19 Year Old Investing in Share Market

heal on 23/06/2025 - 17:03

My 19.5 year old son has been working since leaving school. He has almost $35k saved up and is planning to work for the next 2.5 years before going to university. I've checked Centrelink and I don't think have $100k + in savings will affect him getting youth allowance, which is great because he doesn't want to spend 4 years saving and have to spend it on his studies. He wants that money to go towards buying a first home.

He has all his money in an online savings account where he gets bonus interest by having the balance increase each month. He was getting over 5% interest however with recent reductions in rates he is thinking about investing in shares. I haven't had any shares for many years. Any extra money I have goes into the home loan so I don't have a lot of advice, hence why I'm here to get some general advice.

If he was to invest $20k, I'm thinking maybe $5k each on 4 different safeish stocks. Maybe banks, gold, Coles/Woolies. Any recommendations on what stocks and how many stocks to spread his money across? Would it be best to invest in shares where there is a dividend reinvesting scheme?

What is the best share trading platform to use?

Any other advice for him would be great.

Financial Investment

Comments

    • John Barosa on 23/06/2025 - 21:28
      -5

      Speak for yourself. I'm up 400 on 3600 invested

      • SBOB on 23/06/2025 - 21:41
        +4

        That's nothing
        I'm up 35x after picking the right number on the Roulette table.

        • John Barosa on 23/06/2025 - 23:32
          -3

          Trump make line go down. Democrat make line go up. Trump in office now. Democrat will come in 3.5 years.

      • SlickMick on 24/06/2025 - 09:19
        +1

        I laugh at SelfWealth's portfolio vs target vs market. On any day, anybody could win. But the market will always win eventually.

        I was up back in the day. Then I sucked. Now I'm doing okay again.
        I look forward to getting everything moved to index tracking ETFs.

      • V2L on 26/06/2025 - 14:23

        you are boasting about 11% unrealised again..?

  • skid on 23/06/2025 - 21:19
    +2

    Put $30k into super and forget about it. The compounding on 40 years is huge. Then on, put what they can spare into ETF's.

    • John Barosa on 23/06/2025 - 21:33
      -7

      Super is such a shit investment at a young age, cause it has no liquidity. Imagine bro has 100k in super, but wants a down payment for a house outside Australia.

      • SBOB on 23/06/2025 - 21:43
        +9

        Nothing stopping them using super for the fhss which, depending on their salary bracket, can be beneficial.

        https://www.ato.gov.au/individuals-and-families/super-for-in…

        • John Barosa on 23/06/2025 - 21:47

          Only good thing about super, is that it comes out pre tax income. I assume the 19 year old is making peanuts, and probably doesn't get taxed much. Why would he wanna invest in something so illiquid?

          I did say outside Australia though. What if he wants to leave Australia?

          • skid on 23/06/2025 - 22:02
            +5

            @John Barosa: It's time-in. Earnings inside super are taxed at 15%, unlike investments outside of super. I'd do a once off drop into super early in my working life and invest elsewhere after that.

          • SlickMick on 24/06/2025 - 09:23
            +4

            @John Barosa: That good thing about super (tax), isn't just the entry tax. It's also the earnings tax, and ultimately, the CGT exception.
            And it trumps everything else, except the CGT exemption on PPOR.

            The FHSS makes super the absolutely best place for any investment.

      • Drakesy on 24/06/2025 - 12:21

        Its the best tax break income earners can get access to outside of owning a multitude of investment properties or a trust fund.

  • EightImmortals on 24/06/2025 - 07:01
    +6

    Don't try to pick shares as a 19 year old entering the market is my advice. Instead go for a managed fund, Stockspot (my account is up 10.2% for the year) is good or you could try Vanguard as well.

