Investments for a young college student


L

L Hav

I am a 25 year-old female college student that obviously has no money
but I want to start investing money for my future does anyone have any
suggestion for me?

--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.
 
Ad

Advertisements

J

John A. Weeks III

L Hav said:
I am a 25 year-old female college student that obviously has no money
but I want to start investing money for my future does anyone have any
suggestion for me?
Investing in yourself has a far greater return than anything else
you can invest in. I'd suggest focusing on completing your education,
and trying to get though without student loans. Leave some time
available to get involved in some organizations, meet some people,
and consider doing an internship.

If you really have money left over after that, and some of that
money is earned, then consider an IRA account at a bank or brokerage.
Since you are investing with a very long time horizon, look for a
moderately aggressive mutual fund, or go with a broad index. Vipers
might do the trick for you (they are an exchange traded fund, which
is like a mutual fund, but trades like a stock).

If you have any time left over, it would be good to read a book
(or two or three) about personal finance. I'd hate to see you
invest in something that you don't understand just because I said
to in a newsgroup posting. You really want to know what you are
doing here because the financial salespeople can really take you
for a ride otherwise.

-john-

--
======================================================================
John A. Weeks III           612-720-2854            (e-mail address removed)
Newave Communications                         http://www.johnweeks.com
======================================================================

--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.
 
D

dapperdobbs

 L Hav said:
I am a  25 year-old female college student that obviously has no money
but I want to start investing money for my future does anyone have any
suggestion for me?
[/QUOTE]

Investing is something you can study - not unlike any other subject,
there are basic principles. Two authors widely recommended are
Benjamin Graham ("Security Analysis," 1962) and Jeremy Siegel (who
wrote "Stocks for the Long Run"). Warren Buffett made a comment to the
effect, "Learn all the accounting you can." (Be sure to use a
dictionary to look up any word you do not fully understand.)

Many here and elsewhere are content to turn over the portfolio to
someone else, whether a mutual fund or private asset management.
Others' approach is to carefully select and manage one's own
portfolio. In all cases, the more you study and understand of this
private property world of capitalism, the easier you will find it to
make your own informed decisions.

The advice to save money and stay debt-free is great advice. When you
have savings, you have something to invest. Just a rule of thumb
comment, echoing what John A. Weeks III wrote - don't dump your
savings into something you do not fully understand. (Too bad the big
banks hadn't heard that piece of advice :)

Good luck to you, and check back here frequently!:)

--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.
 
A

Andrew Koenig

I am a 25 year-old female college student that obviously has no money
but I want to start investing money for my future does anyone have any
suggestion for me?
http://www.fundadvice.com/fehtml/investingbasics/0212a.html

--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.
 
B

BreadWithSpam

dapperdobbs said:
Investing is something you can study - not unlike any other subject,
there are basic principles. Two authors widely recommended are
Benjamin Graham ("Security Analysis," 1962) and Jeremy Siegel (who ...
Many here and elsewhere are content to turn over the portfolio to
someone else, whether a mutual fund or private asset management.
Note that most of what DD here is talking about is the
security-selection part of investing. The truth is,
that's only one part of a much bigger picture. For
many people, selecting stocks is the *last* thing they
need to worry about - first and second are cash and debt
management (ie. spend less than you earn, make sure to
pay off "bad" debt, etc). Third and fourth are things
like making sure you have adequate/appropriate insurance
(starting with health and liability, probably followed by
disability and, depending on our situation possibly life).
*Then* comes asset allocation - how much should go into
different categories of investment (stocks, bonds, cash,
real estate, etc). After all of that is were Graham
comes in - and even then, only if you want to spend
time researching and managing the portfolios.

Even if you plan on investing in individual stocks,
whether by selecting them yourself or by using separate
accounts or something, most folks at least start with
mutual funds. An individual simply cannot construct
a diversified long term portfolio through individual
stocks with too small an amount to invest.

Anyway, none of this is meant to discourage you from
learning about stocks. After all is said and done,
some of us actually have a lot of fun with that part -
certainly a lot more fun than the spending less than
we earn part - but my point is to suggest that there
are other priorities which I strongly believe come
well ahead of security analysis and stock selection.

Some stuff, though - basic accounting - is very useful
both for understanding businesses (and stocks) and for
applying those processes - balance sheets, income
and cash flow statements - to your personal financial
situation, too. In fact, drawing up your personal
financial statements is often the best starting point -
it's exactly where you'll figure out (a) if you're
spending less than you earn; (b) what you're net worth
is; (c) how your assets are spread out; etc. - and from
there you can start to make the rest of the plans.
comment, echoing what John A. Weeks III wrote - don't dump your
savings into something you do not fully understand. (Too bad the big
banks hadn't heard that piece of advice :)
True enough!

[my normal suggestion for complete beginners is Eric Tyson's
book, Personal Finance for Dummies. Don't be insulted by
the silly name or bright yellow cover. It's a great book.]

--
Plain Bread alone for e-mail, thanks. The rest gets trashed.
No HTML in E-Mail! -- http://www.expita.com/nomime.html
Are you posting responses that are easy for others to follow?
http://www.greenend.org.uk/rjk/2000/06/14/quoting

--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.
 
D

Douglas Johnson

L Hav said:
I am a 25 year-old female college student that obviously has no money
but I want to start investing money for my future does anyone have any
suggestion for me?
Here is one of the best set of guidelines to financial success I have ever seen.
Seven clear, simple rules that basically cover it all.

http://www.dallasnews.com/sharedcontent/dws/bus/scottburns/columns/archives/1997/970105SU.htm

Scott Burns is a long time financial columnist for the Dallas Morning News and
other papers.

-- Doug

--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.
 
Ad

Advertisements

B

Bill Woessner

I am a  25 year-old female college student that obviously has no money
but I want to start investing money for my future does anyone have any
suggestion for me?
I'm going to go against the grain here. It's not often that I so
completely disagree with my esteemed coposters, but here goes.

Don't do it. Like John said, you're making the best possible
investment right now by investing in yourself. I spent nine years in
college and grad school (much to the chagrin of my advisor). It's
expensive, there aren't a lot of opportunities to earn money and you
never know when unexpected expenses are going to come up. Take your
money, put it in an FDIC-insured savings account and count yourself
lucky for having a cash cushion. E-Trade is still giving 4.4% APY on
their savings account. Heck, given the recent volatility of the
market, you could do a lot worse over the next few years.

Also, I want to echo what John said about student loans: the fewer,
the better. That's especially true since Congress fixed the interest
rate on Stafford loans to 6.8%. In comparison, my wife's med school
loans are consolidated at 2.875% and they're scheduled to be reduced
to 1.875% in a few years. Back in the day, student loans were a
steal. But now... it's better to avoid them if you can.

--Bill

--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top