There is also a Twitter thread written by a family member going into a little more detail.
A 20 year old with $16,000 cash in his account, surely that means he had more money in the platform, so where the hell does a 20 year old get so much money to blow from, that’s a question I want to know.
Sad, but trading isn’t something people should be doing with so much money and Robinhood needs to be looking at that.
If relatives put about £50 a month into a child ISA, it could easily be worth 15k by the time you’re 20. If you have two sets of grandparents and the odd aunt and uncle paying in as well as your parents, it’s not a stretch at all. The fact that he was a conscientious saver makes me think of some scenario like that.
I think you should have to pass an exam before you can do certain activities. Something like a driving test, but for personal finance and investment. Robinhood and the like would go bust overnight though.
Yeah suppose, I still don’t think a 20 year old should be allowed to invest so much online with no checks.
I couldn’t agree more. Even the most savvy kid is not going to have much experience
But when can they then, 21, 23, 30, 50?
It’s a very sad situation, but the answer isn’t to restrict adults as to what they can or can’t spend/do, but to educate when younger. The Provider also needs to be looked at.
My Daughter is 20, she holds quite a lot in a LISA (Stocks & Shares) as well as a normal S&S ISA. It helps maybe that she’s studying a maths degree but i’ve also taught her about money and investing, the risk, pitfalls etc and the important of balance (eggs in baskets).
In my opinion, for the kind of stuff he was into, it should be when you’ve qualified…
Stocks and Shares is nowhere near as risky with a bit of research and some basics, like spreading your risk with diverse products, as you mention.
There should be limits for all accounts at the start, progressively increasing. Not rocket science
Then podcasts like this come far, far too close to promoting risky behaviour imo
Planet Money: Owner Of A Broken Hertz https://www.npr.org/2020/06/24/883047437/owner-of-a-broken-hertz
I mean, the investor they talk to is pretty much openly admitting the whole strategy was pure gambling… Eugh
And Hertz asking the court if they could issue more stock - disgusting
FT longread piece on this: