Suggestions for a young'n

[Footscray_Fan87]

Hey guys

I'm only 18, but have saved up for a long time to have about 2 grand available to do something with...

I have had good experiences with the stock market, through ANZ etc, but I am wondering what i should do

at the moment the money is lying stagnate in a CBA account earning no interest at all

I was thinking of chucking it in ING or the similar, but wondered if it would be a smarter choice to invest in Blue Chips, or slightly more volatile shares, after i research of course?

the main aim is for me to boost my 2 grand, over time, im not looking for an overly quick fix, but at the same time, i would like some improvement over the next few years

thoughts?

 

[bogan4life]

Hey guys

I'm only 18, but have saved up for a long time to have about 2 grand available to do something with...

I have had good experiences with the stock market, through ANZ etc, but I am wondering what i should do

at the moment the money is lying stagnate in a CBA account earning no interest at all

I was thinking of chucking it in ING or the similar, but wondered if it would be a smarter choice to invest in Blue Chips, or slightly more volatile shares, after i research of course?

the main aim is for me to boost my 2 grand, over time, im not looking for an overly quick fix, but at the same time, i would like some improvement over the next few years

thoughts?

At first just change it over to somesort of CB account with intrest, ing is the way to go and are great to save with due to there rates.

Or just put it on the dogs to make the 8 in 2006.

 

[crudbucket]

An Industrial Share Fund would be the go, most banks have them.

 

[R00StaR]

Pay off any bad debts you might have such as credit cards or a car loan. Invest in books on investing then read and study while saving hard. If your interested in shares, then figure out exactly how you’ll go about. Formulate your trading/ investing plan, paper trade it.

Theres no rush to drive in, share and property aren’t going anywhere. Its far more important to get it right with sound education before hand imo.

Once you’ve done the study, im sure you’ll have no problems figuring out what to do with it.

 

[Jubair]

Pay off any bad debts you might have such as credit cards or a car loan. Invest in books on investing then read and study while saving hard. If your interested in shares, then figure out exactly how you’ll go about. Formulate your trading/ investing plan, paper trade it. Theres no rush to drive in, share and property aren’t going anywhere. Its far more important to get it right with sound education before hand imo.

Once you’ve done the study, im sure you’ll have no problems figuring out what to do with it.

That very true, u need to have a plan before u can start dealing with shares.

 

[purple sneakers]

if you have a regular savings you might want to investigate a managed share investment fund. I think some you can start with around $2k and then have a monthly contribution plan. This was you can take advantage of dollar cost averaging, taking on more risk (which is what you should be doing at your age) and hopefully more return.

Otherwise I agree with what someone else said - put $2k on the dogs in 2006 on betfair - you should be able to get a return of around 60%.

 

[year of the roo]

Pay off any bad debts you might have such as credit cards or a car loan.

How many 18 year olds do you know with "bad debts" such as a credit card or a car loan?

FF87, I'd strongly recommend a managed fund. Basically that involves you paying a small fare to trained professional to buy and sell shares (amongst other things) for you, within Australia and all over the world. It gives you excellent access to wealth all around the world.

I have some with an ING managed fund, but apparently they are not taking anymore new investments. I'd look at funds such as Colonial, Maquarie and Perpetual. At your age, avoid the high risk/high return funds until you have a bit more capital behind you.

Also, don't put all your eggs in one basket. Getting a managed fund allows you straight away to diversify, but I would also look at putting some cash into something like an ING Savings Maximiser (BankWest has a better rate, but you might be more comfortable with ING as they are a much bigger company).

 

[R00StaR]

How many 18 year olds do you know with "bad debts" such as a credit card or a car loan?

Dont know too many 18 year olds well atm, but plenty had car loans when i was 18 including myself. Today id imagine plenty have credit cards.

That aside, id still educate yourself as much as possible. Have the tools to do it yourself, if you work hard at it you’ll smash any return a fund can give you, then the magic of compounding really turns it on.

Quote from Warren Buffett "Diversification is a protection against ignorance. It makes very little sense for those who know what they are doing"

 

[djgk53]

Dont know too many 18 year olds well atm, but plenty had car loans when i was 18 including myself. Today id imagine plenty have credit cards.

That aside, id still educate yourself as much as possible. Have the tools to do it yourself, if you work hard at it you’ll smash any return a fund can give you, then the magic of compounding really turns it on.

Quote from Warren Buffett "Diversification is a protection against ignorance. It makes very little sense for those who know what they are doing"

I'm in a similar position to the poster who started this thread.

I've read some of those "Rich Dad, Poor Dad" books and they have aroused my interest.

Can any of you guys or girls recommened any books/classes that could help a 19 year old as myself to more or less get started in developing a bit of financial know how?

 

[AlwaysCarlton]

Can any of you guys or girls recommened any books/classes that could help a 19 year old as myself to more or less get started in developing a bit of financial know how?

I know the ASX have things on offer for people new to the market, shouldn't be too hard to find info on their site. If you're really keen just find someone who is doing a first year subject at uni about finance and see what textbook they are using. May be a bit dry but it will give you a solid base to work from.

