 Fidelity announces a youth investment account for teenagers. I think it's something like that. Don't quote me on that. But a youth investment account for teenagers. Ladies and gentlemen, today we're going to be talking about the youth investment account for Fidelity. But before we get into that, this youth investment account, is it going to be good for kids or teenagers? Or if you're a parent out there listening, you may say, Hey, Prince, this is a good idea to get my child started, teenagers started things like that. I'm going to give you my personal take on it. And also I want to go through the history of how did we get here? So the first thing we got to look at before we got to this youth investment account, we must first look at what has changed in the world over the recent years. What has changed over the world in the recent years is a couple of things. One is accessibility. Accessibility to the market has increased dramatically over the last decade. But not even a decade, the last 20 to 30 years accessibility to the market has grown dramatically. So people say, Prince, what do you mean by accessibility? Let's go back all the way back to 1990. If you weren't to buy a stock, what did you do? If most people didn't have internet at their house, so people didn't have access to the market, like they used to have. So back in the day, you had to have a stock broker. You had to go downtown, talk to somebody in a fancy suit, call somebody in a fancy suit, pay broker fees or pretty high back then because of the friction that it costs in order to get something. What I mean in order to get something was for prime example, if I was your broker and you called me and said, buy one share of Apple, I had to have access to the floor. I had to have a terminal, Bloomberg terminal, to get access to the floor to say buy one share, which cost me a lot of money in return. I had to pay, I had to charge my customers, right? Nowadays we have this fancy thing called the internet. More importantly, we have this fancy thing called laptops. And even more importantly than that, we have these fancy things called cell phones. That's right, ladies and gentlemen, kids are sitting at home, parents are sitting at home. A lot of you guys and girls are probably watching this, catching it live or the playback, listening to this via a phone or a tablet. So now we have people that can go into a plethora of online brokers and they could go in and buy their own stock immediately, for a little to nothing. Now let's get before we say little to nothing. What that started to do, once we had the online presence that hit back in 87, some people contribute the 1987 crash to a lot of computers being introduced into the market, but what happened was when we had these online computers, what started to happen was more people started to use it over and over and over. You get to myself saying it started to happen. But more people started using over and over and over and over. So people, so what that did to broker fees, that lowered them to lower prices. At one time, when I very, very first started trading, a $12 broker fee was a great price. I remember when E-Trade was like the lowest fee in town, it was $9.99. And then guess what, guess what happened? So you had lower broker fees, you had accessibility increase, meaning accessibility. People no longer needed the traditional broker downtown like our grandparents did, our great grandparents. Now people can just pick up their handy dandy phone, their tablet, their laptop and say, hey, you know what, I have access to the market. On top of that, what happened was since the internet came along, it made a lot of things more affordable. For prime example, one of the most and major things that made more affordable was trading online. Trading online dropped to a fee of nine, about 20 years ago, 10, 20 years ago, it was about $9.99. So now that you see in prices drop down to $9.99, that was an awesome price. And then the retail investors started to compete. Your Charles Swabs, your TD Ameritrade, things like that, they started to compete to $8.99. And once the fees started to go down, somebody came along. I think they got all the way down to about $4.99. I think the lowest price in town probably was maybe Charles Swab. When you got the lowest price in town, guess what happened? It was this company that came out of the blue, stole the heart of all the young investors with this gamified way of investing, no fees. I wish I had a drum roll, I should roll my drum roll. Drum roll, it was a company called Robinhood. Robinhood changed the game when they came in and announced no trade fees on their app. Immediately, everybody said, hey, you know, no trading fees. Wow, how are they doing this? I can trade stocks and ETFs and mutual funds. When they announced that they gave them a superb competitive advantage and they catered to young investors. When I say catered to young investors, one thing they did beautifully was they launched their own app and inside the app, they made it almost like a game when you buy your stock. You walk in, it was no legal jargon, it was very easy to set up. All you had to do was just, it's a big old green button that says buy, it's a big red button that says sell. Pretty simple. Then, you know, it has a chart of what's going up, it'll tell you what's hot, what's not hot, all the great stuff like that. Stole the heart of a lot of our young generational investors. Now, what went wrong? What happened with that? Now, also just keep in mind, what happened with this at the same time, if you watch the documentary right now on Netflix called Money Explained, very good documentary season