Advice for a 15 year old

[Scanner]

Consulting is a really good career because you can always find work. The downside is that the work is hard and there isn't much security.

Isn't that a bit of an oxymoron? You can always find work but there isn't much security?

You know the old joke about a consultant?

What do you call an unemployed man with a business suit and briefcase?

A consultant.



Seriously, I think you hit upon an issue maybe beyond the scope of this thread - there are certain professions/lines of work that don't really involve unemployment as much as "underemployment."

IN some ways, underemployment is worse than unemployment - I do think consulting probably fits into that category.

JimOhio,

Good points - don't avoid saving because of a fear of making mistakes. Just ignore what I wrote, OP.

[jIM_Ohio]

Originally Posted by Scanner

Isn't that a bit of an oxymoron? You can always find work but there isn't much security?

You know the old joke about a consultant?

What do you call an unemployed man with a business suit and briefcase?

A consultant.



Seriously, I think you hit upon an issue maybe beyond the scope of this thread - there are certain professions/lines of work that don't really involve unemployment as much as "underemployment."

IN some ways, underemployment is worse than unemployment - I do think consulting probably fits into that category.

JimOhio,

Good points - don't avoid saving because of a fear of making mistakes. Just ignore what I wrote, OP.

If OP knows how to design web pages, I would suggest they get into consulting at age of 15, and see if they like it.

My wife works for a company which consults her out. She makes 50% of what she could make on her own as a consultant, but she loves the hours and benefits.

My wife works in HR (Human resources). She had worked in 4 office jobs in prior 6 years within HR. The last 2+ years she has worked as a consultant doing same/ similar things.

Each HR department saw downsizing as an issue. Whether doing the RIFs herself or just working on the compensation packages, there is something about home life which gets disrupted when she knows on Friday what she has to do on Monday. In addition other organizations would ask for legal counsel (like on hiring, writing up people for being late etc) yet members of same company would ignore HR advice and do their own thing, creating more work in the future for my wife. Now as a consultant they are paying for her advice and expertise- so she only has to recomend what to do, she gets paid regardless if the company takes her advice.

Consulting reduces this stress level considerably!!! My life has improved as a result and from that perspective, I would not write off consulting.

I would not go into college thinking that the goal at graduation is to be a consultant though.

Several companies hire people to consult. Anderson Consulting, Deloitte and Touche, IBM, ATT all come to mind as companies which hire college grads to consult as IT professionals, Business process people or similar.

I think a better way is to choose a career (like engineering) then find a job- using consulting as an option. Know there are pros and cons. My wife has had to take several tests to get a professional license (which helps her be a consultant). If you are an engineer, these tests are less than trivial. Lawyers and Doctors both have similar tests (called the Bar or a residency) to make them consultants. Those tests are even harder. Same with a CPA- that test makes an accountant a consultant of sorts.

Most professions will have tests and certifications to validate a consultant's skill.

[Hot dog]

I would say you should read read and then read some more. Try the Wealthy Barber and Automatic Millionaire by David Bach. They are both very easy to understand. The main thing is to start saving if you decide to save 10% make sure you pay yourself first. Get it direct deposited into a savings account. Then you could try the Roth IRA I don't think it would impact your financial aid and then do not touch it until you are ready to retire. Let it sit there that is what makes it grow-- time. Good luck!

[InDebtInDC]

Originally Posted by Scanner

Isn't that a bit of an oxymoron? You can always find work but there isn't much security?

No. If I quit my job today, I will be employed next week as a management consultant. That's pretty much a guarantee.

What's not guaranteed is job security once you get in. They have such high turnovers that it's a revolving door. Most of the work will be on a contractual basis so there may not be a renewal after expiration.

There are companies who will hire full time consultants and move them through different contracts. These companies offer better stability.

Originally Posted by Scanner

You know the old joke about a consultant?

What do you call an unemployed man with a business suit and briefcase?

A consultant.

I've heard a lot of jokes about consultants and such, but just like any other profession (doctors, lawyers, therapist, personal trainer), it depends on the person.

Some of my previous co-workers had some seriously rare skills. Those guys have a very secure job because most people don't have that kind of on-the-job legal training. Most people don't even understand the budgeting and accounting process.

