If you're looking to get your grandchildren into investing or setting up a portfolio for them Jim Cramer has some advice for you. In his exclusive video for members of his charitable trust, ActionAlertsPLUS.com, Cramer was asked to, "recommend how to invest long-term for a grandchild's portfolio?"
His response? "It's a little counterintuitive, you have to find stocks that will be of interest to them, so that they will get interested in the market."
Explained: Is FIRE the Next Best Retirement Strategy?
He continued on:
Get them into something accessible, so that they think about it and say, "You know what, I own a stock." Because when you don't do that, they're not going to be receptive, because they're not going to follow it. The market's pretty opaque, so if you get them something that you know they're going to use, it's a way to get them in. You don't buy them United Technologies (UTX) - Get Report , unless you maybe work there or something. You buy American Express (AXP) - Get Report maybe, Disney (DIS) - Get Report . You might buy them Verizon (VZ) - Get Report , because that may be their bill. T-Mobile (TMUS) - Get Report might be their bill. But what you really are looking for are high-growth stories that are in kids' life. That's what's important, because you're using it as an example to get them to follow the market, and then follow up with buys. Don't buy any fossil fuels, because kids don't believe in that.
In the end it's all about establishing confidence for them, "They say, 'Look, I own Disney at 130 it went to 180.'"
Want more investing advice from Jim? Sign up for a free trial of ActionAlertsPLUS and receive access to his exclusive monthly Members-Only Call on Wednesday, June 12th.
Need help preparing for retirement? Check out Retirement Daily.
- Ask Bob Part 1: Everything Millennials Need to Know About Retirement
- Ask Bob Part 2: This May Be the Biggest Asset Millennials Have for Saving Money