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Ideas and Help for a newbie.

Discussion in 'General Investing Discussion' started by MissTonia, 9th Jan, 2010.

  1. MissTonia

    MissTonia New Member

    Joined:
    9th Jan, 2010
    Posts:
    3
    Location:
    Adelaide, SA
    Hi There,

    I am a 22yr old with a 3mnth old baby, currently not working as I am looking after the bubs full time. I live at home with my parents also. I have $10,000+ that I am looking to invest somewhere, be it land (not much of an option!) or term deposits, or any other low risk investment options, however, I do not know where to start, or what I need to know to make the best decision for me. I was thinking about speaking to an advisor, but I don't know if it is worth it with such a small amount. I would like some help to steer me in the right direction, as I don't know much about investment, but I would like to be able to make some sort of profit. Is there anything I need to be aware of taxwise? Are there scams out there that I need to know about? Does anyone know what some good options are out there? I have seen some Alternative Eneregy Low Risk Investment Opportunities @ WorldEnergyresearch.com, but I'm sad to say that I find it really hard to undrestand the finance jargon. :confused:

    Any help would be much appreciated.

    Thank you kindly

    Tonia
     
  2. Johny_come_lately

    Johny_come_lately Well-Known Member

    Joined:
    1st Jul, 2009
    Posts:
    703
    Location:
    SE Queensland
    Hi MissTonia

    I'm afraid its up to you, to educate yourself financially. The hard work is worth it in the end.:)




    Johny.
     
  3. Crusher

    Crusher Well-Known Member

    Joined:
    11th Jul, 2008
    Posts:
    83
    Location:
    Newcastle, NSW
    Ubank online is paying 5.61% @ call for an internet account, you would have to pay tax on what interest is earned, but since your not working that shouldn't be much of a dint.

    I was in a similar position a few years ago, with a few thousand to invest, i put money into a managed fund, which offers some diversity and is easy to setup.
     
  4. Magpie

    Magpie Active Member

    Joined:
    4th Jan, 2010
    Posts:
    33
    Location:
    Perth Hills
    Hi Tonia,

    I’d second the advice in both the posts above.

    As Johny said, there’s really no alternative to educating yourself, at the very least to the point where you understand what is being pitched to you by advisers. It’s a very big field, so don’t stress if that takes longer than you hoped. It’s a bit like saying you’d like to ‘see the world’ - there’s a heck of a lot of world out there and you’ll never see it all. So try and get a general over-view first.

    I’d suggest that a reasonable short term goal might be to put your savings somewhere that the return at least matches inflation and, at this stage, not to be too tempted by schemes that promise rapid gains. Ubank looks OK, and you can start to work through the 'specials' that the banks offer on term deposits and see if anything appeals. The rates can vary a great deal from week to week, or over various time lengths. As you gain more knowledge and confidence you can look for better growth in other areas.

    Another valuable goal would be to establish a pattern of keeping accurate weekly records of your income and spending. If possible, also try and set up a small amount of regular saving - even if it’s only a tiny and apparently insignificant figure. In your current situation you are unlikely to be able to save much but the important thing is to try and build some habits that will stand you in good stead throughout your life. Few people really know where all their money goes, or have budgets that help tell them when and how much to spend. Too many people now seem to rely on credit to bail them out. If you can practice good record keeping and budgeting it will be a great asset to you all through, whether you’re struggling or starting to cruise.

    Land is indeed a wonderful asset but it costs money for rates and even maintenance, such as firebreaks. So, unless you can either live on it or lease it out for some purpose then it can be a bit of a hassle too.

    Good luck with it all.

    Chris
     
  5. MissTonia

    MissTonia New Member

    Joined:
    9th Jan, 2010
    Posts:
    3
    Location:
    Adelaide, SA
    Thank you

    Thanks for your help everyone, I know it is up to me to educate myself, and believe me, I am getting there slowly, but really wanted to do something with this money whilst I still have it. I think I will be looking into term deposits, I have shopped around a bit and can see that UBank offer a pretty competitive rate, so I think I will more than likely use them. I don't really know a knowledgable financial adviser, so I may steer clear of using one of them until I actually have more of a sum to work with. As for stocks, that is something I really need to learn a lot more about before I venture there!
    Once again, Thank you for all your help and kind words of encouragement.

    Cheers,

    Tonia
     
  6. Johny_come_lately

    Johny_come_lately Well-Known Member

    Joined:
    1st Jul, 2009
    Posts:
    703
    Location:
    SE Queensland
    If you use term deposits, be aware that you will need to pay a 'penalty' if the money is needed early.

    Here are two easy read begginers books: Golden Rules of Wealth by Noel Whittaker & The Richest Man in Babylon by George S. Clason.
    From a lady's perspective: Shopping for shares by Tracey Edwards.



    Johny.
     
  7. MissTonia

    MissTonia New Member

    Joined:
    9th Jan, 2010
    Posts:
    3
    Location:
    Adelaide, SA
    Thanks Johny, am aware of the penalties involved, but will make sure I read all the t's&c's before i sign up! Thank you also for the book reccomendations, I will have a look out for them, surely they will help speed up the learning process!

    Tonia