First stock for a twelve year old

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First stock for a twelve year old

Postby ret&uneasy » Sat Jun 22, 2013 3:09 pm

My Grandson surprised me the other day when I was asking him what he wanted for his birthday. He said he wanted some stock. Now I am retired and on a fixed income so I can't do much but wanted to buy him a share or two of something he is familar with. Thought about his interest in computer games. We gave him something from "gamestop" or something like that for Christmas off his list. Any ideas? Thanks in advance.
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Re: First stock for a twelve year old

Postby tetractys » Sat Jun 22, 2013 3:18 pm

Total US Stock Market Index Fund might be exiting for him. He would own thousands of US companies instead of just one, and he would be able to see how the companies he is familiar with fit in with the rest. You could also go World. -- Tet
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Re: First stock for a twelve year old

Postby mdpsychcrnp » Sat Jun 22, 2013 3:21 pm

Vanguard Total Stock Market Index
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Re: First stock for a twelve year old

Postby Banana » Sat Jun 22, 2013 3:29 pm

I think this is AWESOME. I'm sure someone must have sparked his interest in investing so congrats to you or his parents! I can speak from experience on this one. When I was about that age maybe a little bit younger my dad bought me some shares in USAA first start growth fund. The goal of a fund like this is to invest in things that kids understand and can relate to ie. gamestop, sporting goods stores, skateboard companies. They also send out quarterly magazines (newsletters) that are made for kids to teach them the basics of investing. This was my start in investing and it made a world of difference for me. Learned a lot and stayed interested. I ended up transferring this to a ROTH IRA when I was 18 with vanguard.

Another example of this style is the Monetta Young Investors fund. Maybe a share or two of this would help?

If this would be to much to fund. I would recommend a stock like you suggested; Gamestop, EA Games, maybe Disney?
Last edited by Banana on Sat Jun 22, 2013 3:50 pm, edited 1 time in total.
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Re: First stock for a twelve year old

Postby StormShadow » Sat Jun 22, 2013 3:43 pm

tetractys wrote:Total US Stock Market Index Fund might be exiting for him. He would own thousands of US companies instead of just one, and he would be able to see how the companies he is familiar with fit in with the rest. You could also go World. -- Tet

$3,000 is a bit much for a 12 year old's birthday present. (The minimum to start a Vanguard Total US Stock Market Fund.)

I think buying a share(s) of a stock is a fine idea. It'll give him a chance to learn about the market. When he is older, then introduce him to the world of mutual funds and index investing.

Some ideas:
Electronic Arts NASDAQ:EA $21.98/share (owns Madden NFL series, SimCity, Rock Band)
Activision Blizzard NASDAQ:ATVI $13.55/share (owns Starcraft, Warcraft, Call of Duty)
Microsoft Corporation NASDAQ: MSFT $33.26/share
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Re: First stock for a twelve year old

Postby sometimesinvestor » Sat Jun 22, 2013 4:11 pm

mcdonalds disney apple google gamestop all seem possible. You definitely want a company he has heard of . Though I do not own any of these except through funds I suspect Disney has the most fun annual report.
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Re: First stock for a twelve year old

Postby momar » Sat Jun 22, 2013 4:30 pm

StormShadow wrote:
tetractys wrote:Total US Stock Market Index Fund might be exiting for him. He would own thousands of US companies instead of just one, and he would be able to see how the companies he is familiar with fit in with the rest. You could also go World. -- Tet

$3,000 is a bit much for a 12 year old's birthday present. (The minimum to start a Vanguard Total US Stock Market Fund.)

I think buying a share(s) of a stock is a fine idea. It'll give him a chance to learn about the market. When he is older, then introduce him to the world of mutual funds and index investing.

