College Finance help

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College Finance help

Postby KyleA » Sun Sep 01, 2013 1:04 pm

Hello, my name is Kyle and I recently came to college to pursue a finance major. One day I would like to be a financial planner/analyst, and while I'm still going through my first semester, I am thinking of doing some personal investing to give myself experience and to put a dent out of those loans before the interest kicks in :)

I have been saving my money since I was 5 years old and opened my first savings account with $90 in 2001. Since then I rarely spend much and I got an allowance from my parents every month for doing chores. Since this money is now sitting in the bank, and I paid for all my textbooks and necessities, I was wondering If any investments are smart to do at this moment. I do not want to give out my actual dollar amount, but i will give u a hint by saying it is multiple thousands :)

I do not want any risky/longterm investment plans, since I will be needing the money in 4 years, just looking to accrue some interest while it is sitting there. I have done CDs before, and It was great, but the interest rates are way too low right now. I was wondering If I could do, like a money my market account safely, or something of that nature

Thank you guys in advance!
Kyle
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Re: College Finance help

Postby LadyGeek » Sun Sep 01, 2013 1:26 pm

Welcome! Investing is part of a bigger financial planning picture. You need to do this in order, take a look in the wiki: Financial planning

Since you want to go into financial planning, think about each step along the way. What are your goals in the next few years (graduate)? How do you plan to fund this? You'll need a budget.

Once that is done, be sure you have a sufficient emergency fund. Then, you can start investing ("Implement the plan").

Put everything together, then see if you have enough room for investing.

If you think you have enough to invest, consider that you are asking for income safety - you need that money to pay your bills. Check this wiki article: Risk and return: an introduction, pay attention to "there is no such thing as a free lunch." IOW, you may want to stick with CDs.
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Re: College Finance help

Postby KyleA » Sun Sep 01, 2013 2:00 pm

LadyGeek wrote:Welcome! Investing is part of a bigger financial planning picture. You need to do this in order, take a look in the wiki: Financial planning

Since you want to go into financial planning, think about each step along the way. What are your goals in the next few years (graduate)? How do you plan to fund this? You'll need a budget.

Once that is done, be sure you have a sufficient emergency fund. Then, you can start investing ("Implement the plan").

Put everything together, then see if you have enough room for investing.

If you think you have enough to invest, consider that you are asking for income safety - you need that money to pay your bills. Check this wiki article: Risk and return: an introduction, pay attention to "there is no such thing as a free lunch." IOW, you may want to stick with CDs.


Thank you for your response!

So you are saying that in order for me to heavily invest I would need time, and in the period of my life I do not have sufficient funds to invest because I will need the money soon? And before I start investing I need to set some money aside for bills and other expenses?

If this is what you are saying then I believe It does make sense and I just need patience!

Thanks again!
Kyle
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Posts: 4
Joined: 1 Sep 2013

Re: College Finance help

Postby Grt2bOutdoors » Sun Sep 01, 2013 2:17 pm

KyleA wrote:
LadyGeek wrote:Welcome! Investing is part of a bigger financial planning picture. You need to do this in order, take a look in the wiki: Financial planning

Since you want to go into financial planning, think about each step along the way. What are your goals in the next few years (graduate)? How do you plan to fund this? You'll need a budget.

Once that is done, be sure you have a sufficient emergency fund. Then, you can start investing ("Implement the plan").

Put everything together, then see if you have enough room for investing.

If you think you have enough to invest, consider that you are asking for income safety - you need that money to pay your bills. Check this wiki article: Risk and return: an introduction, pay attention to "there is no such thing as a free lunch." IOW, you may want to stick with CDs.


Thank you for your response!

So you are saying that in order for me to heavily invest I would need time, and in the period of my life I do not have sufficient funds to invest because I will need the money soon? And before I start investing I need to set some money aside for bills and other expenses?

If this is what you are saying then I believe It does make sense and I just need patience!

Thanks again!
Kyle


Welcome to the forum!

That's what she's saying. Money needed in less than 5-10 years should not be exposed to market risk.
"Luck is not a strategy" Asking Portfolio Questions
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Re: College Finance help

Postby LadyGeek » Sun Sep 01, 2013 2:44 pm

Exactly. You have learned your first lesson as a financial planner - it is your job to give advice on what not to do. :wink:

Take your time and look at the wiki from a different perspective: Getting Started

Go through all of the steps and use yourself as a client. How would you map this out? How would you configure a plan to get through school?

Remember that financial planning and investing is a lifelong skill. Regardless if you choose a different path in college, take the time to get yourself organized. Plans change, but the point is to have a plan in the first place.
To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.
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Re: College Finance help

Postby KyleA » Sun Sep 01, 2013 7:54 pm

LadyGeek wrote:Exactly. You have learned your first lesson as a financial planner - it is your job to give advice on what not to do. :wink:

Take your time and look at the wiki from a different perspective: Getting Started

Go through all of the steps and use yourself as a client. How would you map this out? How would you configure a plan to get through school?

Remember that financial planning and investing is a lifelong skill. Regardless if you choose a different path in college, take the time to get yourself organized. Plans change, but the point is to have a plan in the first place.


Exactly, very smart!

Thank you for the help,
Kyle
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