Dear Eric: A letter on March 2 was written by someone named “Invested Time.” They seemed frustrated that their 21- and 17-year-old nephews were not sufficiently involved or interested in learning about financial planning and investing, despite what are clearly some very generous financial gifts given to each of them. The writers were so disappointed, they were reconsidering their decision to provide for them in their wills.
All I can say to that is, “Oh boy.”
I have been investing for more than 40 years (24 years professionally on Wall Street) and have a reasonably good handle on how to create and manage a personal portfolio with these kinds of investments. With all of this experience under my belt, if someone handed me a list of “50 well-rated” funds, I would probably go into “TILT” mode. That’s overwhelming even for the most experienced investor.
Their intentions are admirable, but they needed to have these kids walk before they could run. A simple start could pique their interest, and they then may want to expand their horizons on their own without “Invested Time” having to provide a whole lot of encouragement. Again, training wheels before a 10-speed.
– Time Out
Dear Time Out: Absolutely. And a reminder: when you’ve got training wheels on, you’re still riding the bike. It’s OK to start simple and take your time.
Send questions to R. Eric Thomas at eric@askingeric.com or P.O. Box 22474, Philadelphia, PA 19110. Follow him on Instagram and sign up for his weekly newsletter at rericthomas.com.
