Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Investment Choice for 24 Yr old Son
Old 02-27-2006, 10:55 AM   #1
Thinks s/he gets paid by the post
 
Join Date: Jul 2005
Location: Minnehaha
Posts: 2,375
Investment Choice for 24 Yr old Son

I have a son out on his own and with about 3-4 thousand to invest.
I got him setup at Scottrade last night.

But the problem for me is that he expects me to give him advice on where to put it.
He mistakenly believes I'm an investment genius because I retired early because of my stock trading. I'm in a different place now where my mindset is getting more conservative - I sometimes pick a stock and trade it in ranges (I don't want him to do as I do! at least not until he gets 10-30 yrs of experience ) and I'm frankly worried about the economy and the world in general (bird-flu, oil, conflicts, etc.) and its effect on the markets.

As always, when in doubt - I come to the forum.

He wants to make more than Money Market/CD/Treasury returns (Mostly where I'm at now) - What is your collective advice?

Of course, whatever you tell me I will pick the best advice and claim it as my own.
A Father has to do what he has to do to retain a certain level of respect from his kids.
DanTien
__________________

__________________
MinnesotaEats - www.goodfoodmsp.com
Danny is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Investment Choice for 24 Yr old Son
Old 02-27-2006, 11:14 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Re: Investment Choice for 24 Yr old Son

Target Retirement 2045.

Then forget about it, except to add to it as often as possible.
__________________

__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Re: Investment Choice for 24 Yr old Son
Old 02-27-2006, 11:24 AM   #3
Thinks s/he gets paid by the post
JPatrick's Avatar
 
Join Date: Jun 2005
Posts: 2,494
Re: Investment Choice for 24 Yr old Son

A set and forget ETF== PRF (follows RAFI 1000)
A play on the future ETF== PHO (water)
Oil service ETF==PXJ
Tech stock==PWAV
Energy of the future?==DESC

Maybe a good time to also talk about timing.* Averages up a bunch last 90 days.* Who knows, today could be a short term high for awhile??

__________________
JPatrick is offline   Reply With Quote
Re: Investment Choice for 24 Yr old Son
Old 02-27-2006, 12:07 PM   #4
Full time employment: Posting here.
 
Join Date: Feb 2006
Posts: 784
Re: Investment Choice for 24 Yr old Son

Quote:
Originally Posted by Cute n' Fuzzy Bunny
Target Retirement 2045.

Then forget about it, except to add to it as often as possible.
Christ, man, you make me laugh so hard! And with things that are true and simply put... With just about every post, too.. and I have no idea how you keep up with all 300 threads you concurrently post in....
__________________
Cool Dood is offline   Reply With Quote
Re: Investment Choice for 24 Yr old Son
Old 02-27-2006, 12:08 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
HFWR's Avatar
 
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 12,964
Re: Investment Choice for 24 Yr old Son

th, you using that proxy server again? :P
__________________
Have Funds, Will Retire

...not doing anything of true substance...
HFWR is offline   Reply With Quote
Re: Investment Choice for 24 Yr old Son
Old 02-27-2006, 12:15 PM   #6
 
Posts: n/a
Re: Investment Choice for 24 Yr old Son

I'd go with CFB if the money is for retirement. But if it's for buying a house in 2 years or for starting a business, that's different.

__________________
  Reply With Quote
Re: Investment Choice for 24 Yr old Son
Old 02-27-2006, 12:16 PM   #7
Full time employment: Posting here.
 
Join Date: Feb 2006
Posts: 784
Re: Investment Choice for 24 Yr old Son

Quote:
Originally Posted by DanTien
He wants to make more than Money Market/CD/Treasury returns (Mostly where I'm at now) - What is your collective advice?
I'm the same age, and I can say that if he's like me then he should probably have fun at first and just buy stocks that interest him for whatever reason, to have fun and learn a little, but in the end it doesn't really matter since as CFB said it's just a matter of having a bunch of money lying around in things that grow, and letting it go for a few decades. Any of the things that others have suggested or that you could suggest would work about the same, index, ETF, (diversified) basket of stocks, etc.

Still, we all need a chance to be a power stock-jockey when we're young
__________________
Cool Dood is offline   Reply With Quote
Re: Investment Choice for 24 Yr old Son
Old 02-27-2006, 12:18 PM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Re: Investment Choice for 24 Yr old Son

No sir. I even turned off my virus scanner this morning to live the wild life.

