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Plan, save money to prepare for working world
December 08, 2006
At the “Tell me what I need to know” panel discussion last week, students learned tips on how to avoid money woes and ways to make a smooth transition to the working world after graduation.
“It was valuable. I learned a lot because they focused on many different things,” said student Claudia Davila.
Bart Dalton, an Edward Jones Investment representative, began the discussion by offering advice about managing personal finances specifically for recent graduates entering the workforce. Dalton dispelled many of the myths surrounding the wisest ways to spend and invest your money.
For example, Dalton said buying a house is not necessarily the best option for everyone right after graduation.
“It’s a great investment, but it comes with a lot of baggage,” he said. Homeowners are responsible for all the maintenance on their home, which can be expensive if, for example, the water heater breaks, he explained.
Dalton also said that credit cards aren’t bad, but credit card debt is. Credits cards help people establish a credit history, which is necessary for purchasing a home or car. Just be sure to pay the card’s balance off quickly, he advised.
However, most students shouldn’t be in a rush to pay off college loan debt because the interest rates are so low, Dalton advised. Pay the bare minimum and place any extra money into savings or towards investments, he said.
“Always evaluate the interest rate on the debt you have to decide whether to pay or invest,” Dalton said.
It is especially important for new graduates to focus on building up an emergency fund equal to at least three month’s worth of living expenses and develop a budget, Dalton stressed. The best place to begin investing is in your employer’s retirement plan because most companies match an employee’s contributions, so it’s an easy way to increase your investment.
Creating a lucrative investment portfolio can be a difficult task. Both Dalton and Andy Turner, dean of the School of Business and formerly of Russell Investment Group, recommend enlisting the help of a pro.
“Ninety percent of the people I know lose money when just naively investing in the stock market,” Turner said. “You can’t compete with the pros.”
Wall Street analysts spend 60 to 80 hours a week researching a handful of stocks, he explained. And making money through investing is really full of a lot of “dull and boring stuff,” he said.
Turner recommended recent graduates begin looking for stocks and bonds through Vanguard because the company has a wide variety that is inexpensive. Most importantly, keep your portfolio diversified and keep investing, he said.
“Invest as early as you can and get it in the market and in play and keep it there as long as you can,” Turner said. “It’s really dull and boring, but it works.”
After the “money” talk, three recent alums discussed how to move smoothly from the academic world to the working world. The alums came from a variety of backgrounds and included Jason Rubottom, a consultant with Accenture; Derek Lunde, marketing coordinator for the architectural firm BCRA; and Audrey Cox, admissions coordinator for PLU’s School of Nursing and an entrepreneur.
The three focused their discussion on what employers are looking for right now, how to define your skills and determine the best job for those skills, and how to deal with the office politics.
“It was definitely useful to hear people who have just entered the workforce about what it takes to get a job,” said student Trevor Jacka.
Universally, communication skills are key and easy way to show competency, Rubottom said. Companies are also looking for people with leadership qualities, problem-solving skills and the desire to learn.
“Never turn down a chance to interview,” Cox said. Whether you really want the job or not, every opportunity gives you the chance to practice your interviewing skills, she explained.
And when determining the right job for you, take advantage of the insight of mentors, professors and informational interviews, Rubottom said. Another resource for evaluating your marketable skills is the book “What Color is Your Parachute,” Dalton said.
“It’s something you’ve heard before, but they gave you real life experiences and it’s nice to hear when people talk how it will be like,” Davila said.
At the end of the discussion, Dwight Zulauf, the first dean of the School of Business, emphasized the importance of keeping the “Lute spirit” alive by staying in touch with fellow Lutes and making sure you enjoy your job.
“Life is more than just your job,” Zulauf said. “If you’re not having fun, I would change my occupation.”
The event was sponsored by PLU business clubs and the PLU Business Network. Learn more at www.plu.edu/busa.
Bart Dalton, an Edward Jones Investment representative, began the discussion by offering advice about managing personal finances specifically for recent graduates entering the workforce. Dalton dispelled many of the myths surrounding the wisest ways to spend and invest your money.
For example, Dalton said buying a house is not necessarily the best option for everyone right after graduation.
“It’s a great investment, but it comes with a lot of baggage,” he said. Homeowners are responsible for all the maintenance on their home, which can be expensive if, for example, the water heater breaks, he explained.
Dalton also said that credit cards aren’t bad, but credit card debt is. Credits cards help people establish a credit history, which is necessary for purchasing a home or car. Just be sure to pay the card’s balance off quickly, he advised.
However, most students shouldn’t be in a rush to pay off college loan debt because the interest rates are so low, Dalton advised. Pay the bare minimum and place any extra money into savings or towards investments, he said.
“Always evaluate the interest rate on the debt you have to decide whether to pay or invest,” Dalton said.
It is especially important for new graduates to focus on building up an emergency fund equal to at least three month’s worth of living expenses and develop a budget, Dalton stressed. The best place to begin investing is in your employer’s retirement plan because most companies match an employee’s contributions, so it’s an easy way to increase your investment.
Creating a lucrative investment portfolio can be a difficult task. Both Dalton and Andy Turner, dean of the School of Business and formerly of Russell Investment Group, recommend enlisting the help of a pro.
“Ninety percent of the people I know lose money when just naively investing in the stock market,” Turner said. “You can’t compete with the pros.”
Wall Street analysts spend 60 to 80 hours a week researching a handful of stocks, he explained. And making money through investing is really full of a lot of “dull and boring stuff,” he said.
Turner recommended recent graduates begin looking for stocks and bonds through Vanguard because the company has a wide variety that is inexpensive. Most importantly, keep your portfolio diversified and keep investing, he said.
“Invest as early as you can and get it in the market and in play and keep it there as long as you can,” Turner said. “It’s really dull and boring, but it works.”
After the “money” talk, three recent alums discussed how to move smoothly from the academic world to the working world. The alums came from a variety of backgrounds and included Jason Rubottom, a consultant with Accenture; Derek Lunde, marketing coordinator for the architectural firm BCRA; and Audrey Cox, admissions coordinator for PLU’s School of Nursing and an entrepreneur.
The three focused their discussion on what employers are looking for right now, how to define your skills and determine the best job for those skills, and how to deal with the office politics.
“It was definitely useful to hear people who have just entered the workforce about what it takes to get a job,” said student Trevor Jacka.
Universally, communication skills are key and easy way to show competency, Rubottom said. Companies are also looking for people with leadership qualities, problem-solving skills and the desire to learn.
“Never turn down a chance to interview,” Cox said. Whether you really want the job or not, every opportunity gives you the chance to practice your interviewing skills, she explained.
And when determining the right job for you, take advantage of the insight of mentors, professors and informational interviews, Rubottom said. Another resource for evaluating your marketable skills is the book “What Color is Your Parachute,” Dalton said.
“It’s something you’ve heard before, but they gave you real life experiences and it’s nice to hear when people talk how it will be like,” Davila said.
At the end of the discussion, Dwight Zulauf, the first dean of the School of Business, emphasized the importance of keeping the “Lute spirit” alive by staying in touch with fellow Lutes and making sure you enjoy your job.
“Life is more than just your job,” Zulauf said. “If you’re not having fun, I would change my occupation.”
The event was sponsored by PLU business clubs and the PLU Business Network. Learn more at www.plu.edu/busa.