9 thoughts on “FAQ: Why are my parents against me virtually making any kind of an investment? goldsenze”

1. Ur not smart enuff.

   Just kidding. Just kidding.

   I’m in the same situation. My church, in an overbearing way, prevented me from making
   40k in apple stock and i’m in my 30s.

   Stocks are kinda of a gamble. Some people get really heart broken over losses. Your parents just probably just want you to live a stable, boring, predictable life, where you raise kids yourself.

   But who wants to live that way, right? Ha ha.

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2. Ask them!!!

   You should be saving up an emergency fund and money for a home down payment. These are short term goals, so the money should be in savings accounts, not investments.

   Long term savings needs to be invested. You need to be putting at least 10% of your incom into your company sponsored retirement account. If they don’t offe one, hen you should open a ROTH IRA. Funds in your retirement account should be in stock mutual funds.

   Why are you approaching them at all? You at an adult wit a job. Your parents have nothing o do with I.

   You could ask thm ho much they have saved for retirement and remind them that the buying power of that money is DECREASING every year by 3 to 4 percent due to inflation. Money hidden under the mattress shrinks with every passing day. A smart investor would put a portion in growth stock mutual funds and a portion in safer funds. As one ages, they should decrease the risk.

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3. They probably don’t think of you as 22 yrs old, but as their little kid still. Are they paying for your college? Unless you owe them money, they have no say in what you do as a responsible adult with your own money. Take what they say as a biased opinion and go ahead and invest. If they won’t support you, that’s their problem!

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4. You throw a ball and the past tense of that is threw. You are through with college. Lots of people did not grow up with investing, and they are afraid of things they don’t understand. You are old enough now to do things without your parents permission and if it scares them, don’t tell them. Little by little you can lead them to water when you have a success. Don’t try to go in hog wild and just build your holdings up little by little. As time passes and they see that you are successful, they will come around.

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5. This is a tough question to answer without knowing your personal financial situation. However, having said that, your first priority should be saving at least 6 months and preferably 9 months worth of living expenses in a liquid savings account. This is a safe (but unprofitable) investment that allows you to access your assets without the penalty of possibly needing the assets immediately when you have lost money. Once you have this amount saved, you should consider opening a 401(k) or similar account if your employer offers one – especially if there is a match. This is your retirement fund and should be continuously contributed to until the day you retire. One great way of saving for your retirement is to start at some number such as 4% of pay (or if possible, the max your employer will match). Then every time you get a raise, increase the amount withheld by 1/4 to 1/2 the percent of the raise – for example, you employer gives you a 4% raise, increase that retirement contribution by 1% – you still see an increase in pay and you never miss the added retirement contribution. Do this until you are contributing 10 to 15% of your pay.

   Once you have done this, you may be ready to invest on the side – you have established the framework to address any emergency situations and prepared for retirement – both good things. Next, your goal is to create an investment strategy for whatever money you have left over after doing the first two steps. The main idea here is to only invest money that you can lose and never miss. If you are scraping by and putting all your loose cash in stocks – bad idea – on the other hand, if you consistently find yourself with $ 200 at the end of the month going into that emergency fund, take $ 100 and use that to invest. Invest the money in a series of investments that cover your bases – i.e., large cap, mid cap, and small cap mutual funds, international mutual fund, bond funds and maybe a sector (i.e., transportation or technology) mutual fund. Unless you are going to spend each evening poring over financial/annual reports and the financial news, I would stay away from individual stocks – there is safety in diversification.

   Finally, stuffing cash under the mattress actually loses money – say you stuff $ 1,000 in a coffee can for ten years and inflation is 2% a year (we won’t worry about compound inflation). After ten years, you open up the coffee can and your $ 1,000 is still there. BUT – that $ 1,000 can now buy only $ 800 worth of stuff you could have bought 10 years ago because of inflation – you have lost 20% of your money doing absolutely nothing. However, had you invested that money in a large cap fund (75%) and a bond fund (25%), you would have averaged about a 6.5% to 7% return (historical average) – using simple addition, that means your original $ 1,000 would be now valued at $ 1,650 to $ 1,700 – twice what your coffee can money is worth. And just so you know, historically, stocks return 8% a year and bonds 5% a year. Bonds are safer which is why you diversify your funds, giving up some appreciation for safety.

   Hope this helps and if you are interested in investing, you should head to the library and get some books on investment and diversification. And if you want positive results, read the biography of Warren Buffett by Lowenstein.

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6. The worst thing you could do is just stash your money in the mattress. You wont even keep up with inflation and you cash will lose value. I think you should take the time to learn about investing and figure out what your long term goals are and what kind of risk appetite you have. Start a virtual account and do some practicing before risking real money. CD’s have terrible returns and mutual funds charge you a lot of fees and most under perform the overall market, so forget about those. Buy stocks and use ETFs to diversify in other area like you mentioned bonds, real estate, gold, sectors and emerging markets.

   Your parents probably dont really understand the risks/rewards of the market and are scared your going to lose all your money. If you invest slowly and smartly over time I i think you will be in good shape

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7. You should divide your savings in two parts one part invest at where your parents like and other parts invest where you like different see after some time.

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8. It’s a slippery slop,..depending on your Timing..
   Your parents/gran parents generation would’ve had a more perilous experience with trying to invest..
   My parents thought investing was putting money in an insurance policy,..big mistake..Then they spread the idea around..10 years later they’re just breaking even..They have a saying for it “Another generation lost”
   You better have a bloody good idea of what you’re doing..and Managing risk..

   You show them proof,..I started with $ 5000 in Vanguard money fund earning 12-8 percent(interest rates were falling)
   And $ 5000 in Windsor Fund earning an average of 15-20%, double your money in 6 years.. do the math..if that doesn’t change their attitude nothing will..Damned the torpedoes..Best of Luck..Wait for a major market correction, to jump in..

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9. What have you done to prove to your parents that you are mature enough and understand what you are trying to do.

   You speak about what your grand parents have done, but you say nothing about what are your investing plans.

   When I wanted to invest while in grade school, my father made me read about the various markets and learn about the fundamentals of investing before he would open a custodian account for me.

   When I was eleven I was permitted to enter he market but I spent a good amount of time studying. AND I had to use my own money.

   Rather than whine and complain about your parents, why don’t you demonstrate to your parents that you understand what you want to do, and give them your investment plan and how it will be funded.

   Based on the wording of you question, you show no maturity and provided no intelligent investment plan, rather than complain stand up a do something positive you’re supposedly 22 stop acting like an immature 12 year old.

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