he said he got mad about wasting his time.

My Dad told me "Don't spend more than 33% of your income on housing, 25% on your car, and save at least 10% -- no matter what."

I signed up for the 401K at my first job in 1977 when it first became available. I was 23 yo. It appeared to be free money and I was all over it. I made $10,200 per year with benefits. I had been living on $1,200 PER YEAR including insulin and gas for my car. I felt rich. One of the benefits was paying for college. I was all over it. I had a life expectancy of 45 but still couldn't turn down a 10% match of FREE MONEY.

Mike D.