Some ideas:
Electronic Arts NASDAQ:EA $21.98/share (owns Madden NFL series, SimCity, Rock Band)
Activision Blizzard NASDAQ:ATVI $13.55/share (owns Starcraft, Warcraft, Call of Duty)
Microsoft Corporation NASDAQ: MSFT $33.26/share

The ETF is only ~$80.
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Re: First stock for a twelve year old

Postby Gringo » Sat Jun 22, 2013 4:49 pm

I'm not sure if the $3000 minimum applies to opening a Vanguard brokerage account (which you would need to purchase the ETF) but you CAN open an account at TD Ameritrade with no minimum and purchase the very same ETF commission free, along with 31 other (32 total) Vanguard ETF's.

Do your grandson a HUGE favor- steer him clear of individual stocks (at least for now) and get Bogle on his head. Or in his head. Make him a Boglehead. Get him started early with the "index mentality" and he'll go far far far indeed.

Later on, when he starts learning more about the stock market, maybe (maybe) you can introduce him to the concept of individual stocks; otherwise, right now you're just throwing darts at a board.

An idea- open up an account at TDA, buy a share of VTI, and also a copy of Bogle's book, "The Little Book of Common Sense Investing". Plant this nugget into his head now and your grandson will be thanking you long after you're gone.
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Re: First stock for a twelve year old

Postby StormShadow » Sat Jun 22, 2013 5:00 pm

momar wrote:
StormShadow wrote:
tetractys wrote:Total US Stock Market Index Fund might be exiting for him. He would own thousands of US companies instead of just one, and he would be able to see how the companies he is familiar with fit in with the rest. You could also go World. -- Tet

$3,000 is a bit much for a 12 year old's birthday present. (The minimum to start a Vanguard Total US Stock Market Fund.)

I think buying a share(s) of a stock is a fine idea. It'll give him a chance to learn about the market. When he is older, then introduce him to the world of mutual funds and index investing.

Some ideas:
Electronic Arts NASDAQ:EA $21.98/share (owns Madden NFL series, SimCity, Rock Band)
Activision Blizzard NASDAQ:ATVI $13.55/share (owns Starcraft, Warcraft, Call of Duty)
Microsoft Corporation NASDAQ: MSFT $33.26/share

The ETF is only ~$80.

Ah, nevermind then.
Load up the indexes! 8-)

Perhaps using a 529 plan to avoid capital gains taxes?

I like the idea of buying Vanguard S&P 500 ETF (VOO) so he always knows what is happening with his money whenever he hears about the S&P 500 in the news. He'll definitely learn about percentages quickly!
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Re: First stock for a twelve year old

Postby widestance » Sat Jun 22, 2013 5:19 pm

Check out OneShare. Yes, you're paying a premium for their service, framing, etc...but it does make for a pretty cool gift and something that your grandson can stare it.
I've bought a few shares through them and the recipients seem to like the uniqueness of the gift.
A statement from Vanguard or whatever probably isn't going to be very sexy in his mind :)
Everybody's got a plan until they get punched in the face - Mike Tyson
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Re: First stock for a twelve year old

Postby Simplegift » Sat Jun 22, 2013 5:21 pm

How about a single share of stock that you could give to your grandchild as a framed stock certificate? This website offers the service: OneShare

They have over 200 companies to choose from. For an example of cost, a single share of Disney stock will cost you about $65 today, plus $40 for the certificate fee, plus $35 for their most inexpensive frame — so about $140 total for a nice gift. Takes about 4-8 weeks to produce, so you need to plan ahead a bit.

Image

PS. Widestance, you beat me by two minutes!
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Re: First stock for a twelve year old

Postby widestance » Sat Jun 22, 2013 5:29 pm

I actually bought a share of Pixar for myself a few years ago i think for about $60 all in.
Got it right before Disney acquired them. Now I have 2 shares of Disney and have more than doubled my investment. haha
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Re: First stock for a twelve year old

Postby Kevin M » Sat Jun 22, 2013 5:31 pm

You can open a Schwab custodial account for $100, and you can buy one of their low-cost index funds for $100 minimum. I would start with the Total (US) Stock Market Index, then when you or someone is ready to kick in another $100, add the Schwab International Index.

