Here in the holiday season we’re thinking about gifts, family and our legacy. Our kids and grandkids are going to have unique financial challenges that we did not encounter, and it’s up to us to help them prepare for a unique and changing global economy.
Here at Fabian Wealth, we believe that you should start with Exchange Traded Funds, because they’re low-cost, diversified and a great way for young people to get started investing.
Here’s one that will be a great gift for young person:
Commodities are a very successful hedge against inflation.
Inflation is problematic – we’ve seen it in the past and we will see it again in the future. The majority of this ETF is in energy, with about 53% oil, heating oil, natural gas, gasoline, plus 10% in gold and silver and 25% in agriculture (soy, corn, wheat, sugar), plus industrial metals that developing countries need.
Commodities are going to rise in price and grow as economy grows. As wealth grows, these commodities will continue to grow in value and be a great hedge against inflation. This is also a wonderful learning opportunity for the young people in your life as they embark on investments of their own, and will help you to have those critical conversation about how and where to invest.