Someone was asking me about investing the other day.
I gave my normal spiel about not picking stocks and instead picking countries/economies and buying indices. I also said to stick with what you know. If you know property (she’s a real estate agent) then invest in property, you probably have some edge.
The conversation flowed between investing ourselves and her kids starting to invest in stocks.
I made the important observation that investment goals matter a lot and that the investment goals of hers will be different from her kids.
For example, kids can take risks and handle a lot of volatility. Working adults in their 40s are probably more interested in less risk and and in more preservation, and someone retired is wholly focused on preservation.
I pointed out that if you/kids take advice, even great advice, from someone with different investment goals, it could do a lot of damage.
I also pointed out that my eldest is saving for a car, is interested in stocks, but I advise him to keep it all in cash (saving account), because his time horizon is only 3-4 years. When he goes to buy that car at 18, he will be most upset if the market is having a down period.
Be careful out there.