Investment Talks with Your Sibling (Part 2)
My recent financial chat with my brother was anything but routine. It turned into a fascinating experiment in shared perspectives. The best part? He wants to keep talking.
Investing, a realm often defined by cold calculations and impersonal transactions, rarely evokes images of warm family gatherings. Yet, what if the key to building financial security lies in this space? In our previous article, which you can read here, we formed a hypothesis on how to get your sibling to invest.
If you are considering introducing the investing world to your family member or friend, I encourage you to read both articles, as they might be a helpful tool in learning how to approach this conversation.
Choosing the right method and first question is crucial. We all communicate differently, so select the conversation setting that suits you both best - in person, at home, at a restaurant, on a video call, or even chatting. I opted for online communication due to distance, though an in-person chat would've been my preference.
The next step is crafting the introductory question or statement that sparks the conversation. A bland "Hey, what do you think about investing?" simply won't do. My advice? Seek help or advice. People appreciate being seen as experts; even if your sibling's knowledge is limited, it's a great way to start the conversation.
How I started the conversation
My brother, not the chattiest individual, required a direct approach. I messaged him, expressing my interest in finding new investment opportunities. Knowing he has a bank account with "Fio banka," which offers an investment platform, I asked if he'd tried it and if he recommended it. A simple request for advice, but it effectively grabbed his attention.
Sibling Investment Q&A: Fio Bank, Fingood, and Revolut
Now, with the stage set and nerves calmed, it's time to dive into the heart of this experiment. In our previous article, I shared a list of categories with questions to ask your sibling during the conversation. This guide is more inspirational than an exact step-by-step guide. You're talking with your sibling/friend, so expect a more informal conversation. You may not have the chance to cover all topics, but that's okay. Even a small step counts. Here's what I was able to discover. Let's begin!
Anna: I'm looking for something new to invest my money this year. I saw Fio Banka has a broker. Have you already tried it?
David: Yes, I know it. I tried it a while ago. I created an investment account there, but I never put a single crown into it because it looked very complicated.
Anna: Okay, then I'm not sure what to think about it now. I want something user-friendly and simple.
David: But last year I started putting my money into fingood.cz. It's a Czech crowdfunding platform, one of the few that have a license. And I'm happy with it.
Anna: That sounds interesting. What types of investments can you do there?
David: Mainly real estate, company operations, even textiles. Sometimes, car rental companies, but I don't like that category. They're essentially loans to specific companies.
Anna: Can you tell me more about how it works? How do you use it?
David: Well, because they have a license, there are some rules about how much you can invest. The minimum is 1,000 CZK, and the maximum is 1,000 EUR per investment. However, you can always invest only a multiple of 500 CZK, so 1,500, 2,000, and so on. Also, you usually receive your earnings every month.
Anna: Interesting. How about the risk? Have you ever had a problematic investment?
David: Each investment shows its risk level, ranked from AAA (lowest) to C (highest). I do have one problematic investment. The company hasn't paid for the last four months.
Anna: So what will you do about it?
David: I'll just wait. They should have their own process for dealing with this. I don't really understand it. I hope I get my money back from this investment.
Anna: How many investments do you have there?
David: Around 30. I was investing every month last year except October.
Anna: Why not in October?
David: I was unemployed that month and had no income.
Anna: I forgot about that, but it makes sense now. Why don't you try investing in something different? I tried Revolut and TastyTrade last year.
David: I have a Revolut account. I was thinking about it, too. Is it worth doing?
Anna: It's very easy to use. Of course, it depends on your Revolut plan. If you have Premium, you can invest more without any fees.
David: I have a Premium account. But what do you invest in? Is it to specific companies, or how does it work?
Anna: You can invest in specific companies, which is what I did last year. I chose big companies like Amazon. It's up to you how much you invest. You can even buy a fractional share if you want to start small. And now you can also invest in ETFs on Revolut.
David: That's interesting. I'll get some extra money this year, and I'm thinking of trying something different. With big companies, it's good that they'll always grow in the long term.
Anna: Yes, that's true. I think it's good to invest in different platforms to see what works best for us. I might try Fio banka this year and then tell you about it. By the way, do you have any plans for your investments? Long-term or short-term?
David: I don't really think about it as long-term or short-term. It's more for specific things. I will definitely use it for my own house/apartment in the future and also for a new car and computer.
Anna: I see. I also want to buy a car, and I will start saving for it this year.
David: When we see each other in person, we can talk more about investing if you'd like. What do you think?
Anna: Great idea!
Insights and Surprises
My recent financial chat with my brother was anything but routine. It turned into a fascinating experiment in shared perspectives. He's already an investor-beginner, opting for low-maintenance options that don't demand constant attention. While there's definitely room for him to explore more diverse strategies, what truly impressed me was his genuine interest and eagerness to learn. The best part? He wants to keep talking. His proactive suggestion for another investing discussion was a major success.
Our conversation wasn't focused only on investments. We explored the landscape of credit cards, where my hypothesis about stricter regulations and lower popularity in the Czech Republic proved accurate compared to other nations.
Beyond sharing knowledge, the dialogue proved mutually enriching. I picked up some valuable insights along the way. The takeaway? Don't underestimate the power of sibling financial talks. You might just discover a shared passion, spark intellectual growth, and build a stronger bond in the process. So go ahead, give it a try! You might be surprised at what you learn from each other.