One Initiative, Five Wins
Question asked by a first-time poster at Motley Fool Stock Advisor this morning: I have $20,000 to invest and I wish to add $300 each month to it. What are some suggestions for growth of this for the benefit of my grandson, age 19.
There's no one answer to this question. It's a great question. Part of what makes it great is the sheer stewardship and love that underlies the question. Congratulations to you, and to him for having you.
One approach: Buy 10 stocks off of our service for $2000 each. That gives you diversity. With the $300 each month, using a broker/service/site like ShareBuilder, add that money to one of the 10 stocks -- or an 11th -- that most strikes your fancy.
When I say "your," I mean your collective fancy.
Because my primary suggestion, above all, is that you use this money and these investing decisions as an opportunity to CONNECT. Both (1) to connect with him, and (2) to connect him to the act of investing -- both are important. Doesn't have to be face-to-face, at all, these days -- maybe it's just a monthly e-mail: "Which one should we add to this month, or do we want to get an 11th stock in there?" That way, with a single initiative, you have at least five wins:
*You win because you spent more time with him.
*You win because you did something beautiful on this earth.
*He wins because he learns investing, at his own pace, with real money.
*He wins because he spends more time with you.
*He wins because he's set up to be more attentive to his finances, a learned skill that will keep coming back to benefit him, over and over, over the course of his life... 19 on....