Do you help family with stock picks and general investing knowledge?

[Ronstar]

Whenever anyone asks my thoughts on investing, I say index funds, DW pushed me for some advice on buying individual issues. I told her to only invest in companies that produce goods and services that you understand. So she bought Lululemon because she understands yoga pants.

 

[Pointby2]

My daughter wants to open a brokerage account and fund a Roth. She doesn't know anything about investing so I was going to help her. I realize I won't be able to just tell her what she may need to know about investing. What would a good, very simple, short book be that I could give her? I'm thinking just "Investing for Dummies".

 

[Sunset]

Another time I helped a person, was moved their Chase brokerage account, where on their ~$100K, Chase was charging them 2% fee ( $2K ) per year, to Vanguard where they paid $0 per year.
Without any stock change, that move alone allowed their account to grow $20K+ over the next 10 years.

 

[sailor]

My daughter wants to open a brokerage account and fund a Roth. She doesn't know anything about investing so I was going to help her. I realize I won't be able to just tell her what she may need to know about investing. What would a good, very simple, short book be that I could give her? I'm thinking just "Investing for Dummies".

My 20 y.o. enjoyed this 16 pages write-up:

https://www.etf.com/docs/IfYouCan.pdf

I sat next to him, when he opened Roth IRA online at Schwab. Painless.
Few days later, when the account was funded (all online, ACH from his checking acct), he bought 3 funds.
While this is probably not an ideal Asset Allocation for him, it's simple.

 

[Aramis]

I have tried to provide information and guidance to my three adult kids but very little of it seems to be accepted and I am not sure if any of it is ever utilized. It is really quite disappointing, because I know I am offering it "properly". I don't push, I don't declare that my decisions, beliefs and understanding are the truth, I don't criticize, and I don't ask for details on what they are doing. I just put out some information, usually a link to a third party source, along with a few comments on how and why I think the information might be useful and I state that if they have any questions, I would be happy to try and answer.

I get back crickets.

I know that one of them is probably doing fine, but I am not even sure the other two have investing accounts. They know I am doing "okay" financially, manage all of my own money, but they just don't seem to want any assistance.

Sniff........

 

[Lewis Clark]

My daughter wants to open a brokerage account and fund a Roth. She doesn't know anything about investing so I was going to help her. I realize I won't be able to just tell her what she may need to know about investing. What would a good, very simple, short book be that I could give her? I'm thinking just "Investing for Dummies".

This might be a good choice. JL Collins' The Simple Path to Wealth.

Amazon.com

 

[FIYes]

Advise a family member or friend about a stock pick or general investment advice? My first thought was no way! But then I remember in my mother’s later years, she would somewhat jokingly refer to me as her “financial adviser “. She would run any big financial moves by me. I think that both she and I were comfortable with this arrangement. Only once was there a bit of contention. She was being sold an annuity. I advised her against it. A family member who had encouraged her to purchase this annuity was unhappy that she took my advice.

 

[MarieIG]

Stock picks - no. Very general advice to my children, i.e. set up an emergency account, fully fund Roth, fund Roth 401(k), savings account, broad based index funds/ ETFs, "pay yourself first," don't carry credit card debt etc. I will provide general advice to friends upon request.

 

[Gumby]

I have never talked to any family members about finances in general or investing in specific. In fact, I specifically avoid it.

 

[iloveyoga]

I don't do individual stocks myself. I do help my Mom and my two sisters with their Vanguard accounts and basic investing. I talk investments with two of my brothers, both who have done very well with their money and some individual stocks.

 

[frayne]

Only if asked, here’s my advice: avoid debt, dollar-cost average (DCA) into an S&P index fund, and live below your means (LBYM).

If you enjoy speculating in the market, remember it’s essentially gambling and there will always be winners and losers, and the odds tend to favor the house.

 

[FLSUnFIRE]

I'll very occasionally offer and will help with analysis, education, and coaching. I don't tell anyone what to do -closest is I'll share what I did/would do with the caveat that we are different people with different goals, personalities, and situations. I have coached several friends at their request and helped my folks get a handle on their "portfolio."

 

[target2019]

I've been involved with both adult children with finances and investing. When they ask a question I try to include some background and maybe a link to longer explanation(s).

I also put responses and summary into a google doc I share with each.

Outside of immediate family, I offer little advice.

I consistently push SCHB or VTI, along with SCHG and SCHD, trying to get them more involved in how funds are structured.

 

[Closet_Gamer]

I have provided a few perspectives when asked and helped one family member extensively when his spouse died and he needed to reboot his financial life.

Even when asked, however, I am reminded of a bit of wisdom a mentor shared with me many years ago:

“Don’t try to teach pigs to sing … it wastes your time … and it annoys the pig.”

 

[Still Learning]

My wife and I remember her Mom & Dad sitting with us to discuss how to create a budget soon after we married. We are now passing along some guidance to our daughter and son in-law who married this past September and are in their 30's. Both currently live with minimal expenses, low debt, high cash inflow, travel with no debt, started serious CD purchases this year, have 8 acres (no debt) to construct a home, both work full time with side hustles, he does a bit of day trading, he is a state employee able to retire in 12 years with pension/benefits. There have been light discussions this past year about how we prepared for our retirement at 61.

So my wife and I decided to give them some investing guidance which started this week with 6 initial steps. Made it clear we do not want to know their finances, we are just providing a process to help them make their decisions.

