What Should I Invest in as a Teenager?

deanylev on 11/05/2017 - 18:02

So, a bit of background. I'm 17, attend high school, and work as a software developer (in a casual position).

I have ~$3k in the bank. I invested $1.3k in Bitcoin a couple of months ago, and pulled out a month ago, with around $500 in profit. Decided I wanted something a little bit more stable, and was happy with the money I got for doing nothing.

I was wondering what would be a good investment opportunity at my age? Just something small and low risk that I could watch grow over the months.

I know nothing about all this, so some friendly advice would be much appreciated :)

Financial

Comments

  • Peter Enis on 11/05/2017 - 18:17
    +3

    Well done for thinking about investment at such a young age.

    For the low risk I would put half of your investment money into Wesfarmers shares, make sure you opt-in for the dividend reinvestment plan, then set & forget. Check back on it in 5+yrs.

    But since you are so young I would also take a bit of risk and roll the dice with the other half of your money. Since you are a software developer maybe you could invest in an IT startup? Or something else that interests you. But be prepared to lose this money. With reward comes risk.

    • deanylev on 11/05/2017 - 18:19
      +2

      Thank you! :)

      Excuse me if I'm about to make an idiot of myself, but aren't Wesfarmers shares going to be a bit risky due to Amazon entering the country? Isn't Amazon a huge threat to them?

      • Peter Enis on 11/05/2017 - 18:25
        +1

        I would still back them. Were their shares rocked by the arrival of Aldi & Costco, or even Masters? They are a very diversified company.

        • Dave Id on 17/05/2017 - 20:50

          Yeah,they own Target and Officeworks ….. hey,wait a minute…..

      • uniboi on 11/05/2017 - 19:31
        +4

        Alternatively, take a look at an ETF which tracks an index(e.g. VAS) rather than choosing specific stocks.

  • chumlee on 11/05/2017 - 18:41
    +3

    Sneakers. Obviously just don't wear them

  • Savas on 11/05/2017 - 18:53
    +2

    I am 17 and want to buy shares in KFC but my parents said no

    • brokeunistudent on 11/05/2017 - 19:49
      +6

      You could always buy the Zinger burgers. Those are the best.

    • HN Professional on 16/05/2017 - 03:48
      +3

      I bought DMP (Domino's) at IPO because I was a big Buffett and Peter Lynch fan; three years later of no action, sold them off at a loss and pain. Then watched them skyrocket 2500% from my initial purchase. (I never even used the barcoded pizza discount keychain they gave to shareholders). Not relevant, just wanted to vent (Collins Food Group etc).

      Relevant:

      Anyway, have since moved away from Deep Value (I like its philosophy, but I get better results with Trend Trading) - if you are not averse to some Momentum and Trend Trading, Savas, here's a breezy and nifty read. http://invest-faq.com/fiveminute/

      Ps. Thanks for the supermarket bargains format.

      • Savas on 16/05/2017 - 17:44
        +3

        Thank you HN Profressional, that is very interesting. Good luck with your future investments!

      • Hirolol on 11/06/2017 - 21:37

        What was the discount they offered?
        Better than those deals you can get online?

  • t_c on 11/05/2017 - 18:54
    +4

    Invest in girls. She may even help pay half your mortgage one day.

    • xoom on 11/05/2017 - 21:45
      +4

      or take half of everything you own one day.

  • Steptoe on 11/05/2017 - 18:55
    +9

    …pulled out a month ago…

    Pulling Out is a Risky Strategy 👀

    Given that at 17 you have time, Have a look at an Index Fund like ASX:VAS.

    • noyesmaybeok on 11/05/2017 - 19:04

      +1 something diverse is best

    • deanylev on 11/05/2017 - 19:29

      Cheers, I'll check that out

    • xoom on 12/05/2017 - 06:26
      +3

      pulling out at 17 could be a great strategy. you dont want to have to pay child support for 18 years. :P

  • garetz on 11/05/2017 - 19:00
    +4

    Invest in your education, it will give you the most returns in the medium to longterm.

    Also at your age, the highest returns you will see is investing in magic the gathering card game funnily enough, the income is based on your time and knowledge.

    You can invest about $2k, and have returns of 10k pa if you learn how to trade cards. I did this when i was your age, and made 10k a year for 3 years. Today those cards i bought back then are probably worth much much more.