It's pointless to argue which job is better than which. It's all relative to what you can do. If you don't understand management and financial accounting then you need to do what you understand and can do well. The only caveat is that people always think they know everything, until they have a problem.

I think the job fits me because I have always been able to draw a clear demarcation between what I do know and what I don't know. What I do know I know very well. What I don't know is usually the technical aspect of the business, but I do try to educate myself at least on the functional level.


For example, the client would ask "we have $500 billion and 5 years to do X. Where do we start?" We would then analyse their goals, how they current exist, formulate a strategy, sequence out the work, provide backup plans, etc.

I think in order to be a good consultant, your brain needs to understand processes really well and be able to formulate the optimal solution on the fly. It's like playing chess. You anticipate what may happen next and you prepare instead of react. Most people discount it, but foresight is not something you can teach easily. It requires intuition and experience.



In a sense we are all "consultants". You have to make the best decision with what you have. I know a lot of people use the term loosely but I am referring to traditional management consulting at the executive level.


That's a glimpse for you. If your mind thinks like that then it's a good career. If not then there are plenty to choose from.

[lgslgs]

Oh - as you look at possible careers, also look at being a pharmacist. Always high demand and high pay - no matter whether you want to live in the city or a rural area.

[cptacek]

I would suggest investing in a Roth IRA.

First of all, the FAFSA (the form you fill out to determine if you get Federal Financial Aid for college) doesn't consider Roth IRAs as an asset. Some colleges might, though, as the following article points out.
Roth IRAs and Financial Aid - Kiplinger.com

Here is another article about financial aid...this one points out that state schools generally use the federal formula, while private schools might not:
Roth IRA - not a great gift for a 16-year-old? « Student Loan Info for Parents

But one thing that I think this author is missing is that if you invest $4000 in a Roth IRA and even if that gets counted as an asset, the formulas don't expect you to cash the whole thing in to pay for college. As the first article says, maybe 25%. So, you would have to come up with $1000.

The great part of the Roth is that that you can take money out of it at any time, including to pay for college...up to what you put in. If you put in $4000 this year and $2000 next year, and you then need to pay for college, but the account is now worth $7500 (because the stocks went up), you can take out $6000 any time and not pay a penalty on it.

Maybe look at my blog to see a little more about beginning investing...
Beginning Investing: Cptacek's Personal Finance Blog

[Scanner]

I swear I wasn't knocking consulting (I guess I consult too as I do independent medical exams in my field). . .it just seemed like an odd suggestion to a 15 year old.

I agree with pharmacist - if you just look at the numbers for that professsion, it's a great career investment.

[jIM_Ohio]

Originally Posted by cptacek

I would suggest investing in a Roth IRA.

First of all, the FAFSA (the form you fill out to determine if you get Federal Financial Aid for college) doesn't consider Roth IRAs as an asset. Some colleges might, though, as the following article points out.
Roth IRAs and Financial Aid - Kiplinger.com

Here is another article about financial aid...this one points out that state schools generally use the federal formula, while private schools might not:
Roth IRA - not a great gift for a 16-year-old? « Student Loan Info for Parents

But one thing that I think this author is missing is that if you invest $4000 in a Roth IRA and even if that gets counted as an asset, the formulas don't expect you to cash the whole thing in to pay for college. As the first article says, maybe 25%. So, you would have to come up with $1000.

The great part of the Roth is that that you can take money out of it at any time, including to pay for college...up to what you put in. If you put in $4000 this year and $2000 next year, and you then need to pay for college, but the account is now worth $7500 (because the stocks went up), you can take out $6000 any time and not pay a penalty on it.

Maybe look at my blog to see a little more about beginning investing...
Beginning Investing: Cptacek's Personal Finance Blog

If a person is smart enough to open a Roth at age 15 or 16, then I would hope that same person is smart enough to borrow for school at 5% (or less) while Roth grows at 10%+ while in school.

Cashing the Roth out for education does not seem right to me.

Financial aid is highly overrated... most aid I received was in subsidized student loans, which had an interest rate .25% below the unsubdized loans I also received.

The amount parents make will influence the calculation more, and I would not make an investment decision based on a 4 year period of time (college) where assistance might be offered or rejected based on the investment choice.