1. Prepare a list of significant changes you expect in 2025 that will impact your retirement and retirement age.
2. He already employs a local financial planner/tax preparer (my favorite option) that does work for many state employees. Ask what she can provide in financial planning vs managing their own investments and tax advice. What is the cost for both options? Refuse any offers to start immediately and let it be known they will start small and grow later depending on results. They know we self manage.
3. Investigate Fidelity and Schwab who both have local offices with the same discussions. Get an idea off how their website works, how to conduct money transfers, search tools, etc. We went through the Vanguard website with them in detail and explained Vanguard's costs. Did a couple investment searches.
4. For the past year show all their income on an itemized spread sheet.
5. Showed them a sample budget sheet so they can prepare their budget for 2025 showing income, bills and excess income.
6. Show current list of cash, savings, and investments on a spread sheet.

Next month we'll get together to see how their meetings with Fidelity/Schwab went and assist with any questions they may have so they can proceed to open their first investment accounts. Would then like to discuss their thoughts on Item #1, his pension will cover all insurance/benefits except long term care for her so will discuss that, show them some retirement calculators (incl. FireCalc), beneficiary information updates, lihe insurance, initial wills and finally a detailed income growth spreadsheet to age of retirement (will provide a sample).

 

[tulak]

I'm more than happy to share what I do when asked, but I don't give advice.

A sibling reached out earlier this year. They ended up buying TSLA, NVDA, and S&P500. I wouldn't have bought TSLA, NVDA, and told them why, but didn't encourage them either way. I'm sure they're happy they didn't listen to me, even after TSLA initially dropped and they were asking me what's going on.

Both kids are buy/hold investors, understand the basics, but they make their own choices. One is more engaged than the other, but realizes individual stock picking is hard and sticks with index funds. Our biggest discussion is VOO vs VTI. They favor VOO and I'm a VTI fan, but I'll admit, they may have me beat with VOO. The other doesn't care and sticks with VTI.

I recently helped a sibling of DS's girlfriend. They wanted to invested, but had no idea how to get started and their parents were not helping. Surprisingly, they had a great list of reading material and understood the basics, but were lacking experience in setting up an account (where?), buying the ETF/Funds (how?), etc. I helped them get brokerage/Roth accounts created, explained the differences with the accounts, etc, and offered to help them put in buy orders, but they figured that out on their own. They went with VOO too.

 

[sengsational]

My Dad had my mom set up with utility stocks and safe interest positions when he passed. Then she sold the house and asked me (she calls me her CFO) where to put the money. If I didn't tell her something, it would have stayed at the bank, earning 0.05%. So I applied the new money to what she already had, but diversified a bit, spreading on the utilities she already had, and adding one: Dominion. Well, five minutes later, Virginia denied their offshore wind farm and it got clobbered. Thankfully it is a small position, and maybe they'll come back into favor some day.

 

[rembrandt]

My father lost a ton in the dotcom crash, but it was all on him. I gave him no advice. May he (not) rest in peace.

 

[jollystomper]

I have offered advice only when asked. All of our kids, as well as a few nieces and nephews, have at one point or another asked me about personal finances. It is a different point of view that several siblings/nieces/nephews who have or have had careers with Wall Street firms have, but that makes it more interesting in our family, in a good way.

 

[ugeauxgirl]

I'm a retired financial advisor. I try to keep my mouth shut unless anyone asks me a direct question. Family members are the worst clients. I do give out investment books for graduations, etc. And My son did get some unsolicited advice re what to do with his signing bonus for the Navy. I won't bring it up again though.

 

[skipro33]

The only advice I've ever given is that which I've followed since I was 27 and had a job that matched into my 401K and 457 to which I maxxed out, then later offered IRA, so I maxxed into that as well. And that is: put it all into an equity mutual fund that tracks the stock market. These days (decades most likely) has been FXAIX S&P500 fund. After I retired in 2012, I didn't add to it, but then I've never drawn from it either. I'd say I did very well and oblivious to the risk, knowing I'm likely to only need it for long term assisted living/health care and someday would need to take RMD's and figure a way to spend it when that time comes.
I have only one person who's asked me investment advice, a niece. I've offered her my strategy along with buying a house as early in life she could afford. She's done both AND works at a pension job for the federal government. We talk regularly and she's very happy with the advice, so I am too.
Neither of my sons ask about money, other than short term loans to qualify a mortgage or to fund home improvement projects they pay back within a year. I've casually mentioned that they won't have to worry about supporting either of us in our old age. One has mentioned we might consider funding college accounts for the grandkids, but I have other plans for helping along those lines. Same when they marry and start families.

 

[Pointby2]

My niece, age 57, retired military, was concerned she didn't have enough to fully retire on. She called and we went through all her numbers, including walking her through Firecalc. She is paying an advisor 1.5% to manage her six figure Roth/401K funds and he wants her to convert it all to an annuity. We had a long talk, and gave her my advice to not buy an annuity and self manage her account. Since she is hesitant, we could start slow and move a little money to a traditional brokerage. I offered to help her along the way with advice and resources to read. She has zero investing knowledge and apparently it's not a topic she's particularly interested in.
Since then, I was on the phone with my E-Trade rep and he mentioned they have a $250 bonus if you transfer an account to them. I let her know, just in case, since that's where she was going to move her money. Her response:
I don’t think I’ll do anything until the new year. We r almost into the busy holiday season.
I’ve still got to do more research and probably have another talk with you about some of the info I’ve read on e-trade and options. Thanks!
I just realized, I can talk until I turn blue, she isn't going to do anything.
The classic, you can bring a horse to water scenario.