Make the Future you want... by starting young
Introducing Ben - Broking Client and Recent Law Graduate
Twenty-four year old Ben Simon's parents had taught him early in life you can make the future you want, anyway you want it as long as you are prepared to think outside of the square and take action. For Ben, this means being a young investor.
The average New Zealand University graduate comes out of his or her degree owing a daunting $15,5681 and spends the next nine2 years paying it back. Ben is not your average graduate. Although having just recently received his LLB, he is already well on the way to securing a deposit on a home in Tauranga.
The Challenge
By his second year at University, Ben didn’t want to graduate with a large student loan, and take years to afford his first home. Ben put his analytical brain to work and began researching the stock markets. He wanted to work out a shorter pathway to success than the average graduate’s nine-years of working to get debt-free. He thought that with some prudent investing and support from an investment advisor he could put his money to work to raise a deposit. He talked his parents into matching his savings as a short-term loan, waited until he saw a new company float that caught his attention and then went to see an investment advisor at ABN AMRO Craigs.
The Solution
Ben was aware that at his age he could take on a little risk in order to earn a higher return. Recognising this trait and Ben’s strong desire to get ahead, ABN AMRO Craigs worked with him to develop his investing acumen and recommend suitable investments. They achieved balance against the more high-risk Australian stocks they selected, with a diversified portfolio of more conservative investments, including some NZ high-yielding blue chips.
Research is vitally important to Ben. Through his ABN AMRO Craigs investment advisor he is able to satisfy his hunger for knowledge and access up-to-date New Zealand and global research in the sectors that interest him. Whilst he takes an active role and interest in his portfolio, Ben values the relationship with his investment advisor who is often the balancing point for him.
Like other clients starting out, Ben recognises that it is really important to work with an experienced investment advisor who understands his goals and risk profile, and who can advise as to ‘how much risk is too much risk’.
1 On 30 June 2006, the median student loan balance was $10,652. The average balance was $15,568. Sourced from http://www.beehive.govt.nz Press release by: Hon Dr Michael Cullen, 19 October 2006.
2 Borrowers are paying their loans off slightly faster. The forecast average loan repayment time is nine years, compared with nearly 10 years in 2002.