Investments for babies
March 31, 2014 9:34 AM Subscribe
Thanks to well-meaning family, I have owned a number of stocks and other assets since my birth. The net worth of these assets is very modest, but if I sold them it would offset some ongoing financial stressors. Yet it seems prudent to keep them for a while longer. But why? What if everything crashes next week? What if [the specific stocks I own] crash next week? How do people predict this and stay on top of their assets without spending an inordinate amount of time on them?
posted by magdalemon to Work & Money (18 answers total) 6 users marked this as a favorite
As is well documented in my other questions, I am a Broke Person. I earn a small salary at my full-time job that I love, and I have a lot of debt (student loan, auto, and consumer) that eats up most of my money. My lifestyle is frugal, I'm used to it, I'm not actively suffering, etc. But it often occurs to me that I could sell some stock, pay off a chunk of debt, and save money on interest. It might be a significant leap forward in my personal financial planning, where I hope to be able to afford a baby within five-ish years, or at least my own washer and dryer.
Keeping the stock and letting it appreciate in value is an option. I like the thought of having it around as a safety blanket. Then, I often think of doomsday scenarios where the market crashes and/or the economy ends as we know it, and I'd be glad to have the assets out of the market and in tangible form.
For now, it seems like I should monitor the stock prices in question and try to find a pattern. But the tracking I've been doing is a much bigger time and energy commitment than I'd like to maintain, long-term, and besides I don't really know what I'm looking for. I know I could pick up any financial news publication and start reading, but...I just don't want to.
How does a layperson think of, manage, and strategize about investments? Any personal anecdotes, suggestions for apps, or financial news that might be engaging and interesting without being too math-y are welcome. I cannot afford to hire a professional for this.