A 16 year old should be investing for long term, college is a short term need. I would even suggest a 16 year old which is investing might be better off working at ages of 19 and 20, setting more money aside, then do night school or go back to school at age 21 as an independant. In this case there are great tax deductions for students to take (tuition is tax deductable, I think).

[xdork4lifex]

Originally Posted by lgslgs

Oh - as you look at possible careers, also look at being a pharmacist. Always high demand and high pay - no matter whether you want to live in the city or a rural area.

I'll second this. I'm in pharmacy school and it really is a great career. Low stress, high demand and good pay. I'll finish school in a little over a year and have already been offered $55/hour (works out to over 100k/year). Also, there's ample overtime should you want it. You can work in hospital, community or industry depending on what your interests are.

[Hot dog]

How do you become a pharmacist? What is the time and schooling involved? What are the majority of classes in? What is it that should interest you and should you be good at to be a pharmacist?

[jIM_Ohio]

Originally Posted by Hot dog

How do you become a pharmacist? What is the time and schooling involved? What are the majority of classes in? What is it that should interest you and should you be good at to be a pharmacist?

4 year bachelors degree is my guess, with lots of classes in chem and bio type fields, similar to pre-med.

I'm an engineer, so not sure on details.

[Broken Arrow]

Yeah this caught my curiosity as well, so here you go.

[jIM_Ohio]

Originally Posted by Broken Arrow

Yeah this caught my curiosity as well, so here you go.

that was interesting.

One thing to think about is Pharmcists need to work when Pharmecies are open (weekends and holidays). My BIL is a store manager for Sam's club, and makes much more than I do (he clears 6 figures easy). He works 10-12 hour days this time of year, which included being AT work at 3:00 am the day after Thanksgiving. He has to work xmas eve and misses some other family events, and also misses seeing his kids on Saturdays because he works then too.

In my case, when I leave work on Friday, I don't even think about it again until Monday morning.

You have to decide lifestyle along with occupation.

[Scanner]

JimOhio,

I know a pharmacist who went to chiro. school with me. Because the chiro. market is so rough right now, he had to go back into pharmacy (he just didn't have the small business mindset and risk tolerance).

I keep in contact with him every once in awhile and I often say,

"Well damn. . .what's so bad? You had a great career to fall back on. Okay, yes, you wasted those years but at least you aren't ruined."

But he's miserable (maybe just reflective of the person he is - he's divorced - this isn't necessarily a career thing).

He says, "I go into work as a pharmacist. Day in. Day out. Same thing. Same B.S. No thanks. No appreciation. Not even an 'attaboy'."

I just don't get it but you are right - happiness in career is so relative.

It's the same thing with my nurse patients. I can't think of any profession more in demand right now than nursing.

But all of them in my practice seem to be the most miserable people in their jobs you'd ever want to meet. . .and some of the highly specialized ones make more money than me, I'm sure of it.

I'm not sure if it's a female issue - being pulled away from kids (guilt for working).

What a balance it is to strike - you don't want to just blindly follow the advice of "Golly gee. . .do what you want to do. Be an artist or musician."

But at the same time, if you just let the market decide everything, it seems to lead to some level of misery.

It was so taboo to talk about differences in male and females in the 80's. Feminists assumed females were the same as males. But that seems to be changing.

This is why I asked the gender of the Original Poster. If she's female - I would recommend doing something that will be "family friendly" as someday, it is likely you'll be pregnant.

Okay, feminists strike me down for saying this now

[zetta]

I'm a female software engineer, and I would caution against a 15 year old girl choosing her career based on what is currently "family-friendly" -- the heavily female careers tend to be lower-paying.

Instead, choose a career based on your skills and passions. Spend college and 7-10 years getting really good at what you do, making a reputation for yourself, and saving money. Then you will be in a position to either take a couple of years off when your kids are small, negotiate part-time status with an employer who values your skills, or retrain and switch careers (with a big chunk of money from your higher-paying career already saved and invested.) Employers may well offer better work/life balance options in 15 years than they do today, so don't necessarily settle for the lower paying "family friendly" jobs now.

[jIM_Ohio]

Originally Posted by zetta

I'm a female software engineer, and I would caution against a 15 year old girl choosing her career based on what is currently "family-friendly" -- the heavily female careers tend to be lower-paying.

