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The Beginning of New Chapter

Discussion in 'Introductions' started by jeckt, 13th Dec, 2007.

  1. jeckt

    jeckt Member

    Joined:
    10th Aug, 2007
    Posts:
    6
    Location:
    [Syd - NSW]
    First off I'd like to introduce myself, Hi I'm Steven and I've been roaming this forum for quite awhile but this is my first post.

    I'd like to express my current situation and would like some feedback/advice that would help me progress towards my goals.

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    Current Situation
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    Name: Steven Nguyen
    Age: 18

    Education: Graduated year 12 - 2007
    On a break - until the commencement of University in March
    Bachelor of Commerce Degree

    Part-time Job: Hungry Jacks Junior Manager
    Income: Varies per week

    Expenses: Car [Mainly]

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    Current Goals
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    1. Find a Part-time job in a bank - any job is ok, wanna work my way up into the finance department of the bank dealing with the stock market or international transactions when i graduate from my degree.

    2. Invest my savings into the stock market/managed funds...although I'm more fond of investing in the stock market. I am deciding between using Commsec or E*trade as the online broker for transactions [any advice here would be appreciated on differences, i know the brokerages fees...but that's about all]

    3. In 3 years which is when my degree finishes, have enough money for a deposit on a house or to start my own business - preferable a finance sector orientated business

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    Conclusion
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    Any advice/comments or criticisms welcomed, as I'm pretty new/inexperienced . Any websites and books recommended for reading would be a bonus.

    Well thank you for reading such a long post :)
     
  2. samaka

    samaka Well-Known Member

    Joined:
    30th Sep, 2007
    Posts:
    308
    Location:
    Sydney
    What are the figures you're thinking. How much do you think you will need for a deposit (20%)? What price range are you looking at for the IP - considering the price will be different three years down the track?

    I personally wouldn't start a business straight out of Uni - unless you've got an insanely awesome idea that you've developed. If your just doing the same stuff everyone else is then I'd suggest you work in that field for a few more years.

    When dealing with clients it would be great to say I got my degree then did 3 years full time for [Insert Bank Name], rather than I got my degreee and I've done part time work (at the same bank).

    EDIT: To elaborate on the business part. To run your own business (when it's only you) you need two things:

    - To be able to do your your business's service is (i.e. be a financial planner).

    - To be able to manage your business.

    At most you would have experience with a little bit of financial planning. Nothing with running a business though. I would suggest you work your 9 to 5 and run the business on the side for a while.
     
  3. Bantam Roosta

    Bantam Roosta Well-Known Member

    Joined:
    7th Feb, 2007
    Posts:
    115
    Location:
    Canberra, ACT
    Welcome Steven,

    Don't sweat the details too much. The fact that you've even thought about a plan at 18 is awesome. Your basic outline seems feasible. I would stay away from my own business straight out of uni, but that's only because I wouldn't feel confident. You may feel different.

    I have only ever used CommSec, so I can't comment on others but I have been more than happy with them for my trading account.

    If you like the idea of direct share ownership over managed funds, but like the benefit of having your money spread throughout many companies, try LIC's or ETF's.

    BR
     
  4. voigtstr

    voigtstr Well-Known Member

    Joined:
    24th Jan, 2007
    Posts:
    679
    Location:
    Hobart
    If you first invesment is your own house,

    check out the loan costs calculator at Independent Mortgage Consulting - Mortgage Calculators

    With a modest first house, at 95% loan to value ratio, with the first home owners grant and 50% stamp duty concession, you may not need as much as your own money as you would think to get into the market.

    (my wife and I bought our first house valued at 180k in 2006 with only 6k down)
     
  5. jeckt

    jeckt Member

    Joined:
    10th Aug, 2007
    Posts:
    6
    Location:
    [Syd - NSW]
    Thanks for the feedback!

    Yes i feel quite uneasy about starting a business straight out of uni, my experience would be quite limited. Like Samaka said I'd be doing full-time work with running a business on the side.

    While on the note of house deposits, my Sister who is 22 now, has recently graduated from UTS and is now working full-time at the Commonwealth bank as part of the Group Strategic Development. She is about to buy a PPOR valued at 300K which she will turn into an IP after 6 months. This technique is to gain the additional funds from the home owners grant i think.

    So for my home deposit in 3 years I'd be looking at doing something similar, however house prices would have risen and the market would have considerable changes in interest rates and the economic cycle which i would have to research as the time draws closer.

    About how much deposit...I'm quite sure but i believe investing a portion of my income at the present and ongoing for 3 years would be an essential start for when the time draws closer.
     
  6. MattR

    MattR Well-Known Member

    Joined:
    23rd May, 2007
    Posts:
    229
    Location:
    Sydney
    Holy cow! At 18 I was just trying to get laid!
    :)
     
  7. jeckt

    jeckt Member

    Joined:
    10th Aug, 2007
    Posts:
    6
    Location:
    [Syd - NSW]
    LOL of course that's in mind but i prefer to find someone for a long term relationship =P

    back on topic though...could experience people educate me in the differences between actuary studies and applied finance..as i'm quite interested in it and have had different explanations told to me

    anyone got any books or sites to recommend as a source of reading, i've got my own pool of them but i would like to expand it that's all

    thanx
     
  8. Leandro

    Leandro Well-Known Member

    Joined:
    8th Dec, 2005
    Posts:
    228
    Location:
    Sydney
    That is the funniest thing i have read all day!! However, should definitely be part of the plan :)
     
  9. jeckt

    jeckt Member

    Joined:
    10th Aug, 2007
    Posts:
    6
    Location:
    [Syd - NSW]
    hahaha yup definitely a part of the plan there, that's somewhere in the social life of things ;)