"One month before my 21st birthday, my grandfather told me he would be gifting me 21,000 South African rand (approximately $1,500 USD based on the exchange rate at the time). However, there was a catch: I had to visit a financial advisor with him and invest the money in stocks. At the time, I valued the freedom that money gave me, but I had given little consideration to investing. I had been working a part-time bar job throughout university."
"I took on promoting gigs whenever possible, and I was just starting to get freelance writing gigs. Most of my earned money went toward subsidizing my lifestyle in university (usually drunken nights out or greasy takeaways from the local pizza shop), or I saved the money for a specific occasion, like a road trip with my roommate across the country. That said, I welcomed the 21st birthday gift, and I knew that it was something I'd grow to appreciate."
One month before a 21st birthday, a grandfather pledged 21,000 South African rand on the condition that the recipient meet a financial advisor and invest the funds in stocks. The recipient worked part-time and did freelance gigs, spending most earnings on university lifestyle or saving for events. A meeting with a financial advisor introduced terms such as 'repo rate', 'Capital Gains Tax', and 'volatility', many of which went over the recipient's head. The grandfather pressed for explanations about risks, especially early withdrawal during market downturns. After the investment was set up, quarterly email updates were sent but rarely opened.
Read at Business Insider
Unable to calculate read time
Collection
[
|
...
]