    I knew a guy who traveled the scene, going from tournament to tournament around the country, he initially invested 10k, and over 2-3 years grew that investment to 300k. However he did it as a full time endeavor, and went to every major tournament in the country each year.

    • deanylev on 11/05/2017 - 19:28

      Invest in your education, it will give you the most returns in the medium to longterm.

      I really wish school and I gelled more, but I'm too focused on coding and school is just kind of a drag at this point. I do plan to do Computer Science, assuming I can get into it :P

      That does sound kinda interesting, but probably not for me. I don't have the time or patience to learn, but if someone did, sounds like they could make some big bucks :)

      • garetz on 11/05/2017 - 21:47
        -1

        There is some youtube streamers, who got into the heavy investing side of magic the gathering, checkout "Alpha Investments"

        He is in his mid 30s and has about 10 mill invested in mtg, and he also makes about $240k a year from his patreon as well.

      • Mister LoLPants on 12/05/2017 - 09:02

        If school isn't your thing but coding is, have a look at EDX.org they have a heap of courses available. Don't forget though that whilst you might be great at coding, at your level of experience, verifiable education (uni) will open more doors for a career than being a great coder.

  • Xyzzy on 11/05/2017 - 19:06
    +1

    Low Fee, index share fund. Something like this:

    CFS WS Index Australian Share

  • altomic on 11/05/2017 - 19:28
    +4

    Blue Horseshoe loves Anacott steel

    • Some Guy on 13/05/2021 - 02:01

      Shallow Hal needs a gal

  • RandomNinja on 11/05/2017 - 19:52

    Depends on when you want access to the money. If you're looking at long term, then the share suggestions from others are a reasonable idea. If you think you'll need to money within the next few years (eg: buy a car?) then you may want to look at things that are relatively liquid like savings accounts or peer to peer lending.

  • [Deactivated] on 11/05/2017 - 20:21

    I think no1 actually knows what's best or e would all be rich but just don't waste it on crap and don't put all ur money in 1 investment unless it's a house.

    • deanylev on 11/05/2017 - 20:48

      but just don't waste it on crap

      As obvious as this sounds, it's damn good advice to a teenager haha. Friends of mine have made $8k+ just from working at Maccas and don't have a single cent of it. The temptation is always great to blow it. Only recently, with my new job, have I really learnt to not touch it.

  • Euphemistic on 11/05/2017 - 20:23
    +2

    $3k isn't a lot of money for investing, but you have to start somewhere. I'd stick with a high interest bank account for half at least. Share trading fees will chew up a lot of your profit so it becomes a long term strategy to buy and reinvest dividends over quite a few years. Keeping it in a bank account will also keep ready access to your money if your situation changes.

    When my wife just started work she was encouraged to invest in CommBank shares. I think she out in around $4k. With the reinvestment plan we sold around half about 10 years ago to fund a house and got $60k out of it. However that took 20years and is the exception, not the rule. Other shares in the same time have provided good returns, not massive returns.

    Keep saving though, despite the temptation to spend on travel, cars, girls (or boys) and parties.

    • deanylev on 11/05/2017 - 20:47

      Good advice. Thank you. Gotta start somewhere as you said, might as well be while I'm still a high schooler :)

  • [Deactivated] on 11/05/2017 - 20:26

    Make sure you invest in a pre-nuptial agreement when the time comes.

  • [Deactivated] on 11/05/2017 - 20:27
    +2

    ETH, this is all, has gone up from $30 to nearly $120 in a month.

    • deanylev on 11/05/2017 - 20:45
      +1

      I've been very curious about that. The price right now is nice and low, imagine if this is the next Bitcoin in a few years. Don't want to miss out on that.

      Can I ask, are you personally invested in it?

      • [Deactivated] on 11/05/2017 - 21:02
        +2

        i dropped 2k into it when it was around $55, so i have 36 ETH, so ive doubled my money in round 2 and half weeks.

        • deanylev on 11/05/2017 - 21:13
          +1

          Damn, that's awesome. Definitely investing tonight. Where do you buy yours from?

        • [Deactivated] on 11/05/2017 - 21:33
          +1

          @deanylev:
          i brought bitcoin on coinjar and then brought ETH on CoinSpot

        • deanylev on 11/05/2017 - 21:45
          +1

          @tuzii: Ah I loved Coinjar when I had BTC. I'll buy some on CoinSpot now. I'll probably start with around $300 to get a feeler for it (although I'll probably regret that when the price skyrockets).

