Dear Scott,
My granddaughter, Annie, is 17. Earlier this year she was diagnosed with Stage 2 Hodgkin’s Lymphoma. She’s been through chemo, lost her hair, and has been dealing with everything that comes with fighting cancer as a teenager. Before she got sick, she was a go-getter, umpiring footy at 14, working three jobs during school holidays, reading your books cover to cover. She’s saved $12,000 and wants to invest it, but between the chemo brain and everything else, she hasn’t been able to figure out how. The Starlight Foundation granted her a wish – including meeting a celebrity. She thought about asking to meet you for financial advice, but decided the family should do something more “fun” together. Her question: should she invest her $12K now as a minor, or wait until she turns 18 in six months? She needs to buy a car next year but also wants to start investing for her future.
Annie’s Gran Helen
I’m going to write directly to Annie, so Gran, please cut and paste this and send it over to her!
Dear Annie,
Most 17-year-olds can’t see how much potential they have. But you can. Because you’ve seen how precious life is. You’ve come through this horrible time with steel and grace. And now you want to make your life count.
Here’s what I’d suggest.
First focus on security. Keep your $12,000 in that high-interest account for now. When you turn 18, you can easily auto-invest in low-cost index funds via an investing app. The six months won’t matter. You’ve got decades ahead of you.
Then get yourself back on track. Focus on your health. Finish school. Get back to work when you can. You’re already miles ahead of everyone your age just by having saved $12K and thinking about your future. Next year, buy yourself a reliable used car – nothing fancy – when you need it. Then invest what’s left. And once you’re through this – and you will get through this – you’re going to travel. You’re going to learn. You’re going to thrive. Hard times create strong people.
You’re proof of that.
Oh and Annie, about that Starlight wish. Use it for something fun with your family – you’re right about that. But I’d still like to meet you. Let’s talk when you’re feeling better. I’ll help you build your financial plan properly.
Next year is your year.
Scott
