Talk – How and why do young people invest?

Felix: In today's Coffee Talk, I welcome two guests who came into contact with the topic of investing at a very early age. Jasmin and Gabriele started investing money systematically when they were still young. Today, we'll talk about why they do this and how they invest.

I'm very happy to have you here. Would you like to introduce yourselves briefly?

Jasmin: I'm Jasmin, 18 years old, from Geneva, and currently in my first year of medical school. I've always been very interested in physics, chemistry, and biology.

Gabriele: I'm Gabriele, 19 years old, from Landquart, and in the final year of my apprenticeship as a computer scientist. This has always been my dream job. I'm also completing a technical vocational baccalaureate so that I can go on to study later. I haven't decided exactly what I want to study yet, but it will definitely be something in the IT field. In my free time, I enjoy playing sports.

How did you find out about True Wealth?

Jasmin: Through my dad. Ever since I was little, he has always been very interested in investing and had a lot of literature on the subject. That sparked my curiosity and at some point I asked him if we could invest for me too. That's how we came across True Wealth – he uses the app himself.

So the initiative to invest came from you?

Jasmin: Yes, my dad has been investing money for me since I was little. I didn't know that at the time, though. I found the topic exciting and asked him if I could do it myself. He then explained everything to me.

How old were you at the time?

Jasmin: I opened my True Wealth account when I was about 16. However, I had already invested in gold and coins before that, probably when I was 12 or 13.

And what about you, Gabriele?

Gabriele: It was the same for me, also through my father. When I was about 14 or 15, I felt the need to invest myself. But for a long time, there was no really simple solution. My father has been using True Wealth for a long time. When we saw that there was a children's portfolio, he recommended it to me. That's how I came across it. At 15, I didn't have to think twice – I could just deposit money. We set everything up together and after that it practically ran itself.

Did you have access to your True Wealth portfolio even before you came of age?

Jasmin: My dad had it on his phone and showed me how everything was developing every month. I didn't get my own access until I was 18, but he always explained everything to me in detail, including the risk settings.

Gabriele: I had access earlier, but I hardly changed anything. We set up the portfolio together, and I was happy with the allocation between stocks, bonds, and other asset classes.

At True Wealth, we invest in traditional asset classes such as stocks, bonds, commodities, real estate, and precious metals. We do not offer cryptocurrencies. Are they still relevant to you?

Jasmin: Not for me at the moment. My dad always told me that cryptocurrencies are very risky. Maybe I'll invest in them later, but for now I prefer traditional investments.

Gabriele: Cryptocurrencies are quite important to me. I have invested in them, but they only make up a small part of my portfolio. They are very volatile, so I don't want to invest the majority of my assets in them. I'm trying them out of interest, but they are not suitable for long-term wealth accumulation.

Is investing also a topic of conversation among friends?

Jasmin: Yes, it is, but many don't know where to start. If you don't have parents who invest, you often feel quite lost. So it is a topic of conversation, but not a major one. Many of my friends end up asking my dad for advice.

Gabriele: It's similar for me. Many of my friends find the topic exciting, but also very complex. There are so many stocks and ETFs that you quickly become overwhelmed with information. It's the same with cryptos. Many people simply invest in something that sounds promising at the moment without really having an overview. Some of my classmates invest a lot in cryptocurrencies – that doesn't always go well. You could almost call it gambling.

When something is very volatile and fluctuates greatly, people often only talk about the profits. But when it goes down, you don't hear anything. By the way, it's not just young people who do this. Do you have specific goals with your investments, or is it more about long-term wealth accumulation?

Jasmin: My dad always said you should think about the future early on. It's not about buying something now, but about making long-term provisions, such as for real estate.

Gabriele: I also invest for the long term. I don't plan to withdraw the invested funds anytime soon. Maybe I'll use them later for real estate, a car, or something else – but I don't invest for short-term purposes.

How do you stay informed about financial topics?

Gabriele: Partly through YouTube, where there are lots of good and informative videos. Also through other social media channels like Instagram, but you have to be very careful there.

Jasmin: I also get information from news portals such as CBC News to find out what's happening around the world. That's important because global events influence the markets.

Was the topic of investing covered in your school?

Jasmin: Not at all for me. We didn't learn anything about investing or how to handle money. I think that's a shame because it would be extremely important.

Gabriele: I can only confirm that. Investing was never really discussed.

What do you particularly like about True Wealth?

Gabriele: The simplicity. You decide at the beginning what you want your portfolio to look like, make regular payments, and then you hardly have to worry about it. I find that very practical.

Is there anything else you would like to see?

Gabriele: I'm very happy with the app. Maybe you could add a crypto ETF for people who want to take even more risk.

How often do you check your portfolio?

Jasmin: I would say once a week. I try not to check every day because there's no point. If it goes down, it goes down. If it goes up, it goes up.

Gabriele: For me, it's maybe once a month because I don't really care about short-term price changes. I've planned my portfolio for the long term. So it doesn't make much difference to me if it goes down sometimes.

Is there anything else you would like to see from our platform or the investment process?

Gabriele: I would find it interesting to see the changes in the individual ETFs. Currently, you can only see the performance of the countries or markets, not the individual ETFs. That would be interesting to know. However, I find it very exciting that True Wealth allows you to see which companies are included in the ETFs. So I can better understand what my money is invested in.

Jasmin, Gabriele, thank you very much for talking to me. It was really exciting to chat with you.

Jasmin & Gabriele: You're very welcome, thank you.