“I’m 16 years old with a stable income and plenty of money coming in from side hustles ($1700 monthly)”: How can I start investing with a joint account and build a portfolio for the future while learning the market over time?

Hi Money Minder,

I’m Jake, a 16-year-old who’s got a sweet hustle bringing in around $1700 a month. I just opened a joint Schwab account and I’m eager to kickstart my investing journey. Starting small and gradually growing as I get the hang of the market sounds like the way to go. I’m thinking short-term investments for the next 10 years to watch my money grow. Any nuggets of wisdom you can share? Thanks a ton!

Jake

Farewell,
Jake

Response from THE MONEY MINDER:

Hello There,

Congratulations on taking the first step towards investing at such a young age! It’s really commendable that you have a stable income and are actively looking to grow your wealth through investing. Starting small is a wise decision, especially when you’re just beginning to navigate the world of investing.

As you mentioned, having opened a Schwab joint account, you already have a platform to start your investing journey. Since you are looking to invest for the near future, focusing on a mix of growth and stability in your portfolio would be ideal. Diversifying your investments in different asset classes, such as stocks, bonds, and maybe even some low-cost index funds, can help spread out your risk.

Given your age and time horizon of 10 years, you have the advantage of riding out market fluctuations and benefiting from compounding returns. Regularly contributing to your investment portfolio, even if it’s a small amount to start with, can go a long way in building your wealth over time. It’s also crucial to keep educating yourself about the market and different investment options, as knowledge is key in making informed decisions.

Remember, investing is a long-term game, and it’s essential to stay patient and disciplined, especially during market fluctuations. Keep track of your investments, reassess your portfolio periodically, and adjust as needed to stay aligned with your financial goals.

Wishing you all the best on your investing journey from THE MONEY MINDER. Happy investing and grow your wealth steadily over the years!