My daughter, 19, has gotten her first full time job. It's a pretty decent one. Union, benefits, all that jazz. I've been encouraging her to start investing some of her money. My figuring is, if you start investing now, you might not have to work full time when you're my age (40).
She picked up Robinhood to dip her toes in the water.
She's young, has nearly no financial obligation, and we will let her live at home rent-free as long as she needs. What advice should I give her? What direction can I point her in? What is the best way for a young person to invest?
First time investing for a 19 year old?
byu/Mr_Ironside ininvesting
Posted by Mr_Ironside
2 Comments
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Have her max out her 401k asap. Set to low cost sp500.
Have her open a Fidelity account. She can have direct deposit into it. Have her buy sp500 on an auto weekly basis (you can do this on Robinhood, but the budgeting features on Fidelity are better).
Teach her to not rely on self discipline. To set to auto. Have a weekly amount she buys, then ork to increase that weekly. Sell only when there is something urgent to pay for.
Here is another important thing: you do this as well. 40 is super young. You obviously don’t do this yourself. Teach kids by example.
Learn as you go. Educate yourselves on bogleheads wiki. You will learn optimizations. You will learn about Roth etc.
Don’t plant retire by 40 in your daughter. Teach all money is a tool. Monthly income vs monthly expenses vs monthly AUTO investment. When her auto is greater than her bills, she is a winner. Financial health is like physical health, it’s a lifestyle. No secret sauce, no magic formulas. Best of luck!!