Investment/Shares for an 18yr old

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18 yr old interested in investing, it's his 18th this week and we are thinking 2K. Suggestions, something he can manage himself and maybe use in a few years towards a car...
 
I would suggest that the educational value of investing in shares directly would trump any other value.

Pick two companies quoted on the Irish Stock Exchange and invest €1k in each.

He will learn:
  • The ups and downs of the stockmarket
  • What dividends are
  • What profits and business are
  • And maybe the value of diversification
He can open an account and make the investments himself online.

Brendan
 
Very limited selection on the Irish Stock Exchange + 1% stamp duty.

I would suggest setting up an account with Interactive Brokers and investing into major US companies.

If he is interested in learning about investing Interactive Brokers platform offers lots of information and low fees.

If he wants to keep it relatively simply use DeGiro.
 
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Thanks all, he's aiming for law & business at Uni so this makes a great learning gift as you outline @Brendan. Thanks all.
 
An online account is definitely the way to go for him.

Advising him to just buy one or two shares (I certainly wouldn't limit it to the ISE, which the big companies are leaving) is only increased risk. If he does well, he'll get the rush and think he can do it again. If he fails, he could lose it all.

Invest in the market is the prudent thing to do. Yes, taxes are high but the tail shouldn't wag the dog.


Steven
www.bluewaterfp.ie
 
Steven Barrett said:
Invest in the market is the prudent thing to do. Yes, taxes are high but the tail shouldn't wag the dog.
Click to expand...

Absolutely correct advice for a normal situation.

But I suggest picking two companies because of the learning experience. He can follow those companies and see how the share price reflects their performance.

The alternative of buying an ETF has some learning value, but not nearly as much for a business student.

I suggest Irish companies for the same reason. Easier to follow as they are well covered by Irish business journalists.

But buying Apple or Meta might also be a good idea.

So, on reflection, one Irish company and one hi-tech company.



Brendan
 
Does he/she have to be 18 years old? Can a son or daughter start investing in shares, in their own name, at a younger age? Thanks
 
There's a bit of tax and other admin involved, opening accounts etc.

If there are dividends, they have to be declared in the person's tax returns each year.

As long as your child is up to all that stuff, that's fine.

ALSO, if your child is applying for the SUSI grant, do they want to have assets in their name?
 
Brendan Burgess said:
Absolutely correct advice for a normal situation.

But I suggest picking two companies because of the learning experience. He can follow those companies and see how the share price reflects their performance.

The alternative of buying an ETF has some learning value, but not nearly as much for a business student.

I suggest Irish companies for the same reason. Easier to follow as they are well covered by Irish business journalists.

But buying Apple or Meta might also be a good idea.

So, on reflection, one Irish company and one hi-tech company.



Brendan
Click to expand...
Great idea!
 
kenneth12 said:
There's a bit of tax and other admin involved, opening accounts etc.

If there are dividends, they have to be declared in the person's tax returns each year.

As long as your child is up to all that stuff, that's fine.

ALSO, if your child is applying for the SUSI grant, do they want to have assets in their name?
Click to expand...
 
kenneth12 said:
There's a bit of tax and other admin involved, opening accounts etc.

If there are dividends, they have to be declared in the person's tax returns each year.

As long as your child is up to all that stuff, that's fine.

ALSO, if your child is applying for the SUSI grant, do they want to have assets in their name?
Click to expand...
Ah good point. Thank you. There is a possibility of a non means tested scholarship.
 
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