    • bbinc on 24/06/2025 - 09:54

      Watch the fees though. Passive ETFs don’t need a fund manager

      • EightImmortals on 24/06/2025 - 09:57

        Yes, monthly fees are calculated on your current balance, around $23pm for a 50K account, and are tax deductible. Given the service offered and the automatic rebalancing and the yearly tax report it's well worth it IMO.

        • skid on 24/06/2025 - 10:18

          I hear different stories about whether management fees are tax deductible. Are the fees shown in your yearly tax statement or the regular statements? I hear that fees listed in the yearly tax statement can be deducted, but not the one shown in the regular statement.

          • EightImmortals on 24/06/2025 - 11:03

            @skid: Not sure, I've only been with them for a year so wont get the statement until August. Not sure why the location of the fees would matter to the taxers, the yearly statement is simply the accumulation of the monthly charges. Cheers.

            • skid on 24/06/2025 - 11:39

              @EightImmortals: Thanks, yes. Apparently (don't know whether it is true), the fees shown on the regular statements have already been claimed by the fund manager and hence you cannot deduct them. The fees shown on your annual tax statement are yours and have not been claimed by the fund manager.

              • EightImmortals on 24/06/2025 - 11:52
                +1

                @skid: OK I see what you mean now, the fees charged by stockspot are deductible, the individual fees and tax credits for the ETF's etc are calculated on your EOY tax report and all are listed separately with the correct tax codes (apparently).

  • Leiothrix on 24/06/2025 - 07:52
    +7

    Index tracking ETFs.

    They have all of the blue chips, don't make the mistake of thinking that you can pick individual companies by anything other than emotion.

  • goodfella on 24/06/2025 - 09:56
    +10

    Can I just take a moment to acknowledge that your son is a legend? Working and saving from the young age will set him for success IMO, that is already a huge win!

    • heal on 24/06/2025 - 21:19
      +6

      Yes, I'm a bit biased but very proud of him. Definitely will point out this comment in particular. It's good for him to get validation from others to know he is on the right track to success. I wish I had a good relationship with my own dad at the same age. I was looking at buying land on the north coast of NSW or a new motorbike. I didn't buy the land :(

  • FullPrice on 24/06/2025 - 10:14
    -1

    19.5 and going to uni in 2.5 years.

    /remind me in 2.5 years LOL

    Not happening.

  • Megatron on 24/06/2025 - 11:05
    +2

    Hi,

    I am assuming your son has a long term investment criteria and is not looking to get rich overnight by investing in shares.. that goes really really bad for most people.

    If he can invest and leave it there for 10 years, then definitely look at ETFs and Index funds as they are the safest option and you are ensured a definite investment return over a 10 year period, unless ofcource something catastrophic happens like a WWIII or a Great depression.

    These are the one's to look for on the ASX -

    1. NDQ
    2. VGS - https://www.vanguard.com.au/personal/invest-with-us/etf?prod…
    3. VDHG - https://www.vanguard.com.au/personal/invest-with-us/etf?prod…
    4. IVV

    On an average, these have a track record of providing 10-15% annualised returns for long term investments.

    If he wanted individual shares, then probably only should look at the blue chips but then be aware of the cyclic nature of some of them, example BHP, when in a cycle down period, he could be stuck for many years with negative or no returns.

    Note - Not financial advise, just opinion.

  • try2bhelpful on 24/06/2025 - 11:14
    +1

    I agree ETFs are probably the best option but it depends on what he is saving for. If it is short term, then volatility might still tank his investment. If he is looking towards retirement then Super is best.

    Personally I would get him to have an hour with an investment advisor and see what options look best for what he is trying to achieve. Get a solid plan laid down for the long term.

    Best of luck for your son. He sounds very sensible.

  • Maneki Angel Fund on 24/06/2025 - 12:03
    -7

    Forget it, it is a poor investment compared to investing in his own business.

    It doesn't scale. You need asymmetric returns of some sort to survive, and if we want to go further into his future, are you going to be providing him with any inheritance?

