Dollars begins with a single step….
So whats step one.
This isn’t for me – its for my son.
He finally picked up some part time work and by the beginning of January will have 1,000 of his own hard earned dollars in a bank account. He graduates in May 2015 and is looking very hard at working a lot and saving as much as possible in order that he can retire very, very early (or more to the point have the financial freedom to do whatever takes his fancy!).
However – he’s 18 so who knows what will change in the next year/month etc… - that in mind I don’t think a Roth is the right move.. I’m prepared to be persuaded otherwise.
So what to do with his first thousand? My thoughts are:
a) Index – find a fund that’ll let you in with 1,000 and throw it in there. Add in chunks as he earns and let it grow (so who and what fund).
b) DRIP – find a company he can relate to and go for dividends and reinvestments.. Its only a thousand but could grow nicely.
c) Go for it – do some research and throw the lot at some longer term options – or even warrants. The first thousand caould be lost – but easily replaced. On the other hand if they pan out they could grow very very quickly and establish a nice long term base to work from.
Any thoughts? Or other ideas? (or course I could just charge him rent and add it to my stash!!!)…
Cheers!