I definitely would not buy an individual stock, since this is setting a bad example and not helping the young one to understand the benefits of diversification, and the non-systematic (theoretically uncompensated) risk of owning a small number of individual stocks. Obviously simpler words can be used to explain this.

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Re: First stock for a twelve year old

Postby boggler » Sat Jun 22, 2013 5:31 pm

Buy him two shares of VT. It'll cost $100, and will train him that picking stocks is not the way to build a strong portfolio over time.
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Re: First stock for a twelve year old

Postby Kevin M » Sat Jun 22, 2013 5:32 pm

widestance wrote:A statement from Vanguard or whatever probably isn't going to be very sexy in his mind :)

So that's what we want to teach our children--that investing should be sexy?

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Re: First stock for a twelve year old

Postby sliqua » Sat Jun 22, 2013 5:39 pm

I would second the recommendation to look at the USAA First Start Growth Fund - it's got a $20 minimum, and as others mentioned, most of their literature and correspondence is centered around teaching. My father signed me up for a First Start Savings Account at age 12 in the late 90s - I remember reading everything they sent me cover to cover. I even wrote the Growth Fund manager a letter asking him to explain dividends -- I got a personal response!

https://www.usaa.com/inet/pages/parenti ... irst_start
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Re: First stock for a twelve year old

Postby Simplegift » Sat Jun 22, 2013 5:42 pm

Kevin M wrote:You can open a Schwab custodial account for $100, and you can buy one of their low-cost index funds for $100 minimum. I would start with the Total (US) Stock Market Index, then when you or someone is ready to kick in another $100, add the Schwab International Index.

Kevin, your idea is a good one at a moderate cost. For a snazzier gift, one could also make their own certificate of the mutual fund for the grandchild and frame it themselves. Just for fun.

Free Online Certificate Maker
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Re: First stock for a twelve year old

Postby FedGuy » Sat Jun 22, 2013 5:42 pm

Kevin M wrote:I definitely would not buy an individual stock, since this is setting a bad example and not helping the young one to understand the benefits of diversification


If the stock doesn't do well, I think it really could illustrate the benefits of diversification.

My grandfather bought me and my sister a few shares of three different stocks when we were kids. Each of us got different stocks. None of them were companies I've otherwise ever heard of, and none did particularly well. One of mine went private, which I didn't realize at the time because I wasn't diligent about keeping my address updated and reviewing the mailings I received, but years later I spent several hours on the phone finding out how to return my certificates for a total of $77.

Indexes win.
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Re: First stock for a twelve year old

Postby Banana » Sat Jun 22, 2013 5:52 pm

Kevin M wrote:
widestance wrote:A statement from Vanguard or whatever probably isn't going to be very sexy in his mind :)

So that's what we want to teach our children--that investing should be sexy?

Kevin


I don't think that's the point. I think the point is you do want to keep there interest. I doubt many kids would find the boglehead strategy interesting. Most people probably cant have it force feed to them especially at a young age (when they KNOW they can beat the market). Better for them to learn the ins and outs of investing with something they can relate to so they aren't helpless then let them come around organically. YMMV

Obviously with some discussions of what you think a proper strategy should look like etc.
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Re: First stock for a twelve year old

Postby boggler » Sat Jun 22, 2013 5:52 pm

FedGuy wrote:
Kevin M wrote:I definitely would not buy an individual stock, since this is setting a bad example and not helping the young one to understand the benefits of diversification


If the stock doesn't do well, I think it really could illustrate the benefits of diversification.

My grandfather bought me and my sister a few shares of three different stocks when we were kids. Each of us got different stocks. None of them were companies I've otherwise ever heard of, and none did particularly well. One of mine went private, which I didn't realize at the time because I wasn't diligent about keeping my address updated and reviewing the mailings I received, but years later I spent several hours on the phone finding out how to return my certificates for a total of $77.