          Thank you by the way :)

        • Wystri Warrick on 12/05/2017 - 17:20
          +1

          @tuzii: Hi tuzii,
          I would like to do the same, I just want start out with 100-300.
          I'm hoping you could answer these questions for me,

          1 do I need to open a coinjar account, like is it needed to purchase bitcoins that I can then use on coinspot for trading?

          2 what wallet so you recommend?

        • [Deactivated] on 12/05/2017 - 18:13
          +1

          @Wystri Warrick:

          1. you can buy ETH direct on coinspot but i had some BTC on Jar so i used that and added some more, then transferred to spot and purchased ETH

          2. i used the wallet in both websites and generated myself an address.

          no point buying 1-2 ETH, because you wont have much ROI

        • deanylev on 14/05/2017 - 21:50
          +2

          @tuzii: Thought I'd let you know, I just purchased $600 worth of ETH (~4.45). Very excited to see how it goes :)

        • Wystri Warrick on 22/05/2017 - 11:00
          +1

          @tuzii:
          Hi tuzii,

          I created a CoinSpot account.
          I'm having trouble with the verification, I don't have a drivers license but I do have a proof of age card, I uploaded a picture of that, the picture of me with the number and my signature on Thursday and they haven't been verified yet.

          I can't do the Facebook cause my Facebook URL isn't displayed, just a long string of letters, numbers and characters (I'm new to Facebook).

          I'm really panicking, I've started watching the value increase from Thursday, it was $135 now it's $215 and I really want to drop $3500.

          I really don't know what to do :(

        • deanylev on 11/06/2017 - 17:44
          +2

          @tuzii: Just want to say a HUGE thank you for the ETH suggestion. While I haven't made the unimaginable amount of money you would've by now, I've put in more and more money. I'm around $2450 in, and my 10.7ETH is sitting at ~$5250. Very, very happy :)

        • Hirolol on 11/06/2017 - 21:42
          +1

          @deanylev:
          LOL
          That's so good.
          Its insane how much it's been rising.
          I use Btcmarkets.net to buy btc then send it over to poloniex.com
          You heard of poloniex?
          Its got so many different currencies.
          Bit annoying when it runs slow

        • Wystri Warrick on 13/06/2017 - 01:42
          +1

          @deanylev: I had a miserable time trying to do the ID, got declined twice and the waiting time is so long.

          I currently have 8.8, I'm sooo jealous of tuzii's 36ETH, hehe thanks tuzii for the tip :D.

        • [Deactivated] on 15/06/2017 - 17:14
          +1

          @Wystri Warrick:
          welcome guys. :)

          • deanylev on 10/05/2021 - 23:54

            @[Deactivated]: Each and every day I thank you for this advice. Can I ask, have you held onto your ETH all this time?

  • rambutann on 11/05/2017 - 21:54
    +2

    I would recommend acorns if you're able to at your age.

    I made over $200 with a $5k investment in about a month and a half.

    • deanylev on 11/05/2017 - 21:56

      Looks very interesting. Will check out the app. Thanks :)

      EDIT: Ah damn, 18+. Will have to get my dad to sign up or something.

    • Wystri Warrick on 17/05/2017 - 20:34
      +1

      Thought I'd give it a try, to day is the first day with $100, portfolio set to moderately conservative, so far I have lost 22c😡, hehe.
      Yesterday I dropped an extra $400 in, I'll see how this all goes, if it goes well I'll put an extra $3500 in.

      By the way what do you have your portfolio set too, have you experimented and which did you find the best.

      • rambutann on 17/05/2017 - 21:05
        +1

        Only aggressive. I have a mortgage so I need to earn more than 4-5% p/a for it to be worth it.

        • Wystri Warrick on 17/05/2017 - 21:44
          +1

          Thanks for the quick reply :)

  • Ryanek on 11/05/2017 - 22:27
    +2

    Whatever you do, don't invest in monorails.

  • xoom on 12/05/2017 - 06:29
    +5

    try to get into westpac and invest in an $80k car to impress your future colleagues.

    or import some headphones for that instant cash injection.

  • InfraRed on 12/05/2017 - 06:36

    Lego. When it comes to investing the answer is always Lego.

