Are you a teenager who wants to invest in the stock market? Today's video offers investing insights for teen investors. I actually got started investing in my early teenage years and am so thankful for my multiple decades of investing experience. I'm even more thankful that I eventually became a dividend growth investor focused on dividend checks, passive income, and cash flow.
In today's video, I speak to my former teen self, sharing the wisdom and lessons that I have learned over the years. I share investing strategies specifically for teenagers, strategies that I wish I had known in my teen years (rather than learning via trial and error).
Today's video covers:
* Why you are so lucky to be watching if you are a teenager. There's no better time to start investing than one's teenage years.
* Compound interest is one of the most powerful forces around. Time is more valuable than money, in my opinion. Learn how teens can leverage this advantage in the investing world, since teenagers have many years ahead of them for compound interest to work.
* Learn about some hypothetical returns a teenager could experience with a 20 or 30 year time horizon. Learn through numbers why teens have a great advantage in the stock market.
* Teens know all the trends. Teens are trend setters. Learn how teenagers can leverage their knowledge on current trends in their stock portfolios, selecting the right long-term stocks.
* When one is just starting out with investing, they have not made the mistakes yet. They have not lost capital. This is a potential disadvantage for teenage investors. Learn how having a great investing mentor can really help a teenager with these disadvantages. Learn also why teens have to be careful in choosing their mentors. Never let a bad mentor discourage you!
* Teenagers just starting out have a world of opportunity and learning ahead. Read books, financial statements, annual reports, and more during your teenage years. There is no better time to learn about investing.
* Even if you lose money investing as a teen, it's better than losing money you absolutely cannot afford to lose in your 30s, 40s, 50s and beyond. Learning how to invest in your teenage years mitigates risk.
* Dividend Reinvestment Plans (or DRIPs) are great vehicles for new investors (and seasoned investors too). DRIPs can minimize fees, allow one to purchase fractional shares, and allow small periodic investments over time. As a teenager, a custodial account may be required depending on you situation (with DRIPs and brokerage accounts too).
* While trading, penny stocks, and capital appreciation are often in the spotlight, don't discount the dividend investing strategy. While more boring than the others, this is the strategy that has worked so well in my personal investment portfolio. And, it's the strategy that pays out cash which can be used to pay actual bills. If I were a teenager again, I would start with this strategy and never give up! I would stay focused on this strategy from my early days.
If you would like to learn more about dividend reinvestment plans, please check out this video:
Disclaimer: I'm not a licensed investment advisor, and today's video is just for entertainment and fun. This video is NOT investment advice. Please talk to your licensed investment advisor before making any financial decisions.