    I'm not trying to be dumb here, but most people don't realise how long you would need to work and invest for to get an average $2m house in a relatively normal suburb like Canterbury.

    • AeymothSky on 24/06/2025 - 23:25
      +2

      and do you run your own business?

      • Maneki Angel Fund on 25/06/2025 - 13:00

        Yep.

        It's the only thing keeping me alive.

        I'm in my mid to late 30s now and things have turned for the worse, but at least I'm still alive.

        I would have been stuck on a disability pension if I hadn't made specific changes in my life.

        • AeymothSky on 25/06/2025 - 13:01

          What kinda business do you have?

          Majority of my business ideas wouldn't net me nore than a few thousand a year if I was really lucky.

          At the moment I'd be happy if I could make a few hundred here and there even.

          • Maneki Angel Fund on 25/06/2025 - 13:03

            @AeymothSky: It's a fruit grocer type of store in the Campsie area.

            And I hope I didn't offend anyone with the Canterbury comments, but when I grew up people laughed at me for buying a house in what people would call a poor suburb.

            Very glad I didn't listen to them, but yeah it's a bloody joke how much it costs to buy a very run down house these days in these suburbs…

            10 years ago it was less than $1m, it's crazy now.

            I wouldn't bother investing in the stockmarket, unless you are targeting very speculative companies.

            Even bitcoin is not a good bet anymore. Palantir and other stocks like that would have been a better bet in these past few years.

            • AeymothSky on 25/06/2025 - 13:05

              @Maneki Angel Fund: Ah yeah.

              Sounds like a good source of income.

              Business aren't easy though, I definitely feel like you have to work some years and have significant savings to try to make a business if it's a full time thing.

              There's just too much risk involved though idk.

              • Maneki Angel Fund on 25/06/2025 - 13:13

                @AeymothSky: From my perspective and it seems like most people don't see the bigger picture, the risk is not taking those risks because you might suffer some skeletal or muscular problems as you age. In my early 30s I started to suffer some issues which have only gotten worse, to a point where I can't even participate in jury duty.

                The problem I see is people still think you can work a normal job and then buy some blue chip stocks and then buy a house. Good luck, because it's going to cost $4m for that house, it isn't going to work and by the time this person's child has finished university or got themselves a wife and they want to start a family. The math isn't there.

                I don't want to be harsh, this is the reality these days. I would have expected upvotes rather than the other way around, but maybe people misinterpreted my comments about Canterbury. I literally live here most days, sure people throw garbage onto the main streets, and it's no Mosman, but it's grown on me.

                I have one of those grabber pickup tools to pick up the rubbish, but frankly my neighbours don't even care. It's just the way it is.

                • AeymothSky on 25/06/2025 - 13:16

                  @Maneki Angel Fund: Well then again not everyone can become a buisness over right?

                  There's only so much spots for business per suburb if we're talkin about physical stores or places.

                  I know what you mean though that health can definitely deteriorate depending on the job you work or unlucky circumstances.

                  Two of my relatives who have finished uni here both work corporate jobs at the moment full time and one of them is running a bit of a business on the side but definitely it is a secondary source of income over the ft job.

  • IcySpicyStew on 24/06/2025 - 12:06
    +2

    gold, silver, bitcoin are the best performing assets

  • Fijiboy on 24/06/2025 - 12:56

    Hey,

    ETFs are a good choice, but we have other options.

    Look for dividends when you have heaps of capital, I would not suggest that you do this now. If you have money like Warren Buffett, then invest like him; if you have money like a millionaire, then invest like one. This is the time to look for capital growth, you will find more of this outside the ASX.

    I would also consider alternatives to ETFs if you have the time to do research and due diligence. This will set up Mr. 19.5 for life much quicker, if he understands how to consider good growth stocks.