Indexes win.


Buy him a thousand shares of a penny stock? That'd convince me pretty quickly...
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Re: First stock for a twelve year old

Postby Mitchell777 » Sat Jun 22, 2013 6:01 pm

Ret&uneasy" I got interested in investing as a young boy. I can't recall if my mother and grandmother bought me the first shares on her own or if I asked for them. As much as I believe in index funds, that may or may not interest a child as much as individual shares. It would not have interested me at that time of my life. I believe I owned a share or two of McDonalds, Chrysler, and one other. But the one that got me the most interested was stock in our local bank. Again I see that some may see individual stocks as setting a poor example, but it may be of more interest to a child and could be used to spark an interest that will lead to the types of investing discussed here.
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Re: First stock for a twelve year old

Postby StormShadow » Sat Jun 22, 2013 6:06 pm

Simplegift wrote:How about a single share of stock that you could give to your grandchild as a framed stock certificate? This website offers the service: OneShare

They have over 200 companies to choose from. For an example of cost, a single share of Disney stock will cost you about $65 today, plus $40 for the certificate fee, plus $35 for their most inexpensive frame — so about $140 total for a nice gift. Takes about 4-8 weeks to produce, so you need to plan ahead a bit.

Image

PS. Widestance, you beat me by two minutes!

Thats pretty cool!

I noticed that Berkshire Hathaway was available. Sounds terrific, if you want to buy him a $168,200 birthday present. I'd rather have a 2013 Porsche 911 Turbo S Edition 918 Spyder Coupe. Oh... its the B shares. :D
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Re: First stock for a twelve year old

Postby Banana » Sat Jun 22, 2013 6:07 pm

FedGuy wrote:
Kevin M wrote:I definitely would not buy an individual stock, since this is setting a bad example and not helping the young one to understand the benefits of diversification


If the stock doesn't do well, I think it really could illustrate the benefits of diversification.

My grandfather bought me and my sister a few shares of three different stocks when we were kids. Each of us got different stocks. None of them were companies I've otherwise ever heard of, and none did particularly well. One of mine went private, which I didn't realize at the time because I wasn't diligent about keeping my address updated and reviewing the mailings I received, but years later I spent several hours on the phone finding out how to return my certificates for a total of $77.

Indexes win.


That's another good point. I remember my first stock purchase I was about the same age as the OP grandson. It was right before K-mart went bankrupt. I was sure that a company that big couldn't go under and I had one right down the street I use to ride my back to. It was a dollar a share down from a high of around 20. I knew I had a 20-bagger. My dad being a great guy went in with me (he was a true mutual fund guy), and we both put $50 in. A few months later it was worthless pretty good lesson I think, and one I'm glad I learned with $50 of paper route money instead of 10k in real job money.
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Re: First stock for a twelve year old

Postby Kielke » Sat Jun 22, 2013 6:12 pm

A potential downside to OneShare that others have recommended. If the stock pays dividends buying one paper share will ensure he gets a check every so often that likely won't be worth the paper it is printed on. My father got a gift of one share of Callaway Golf stock, and he just chuckles about how petty he feels each quarter when he goes to the bank to deposit a check made out for 1 cent.
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Re: First stock for a twelve year old

Postby Kevin M » Sat Jun 22, 2013 6:28 pm

FedGuy wrote:If the stock doesn't do well, I think it really could illustrate the benefits of diversification.

That's a good one :beer

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Re: First stock for a twelve year old

Postby Kevin M » Sat Jun 22, 2013 6:47 pm

Back to the OP: I'm interested in why the grandchild asked for stock. Seems like an excellent opportunity to engage in a discussion about investing.

There are a few decent books available geared toward younger audiences. Allan Roth's "How a Second Grader Beats Wall Street" comes to mind. As I recall, Allan does a nice job of sharing how he explained investing to his child in a way that made sense, and why a simple 3-fund portfolio is likely to be an excellent choice.

