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Post by MoBuckChaser on Aug 20, 2018 19:50:07 GMT -6
I will say this, he has made almost $15K in 8 weeks and has it all in the bank. Lives at home with his parents and plans to for a few years. He has no bills, so who knows, maybe I can get him to invest more. I will know shortly! Saving is a great start... many of us don’t make. But investing is another step. Convince him to earn more than .25% on his money! I’d explain the risks too though lol Oh he knows about interest and getting screwed at the bank. He can't wait to get started investing but doesn't know about online investing. I want to get him set up at Vanguard, and his parents who are all for him starting to invest, like the low cost Vanguard Idea. So time will tell. He has been socking away his Hay sale money also. He told me saturday he had around $15K now with his work money and was ready to get started.
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Post by Foggy on Aug 20, 2018 20:59:33 GMT -6
Dazzle him MO. Tell him about the "rule of 72"......and you will sound like a genius. The rule of 72 goes.....is the % return divided into 72 is how long it takes to double your money. ie: If you earn 6% per year....you will double your money in 12 years. If you earn 12% per year you will double your money in 6 years. Earn 4% per year and it will take 18 years to double your money. Invest wisely. .
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Post by benmnwi on Aug 20, 2018 22:02:44 GMT -6
If he is making $90k at age 18, remind him he is in the 1% for his age and not to mess it up. There are also lots of people willing to do the same job for much less, so don't get too comfortable. Good for him though, that's awesome he is in that position. He should be saving $3 grand per month now if he is making that much since he shouldn't else to spend it on. That kid will be set if he can live like a poor college kid for 5 years while pulling in close to $100k/ yr while saving the rest.
He could invest in anything and do well if he puts away $30k+/ yr. maybe you should show him some old broke guys that were in his position 30 years ago that didn't save squat and ended up eating government cheese. Just need to motivate him to save and he will be in great shape.
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Post by MoBuckChaser on Aug 21, 2018 4:59:12 GMT -6
If he is making $90k at age 18, remind him he is in the 1% for his age and not to mess it up. There are also lots of people willing to do the same job for much less, so don't get too comfortable. Good for him though, that's awesome he is in that position. He should be saving $3 grand per month now if he is making that much since he shouldn't else to spend it on. That kid will be set if he can live like a poor college kid for 5 years while pulling in close to $100k/ yr while saving the rest. He could invest in anything and do well if he puts away $30k+/ yr. maybe you should show him some old broke guys that were in his position 30 years ago that didn't save squat and ended up eating government cheese. Just need to motivate him to save and he will be in great shape. The building trades are screaming for help right now in the twin cities. There are no more people or very few, that want to get up at 4:30am drive over a hour to work, work 10 hours of hard physical work setting concrete forms for huge buildings and parking ramps, then drive home. This kid has his job because he is a hard worker, he is plenty comfortable, he works!
As of right now he is saving every dime almost from every paycheck. He isn't blowing any of it. We are just trying to get him into investing for the future, which most kids know nothing about. Who knows, maybe he will do $3K a month, but I want him to invest what he is comfortable with now, he can always chance it in the future.
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Post by Freeborn on Aug 21, 2018 5:13:19 GMT -6
If he is making $90k at age 18, remind him he is in the 1% for his age and not to mess it up. There are also lots of people willing to do the same job for much less, so don't get too comfortable. Good for him though, that's awesome he is in that position. He should be saving $3 grand per month now if he is making that much since he shouldn't else to spend it on. That kid will be set if he can live like a poor college kid for 5 years while pulling in close to $100k/ yr while saving the rest. He could invest in anything and do well if he puts away $30k+/ yr. maybe you should show him some old broke guys that were in his position 30 years ago that didn't save squat and ended up eating government cheese. Just need to motivate him to save and he will be in great shape. The building trades are screaming for help right now in the twin cities. There are no more people or very few, that want to get up at 4:30am drive over a hour to work, work 10 hours of hard physical work setting concrete forms for huge buildings and parking ramps, then drive home. This kid has his job because he is a hard worker, he is plenty comfortable, he works!
As of right now he is saving every dime almost from every paycheck. He isn't blowing any of it. We are just trying to get him into investing for the future, which most kids know nothing about. Who knows, maybe he will do $3K a month, but I want him to invest what he is comfortable with now, he can always chance it in the future.
This is why we need to get people off of Welfare. Once people get on the system they don't want to get off. Even with the economy doing well long term welfare is not changing. Requiring work or volunteer requirements would help. They should go back to the 5 year limit as written in The Contract with America and that Clinton signed.
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Post by Catscratch on Aug 21, 2018 5:17:52 GMT -6
This awesome for the kid. Everyone is talking about "getting him to invest" but I think the most significant thing here is that he will learn "how" to invest. Most people don't know the general terminology in investing let alone concepts, pitfalls, and hidden fees. You getting this kid interested, show him some success and how it happened, and you'll have helped make a person who can do this for himself the rest of his life. Everyone wants to invest, few know how. Bravo!
