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My "dad vibe" must be working overtime these days.
And that's got me thinking maybe my "chance" conversations with a number of young adults lately are a sign of the times.
Let me explain.
As I've been going about my routines in the past, I've run into a lot of young people who want to get started in investing, but have no clue how to do so.
I'm talking about folks my daughters' age who are earning some income and want to invest, but just don't know where to start.
For instance, once, while skiing at the Kirkwood Mountain Resort near Lake Tahoe, I chatted with three young adults who jumped at the chance to get my advice about investing.
I guess that's where the dad vibe comes into play... I told them about a surefire way to make the market work for them as though I were talking to my own daughters.
And it just so happens that this investment advice is good for newcomers and old, particularly investors who were reluctant to jump in back when conditions were more volatile.
That's why today, I'm going to show you not just the one "starter" investment vehicle I suggest for young adults that can set you on the right track...
But I'm going to recommend three other tech-centric ways to jump start your portfolio right now...
Check it out...
An Experienced Hand
I have to say that coaching young investors comes naturally to me. I do it regularly with my own daughters, both of whom decided to become finance majors.
In fact, roughly 10 years ago, I started talking to them about the importance of avoiding debt and putting their money to work in the markets.
For a time, we even had investing contests to see which daughter could score the higher gains. Of course, they had dad's help in selecting high tech investments that could crush the market.
I'm surprised how often that comes into play. In one span of just a few weeks, I've chatted with at least six young adults who had cash that was making them nervous.
They wanted to invest it, but didn't know anyone they trusted enough to get them going. Polls show they are not alone.
A recent survey by the Merrill Edge Report revealed that 66% of millennials said they would be able rely on their savings accounts in 20 years.
This is why they really need my help.
See, these young folks would be lucky to earn more than 2% on a savings account or money market fund. If they just got the stock market's average long-term gain of roughly 7% a year, they would be doing more than three times better.
Now, when I talk to young adults about investing their money wisely, my first goal is to avoid overwhelming them.
I just want to help them get off the ground with a simple, three-part strategy that anyone can follow.
Here's what that looks like:
- Start as young as you can, and invest regularly, so that you average your dollar cost over the long haul.
- When all else fails, park your cash in a basic S&P 500 exchange traded fund like the iShares Core S&P Total US Stock Market ETF (NYSE: ITOT) so you at least get a nice average return.
- After that, make sure you have exposure to tech, the greatest wealth machine ever created, and start with solid ETFs.
Because number one is pretty much self-evident, let's drill down and take a closer look at numbers two and three.
I recommend ITOT because it gives you instant diversification with a cost-effective ETF that has a core holding in leaders from high tech and the life sciences. It also has a built-in mnemonic device, or memory aid...
When I say, "Just remember, 'ITOT you to invest your money wisely,'" they all say the same thing - "Got it, that's easy to remember."
Of course, as you should know by now, our goal at Strategic Tech Investor is to consistently outperform the market. And that's where No. 3 from above comes into play.
I've identified three tech-related ETFs that give everyone from novice investors to risk-loving options traders a solid foundation.
About the Author
Michael A. Robinson is a 36-year Silicon Valley veteran and one of the top tech and biotech financial analysts working today. That's because, as a consultant, senior adviser, and board member for Silicon Valley venture capital firms, Michael enjoys privileged access to pioneering CEOs, scientists, and high-profile players. And he brings this entire world of Silicon Valley "insiders" right to you...
- He was one of five people involved in early meetings for the $160 billion "cloud" computing phenomenon.
- He was there as Lee Iacocca and Roger Smith, the CEOs of Chrysler and GM, led the robotics revolution that saved the U.S. automotive industry.
- As cyber-security was becoming a focus of national security, Michael was with Dave DeWalt, the CEO of McAfee, right before Intel acquired his company for $7.8 billion.
This all means the entire world is constantly seeking Michael's insight.
In addition to being a regular guest and panelist on CNBC and Fox Business, he is also a Pulitzer Prize-nominated writer and reporter. His first book Overdrawn: The Bailout of American Savings warned people about the coming financial collapse - years before the word "bailout" became a household word.
Silicon Valley defense publications vie for his analysis. He's worked for Defense Media Network and Signal Magazine, as well as The New York Times, American Enterprise, and The Wall Street Journal.
And even with decades of experience, Michael believes there has never been a moment in time quite like this.
Right now, medical breakthroughs that once took years to develop are moving at a record speed. And that means we are going to see highly lucrative biotech investment opportunities come in fast and furious.
To help you navigate the historic opportunity in biotech, Michael launched the Bio-Tech Profit Alliance.
His other publications include: Strategic Tech Investor, The Nova-X Report, Bio-Technology Profit Alliance and Nexus-9 Network.