PHOENIX — Angelica Prescod, a Phoenix-based financial planner with Edward Jones, has a suggestion for your holiday shopping list: give stocks not stuff!
“I don’t know about you, but I’d rather have stocks that grow than the stuff that goes down,” said Prescod.
Prescod said gifting shares of your favorite company this holiday season can set-up a family member for their future.
She said the possibilities are endless for what could one day be a down payment for a home, or an emergency fund if one day you rack up medical bills. She shared one of the best benefits of this kind of gift is that it can introduce younger recipients to the stock market and open people’s eyes to the possibility of investing.
“Not only does it have the ability to grow, but it has the chance to have compound interest,” Prescod said. “You’re creating a legacy for them to have a gift that keeps on giving, but also have a pattern of doing that for themselves.”
Prescod said you can purchase shares of companies they really use and have an interest in, and this can make the gift more fun and personal.
12News asked if you could go wrong when buying?
“You could mess up on a shirt size you get for your cousin as well, so mess-ups can happen. There’s a risk of volatility, but they do give you an opportunity to stay ahead of it,” shared Prescod.
Her best advice is to look for stability when you are shopping for stocks. She said you can search a stock's history and research the company’s statements. Prescod reminds investors to diversify where you invest your money and always ask an expert for advice if you need help.
The holiday shopping season is now upon us. In the next week we will encounter Black Friday, Small Business Saturday and Cyber Monday.
Prescod shared a good way to stay committed to your holiday budget is to truly limit yourself with plastic.
“Make a list and stick to it and give yourself a gift card and when that card is done the party is over but only on the monetary side because the party continues as long as we have life,” Prescod said.