With respect to getting children interested in investing, children are fickle. After talking with my youngest daughter about investing (she was in her early teens at the time), she decided to invest some of her own money, so we opened a custodial account at Schwab and bought her some Total Stock and Total International, in something like a 60/40 AA. Later, after talking to her about tilting and slicing and dicing, she asked, "Can I do that?". I said sure--Schwab had some low-cost ETFs that would let her do that, so we did.

The idea was to get her engaged, which she was initially. But pretty soon it was just me playing with the AA in her small account; she lost all interest. We haven't taken anything out of the account, but I've made it clear to her that it's up to her what to do with it, which so far is just let it sit there (which probably is fine).

Even a couple of my older children started out strong, and seemed very interested in learning about investing. However, as with most people I know, there are many things they'd rather be doing than learning anything more than the basics. They did learn enough to know it's important to save a lot, starting at a young age, and that it probably makes sense to take some equity risk (although I'd have to remind them what "equity" means), and that using low-cost index funds is the way to go if you have the choice.

I just don't see how buying them a couple of shares of an individual stock would have served any useful purpose in teaching them the investing lessons that are really important.

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Re: First stock for a twelve year old

Postby mbres60 » Sat Jun 22, 2013 6:55 pm

Many years ago when my ds was 13 he received a gift of 5 shares of Topps. Every so often he got dividend checks of 3 cents. The stock didn't do too much and the value at time of purchase was approximately $7/share. We couldn't sell it because it was worth so little so just hung on to it. Approximately 13 or so years later Topps decided to buy back their stock. He eagerly took advantage of this opportunity.
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Re: First stock for a twelve year old

Postby Grt2bOutdoors » Sat Jun 22, 2013 7:15 pm

One share sounds like a great gift! This is for a 12 year old - as a 12 year old, I'd be in favor of one share in a single company that is relevant to them. Everyone knows McDonald's or Walt Disney, an index, eh, not so much. For those recommending indexes, celebrating birthdays must be pretty low-key. :|
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Re: First stock for a twelve year old

Postby stickman731 » Sat Jun 22, 2013 7:41 pm

I purchased 100 shares of HON in feb 1984 for my niece and nephew both are still holding it. I think they will use it to pay for college for their kids.
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Re: First stock for a twelve year old

Postby Grt2bOutdoors » Sat Jun 22, 2013 7:44 pm

stickman731 wrote:I purchased 100 shares of HON in feb 1984 for my niece and nephew both are still holding it. I think they will use it to pay for college for their kids.


Great buy - especially since they merged with Allied Signal.
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Re: First stock for a twelve year old

Postby stickman731 » Sat Jun 22, 2013 7:46 pm

Dumb luck but I am still holding some!
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Re: First stock for a twelve year old

Postby stickman731 » Sat Jun 22, 2013 7:52 pm

I taught them about reinvesting dividends and compound interest - they love me because they still seek my advice and they have been in the VTSMX for the long haul. I wish my brothers listened.
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Re: First stock for a twelve year old

Postby thebogledude » Sat Jun 22, 2013 8:45 pm

Simplegift wrote:They have over 200 companies to choose from. For an example of cost, a single share of Disney stock will cost you about $65 today, plus $40 for the certificate fee, plus $35 for their most inexpensive frame — so about $140 total for a nice gift. Takes about 4-8 weeks to produce, so you need to plan ahead a bit.