Cool Dood...wait until you get my bill.

I wont even go into all the stuff I got done so far today along with posting. It'd make you cry.

Al is eminently correct though...I should have asked for the purpose of the investment first. If he's going to use the money pretty soon, a high equity component might not be the best place. I just assumed long term retirement as a goal.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Re: Investment Choice for 24 Yr old Son
Old 02-27-2006, 12:19 PM   #9
Full time employment: Posting here.
 
Join Date: Feb 2006
Posts: 784
Re: Investment Choice for 24 Yr old Son

Quote:
Originally Posted by Have Funds, Will Retire
th, you using that proxy server again? :P
Well, that missing apostrophe before "n'" is really pissing me off.................
__________________
Cool Dood is offline   Reply With Quote
Re: Investment Choice for 24 Yr old Son
Old 02-27-2006, 12:21 PM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Re: Investment Choice for 24 Yr old Son

Is that better?
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Re: Investment Choice for 24 Yr old Son
Old 02-27-2006, 12:23 PM   #11
Full time employment: Posting here.
 
Join Date: Feb 2006
Posts: 784
Re: Investment Choice for 24 Yr old Son

Yes, it'll do, although now you sound like an urbanite with a hairy posterior.......
__________________
Cool Dood is offline   Reply With Quote
Re: Investment Choice for 24 Yr old Son
Old 02-27-2006, 12:27 PM   #12
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Re: Investment Choice for 24 Yr old Son

I live in the country.

And lets leave my hairy ass out of this
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Re: Investment Choice for 24 Yr old Son
Old 02-27-2006, 12:34 PM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Re: Investment Choice for 24 Yr old Son

Dan, you want suggestions that will teach him about investements, or just fire & forget type stuff? If the money is not earmarked for anything in the near future (5 years) and he understands that reaching for return also entails taking risk, I would suggest that he pick two or three individual stocks and research them thoroughly, but 1 or 2, and then follow them to see how his research turned out. I can offer up some ideas for that one if you like.

If its about where to put long term money for a yungun, CFB's suggestion isn't a bad idea.
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Re: Investment Choice for 24 Yr old Son
Old 02-27-2006, 12:53 PM   #14
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
HFWR's Avatar
 
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 12,964
Re: Investment Choice for 24 Yr old Son

Quote:
Originally Posted by Cute n Fuzzy Bun'ny
I live in the country.

And lets leave my hairy ass out of this
Your a$$ had to come into it sometime...

Always does!! :P
__________________
Have Funds, Will Retire

...not doing anything of true substance...
HFWR is offline   Reply With Quote
Re: Investment Choice for 24 Yr old Son
Old 02-27-2006, 01:02 PM   #15
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Re: Investment Choice for 24 Yr old Son

Its been a while, but whoop, there it is...
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Re: Investment Choice for 24 Yr old Son
Old 02-27-2006, 05:12 PM   #16
Recycles dryer sheets
Sisyphus's Avatar
 
Join Date: Aug 2005
Posts: 52
Re: Investment Choice for 24 Yr old Son

Wow... talk about threadjacked!

If your son is interested in learning, I would consider starting him with a few books (Four Pillars is always a winner, among others) and let him make his own decisions from there. I would urge him to consider index funds or ETFs, but that's probably because it's what I'm most familiar with.

If we wants to play with stocks, fine, but it should be clear that doing that without educating yourself A LOT is about as risky as hitting the nearest casino. The good news is that it's not a ton of money. I would hope he sees this as a great learning experience for him though, and the start of a solid portfolio.
__________________
Persistence and determination are omnipotent.
Sisyphus is offline   Reply With Quote
Re: Investment Choice for 24 Yr old Son
Old 02-27-2006, 05:59 PM   #17
Thinks s/he gets paid by the post
 
Join Date: Jul 2005
Location: Minnehaha
Posts: 2,375
Re: Investment Choice for 24 Yr old Son

Quote:
Originally Posted by Sisyphus
Wow... talk about threadjacked!

If your son is interested in learning, I would consider starting him with a few books (Four Pillars is always a winner, among others) and let him make his own decisions from there. I would urge him to consider index funds or ETFs, but that's probably because it's what I'm most familiar with.