    Growth stocks with strong drivers and solid proven business model with mitigated risks are good options as well. I would suggest a long-term hold. I would consider a portfolio with 3-5 high-growth stocks. Here are a few options to consider after your own due diligence: $BYD, $AMD, $NBIS, $RKLB.. come back in 5 years and look at the capital gains of these options.

    A SMSF that allows for investing in the stock market is a good option to look at, as CGT is not applicable if you hold over the long term and you don't reach that $3M cap: https://hellostake.com/

    Mistakes are made and learnt from, perhaps start with small amounts and see what happens.

    Good luck.

  • Robot JP on 24/06/2025 - 14:21

    ETFs. Stay away from "penny stocks". FMG might be worth getting into at its current price. Dividend payouts are generous

  • [Deactivated] on 24/06/2025 - 15:38
    +1

    youth allowance used to be 10K FFS - government is really keen to give everyone a handout.

    • serpserpserp on 25/06/2025 - 11:16
      +1

      The kid won't get youth allowance with 100k in his account.

      • donga100 on 25/06/2025 - 11:17
        +1

        That's why he isn't going to leave it in his account.

        • serpserpserp on 25/06/2025 - 11:18
          +2

          Anything in his name will stop him from getting YA unless it is a PPOR or a car I think. Even that might have a cap.

          EDIT: OP literally says 100k in savings

  • idonteven on 24/06/2025 - 16:52
    +1

    He’s 19. Put everything into bitcoin. That 20k he put sin now can be half a million by the time he’s 35 years old.

    • congo on 24/06/2025 - 19:27
      -2

      Isn't it too late and too risky for bitcoin ?

      • idonteven on 25/06/2025 - 06:52
        +1

        Bitcoin only has a finite supply, and it’s only 95% mined.

        It’ll only be too late if everybody you know starts buying bitcoin. If you’re the only one buying in your family/friend then you’re early.

        We are in the 16th year of bitcoin and the consensus is that we are in the early majority of adopters.

        • congo on 25/06/2025 - 10:46

          OK Thanks, I might watch it and buy the dip!

          • Maneki Angel Fund on 25/06/2025 - 12:58

            @congo: Way too late to invest.

            There is no possibility of asymmetric returns with Bitcoin.

            As a crypto OG, I cannot recommend it anymore. There are so many better opportunities out there that can help you on your pathway to $2m, although you might have to target possibly $4m+ in another decade to just get an ordinary house in the outer-inner west areas such as Canterbury… When I grew up, people laughed at buying a house in a poor suburb like Canterbury, but now I'm just lucky I managed to pick one up there.

            Palantir would have been a better bet if you don't mind the fact it is being used to kill children in third world countries. Peter Thiel is the man!

            • Bigburper on 27/06/2025 - 10:17

              @Maneki Angel Fund: I look forward to returning to this comment in 5 years just to remind you how wrong you are.

  • frewer on 24/06/2025 - 17:17

    AI can help with those low fees: https://prnt.sc/bWLbQ7r-0Slr. Dont forget to read T&C

  • Antikythera on 24/06/2025 - 17:49

    make sure when picking an investment platform you consider all the fees and charges.
    when i first started I used SelfWealth as it seemed cheap. then I realised what they were not charging in brokerage fees they were making up elsewhere like forex exchange.

    I now use IBKR Interactive Brokers.
    https://www.interactivebrokers.com.au/en/pricing/commissions…
    again do your own research on costs but the above link is IBKR's advertising on how they compare VERY favourably when using their platform to invest in US stocks.

    is your son knowledgeable about anything in particular?
    My brother-in-law did well trading mining companies in the 80s and 90s because he knew the industry.
    I had a passion for PC hardware and so invested in AMD when they started to be competitive with Intel in the CPU market.
    The possibility they might be competitive with Nvidia in the AI market is just a bonus for my AMD shares.

  • 82norm on 24/06/2025 - 19:57
    +1

    Bet on black.