  • [Deactivated] on 12/05/2017 - 09:20

    Invest your time in your youth. It goes quickly

  • PlasticSpaceman on 12/05/2017 - 09:33

    It's great that you are thinking about saving/investing at your age. I'd concentrate on school for the moment - it's not so much the information that you learn, but developing the skills of how to learn that I believe is important. You might be great at what you do now, but businesses and jobs change and it's important to have the skills that enable you to change as well.

    Anyhow, I'd suggest setting up a trading account with an online broker with low fees. Buy some shares in 'blue ribbon' companies like banks, and let them ride. Word is that the $AUD may be on the way down in which case it could be an idea to buy shares overseas or maybe even some $USD but I think that the best strategy is long term investment. Get some decent stock and reinvest dividends towards more stock. When you've saved enough for more stock, just get some. Keep a long term goal in mind - do you want to use some of the funds later for a deposit on a house, for example. When you start earning enough that you will get taxed, then think about investing some of your salary into your super fund to minimise tax. Oh, and don't invest everything - make sure you leave enough to just have fun with!

    • PlasticSpaceman on 12/05/2017 - 09:49

      …just in addition, you'll find a number of online brokers will offer incentives to join them. For example Commsec (https://www.commsec.com.au/homeoffer?icid=90002-public-home-…) currently offer up to $600 worth of brokerage to be used in the first 3 months. That should easily cover the purchase of two or three blocks of shares. You can then later look at moving to another broker if you want. Oh, and watch out for ongoing fees - with a small investment with minimal trading those fees can eat away at your funds. Also, don't look at options - yes you can make a lot more with them, but you can also easily lose - that's the sort of thing for people who live and breathe trading every day.

  • ac2884 on 12/05/2017 - 12:42
    +3

    Hey dean, congratulations on earning what you have so far at your age. I am very jealous.
    I don't want to sound like a father figure, but I'll try my best to offer some friendly advice…

    Something I never learnt about while growing up was how to respect money. I am in my early 30s now and I still struggle with this concept.
    One thing I know is that learning to respect money is more valuable than learning how to make it.

    What you have to outline is what do you intend to gain from 'investing' your money. By that I mean you have to set a goal, points where you will 'cash out'. Also, the most important thing I will share is that you only invest what you are prepared to lose.

    I've torn up thousands in the stock market and realised it wasn't for me, but when making the initial commitment I always said to myself that I wouldn't miss the money.

    Can you imagine your 'life savings' of 3k fading away and being torn up? If you aren't willing to part with your money potentially forever, then this risk isn't for you.

    Someone mentioned earlier to put your money towards your first car etc. but maybe your parents will buy you your first car? If so, contribute to the purchase or maintanence. Either way, doing this will help develop your independence, and help you to respect your posessions more.

    I've kind of gone on a tangent here, but follow your passion of coding and that in itself will be rewarding, & the money will follow.

    Determine your values at this point in your life & live towards them.

    You can live a live of wealth by not having a single dollar, if you live in the moment and pursue your passion.

    Love people. Use things. The opposite never works.

    Peace,
    Andrew

    • aromatase on 16/05/2017 - 22:07

      Great advice for the young gentleman

  • Odin on 12/05/2017 - 18:34

    You have a small amount to invest, so whatever you do treat it as a lesson.

    An interesting thing to do is play the markets with your bitcoins, it's an excellent introduction and primer to share trading and is incredibly cheap. The only thing cheaper is when you do practice portfolios, but since there's no real money in those, they're not as good.

    Play on the bitcoin exchanges, play with exchanges other coins, play with trying arbitrage, learn concepts about finance and trading.

    • Sensible answer time - Throw the rest of your money into an ETF or a vanguard account.
  • AlienC on 19/05/2017 - 03:45

    Honestly. Invest in starting a side project game dev company. Start small then work your way up. Use funds on stuff like equipment server costs freelance work etc. Then once your first business becomes successful rinse and repeat and invest in tesla or other great bitcoin esque ventures mentioned here. We live during strange times where the digital age is king and things can go up and down in a near instant. Be careful and watch yourself.

  • cptdandan on 12/05/2021 - 12:05

    edited & removed, didn't realise this post was so old - sorry

    • Some Guy on 13/05/2021 - 02:05

      It'd be great to get an update on what he/she/? invested in though, would it? Although I'm gonna guess there's some anger about getting out of bitcoin.

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