It is the season where we purchase stocks each year. At a high level the process is:
- kids earn their $500 during the course of the summer (some have jobs, or find other ways to save)
- after I receive the $500, I add $500 and match $500 for a total of $1500
- this $1500 gets deposited into the money market account linked to their brokerage account
- I send them (or post on this site) the six stocks to pick from for the current year
- each of them select 2 stocks
- based on the market price, I place the orders overnight, leaving enough extra in the account in case of market fluctuations at the open, plus room for some commissions
- then the orders get executed
- later, I update the performance of the overall portfolio
So far:
- Fund 4 (new) – selected SNP (8 shares), SI (7 shares)
- Fund 5 (new) – selected WMT (13 shares), NUE (14 shares)
- Fund 1 – selected TEVA, SNP – also looking to increase the position in either AEP or MSFT (waiting on directive)
Still waiting on picks for Funds 2 & 3, some times it takes a while to get in touch and talk through it with homework and other after school activities.