Or
You can go to a broker (I think Scottrade can do it) and ask to buy one share in your grandson's name and have it mailed to him. I believe you have to tell them he wants physical ownership of the certificate otherwise it goes into your custodian's name (your broker) and your custodian holds it for you . This will only cost you the share price plus the commission (~$25) and the cost of your frame. The only downside is the certificate will be mailed to you folded. I use to do this when I needed to buy one share for the company's drip program and I believe I looked at Sharebuilder.com at the time as well.
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Re: First stock for a twelve year old

Postby ret&uneasy » Sun Jun 23, 2013 9:16 am

Thanks to all that replied. Joined USAA this morning and looking at scottrade and other ideas. Really like the educational component of such a gift.
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Re: First stock for a twelve year old

Postby Gringo » Sun Jun 23, 2013 10:54 am

USAA is a good start, but I think their funds are a bit on the expensive side. That's why I ended up moving to Vanguard once I had enough in the account, and haven't looked back.

But again, you can trade the Vanguard ETF's commission free through a number of brokers. TD Ameritrade comes to mind (only because that's the only other brokerage I keep funds in)
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Re: First stock for a twelve year old

Postby investor1 » Sun Jun 23, 2013 12:32 pm

I would not invest in Gamestop. Their business is dying.
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Re: First stock for a twelve year old

Postby topper1296 » Sun Jun 23, 2013 2:07 pm

Simplegift wrote:How about a single share of stock that you could give to your grandchild as a framed stock certificate? This website offers the service: OneShare

They have over 200 companies to choose from. For an example of cost, a single share of Disney stock will cost you about $65 today, plus $40 for the certificate fee, plus $35 for their most inexpensive frame — so about $140 total for a nice gift. Takes about 4-8 weeks to produce, so you need to plan ahead a bit.

Image

PS. Widestance, you beat me by two minutes!


Most of my investments are indexed, however I do have some individual stocks which I've held for many years. I think I will buy a couple of these for myself to hang in my place.
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Re: First stock for a twelve year old

Postby Dulocracy » Mon Jun 24, 2013 11:20 am

Kevin M wrote:You can open a Schwab custodial account for $100, and you can buy one of their low-cost index funds for $100 minimum. I would start with the Total (US) Stock Market Index, then when you or someone is ready to kick in another $100, add the Schwab International Index.

I definitely would not buy an individual stock, since this is setting a bad example and not helping the young one to understand the benefits of diversification, and the non-systematic (theoretically uncompensated) risk of owning a small number of individual stocks. Obviously simpler words can be used to explain this.

Kevin


Perfect answer. He can learn that the markets go up and down, that they go up over time, and that owning the market is the way to go.
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Re: First stock for a twelve year old

Postby thebogledude » Mon Jun 24, 2013 2:08 pm

Kevin M wrote:I definitely would not buy an individual stock, since this is setting a bad example and not helping the young one to understand the benefits of diversification, and the non-systematic (theoretically uncompensated) risk of owning a small number of individual stocks. Obviously simpler words can be used to explain this.

Kevin


I think the difference here is between teaching stock ownership and portfolio management. I believe each has its own merits.
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Re: First stock for a twelve year old

Postby Dazed » Mon Jun 24, 2013 2:54 pm

With all due respect to other posters who I believe are overthinking this AS ADULTS, we are talking about a twelve year old here and just buying a share or two at that! Keep it simple and fun. Of course, the prudent thing to do would be to invest in the TSM or something like that. I highly doubt that any kid is very interested in indexing at this point....BORING. He can learn his index lessons later...he's got a few good years left :happy . I bought my child 3 shares of Home Depot many years ago for his first adventure into the stock market. He looked up his stock price in the financial pages of the newspaper occasionally and took great pride in surveying "his store" when we would visit HD to get nails, plungers, etc. It was fun AND educational. Now that he is a college student, he has invested in index funds (and incidently, did very well with HD :beer ) Your grandson will grow and learn over time. Good luck choosing...and enjoy your boy!
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Re: First stock for a twelve year old

