Expert: Steve Hach - 10/2/2007

Question
Hi my name is Luke and I’m 14 and very keen to invest now for the future. Originally my ambition was to work in I.T however now that plumbers have become wanted in Australia and are earning up to $3,000 a week i have changed to that to ensure an earlier retirement. I have been also looking for small business ideas for the mean time to make money NOW and have come across a few. Numerous websites I have investigated state real-estate as a good investment, do you agree? Lastly do you have any better or equally good suggestions for things I can invest in even now (I considered buying stock for apple, Sony or Microsoft).

Please email me!

Sincerely Luke  

Answer
Dear Luke,

I am not really qualified--and actually not allowed by law--to recommend specific stock investments--and I have no clue about the real estate market in Australia.

I can only offer general advice:

Save your money!

Don't use credit cards.

Do not waste money on frivolous items like fancy clothes, ipods, cell phones, cars, CDs, etc.

Study hard, take classes in finance/business/economic history.

Put a little money away from every paycheck.  If you start saving as little as 10,20, or 50$ a week NOW while you are so young, so you will be a millionaire by the time you are 50 years old even if you just put the money in a money market account.

Buy a basic book like "Investing for Dummies" and read it!

A trade like plumbing can be good, but what happens if the real estate market goes into a downturn?

Half of my family here in the US were plumbers and were making good money for a while, but then the economy took a tumble and they ended up on unemployment for most of their adult lives.

Of course, Australia is different from the US, but being a plumber is hard everywhere--and sometimes "smelly" work.

There is nothing wrong with an honest trade--and I used to drive a beer truck for a living, but you will be at the mercy of others unless you own the business.

I would suggest that you focus on saving your money now and that you begin looking into a university education.  

That will allow you to figure out the best thing to do with your life and your money.

Best,

Steve

PS
of the three stocks you mentioned, only Sony is currently rated a "buy" by my firm.  But, Apple has constantly proven us wrong in the past.