Buying stocks

[Salter]

Please tell me more on

the 20% return.

No response?

 

[Canuck5]

Her plan is to put in, stay in and adjust as necessary. Any dividends earned are to be rolled over and reinvested rather collected.

In three years, she's getting my truck so a vehicle is not a goal; personal financial security is. By her estimation, she has 5 years of unburdened years left that she can earn and invest with. During this time she figures she can afford learning mishaps. I'm inclined to agree as she has this period of debt free income to experiment with.

She isnt looking or expecting to throw in some money for quick returns. She is aware there are risks as well as rewards. Chosing where to invest is a tough call and not sure myself, opted to arrange a meeting with a financial advisor for both of us.

Yall have offered some great options and opinions and we are open for more. It's much appreciated

If you can find a "Fee Only" Financial Advisor, that would be great, which in theory means he has "no axe to grind". You basically pay him by the hour and he will answer questions and give opinions. Otherwise, I'd call a local Schwab office, tell them just what you laid out above, and set up an appointment and go visit them and it won't cost you a dime. You will have a FA assigned to you and your daughter and you/she can pick up the phone and or email him at any time with questions.

(I am not knocking any financial advisors on here, who earn a commission from dollars invested. Some of the greatest advice, I didn't listen to, I was given by one in the crash of 1987. And yes, I have been investing for a long time, LOL.)

 

[Canuck5]

I have accounts at Schwab, Vanguard and Fidelity and they all have been good to me. I mention Schwab, because there is an office a few miles away from me and it's convenient. At Schwab, I can buy any stock, any mutual fund or any ETF there. I own Vanguard ETF's in my Schwab account. They don't care.

 

[Mexican Squealer]

I’d go aggressive with quality stocks....I hate ETF’s. May be “safer” but not very interesting...like said above, she is young enough to handle the ups and downs. Now is the time.

 

[Canuck5]

LOL, when you boil ALL, this advice down, you can see that we ALL wished we were 13 with $5000 to invest, with a wide open future ahead of us. The key word here is INVEST. You've raised and helped a good one!

This education on investing, early, will pay dividends for a long time! There will be trials and tribulations in it, but don't let her get frustrated by it. I started investing when the Dow was under 1500 and today it is above 27,000. Think about all the wars and financial tragedies we've been thru in that time frame and the stock market keeps on rolling, like a roller coaster sometimes, but.

Keep her looking forward!

 

[jammeri5]

Great point on the fee only FA. Be sure to diversify your portfolio also. You don’t want to be heavily invested in one company or even one industry. I like the idea of buying stock in companies whose products you use especially when getting started. If she is a Disney fan That could be your entertainment sector stock. If you bank with Wells Fargo and like them then they could be your banking stock.

 

[jav]

Not sure of her long term plans, but if she is funding education. A education IRA has great benefits on the tax side.

 

[zedex]

Not sure of her long term plans, but if she is funding education. A education IRA has great benefits on the tax side.

Her education fund is covered. That's one thing she'll never worry about, even if she wanted to be a professional student.

She is driven to securing her financial freedom for life

 

[grouper throat]

My daughter is 14 and has an account through Schwab that my dad opened for her years ago. She invests in stocks they pick together, normally stuff she uses everyday (Apple, Amazon, Disney, Coke, etc.). She likes watching the market and is like a sponge soaking up our financial conversations. My dad did that for me and my brother at a young age and it really grew our interest in investing. Kudos to you for helping her out.

 

[Canuck5]

If she has an interest in investing ...... make it fun! Could be a career for her!

 

[jav]

Her education fund is covered. That's one thing she'll never worry about, even if she wanted to be a professional student.

She is driven to securing her financial freedom for life

Congrats to her. She is young and has plenty of time. I am not a smart person, but what i invested in i made sure i could set up as a DRIP account. Good luck to her