Best investment ever?

bchip

bchip

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Over the past couple of years instead of just buying throw-away Christmas gifts
we've kept the gifts low but invested on behalf of my nephews and nieces.
The investments have done well over time and the kids will in the next couple of years
get to an age where we are thinking of "giving" them the money.

My question is what do you think is the best investment for an 18 year old?

For example - 50% keep in the markets and 50% on a world trip?
Tell them to start a business? Take a gap year?

* Education is already budgeted for.
* Im not looking for stock tips, rather experiences that helped a person grow

Would love to hear some ideas

Thank you
 
Better yet, pretend you going to give them a world trip, but on their birthday give them a lecture on the value of work and investing.










(just kidding - the life lessons on a world trip are invaluable - but they really should be working on the trip and/or have at least saved for some of it)
 
It depends on maturity, 18yo is young.

I like the thought for giving them a portion of it initially, and let them use it for whatever they want. Leave it up to them.

Depending on what they do with that little portion, let that gauge your next move. If they just piss it up, then dont give them any more and lock it down until they're older.
 
I think it's a nice gesture, but you need to be quite careful as you may inadvertently do more damage.

I had a friend whose parents' provided unit trusts to him when he turned 18 and again when he turned 21. When he finished Matric, he didn't really feel like studying so he started his own business. He kept telling everyone that business was going well, but he was just drawing down the investment and living well beyond his means. Before 27, he had spent all of the funds and had to take drastic cuts in his lifestyle and he got very depressed.
He finally went to study at 29 with guys in his class 10 years younger than him. After studying, he got a full time job, but it still bothers him how far behind he is in his career.

I wouldn't give young kids the money. I would give them the holiday to see the world and then give them the remaining when they have a proper job / career - maybe as a down payment on a flat / house.
 
Coins are a good idea. I bought some gold and silver coins from the Scoin shop for my nephew and niece.

If you looking for a "teachable moment" maybe tell them you will match, double etc what they can earn at a job or part time job.
 
Depends on how much say you want over what they do with it. They're your nephews and nieces, not your kids. And what do you want them to get out of it?

So your options are to give them cash (in whatever form, shares, cash), or give them something (holiday, car etc.), or put conditions on the gift.

Are you OK with them doing whatever they want with the gift?
I'm tempted to say give them a username and password to some online investment portal that's been created in their name, where they can access the cash when and why they want.
Also, I'd want to travel with them, so take them on a holiday somewhere. But that's just cos I like to travel so would look to be selfish and share in the fun!
 
Thanks guys for all the inputs, its actually given me some really good ideas.

I agree that I need to speak to them about what it is they want to do with it as well.
I cant withhold the money either, it is theirs, but I can step in and help them along the way with it.
Chat to them along the way with "What do they want to accomplish - even if its a holiday trip"

And I think maybe the suggestion of "dont give it all at once" is not too bad either :)
 
Also have you spoken to the parents as well? So they're aware of this potential gift?
Just I've seen gifts given with the best of intentions that go really bad cos of jealousy.
You know, dad gets son a PS4, but uncle Mike gets him a Ferrari.
 
Sepeng said:
Also have you spoken to the parents as well? So they're aware of this potential gift?
Just I've seen gifts given with the best of intentions that go really bad cos of jealousy.
You know, dad gets son a PS4, but uncle Mike gets him a Ferrari.
Click to expand...

Yes, the parents are aware of the whole thing.

What we've done is every Christmas, when everyones there, we went through the "potato farm"

We planted farm seeds and we watched how many new potatoes grew.
The parents and all the aunties and uncles helped and we looked at how well it did.
The potatoes have now changed to shares and dividends.

Wanted to raise it last week with the parents but first just wanted to get some ideas together.
 
What would you have done if someone gave you a lot of money at such a young age? I would probably have bought a car and beer...
I have no idea how much money you talking here, care to enlighten us?
 
I prefer the you give 2 rand I give 1 rand way. And only for things like studies and other investments like property.
 
I'd insist it's only available for an education, preferably a classical education.

"If you want to see what children can do you must stop giving them things" -- Norman Douglas.

The surest way to cripple and ruin your kids is to give them extravagant stuff. Especially when they're over 15.
 
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Seeing as how education is catered for I would hold off until they have graduated whatever they are studying.
Give them a portion afterwards and let them work hard for a bit to understand the value of hard earned money.
When they are closer to settling down and looking for property then give them the balance.
 
Hendrix said:
What would you have done if someone gave you a lot of money at such a young age? I would probably have bought a car and beer...
I have no idea how much money you talking here, care to enlighten us?
Click to expand...
No no no you find out how much your car is worth then you spend the equivalent on a sounds system and some new rims.
 
Gap year, but make sure its a working gap year not a holiday. (NGO work is fine though)

Wouldn't do world trip, but maybe send them somewhere very different (say asia) just to rattle them a bit & make them see that there are places out there which are very very different. (Assuming they aren't already well travelled).

I'd also give them a smallish amount to invest though - they'll probably fk it up but thats a learning experience in itself. Still occasionally have grown arse men ask me "so how do i actually buy shares?".
 
This is the time in their lives when they should go out and explore the world, gamble on their passions... Personally I would use the money and have them backpack for the few weeks between high school and university...

We keep saving and working for tomorrow, what if tomorrow never comes?
 
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