one, episode one, very awesome documentary, by the way. And what it said was, what it listed out was, we have a massive level of influencers that have changed for the cheap. So what they mean by that, let's say people like myself go on YouTube, Facebook, Instagram, broadcast on your local radio, your local television, podcasts, iTunes, or whatever, have accessibility to people across the globe that we never had. See, before the social media became a thing, you had social media influencers, you had people, you know, those little cheesy daytime, not daytime, but midnight commercials that you would see that come on 10 o'clock at night and say, hey, buy this doc today and do this today, and blah, blah, blah, you wanna get rich tonight, you wanna get rich tomorrow, look at all the people I made rich. Those little get rich schemes, they were kinda came on at night, someone came on in the mail, someone even called your house, all those types of ways, but those things were very expensive when you had cable TV. Cable TV, in order to continuously run those ads for weeks and months at a time, that cost thousands and thousands, not millions of dollars to have that ad space. Now it's became so cheap that anybody can create a Facebook page, an Instagram page, a YouTube channel, a podcast, anybody, market is opening up and exploding and it's opened up for a great thing, so a lot of people learn some things, but now it opened up the crooks and the people who are not so good to people who have very bad intentions, very bad intentions, it has opened the door to them, right? So now you have people who have very bad intentions who will usually be on midnight at 12 o'clock at night running some crazy ad about get rich today, get rich tomorrow, look how I got rich, all my friends rich, don't miss out on this. Things that has been going back in time all the way back in the day when people used to knock and go door to door. Now it's created what we call social media influencers. Now you have influencers online today telling everybody, hey, buy this stock, sell this stock. Your kids at home with their phone or teenagers at home with their phone and they're following things like that, no fundamental data, no technical data, most cases sometimes, hey, look guys, I made a thousand percent off of this stock. Hey, look at me, I made a million dollars. Some people are showing you their paper accounts, some people are saying, hey, look at me, I made this much money, they're showing you past trades or they're showing you all their winners, they're hiding all their losses. So for prime example, everybody is seeing people on social media and they're just running to it. For prime example, we had the birth of what's called meme stocks. What are meme stocks? Meme stocks are essentially stocks that pretty much went viral on our meme. So for prime example, one meme cryptocurrency was, I think it was called SHIB, but then you had Dogecoin, all these different things. Accessibility has gone crazy, influences has gone crazy. So now more than ever, the good thing is, more people who usually wouldn't have the accessibility to invest are now interested in investing. Another thing that I kind of touched on, affordability, now they have something called fractional shares. And what I mean by fractional shares, fractional shares are a piece of a stock. For prime example, Amazon is trading over $3,000 as of today of this recording. Meaning maybe some young people who don't have $3,000, they will not buy Amazon. But guess what fractional shares do? Fractional shares says, hey, if you have $200, I'll let you buy 0.0001% of Amazon. What this essentially does is it's taking a big stock like your Google, your Amazon and things like that and it's companies that people would love to get into and it's slicing them down into affordable slices. Some people call them slices, some people call them fractions. So now you can own a fraction of Amazon. This in return, ladies and gentlemen, made investing more affordable. Back in the day, 10, 20 years ago, when we had trading fees, if you wanted to go buy a penny stock, it would cost you $10 to go buy a penny stock, $10 to sell the penny stock. Now it's a penny stock really affordable. And then you know, right now, still on a lot of trading platforms, they still charge the fees. But guess what? Today, now anybody can pick up a, somebody's listening right now, by the time we get through with this episode, a person can start them an account online with an online broker that's choice, put money into their account and be on to the investing life of building their own first portfolio. This is very great because it's opened up the accessibility and affordability to a group of people who never would have had the opportunity. Now let's look at the downside. Fundamental analysis has gone out the window. When you look at companies like, you know, a lot of the apps they don't even offer you ways to compare to the S&P 500, it doesn't tell you what's an S&P 500. You can do little to no technical or analytical fundamental data with just those platforms. It's just almost gamified or gambling, the way people do things. Now I want to segue for a second. When I talked about gaming and gamifying investing, I look at the world of investing now and it's my personal belief. Now this is not backed up by any factual data. My personal belief is that you look at the world of like crypto currencies and a lot of penny stocks, they have turned into the new way of lottery, just like the new generation of lottery tickets. Think about it, when was the last time you probably seen or heard of? I think the last report that I read, most lottery players are at the age of 60, 65, right? 