Put an Investment Portfolio on Your Holiday Shopping List
Searching for ideas for what to get for the millennials on your holiday shopping list? Instead of the latest iPhone or Go-Pro, how about opening a stock trading account for them? That’s a gift that won’t become obsolete when the new model comes out and one that could actually increase in value.
Open an account for them on one of the new stock trading apps like Robinhood, Acorns, Stash, or Stockpile. Robinhood offers commission free stock trades on a very simple, user friendly platform. Acorn makes it easy to find money to invest by tracking a user’s spending, rounding up purchases to the nearest dollar, then transferring those funds into your Acorns account. With Stash, you can start investing with as little as $5. And Stockpile allows you to gift single shares of stock or buy fractional shares of pricey stocks like Amazon.
Rather than letting your new investor flail around trying to figure out what to buy, we recommend starting them out with a small portfolio that contains a few stocks. For the cost of a new iPhone, you can buy them a few shares of stock. A portfolio designed to get them interested in the market might include shares of a company whose products they use like Apple or Starbucks. They should get a kick out of anticipating how Apple’s new tablet might impact the stock price.
We’d also include a one or two dividend stocks like Verizon, Exxon or AT&T. My teenage son got interested in investing when he noticed me getting dividend checks every 3 months! Lastly, I’d include a low volatility stock, like Proctor & Gamble or Coca Cola, that should provide some stability if the market gets a little choppy. Happy Holidays to everyone!
(Disclaimer: As of November 18, 2019, we don’t own any of the stocks mentioned nor are we recommending them. Any financial information is provided for general informational and educational purposes only and is not a substitute for professional advice. Accordingly, before taking any actions based on such information, we encourage you to do your own research or consult with the appropriate professional.)