The Young And The Restless
Tips for the new crop of college grads on how to travel the road to wealth
the journey. Plan for success by learning at least basic investment terms. Set specific, reachable short-term goals.
Find a road-worthy vehicle. Evaluate the many investment vehicles, such as stocks, bonds, and mutual funds, that are available.
Keep your eyes on the road. Periodically check financial progress and make adjustments as necessary.
Beware of dangerous obstacles. Risks are everywhere. Financing options can be tricky, such as short-term, no-interest loans. Not paying them off within the designated period sometimes triggers interest of 20% or more, retroactive to the original loan date. Interest-only and adjustable-rate mortgages make sense only if you plan to move before the first rate adjustment, as Holmes does. Steer clear if you are utilizing it to be able to afford the home, Munroe says. Rates are guaranteed to go up–your income isn’t.