Young investors are a client segment that not every investment firm or bank brokerage house will pay attention to. We believe that the youth of our clientele need a head start with their financial literacy and they need a hand to get started with good investment principles.
We can use the informal trust style known as an “In Trust For” account to get parents and kids started on the investing path. Once kids have established regular employment and have paycheques coming in, we love to set up regular contribution plans for them.
If you have ever looked deeply into the power of compound interest, it would give you new joy to look at these concepts and calculators through the eyes of a 16-year-old. They have potentially 50 years in which to compound earnings in their investment plans. Not only does this kind of head start give them options throughout their lifetime, but it also gives them the confidence and know-how to make smart financial decisions that will literally pay dividends for their entire lives.
We have worked hard to ensure that we have the financial literacy resources available to our young clients so they can understand some of our favourite time-tested financial concepts. We give them a helping hand to get started and to get to the fun stage of investing.