Hi OZB finance gurus,
I had my best friend ask me on the weekend what his son in Year 12 should do with his savings (approx $5,000). It is currently sitting in an interest account earning, well, no interest.
This got me thinking..
My initial thoughts would be to invest in blue chip shares with low risk, and even better that have a DRP to allow him to accumulate new shares over the coming years. I would suggest initially 5 x $1000 of quality companies and to ensure that he diversifies the sectors that he invests in. For example companies that I am thinking of would be something like WBC, WOW, WES, JBH and TLS. The reason I would suggest these shares to an 18 year old is that I personally believe you should only invest in companies that you understand the business model and how they make their income.
With interest rates at record lows, I think it is important to make your hard earned savings work.
I am certainly interested to see what the OZB community think would be a smart investment decision.