Instead, choose a career based on your skills and passions. Spend college and 7-10 years getting really good at what you do, making a reputation for yourself, and saving money. Then you will be in a position to either take a couple of years off when your kids are small, negotiate part-time status with an employer who values your skills, or retrain and switch careers (with a big chunk of money from your higher-paying career already saved and invested.) Employers may well offer better work/life balance options in 15 years than they do today, so don't necessarily settle for the lower paying "family friendly" jobs now.

Passion is GREAT advice. My passion is soccer, and it's tough to make a living at it... but after coaching for free for around 6 years, I now take home close to 20k per year coaching.

So when choosing a college and choosing a major- follow what is close to you- something you are good at and something you enjoy. They might be different things, but grow BOTH of them.

I am quite good at math and some engineering things- that skill pays my salary.

I love soccer and that keeps me busy (when I am not posting here) and also provides extra income.

It is very possible I stop working and do soccer full time, or I stop working and do financial planning full time, once a few other wrinkles in life work themselves out by age 40.

[xdork4lifex]

Originally Posted by Hot dog

How do you become a pharmacist? What is the time and schooling involved? What are the majority of classes in? What is it that should interest you and should you be good at to be a pharmacist?

Pharmacy is a second entry program, meaning you have to do some undergraduate work before applying to a pharmacy school. In the US, the degree you need is a Pharm.D or a Ph.d in pharmacy. I believe that most people who are in pharmacy school did 2-4 years of undergraduate work prior to getting in. Like someone mentioned, you have to be good in the sciences (pre-reqs are things like organic chemistry, physical chemistry, biology, physics) and I personally think it's important to have good verbal skills. In pharmacy school, we take lots of general bio courses like anatomy, physiology, microbiology, immunology and as well as more pharmacy related courses like pharmaceutics, medicinal chemistry, pharmacology, etc etc.

To the person who had a friend who hated pharmacy, I totally understand where you are coming from. I know tons of pharmacists who are burnt out and complain about not being "respected" but I personally think that respect has to be earned. If you show your patients that you are knowledgeable and genuinely care about them, they will respect you. Given how busy physicians are, pharmacists are often the only healthcare professionals that a lot of people have access to. If you are good at what you do, you can really make a difference in some people's lives. In addition, I live in Canada and in some provinces, pharmacists now have limited prescribing rights and are being reimbursed for performing cognitive services, such as medication reviews. I think that the profession is trying to take on a bigger role than just the traditional "count, pour, lick and stick".

Also, if someone is truly unhappy working in retail, they can work in hospitals where they take on an active role as drug experts. They can work in industry, doing R & D. They can get a law degree and work in patent law. They can do an MBA and work for a big pharmaceutical company. I think that your career will only be what you make of it, and sitting around and complaining won't make it any better.

I also think that someone else made mention of jobs that female dominated being inferior. I am female, and one of the main reasons why I chose pharmacy is because of the flexibility it provides. I was originally planning on going to medical school, but after the 8 years of schooling + residency, I would be over 30 before I could get a real job. This way, I'll be done school at 24 and will have the opportunity to focus on other aspects of life.

Hehe, I'm sorry for being so pro-pharmacy, but I just think there are a lot of negative conceptions out there about pharmacists so I just thought I'd add my two cents. I'll shut up now

[gackle]

My 2 cents of advise for choosing a career is choose something that you love to do. I think it's safe to say that more people than not that are financially successful are passionate about what they do. Work is no longer work if you love what you do; it makes it even better when a paycheck comes with it! I see people everyday at work in their own personal prison sentence because they hate their job. Who wants to drag themselves out of bed every morning to a job they hate? I would advise to go for a career that you can enjoy, but still earn a comfortable living. If it happens to be one of the high-paying careers, well then more power to you. What Color is Your Parachute is a great book to help you figure out what you enjoy and point you towards how you can make money doing it. Best of luck to you. You've got such a great head start on most of your other peers.

[myself]

Originally Posted by mitown

Whatt differnt bank acounts should I open

Personally I'd have to suggest a savings account (like EmigrantDirect.com or ING Direct.com). Both have $1 minimum deposit so that shouldn't be too hard. A checking account (to pay your bills).

As for what to do with your earnings. Here's are 2 thoughts:

• 30% savings, which should be split between short term (i.e. savings account, money market), long term (i.e. laddered CDs, stock market brokerage account, investment