Investment For A New Graduate

tribulus

My friend is just finished college and will be starting work in september.
His starting salary will be approx 27000E a year. He already has a pension fund sorted but would like to know what the best long term strategy is?

Assume his expenses are small, still living at home, no car etc.

Any advice, even general stuff appreciated as neither of us have a clue!!

bk

Just some quick general advice.

- Pension, since he is so young, then he should be putting it into a high risk, high return pension type. General advice is that the younger you start your pension the more risk you should take.

- Whatever money he does earn he should put into a Rabodirect account or some other online deposit account with a good return, until he decides what to do with the money.

- Don't forget to give some of the money to the parents for room and board.

- Your young, spend some of the money and enjoy it.

- Start reading these boards and www.askaboutmoney.com forums for lots of good advice on more interesting ways to invest your money.

- Eddie Hobbs new book Loot has lots of good advice.

It is hard to give any more specific advise, it depends a lot on what sort of things you like to invest in, what sort of risk you want to take and what are your future plans (buy an apartment, etc.).

However it is good that you are staring to look at this at such a young age, I wish I had done that when I graduated.

daveirl

This post has been deleted.

tribulus

Thanks for the replies guys, so the take home message is go for options with a higher risk/return rather than low(er) risk, longer term options?

I'll definately mention the 15% of your salary thing, I don't think he knows about that (btw it is actually a friend and not just myself!)

Thanks again

Mayshine

There was a good article in the Irish times business section recently on the power of compounding. Don't know if it available on the website, but the lesson is to start sticking some money away sooner rather than later