 

[The Big Pineapple]

Dont know too many 18 year olds well atm, but plenty had car loans when i was 18 including myself. Today id imagine plenty have credit cards.

That aside, id still educate yourself as much as possible. Have the tools to do it yourself, if you work hard at it you’ll smash any return a fund can give you, then the magic of compounding really turns it on.

Quote from Warren Buffett "Diversification is a protection against ignorance. It makes very little sense for those who know what they are doing"

I think you'll find they are called 'debts' and not 'bad debts'.

Don't confuse the poor kid.

 

[rick James]

I'm in a similar position to the poster who started this thread.

I've read some of those "Rich Dad, Poor Dad" books and they have aroused my interest.

Can any of you guys or girls recommened any books/classes that could help a 19 year old as myself to more or less get started in developing a bit of financial know how?

Do a Diploma of financial Planning. It will give you all the basics, and a bit of expertise.

 

[rick James]

Pay off any bad debts you might have such as credit cards or a car loan. Invest in books on investing then read and study while saving hard. If your interested in shares, then figure out exactly how you’ll go about. Formulate your trading/ investing plan, paper trade it.

Theres no rush to drive in, share and property aren’t going anywhere. Its far more important to get it right with sound education before hand imo.

Once you’ve done the study, im sure you’ll have no problems figuring out what to do with it.

sound advice

 

[Ghostwriter]

The Richest man in Babylon is a good book, by Geoge S Clason.

 

[R00StaR]

For mine property and shares are your main asset classes and theres plenty of good books and forums covering those.

Read all the rich dad poor dad series, these help develop the mindset. Yes it takes more than, I wanna be rich, imo.

Any books from Jan Somers on property is good and her forum @ www.somersoft.com. Seven steps to Wealth by John Fitzgerald (yes the info commercial man, but a good read imo). Ive done a few weekend courses as well, you’ll soon figure the ones that may suit you after reading forums.

I mainly trade using Technical Analysis so my best reads on shares have a bias.

Secrets for Profiting in Bull and Bear Markets: Stan Weinstein (a must own!)

Exploding the Myths: Frank Watkins

Books by Daryl Guppy, Louise Bedford and Dr Alexander Elder.

I have a great book on fundamentals around here somewhere but cant find atm, ill post it when I do. The Oz market has many mining companies so id also read The Mining Valuation Hand Book by Dr Victor Rudenno.

Forums are a very valuable source of information, where you can read real experiences and ask questions to people actually doing it!

Add the following to your bookmarks:

www.tradersnetwork.org (easily the best share forum in OZ imo)

www.incrediblecharts.com.au (forum and free basic but very good charting software)

www.invested.com.au

A few of the above are paid forums, but well worth it imo. Your can be sure your dealing serious people. The formal educations aren’t necessary imo, although if I had my time again id certainly do one with something to do with financials, definitely cant hurt.

I know it sounds like heaps of work and reading, but once your eyes are opened to whats possible, well I know I haven’t been able to stop studying.

 

[rick James]

Plus it's better to spend a few hundred dollars on learning first than jump in with a few thousand and go belly up.

good post r00star

 

[morgoth]

Go overseas have a good time.

Plenty of time to invest and work later in life. When you get back go to uni get a degree in a field with good prospects and the world is your oyster.

 

[rick James]

Go overseas have a good time.

Plenty of time to invest and work later in life. When you get back go to uni get a degree in a field with good prospects and the world is your oyster.

And when you're 35 and still paying HECS debts, have 2 kids, a mortgage, and only enough spare cash every week to buy yourself a siz pack of tooheys red, think warmly of the european slappers you mated with....

 

[The Rooch]

betting on sport is the way to go about it. its fun.

i started with 10 dollars and my aim is to see how much i can make in one year (jan 01 to dec 31). im at 21000 atm. mainly sensible bets, but theres a few outrageous bets that i have put money on, a couple that payed off in the end!

(i dont recommend it to live you life off though haha, its just a fun way to make money if your smart and sensible about it)

 

[R00StaR]

Go overseas have a good time.

Plenty of time to invest and work later in life. When you get back go to uni get a degree in a field with good prospects and the world is your oyster.

Or you can not do that and basically be retired in your early 30s

 

[The Rooch]

Or you can not do that and basically be retired in your early 30s

how do you suggest that. i plan to be retired at 30 and living off a shed full of cash. im a naive kid.

 

[R00StaR]

how do you suggest that. i plan to be retired at 30 and living off a shed full of cash. im a naive kid.

I suggest that because im 35 and do nothing else but manage my own investments, my mate is 31 and does the same. He has little use for his uni degree now.

Btw naïve kid, cash sucks, you’ll never get there hording cash in your shed.

 

[Knight Rider]

Invest in antique gold watches, they are going to be big!

 

[The Big Pineapple]

Buy a nice car, say about $30k and take out a really big loan.

You'll spend ages paying it off and then in 10 years it will be worth nothing.

 

[rick James]

Buy a nice car, say about $30k and take out a really big loan.

You'll spend ages paying it off and then in 10 years it will be worth nothing.

lol