Over the summer we were on our annual vacation with the family at the beach. During the watching of the movie Bullitt, my 20 yr old nephew leaned over and asked a simple question, “I got a hundred bucks, what stock should I invest in?” He had his brokerage account app open on his phone ready to pull the trigger.
I opened my mouth, then closed it. So many thoughts popped into my head. This was not a simple answer because I feel that there is a lot to understand. A lot of factors of personality and goals that should be considered after the basic knowledge was acquired.
So I responded with, “I’ll tell you later,” and pointed at the movie. I decided to put on a financial education presentation so that he could have a grasp of the bigger picture and make a good informed decision for himself.
Why, you may ask?
Because, I wish someone had taken the time when I was 20, to go over this stuff. This stuff, that affects each and everyone of us. But it’s taboo to talk about. People don’t understand it themselves and either listen to others that also don’t understand it (ie parents) or they come up with ideas that hold them back based on their immediate experiences and surroundings.
It was an opportunity for me to share the knowledge I’ve acquired on the topic. To share not just with my nephew, but also his girlfriend, my sister in law, and even my wife.
Over the next 2 days, I put together a series of slides with some figures and rule of thumbs. Then came the big night and over an hour or two(I honestly have no idea how long it went) I gave a presentation around the dining table. Discussions were back and forth, questions, some digressions.
All in all, it went well.
To think, I could have given a single sentence stock pick recommendation. And the opportunity to do more would have passed.