quote:

Originally posted by 220-9er:
He's a junior so he may need the money in 2 years or less.
I'm all for learning the lessons but that's a short time in the present economic situation to invest.

This is the only good advice so far, in response to the original post. If he will need the money in two years, he should not put it in the market in any way. Not individual stocks and not mutual funds. While the market can be a great investment vehicle for the long run. Over two- five years he is at real risk of losing money. Preserving what he has saved is more important than growing it over that time frame.

Not to deride from the stock purchases, but advice of college money. Depending on if he intends to pay as he goes to college or gets students loans and scholarships/grants. If he, you and spouse have savings, (not sure what the current amount, ours was capped at 65K) the amount of scholarship money deducted his and your savings. So let's just make up an amount, say your son saved $25,000. If school cost $55,000 per year, scholarships give you $30,000. Your son would end up with only $5,000 in scholarship money. These finances go back 18 months. This means that by December 31, of his junior year you can't show over the set amount of savings. We bought my truck for me, and a new car for my son before the deadline.

One advice I was given regarding stocks that is a certainty, stocks will go up, stocks will go down. As was earlier suggested, use Yahoo's or similar site that will let you have a portfolio for fun that you can research and trade. I
Sounds like your son is a hard worker and will do well. Good luck to you both.

How to invest in stocks

https://www.fool.com/investing/how-to-invest/stocks/

I’m using TD Ameritrade, choosing solvent companies that are undervalued due to Covid but are solid. And no more than 10% in any one stock. Does he have a Pickup truck for his business?

Lots of interesting stuff above, much of which does not really have to do with the question asked, which was

quote:

I am looking for recommendations on which stock company/brokerage/service would be best for him

I'm fond of Charles Schwab as a brokerage. They offer the full gamut of services, a good web/app presence and costs are very low (zero commission). Vanguard also offers low-cost brokerage services and TD Ameritrade, among others.

Places to avoid (either due to high costs, restricted investment choices, churn-inducing broker comp plans - or all of the above ) are full-cost/regional/boutique brokerages, banks and insurance companies.

To add just a tad to joel's post, I believe Schwab will be/is acquiring TD Ameritrade in a year or so.
Not that I see any problem with that, just might want to start the account with Schwab to avoid hassles with transition.

Two years?


I would:

1) Open ETRADE account
2) Deposit the 10k
3) Buy 10k worth of AAPL

I'm serious...

^^^ I'm very fond of AAPL (Apple) and think it's a good choice.

Note symbol. I assume Patriot meant AAPL

quote:

Originally posted by 6guns:
^^^ I'm very fond of AAPL (Apple) and think it's a good choice.

Note symbol. I assume Patriot meant AAPL

Corrected...thanks!

Thanks for all the above.

To answer some questions asked above. This money is his to play with and buy things in college that we wont pay for, fraternity, partying, exorbitant clothes, etc.
His mother and I have bought him a small car and now a work truck (garage kept Mazda 2002 B2300 that we found with very low miles just last week). This way he will stop borrowing my '11 F150 that I want to keep for as long as possible.

His mother and I invested in the original Texas Tomorrow fund when he was a month old so the tuition is covered at any Texas Public school for four years. His mother and I will need to pay for books, room and board beyond that.

So he is thinking to save this money for college uses as above and really beyond (buy a franchise, start a company, etc.), he can be quite the saver. He has entrepreneurial tendencies, but we tell him to get a degree while poking at a business startup.

He has friends who are investing and he wants to keep up with the Jones to some degree and spends alot of time watching videos on youtube, ted talks etc.

I am just not clear which of the financial services might have an advantage for him meaning a 17 yr old making investment choices at the lowest trading costs.

But all advice above is being logged, thanks fellas keep it coming.

HK Ag

Peter Lynch, a famous mutual fund manager, has the following perspective;

There are three things that are the best investments for the average person. First is a good education. Second is a house and third is equities.

I would have your son concentrate on developing a career and how to buy a house down the road. Learning the markets can be done over ten years, which is the time it takes to effectively do it yourself.

V.

Ugh...friends who are investing...they're worse than fishermen. They're like gamblers; they'll tell you how they won $50k on a trip to Vegas, but not mention how they're broke because of their overall losses.

He sounds like perfect candidate for the book I mentioned earlier, Rich Dad Poor Dad.

Stocks are one way for people to build their asset column, but to be honest, unless you're on the inside circle, it's never going to amount to a big deal. By the time the street knows, it's already too late.

If businesses are his thing, he'll find far better success in building and investing in other businesses than he will in mutual funds or day trading.

The financial education he'll get in running and growing a business is the investment I advocate for him. The money is the least important thing at this point in his life. If he fails and losses it all, he'll be smarter and better prepared to try again. Protecting 10k for a lifetime of working for someone else seems stupid to me.

Get a good education and get a good job....so you can accumulate real wealth for the business owner. That's what so many people do. I'm a business owner, so don't get me wrong, I'm grateful, but that is the path so many take. Some don't have the fire and stones to be an entrepreneur, but when I see someone who has the ability to do it, it kills me to see people telling them to play it safe and make someone else a bunch of money. Your boy has got to read that book. I read it when I was a little older than him and I still reread it to this day.

You can retire working for someone else, but you cannot accumulate real wealth that way. Only way to do that is to build a successful company. Depends on which road he wants and has the stomach for. Seems to me he's a budding builder of businesses.

ETA: this thread is literally what the book talks about. The advice given to the author as a boy. On one side was his biological father and other was his best friend's dad. He breaks down the differences in the advice and how he chose which to follow. My advice is admittedly very different from most in this thread, just as it was for the author. I strongly believe that those who don't understand entrepreneurs or are not one, can't advise those who have the fire burning in them. I wish I was closer, I'd love to have lunch with him.

Another vote for Boglehead investment strategy. They have regional groups that meet once per quarter. It is solid strategy without stock picking.

I am going to suggest a little different direction in hopes that your son will begin to formulate a long term plan for his own financial indepedence.

The first book recommendation is :https://www.amazon.com/Simple-Path-Wealth-financial-independence/dp/1533667926

And my second recommendation provides a framework to evaluate individual comapny stock:https://www.amazon.com/Simple-Path-Wealth-financial-independence/dp/1533667926

And while much maligned, I also like the original Rich Dad, Poor Dad books for a foundation for thinking about what are assets v. Liabiliities: https://www.amazon.com/Rich-Da...ipbooks%2C213&sr=1-1