  • tenpercent on 24/06/2025 - 20:25
    +3

    I didn't see the word "education" or "educate" on the page. So I will add that he should invest some time (which he has plenty of now, being so young) in learning about the basics of investing, even now before he goes to uni.

    Passive Investing Australia is a good resource to start with.

    • heal on 24/06/2025 - 21:25

      Thanks. All his cash is in a bonus saver account. It was going good when he was getting 5.5% interest. He spoke to me recently about how the interest rate has dropped dramatically, and that he was thinking about shares, which led to me starting this thread.

      • Maneki Angel Fund on 25/06/2025 - 13:23
        +1

        Have you forecasted how much it is going to cost for your son to reach his goals?

        I think you'll find he has to do a lot more than just invest in stocks and work a stable job to afford a house and to complete the main thing everyone wants which is to start a family.

        It's actually quite bad now compared to one or two decades ago. A lot of people here are probably in their 30s to 40s given the type of advice which is being given out, and they think it's alright just to invest in blue-chip stocks but they haven't really done the calculation or looked at the math. It's crazy these days.

        People aren't putting themselves into the shoes of a 19 year old today that is maybe coming off Centrelink, possibly the parents have a house, but it's still going to be hard.

        If you son isn't interested in anything I wrote above, then that changes a lot, but for most people in that situation, it's gloomy. It's time people woke up and talked about the issues facing the youth of today.

        For me, my time is coming to an end soon. I just don't want the youth of today to grow up with a lost decade. I'm okay with people downvoting, but seriously it's a delusion to believe that passive investing in stocks is going to help the son achieve their actual goals.

        I'm sorry, but you are going to have to take some risks.

        • Maneki Angel Fund on 25/06/2025 - 13:41

          Furthermore, if this is just a rainy day fund which you just want to set aside in case of an economic downturn and to buy some small insurance.

          I wouldn't go the pathway of investing in blue-chip stocks as the time when you need the money will very likely correlate with a large dip in the stock prices.

          There actually aren't that many choices if you are in this situation where you are expecting your son to continue paying rent and getting by; but yes, if that's the decision you and him have made, I wouldn't recommend investing in stocks since your goal is to have funds available during the economic downturn. The issue is that you will be cashing out the funds when it is down, possibly a good 40-50%. That's a real problem.

          This is I am the only person here asking the hard questions, no one else is looking at it from that perspective.

          For me, I built most of my fortune in my early and late 20s, then I suffered an illness, and now I barely exit my house most days. This can happen. That's why I have this different outlook on life which I guess people didn't read my jury duty thread either. It's still not approved.

          I need to know what you are trying to do, otherwise I'll give you generic advice and you can just pick it out, no need to actually respond about your actual circumstances, but others need to accept that I'm giving this advice not knowing what the circumstances are. Yeah, I don't expect you to tell me, because it's private, but it's something your son needs to think hard about.

          Your son is in a good position to take some risks, to actually grow his wealth in meaningful manner. Going to blue-chip stock route, that's a dead end if he wants a house.

  • Ahoon on 24/06/2025 - 23:10

    Hold off one more month. You’re not missing anything, but July might offer the kind of timing that builds a decade long head start.

    • tenpercent on 26/06/2025 - 07:03
      +1

      What do you think is going to dip more than it should?

      • Ahoon on 26/06/2025 - 13:03
        +1

        Almost everything, like the covid dip but faster recovery.

        • tenpercent on 26/06/2025 - 15:22

          So be ready to buy ETFs? Or individual blue chip stocks? Both? Other?
          What will you be doing, if anything?

          • Ahoon on 26/06/2025 - 16:23
            -1

            @tenpercent: I’ll be waiting for and confirming a real dip first, something triggered by a major event like a natural disaster. Once it hits, high-cap ETFs and solid blue chips should be good buys/entry. BTC might be pushing all time highs during this, but I expect the top to be around the 125–130K range. That said, I wouldn’t touch crypto for the next few years, maybe ethereum and a few strong altcoins in Q4 2025 if you’re into high risk, high reward plays.