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Post by Foggy on Aug 21, 2018 6:35:27 GMT -6
^ One thing I would remind that "kid" about.....is to not give up on making yourself ready for another line of work in the time to come.
I can remember two friends of mine that went to work pouring concrete under similar circumstances. They made more money that the rest of us for several years.....but when they hit about 30 years old they were trapped into that line of work. It was who they are now. I did not make as much money at that time....but continued to pursue my passion (manufacturing and sales) and later in life was able to out-perform in so many ways. At about 50 years old....their bodies were toast.....and they kinda limped into retirement without the high wages they once had enjoyed.
Not saying your young guy should not ring the bell now when he can.....but he should prepare for something to do later in life too. Just saying.
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Post by Bwoods11 on Aug 21, 2018 7:00:27 GMT -6
I’m probably not suppose to post this online.. but if invests in a Mutual fund like Franklin Templeton Income Fund.
It’s conservative and pays a 5% dividend. It has a long track record. I put some of my young clients in it, the share price is low (fees are around1%) and it has performed well.
6.1% over 10 years... no lighting it up, but it won’t tank on a drop either.
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Post by MoBuckChaser on Aug 21, 2018 8:02:59 GMT -6
I’m probably not suppose to post this online.. but if invests in a Mutual fund like Franklin Templeton Income Fund. It’s conservative and pays a 5% dividend. It has a long track record. I put some of my young clients in it, the share price is low (fees are around1%) and it has performed well. 6.1% over 10 years... no lighting it up, but it won’t tank on a drop either. Is its top holding still General Electric? I hope not!
Edit: See it still has a front load of 4.25%, sorry but those days are long gone!
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Post by Foggy on Aug 21, 2018 8:11:53 GMT -6
Been said that a person should dollar cost average into the stock market. But after watching markets for over 40 years or so......I've never seen this to be good advice. Same goes for timing tops and bottoms.....more often you get whipsawed than proves to be a good way to manage. If I were advising him.....I would tell him to put about 1/2 of what he is going to invest in a fund like said above. Then perhaps another 30% into a GOOD growth stock fund index. I'm a Vanguard guy - or T. Rowe Price. And 20% would go into something more speculative in order to learn. Maybe a BRIC international fund or soybean futures . (not).
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Post by MoBuckChaser on Aug 21, 2018 8:22:19 GMT -6
Been said that a person should dollar cost average into the stock market. But after watching markets for over 40 years or so......I've never seen this to be good advice. Same goes for timing tops and bottoms.....more often you get whipsawed than proves to be a good way to manage. If I were advising him.....I would tell him to put about 1/2 of what he is going to invest in a fund like said above. Then perhaps another 30% into a GOOD growth stock fund index. I'm a Vanguard guy - or T. Rowe Price. And 20% would go into something more speculative in order to learn. Maybe a BRIC international fund or soybean futures . (not). I agree, about 75% of the time dollar cost averaging never works if you have a lump sum to invest. But when you are investing out of a weekly paycheck, you end up cost averaging anyways. I am a new Vanguard guy, love the no loads and the low low cost maintenance fees. After being screwed paying front loads and high maintenance fees for years after trusting our local bank investment guy, it wont ever happen again !
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Post by Bwoods11 on Aug 21, 2018 10:07:28 GMT -6
No you don’t have to pay a front load.
Catalyst Dynamic Fund (5 Star)
5 year ... 18.10%
Top holdings... Black Rock, Abbott, Honeywell
To each his own, some funds outpace the S&P
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Post by MoBuckChaser on Aug 21, 2018 10:20:49 GMT -6
No you don’t have to pay a front load. Catalyst Dynamic Fund (5 Star) 5 year ... 18.10% Top holdings... Black Rock, Abbott, Honeywell To each his own, some funds outpace the S&P Am I looking at the wrong words?
Sorry, I thought you said Franklin Templeton Income Fund! I guess you did say that fund. It sucks with a front load.
CDF shows a front load even worse with a huge turnover.
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Post by Bwoods11 on Aug 21, 2018 10:34:10 GMT -6
No you were correct-- looking at Franklin Income Fund, with front load, the numbers are not as good, correct, but my point was 6.2% over ten years is a nice alternative to the bank, with lower risk than a typical mutual fund.
Balanced funds, such as Transamerica Balanced, American Funds Balanced, or Vanguard Balanced (60% stocks/40% bonds)...less volatile and still seem to do well over 10 year stretch.
Overall, it has been a good fund--long term. The Catalyst Fund is a nice fund (more aggressive).
*You do not have to pay an upfront load, on these fund, share classes are available. I use a different shar class, fees are usually .50% to 1%....so $1 for every $100 invested.
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Post by Bwoods11 on Aug 21, 2018 10:40:27 GMT -6
Vanguard Balanced VBINX---8.14% over past 10 years, 5 Star Morningstar rating....low fees
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