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Investing at 15?

I am 15 years old and I want to know any investment advice so I can start investing at a young age just so I can have money left over for retirement. Any advice to do do? Thanks

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Paul’s Answer

I would start with some very simple basics.

First, go with the 90/10 formula. Which states that out of every dollar you make in life, you should save 10 cents. So, save 10 and utilize the other 90 cents to live on.

Start with simple investments. Money Markets, CD'S, Savings Bonds Accounts, Traditional IRA's are a good place to start. They can be opened at just about any bank or financial institution.
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Sachin’s Answer

It's great that you're thinking about investing early!

Consider starting with a diversified portfolio of low-cost index funds.


Focus on long-term growth and learn about compounding.

Invest regularly.

Avoid daily spending money habits on things like coffee on Starbucks.

Additionally, educate yourself on financial literacy to make informed decisions.

If you’re employed invest in your ROTH 401k account to avoid taxes on retirement.

You can start with platforms that allow small investments, like robo-advisors or micro-investment apps. Look into options like Acorns, Stash, or a similar service. They often offer automated investing with low initial amounts.

I have been using m1finance and like it.

Best luck.
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Karin’s Answer

Hi Jefferson,

I am impressed that you are thinking about long-term financial planning at such a young age. You got some good advice from Sachin to look at index funds and a Roth to save on taxes. Your money will be safe in those, and in the long run you'll have a good return.

I would recommend to stay away from investments that promise great returns but that are very volatile and might easily evaporate.

At your age you should not only look at the return on your investment, but also at the availability of the funds. Things come up - like you want to go to college and need to do some informational visits, or you want to move out and need money for deposits and first furnishings, or you have a great job offer and need to travel for an interview, or you start a new job and need to move and get some professional clothing. You don't want to tie up all your money in long-term investments. Unless your parents or guardians are willing and able to cover those expenses of "growing up", keep some money in easily available options like a savings account.

Good luck!

KP
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Doc’s Answer

Jefferson there’s a growing list of micro-investing apps that make it easier than ever to invest with small amounts of money. Because micro-investing is buying fractional shares of stocks instead of full shares, you can start investing with less money than the traditional approach.

ACORN
With Acorns, you could turn a dollar into real wealth with their unique automated investing system for as little as $3/mo. Setting up automatic recurring investments, even just $5/day, will set you up to take full advantage of time, compound interest, and the stock market — without even having to think about it. You’ll get access to expert-built portfolio with highly rated Exchange Traded Funds, which include stocks and bonds, that can help reduce risks compared to trading individual stocks. Plus, you can access Acorns’ Round-Ups® feature, where your daily purchases get rounded up to the next dollar and automatically invested, adding even more wealth-growing opportunities on autopilot.

STASH
Stash is one of the best micro-investment apps for beginners who want to be hands-on and learn the ins and outs of investing. Stash has flat monthly fees starting at $3/month, and there are no additional trading fees or commissions. Once you’ve signed up for your Stash account, you’re asked a series of questions about your current financial situation and goals to determine your investment risk level. Stash uses this information to make recommendations designed to help you reach your short and long-term financial goals.

ROBINHOOD
The Robinhood app was created in 2013 with the intent to “democratize finance for all.” It pioneered the commission-free model and caused so much disruption that major players like Charles Schwab and Fidelity quickly eliminated commissions to stay competitive.
Robinhood’s commitment to low costs means there are $0 commissions and no trading fees for micro or full shares of stocks. There are also no monthly management fees or fees for signing up. Besides the low costs, one of the main benefits of using Robinhood is that this micro-investment app is simple and designed with new investors in mind. It’s stripped down with an intuitive design that provides a no-frills experience, which is ideal when you’re learning how to invest.

Hope this will be helpful Jefferson
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Kilma J’s Answer

Hello Jefferson!

It's truly impressive to see someone as young as you considering investments. This shows that you're wise beyond your years and fully prepared to take on the world!

Begin your journey with straightforward investments such as CD's, Money Market accounts, and Savings Bonds Accounts. They are excellent starting points. Keep expanding your knowledge about the diverse investment options out there before you plunge into anything. Always remember to make intelligent and well-informed decisions.
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Mladen’s Answer

Hi Jefferson,

It is great that you are thinking about investing at such a young age. At that age, investing should not be taking much of your valuable time and bring you any worry or stress, since the market is volatile and unpredictable events may cause it to go down.

However, if you are in a position to invest and you are at the beginning, you should start with the S&P 500 index funds, which is available through all major brokers. Since you are starting very early, the compound effect and the time in the market are going to be your best friends.

Investing in the S&P500, will give you the basic exposure to the biggest companies in the market and overall, it is the benchmark for the broader economy.

I hope you find this helpful.
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John’s Answer

The best investing advice that I've received is that "time in the market" matters far more than "timing the market". The money you begin to invest at age 15 will have so much time in the market to grow between now and when you retire. Also, I love investment apps like Robinhood and Acorns. To get those started, I recommend finding a fund that follows the S&P 500. It will have periods of growth and periods of recession, but over time the market will grow. Keep learning! Business newsletters and podcasts are a great source of information. You can join investment clubs and school or at church and can also take classes at school on investing. Once you educate yourself you can become more creative with your investments.
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William’s Answer

It is fantastic that you are looking to start investing at 15. Starting early is especially important in investing because it allows you to take advantage of the power of compounding. I would look at two types of investments specifically: money-market funds and low-cost index funds. Money-market funds are low-risk and bear higher interest rates than standard savings accounts. Money-markets are a great option for short-term investing (like if you were saving up to buy a bike, car, or house). Low-cost index funds are a basket of stocks and/or bonds that track a specific index of investments, for example, the S&P 500. Index funds are a great way to get invested in the stock market while paying very low fees. These investments are more appropriate for a longer term outlook such as retirement. Specifically, I would open up a brokerage account with either Fidelity, Charles Schwab, or Vanguard and set up recurring investments to them, as all 3 of them offer money markets and index funds. Best of luck to you!
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Siddharth’s Answer

Investing at 15 is great but key is to assess how much can you invest. Since you are young, I would recommend investing in shares and crypto currency as that has the highest growth potential. I would do some initial research for the next 3-4 weeks and focus on the shares/crypto with the most stable and consistent growth day over day and week over week.
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Ken’s Answer

Hi Jefferson,

It is great that you are thinking of investing at such an early age. As people have said above, the earlier you start investing, the more time you have for the money to grow. Investing early will help keep your mind thinking is X that I want to buy today like Starbucks really worth it or could I get something reasonable and use the difference to invest. I agree with following low-cost index funds and staying away from high flying investments. Robinhood is good to look into. Fidelity also has accounts for minors. SPY, DIA, QQQ and IWM are some index funds that track the S&P 500 (500 large companies), Dow 30 (30 very large companies), technology companies and 2000 small companies. One of the benefits of index funds is that if one of the companies in that index fund does bad, other companies in that index fund that are doing well offset the ones that are not doing well. Remember to think long-term since there will be some down years, however there are many more good years. Here is a link that shows the S&P 500 returns for almost 100 years. As you can see, there are many more years of positive returns than negative returns. https://www.macrotrends.net/2526/sp-500-historical-annual-returns

Best of luck!

Ken
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