If we wants to play with stocks, fine, but it should be clear that doing that without educating yourself A LOT is about as risky as hitting the nearest casino. The good news is that it's not a ton of money. I would hope he sees this as a great learning experience for him though, and the start of a solid portfolio.
Thanks Sisyphus for getting us back - the Jennifers and their hormones are a force of nature

At this point he hasn't shown an interest in investment theory/research not a numbers detail guy. I'll be giving him The Pillars and Intelligent Investor for his birthday - see what comes of that...I want to ease him in, get his feet wet not encourage active trading.

Quote:
Originally Posted by Jennifer 8
Target Retirement 2045.

Then forget about it, except to add to it as often as possible.
Quote:
Originally Posted by JPatrick
A set and forget ETF== PRF (follows RAFI 1000)
A play on the future ETF== PHO (water)
Oil service ETF==PXJ
Tech stock==PWAV
Energy of the future?==DESC

Maybe a good time to also talk about timing. Averages up a bunch last 90 days. Who knows, today could be a short term high for awhile??
Quote:
Originally Posted by brewer12345
Dan, you want suggestions that will teach him about investements, or just fire & forget type stuff? If the money is not earmarked for anything in the near future (5 years) and he understands that reaching for return also entails taking risk, I would suggest that he pick two or three individual stocks and research them thoroughly, but 1 or 2, and then follow them to see how his research turned out. I can offer up some ideas for that one if you like.

If its about where to put long term money for a yungun, CFB's suggestion isn't a bad idea.
Quote:
Originally Posted by TromboneAl
I'd go with CFB if the money is for retirement. But if it's for buying a house in 2 years or for starting a business, that's different.
Thank you guys.

I'm liking the idea of the target 2045 fund - think at this point a forget-about-it-spread-the-risk basket approach would be a good intro for him - but letting the money sit in the money market fund for awhile to see what this market/economy is doing.
__________________
MinnesotaEats - www.goodfoodmsp.com
Danny is offline   Reply With Quote
Re: Investment Choice for 24 Yr old Son
Old 02-27-2006, 08:55 PM   #18
Recycles dryer sheets
 
Join Date: Jan 2006
Posts: 189
Re: Investment Choice for 24 Yr old Son

If he's got a job with a 401(k) and can invest in an IRA (Roth preferably), I recommend the Financial Engines service.....will teach him about investment risk and probability of meeting his retirement goals and help him set up a plan.....you can buy a 3 month subscription for around $40 I think.....check it out:

www.financialengines.com
__________________
Dude is offline   Reply With Quote
Re: Investment Choice for 24 Yr old Son
Old 02-27-2006, 08:57 PM   #19
Recycles dryer sheets
 
Join Date: Jan 2006
Posts: 189
Re: Investment Choice for 24 Yr old Son

P.S. - if you have an account at Vanguard over $100k you should have access for free.....
__________________
Dude is offline   Reply With Quote
Re: Investment Choice for 24 Yr old Son
Old 02-27-2006, 09:11 PM   #20
Recycles dryer sheets
 
Join Date: Jan 2006
Posts: 189
Re: Investment Choice for 24 Yr old Son

For instance if his goal is to have a retirement income of say $50k/year (in today's dollars) starting at age 65 (or whatever) and he wants to have a 90% chance (he selects this) of meeting that goal, the service will tell him how much he should contribute to retirement accounts each year and will give advice on a portfolio of funds to meet the goal, depending on the short-term risk he is comfortable taking (i.e. how much his accounts could decline in the next 12 months).* Once you set up your accounts it's easy to play around with changing contribution and risk levels, retirement age, etc. and see how it affects the results.* I think it's a good tool, especially for someone just starting out.
__________________

__________________
Dude is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Who uses an investment advisor to help? mickeyd FIRE and Money 8 02-25-2007 07:28 PM
Investment cost basis justification for taxes Delawaredave FIRE and Money 8 01-07-2007 09:21 PM
New Worth, Savings & Investment Choices mb FIRE and Money 21 03-25-2006 05:23 PM
Looking for opinions on this Unit Investment Trust Dude FIRE and Money 15 03-07-2006 11:37 AM

 

 
All times are GMT -6. The time now is 12:50 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.