Making Money - How is it done?
Hi,
I am 23 years old, with a B.S. in Finance, and in Accounting. Graduated from University of Maryland with a 2.8 GPA. I have been working for a mid sized Public Accounting firm located in Baltimore in their Healthcare Assurance department. I should have my CPA exam passed by the end of April, and have enough hours to be certified. My goal is to break $100,000 by the year end, and $1,000,000 by the time I am 35. Naturally, its going to be pretty difficult to accomplish either of these goals by staying in Accounting. I know people here are really ambitious and a lot smarter than I am, so I just wanted to get your advice on how I can make these goals a reality.
For my short term goal, I have my annual income of $53,000 with a $1,000 bonus. I can rack in another $6,000-10,000 during Tax season, and by doing some bookkeeping for small businesses. This leaves me with a $40,000 gap. What would be the best way of going about this?
For my long term goal, I plan on either A) obtaining my CFA certification, and then perhaps making a transition into Investment Banking, or B) obtain a CFP certification and simply work towards expanding my accounting/financial planning firm. My second question then is, why, if at all, does it make sense for me to spend time into becoming a CFA Charterholder? Finally, what do you guys think about this entire post as a whole? Am I just another recent grad with too many unsubstantial ambitions -- and if so, then how can I improve my game plan?
Thanks a lot for your time.
Tough to break into banking right away with a 2.8 GPA even if it's from a nice school like Maryland.
Best to focus on doing a really good job at work, plan on an MBA, and keep your eye out for opportunities. It also helps to save money like crazy right now. I'd recommend setting up a Roth IRA and investing in non-UBTI generating tax flow-through entities like REITs and royalty trusts, as well as taxable bonds. If you need money for school, you can always take the money out for tuition penalty-free.
If it's possible for you to save $10K per year and the market averages a 10% return for the next 20 years (if the 35 year cycle holds like it has for the past century, we should be coming out of our current bear market in five years), I can say with a reasonable degree of certainty that you'll be a millionaire by the time you hit 45.
No way you will make 100k quickly with a CPA.
Realistically looking at 65-75k after the cert. http://www.payscale.com/research/US/Job=Certified_Public_Accountant_(CP…
Best way to break 100k is to go for MBA. Or you can start making some investments in the market and expect another 6% of whatever you have invested.
CFA is a long shot and it takes much longer than the MBA to complete.
A CFA is worthless in IB esp. for someone with your accounting background. A CFA is relevant in asset management. The only way you can bridge your shortfall is to gain employment in NY (or other higher-paying cities), live at home and invest the money you save, or start a small accounting business or other entre. venture on the side.
I think an MBA is probably your best bet assuming you want to enter a competitive field like IB given your mediocre GPA. You will have to crush the GMAT and get involved in ECs if you want to mitigate your GPA come admissions time. You seem as lost and directionless as any other recent grad. Sht I was way more lost than you upon graduation and now im crushing. Best of luck to you.
^^ great post junkbondswap! Very motivational for someone like me.
er, do you not plan on paying taxes? do you have any costs of living?
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