If I could talk to 18-year-old me…

A-True-Story-of-a-Father-and-His-Son

Eric Today: Hey Eric!  I want to talk to you about something very important.  It’s something I wish I knew when I was your age.

Young Eric: What’s that?

Eric Today: I want to talk to you about the stock market.

Young Eric: OK.  What’s that?

Eric Today: The stock market is a place where you can invest in real companies and participate in their success. If the company makes a profit, you share in their success.  For example…,in 1975, eight years after you were born, we could have purchased $1000 worth of Walmart.

Young Eric: Really?

Eric Today: Do you know how much that investment would be worth today?

Young Eric: How much?

Eric Today: Close to $10 million.

Young Eric: WHAT?!?!  That’s incredible!!!  How?

Eric Today: It.s called compound interest, and it works wonders over time.  Each year, your money continues to grow from a bigger and bigger amount.

Young Eric: Wow!!!  OK…when can I start investing?

Eric Today: Now!  Save up $500, and then come see me so I can help you get started.

Young Eric: I most definitely will!  Thanks so much for sharing this information!!!

 

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)

 

 

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It’s Never Too Early!

History teaches us that the earlier you start something in life, the more proficient you will become at it.

Check out this chart that compares starting regular contributions to a Roth IRA at age 15 versus age 25.

You could potentially double your return by age 65, with no extra work!

If you missed last year’s post by Chris Pascale – in which he talks about how he put this into practice and opened up a Roth for his teenage daughter – check that out as well.

Now is the time that young people across the country are working at their summer employment.  If you have teenagers, encourage them to set aside a portion of their earnings from their supermarket, camp counselor, landscaping, etc. job for their future.  Show them these articles.

A couple of qualities that are already coming into prominence about Generation Z are their entrepreneurial spirit and a preoccupation with becoming financially free.  Although you may never get them to listen when you ask them to do their household chores, chances are that when they see how much they stand to gain by starting to invest now rather than at 25, their ears will perk up.

Share your experience in the comments!

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)