60 to 65 is how old most lottery players are. Look at the people who are 18 or 19 years old. 18 or 19 years old, what do these people do? Do they go, are they the ones that go to the local 7-Eleven or gas station or whatever and buy a stretch off? Probably not. Are they the ones that go to the local gas station and buy, keep me thinking the name of it, it's called cash three, cash four. You know one of the tickets you're going in or they rip you off a couple of numbers. So when you look at that, ladies and gentlemen, that tells me that the young generation are not the ones who's really interested into the lottery, but that same young generation will do what? That same young generation will get online and they will buy a cryptocurrency they have never heard of. They do that in a heartbeat, no problem. Why would they do that? Why would they do that? Because nowadays the accessibility and what they're doing today, it makes sense. So for prime example, when you look at kids today, they are more interested in getting an app and buying a particular stock or a company. Now, we get all the way down to it today. With this type of way of thinking, with kids becoming interested in investing, accessibility, affordability, all going into the market at one time, this has created what we know today as a new market for young investors. Again, say that again, a new market for young investors. Young people now have the opportunity to invest more than they've ever had before. You have a bunch of young people who are being influenced, who they're being influenced because they have social media. They're watching all these means stocks. They're watching their friend who bought a bunch of Doge corning, got rich and all those stuff like that. They're interested in investing. You have companies like Robinhood, who has gamified and simplified and elementary-fied the way of investing, which is a good thing. But also almost too good of a thing. You know, almost makes it seem like it's a game more than actually investing for your future. Then on top of that, you have, you know, credibility, accessibility and affordability going on with the influence. This opened up a market of young people wanting to invest in things like that. This is where fidelity comes into play. Fidelity notices this. And if you are a fidelity customer and you have kids, you can open and you have a kid once you turn 13, 17 years old. It's almost like, to be honest with you, ladies and gentlemen, it's pretty much like a custodian account, but yeah, I don't really see the difference outside of it. It's more like a custodian account, but it's targeting towards teenagers. I haven't seen the cool thing about this teenage account, but hats off to fidelity for launching this and saying, hey, this is for teenagers. So for a prime example, I can get my son a credit card and a debit card through fidelity and give him an investment account with fidelity and I can watch all his trading activities. I can put money in his investment account and watch him trade his little heart away. You know, so I guess it's a good way to get kids into investing and watching their portfolio. And then when they turn 18, it's theirs. But you can get that same effect today off of a custodian account. When you look at a custodian account, you know, I think I got my son's custodian account when he was maybe three, four, five years old, something like that. Started my investment account, started putting some money in there, built him a little portfolio. When he turns 18, it's gonna be his. Of course, when he gets to 13, 14, 15, if he wants access to it and he wants to invest or whatever, I'm gonna allow him to do that. So with this new way of fidelity, what they're saying hats off to them, but I don't really understand how this children's account is different from what we already know as a current custodian account. But that's what they're doing. So if you are a parent and you have fidelity, this is a great way to say, hey, son, daughter, you wanna start investing, I will be the owner of the account, I can give you a credit card and you can start investing that way. So ladies and gentlemen, this is gonna conclude today's episode. We essentially went over why, how did we get to this point with fidelity and fidelity launching their new youth investment account for teenagers targeted from the ages of 13 and 17 to get them into the investing world at an even younger age than adults, then 18, 19, 20, then generation, what we on Z right now. So right now, that's a great way to do it. So anyway, that's the pros of it is that it gets your children into it early, they can invest into it, the cons into it. If you don't have fidelity and you have, let's say, another broker, look into a custodian account and a custodian account, you can, as long as your child has a social, as long as your child, it doesn't have to be your child, it could be your niece, your nephew or whatever. As long as they have a social security number, you can open up an investment account for them and start at a young age. All right, so anyway, ladies and gentlemen, my name is Prince Dykes. I'm the Prince of Investment. I thank you guys and girls for tuning in today. Hopefully you got something out of this, seeing how did we get to this point. Don't forget to hit that like, subscribe, comment, and share button and tune in and don't forget to drop some comments. Tell us what you think of the episode, all right? And to the next video, podcast, cartoon or whatever else crazy you see me doing around the globe, my name is Prince Dykes. Peace, be safe, I'm out and thank you.