We’ve all had those fantasies of getting into a DeLorean and going back in time. We think about all the little changes that we’d make in our lives. If you’re like me and have invested in the brain, then maybe you wish you would have gone back in time and started investing earlier.This is exactly what I was thinking when I had a chance to meet with the son of one of my friends. Her son had recently turned 16 but had been mowing lawns “since he was a kid.” Haha. The son had talked to a cousin recently who had told him about how he needed to start investing. Intrigued, he told his mom to contact that investment guy that she had mentioned in the past. In case you’re not sure who he was referring to, that investment guy was me. If you are ready to begin your investing journey, make sure you check out our guides such as our Online Investing for Newbies for your reference! There are not many things that excite me more (with the exception of In-N-Out Burger) than seeing a young investor get started for the first time. The fact that this investor was the ripe age of 16 makes it that much more exciting. With any new investor, I walk them through the process of explaining what a stock is, how that relates to a mutual fund, and how easy it is to get started investing by buying mutual funds. One tool that I use is Thomson Reuters which is a database of almost 30,000 different mutual funds that exist. One mutual fund that I use for hypothetical purposes is not the best mutual fund in the world. In fact, it’s an average mutual fund and by average I mean that when you look at how it compares to other mutual funds in its peer group it’s been pretty middle-of-the-road. I like showing this mutual fund, for two reasons:
- It gives us a good variety of market conditions since the fund was established in the late 60s.
- By showing an average mutual fund, I’m not showing the best, I’m not showing the worst, I’m just showing a possible scenario of what it looks like to make money in the stock market.