            • tenpercent on 26/06/2025 - 20:09

              @Ahoon: Why would you expect a 'natural' disaster in July?

              • Ahoon on 26/06/2025 - 21:04
                -1

                @tenpercent: I only mentioned a natural disaster because the price action I’m expecting in July fits that kind of scenario best. But honestly, the actual cause doesn’t matter, could be anything from politics to economic stuff. If it were a natural disaster, it’d probably be in the US to really move markets, not here in Australia.

    • V2L on 26/06/2025 - 09:27

      timing the market almost never work out well. even those who cashed out in time before April 2020, most felt there was more to fall and missed the massive bull market fueled by QE

      • Ahoon on 26/06/2025 - 13:11

        I am not saying timing the market works well, just a suggestion not to rush and wait until mid July, it is only 20-30 days, especially if considering putting all savings in one go for the first time. I wouldn't even comment about this, if OP is just investing regularly in small amounts.

  • dono2 on 24/06/2025 - 23:13
    -3

    Only efts you need are

    FANG
    FHNG
    HACK
    QBTC

    And maybe VTS. Don't waste your time with Australian stocks, returns PA are not the best.

  • dfg555 on 25/06/2025 - 01:38
    -3

    lol gold or silver, it's a no brainer. those assets will never depreciate because humans are dumb

  • serpserpserp on 25/06/2025 - 11:13
    +1

    Sorry to say OP, having a 100k in liquid assets will absolutely stop your child from getting Youth Allowance (or it'll be an extremely lowered amount)

    • IcySpicyStew on 25/06/2025 - 16:00

      this.

      depending on what is mentioned in asset test, might be eligible but allowance reduced

    • tenpercent on 26/06/2025 - 07:05
      +1

      Sad to say it doesn't now. Our tax payer money is going towards propping up people who don't necessarily need the help. https://www.servicesaustralia.gov.au/youth-allowance-income-…

      • heal on 26/06/2025 - 07:14

        I agree, however if there was a way to minimise your tax, reduce your taxable income or turn your cash into non liquid assists in order to gain a benefit do you take advantage of it? Does anyone say no to a government benefit because they don't necessarily need it? There's nothing wrong with adjusting your situation to qualify for Youth Allowance. My son could go to uni now and get Youth Allowance. He has decided (for his own reasons) to work for 4 years before hand and doesn't want the money he saved in order to own a home to have to be spent on living expenses.

        Getting a bit off topic here but I wanted to reply with my 2 cents.

  • Chong on 25/06/2025 - 12:39
    +1

    If hes sure hes going for First Home as priority look at the First Home Super Savers Scheme, with the tax breaks nothing comes close (unless he picks a small stock going big time…. if thats the case send the info this way)

    https://www.ato.gov.au/individuals-and-families/super-for-in…

    • heal on 25/06/2025 - 20:20
      +2

      He's had a look at this and decided to use this scheme as well as EFTs. He can only put $15k in a year with a maximum of $50k

  • afah0447 on 25/06/2025 - 14:19
    +1

    ETF and some in super to get government match (depending on his salary).

  • bethepro on 25/06/2025 - 19:19
    -1

    S&P 500 (i.e. SPY) and US Bluechips Stocks (i.e. Magnificent seven). Avoid ASX.

  • bethepro on 25/06/2025 - 19:20
    +2

    Also Time in the market is key! Lock it in and forget about it.

    • Bigburper on 27/06/2025 - 10:19

      This is de way

  • babolimp on 25/06/2025 - 19:58
    +1

    ASX:NDQ
    index fund tracking nasdaq100
    this would be my choice

    if he's more of a cowboy
    ASX:FANG

    even more of a cowboy
    bitcoin

  • WoodYouLikeSomeCash on 26/06/2025 - 11:05

    Just get CRCL puts.

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