Postby ret&uneasy » Thu Jun 27, 2013 1:16 am

Well thanks to all for your suggestions. And Thanks to Banana for your words of caution. Contacted USAA and in fact joined but they told me I had to contribute a minimum of I think $50 a month or a quarter to his account and that won't work. Vanguard advisor said they could do it but was a complicated and time consuming process. they suggested OneShare which we will probably go with once we decide on a stock. I use only index funds but think he will not grasp the process as well as if I get a company share even if it goes under. Somebody suggested The Motley Fool Investment guide for teens which I purchased. After reading it I'm not sure if I made a mistake. But this all is a good start and we'll just have to see how it turns out. In any event thanks to all for your responses
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Re: First stock for a twelve year old

Postby gisborne » Thu Jun 27, 2013 1:52 am

Kevin M wrote:
widestance wrote:A statement from Vanguard or whatever probably isn't going to be very sexy in his mind :)

So that's what we want to teach our children--that investing should be sexy?

Kevin


It's a gift. For a 12 year old.

Personally, I would be pretty annoyed as a 12 year old to get a pair of pants, no matter how much more practical they are than the latest video game. The same can be said for an ETF share in something he's never heard of vs. a share of stock in a recognizable company. The only thin you'll be teaching him by buying him a share of something he's never heard of and likely won't care about is that you don't care enough about him to give him something he'd find interesting.
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Re: First stock for a twelve year old

Postby MN Finance » Thu Jun 27, 2013 8:27 am

I think its entirely silly to buy any mutual fund or etf to teach him about the merits of indexing. This is absolutely a lesson that will go over his head. We have stock certs from one share like DIS. Buy him something that will interest him in investing. The lesson to teach, somewhat separately, is about the power of compounding. 50/mo at age 18 turns into what in 50 yrs, etc.
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Re: First stock for a twelve year old

Postby aainvestor » Thu Jun 27, 2013 12:14 pm

StormShadow wrote:
Simplegift wrote:How about a single share of stock that you could give to your grandchild as a framed stock certificate? This website offers the service: OneShare

They have over 200 companies to choose from. For an example of cost, a single share of Disney stock will cost you about $65 today, plus $40 for the certificate fee, plus $35 for their most inexpensive frame — so about $140 total for a nice gift. Takes about 4-8 weeks to produce, so you need to plan ahead a bit.

Image

PS. Widestance, you beat me by two minutes!

Thats pretty cool!

I noticed that Berkshire Hathaway was available. Sounds terrific, if you want to buy him a $168,200 birthday present. I'd rather have a 2013 Porsche 911 Turbo S Edition 918 Spyder Coupe. Oh... its the B shares. :D


I agree with oneshare. I think having a certificate he can look at will make it a more special and personal gift. Also he will get annual reports and dividend checks that you can use as teachable moments about the American economy and stock ownership that will transfer easily to fund ownership when the time is right.

Oh and I would pass on Berkshire Hathaway unless you are going to buy me a share too :).
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Re: First stock for a twelve year old

Postby Jazztonight » Thu Jun 27, 2013 12:37 pm

When I was 13 (53 years ago!), my "rich" uncle bought me some shares of American and Foreign Power Co. stock for my bar mitzvah, and I thought that was very cool.

I followed it in the newspaper for a while, then noticed it sort of disappeared.

Turns out that the company was heavily invested in Cuba, and when Castro took over, well you know what happened.

Out of curiosity, I just looked it up and found that I can buy the old stock certificate for $20!

http://scripophily.net/amforpowcomi.html

I vote for a gift of TSM mutual fund or ETF.
"What does not destroy me, makes me stronger." Nietzsche
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Re: First stock for a twelve year old

Postby ret&uneasy » Fri Jun 28, 2013 9:57 pm

Went with OneShare and a couple of books for teens on saving and investing. Got him a share of Comcast since they live outside of Philly and he knows the company. Again thanks to all.
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Re: First stock for a twelve year old

Postby dekecarver » Sat Jun 29, 2013 8:04 am

Why not buy him say 1 share of an index fund and one share of an individual stock as an annual gift (same index fund/same individual stock) and let him track the performance over time?
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