Here’s a three minute audio (at bottom of page) in which Dr. Bill Bernstein offers investing advice to millenials.  I am on a bit of a Bernstein kick; check out another recent post where he offers more detailed investing advice.

He makes several points that I think are incredibly insightful for young people:

• Saving is more important than investing.
• All stock portfolio is optimal for a young person
• You don’t know your risk tolerance until you suffer through a bear market
• Start with 50/50 stock and bond portfolio so you can see how you weather a difficult market

Ask students to answer this question:

• Why are stocks not risky at all for young people but risky for old people?

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.

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