We were joined by Dan Shea from Fidelity Investments to learn more about budgeting and financial planning!
Financial planning with Fidelity Investments
Topics to be discussed:
- Track your expenses.
- Know what is a discretionary vs essential spending.
- Monitor your spending behavior.
- Tough to save if you don’t know what you’re saving for!!
- Health care
- Cable TV
- If you have credit cards with an 8-9% interest rate it’s bad, so try to pay them as soon as possible.
- Create a budget.
- Avoid getting a high interest now because it compounds – you end up paying more in the future.
- If you have more than one credit card with a high-interest rate, you can consolidate them but then make sure they get paid during the timeline that was determined for it.
- Example: if you have a credit card with a 10% interest rate versus a card with a 15% interest rate then pay the one with the 15% interest rate first!
- Key to your credit report is how long you’ve had your credit cards.
- Doesn’t matter how much you use the credit card, as long as you pay them. Try to pay them off each month.
- Use only 16% of what’s available of your credit. For example: if you have a $10,000 dollar credit you don’t want to have more than $1,600 in balance.
- Too many cards could hurt your credit.
- Monitor your savings!
- “Don’t keep all your eggs in one basket” – particularly important with investments.
- Good tools:
- In the Fidelity Investments website to keep track of your accounts (free to set up!) – you can buy stocks through that tool.
- Google Wallet
- Some other tools charge $20/month to use.
- Good tools:
- Money for essentials, unplanned emergencies and goals.
- 50% of your take home income should go to essential spending.
- ~50% of take-home pay.
- Save 15% of pre-tax (not take-home) income.
- Lowers your taxable income. The younger you are and the lower your bracket is, the more sense it makes to have a Roth-IRA.
- Save 5% of your income.
- “Because the unexpected happens”.
- Should save 3-6 months of essential expenses!
- Maybe start a separate bank of money account and put in a certain amount every month ($20 or so) after you’ve paid your bad debt and covered your essential expenses.
- Start saving for retirement as soon as possible! Up to 8% pre-tax income every month.
- You don’t want to compromise your retirement savings. Compounding is key!
- 403(b) retirement plan – can you merge your 403(b) from your old institution into a new one like Tufts? Yes (Rollover)!
- If you take out a loan on your retirement plan, you have to pay taxes on it.
- Fidelity Investments is in campus twice a month on campus.
- October is booked, but for after October is cool – financial advice for free!!
- Paying debt in full saves you a lot of interest.
- The benefit of paying your debt:
- The higher your FICO score the lower your APR is.
- Student loans can actually help your score, but whether you’re good at making payments to your loan every month is what influences your standing.
- Good debt: i.e. mortgage
- Bad debt: credit cards
- Housing payment should be no more than 28% of your gross income.
- The City of Boston offers a class on home owning for $25.
- Saving for emergency expenses
- Saving for retirement
- Pay/pay-off high-interest cards
- Pay student loans
- He works at the bench everyday as he used to do as a postdoc, but he enjoys not having to worry about funding and getting materials/reagents.
- Set up a LinkedIn account and realized it was about building connections. He also went to networking events and started making connections within Merrimack. So start making connections now!
- Make connections now. Do not expect to connect with people now and then ask for help or a job the following day. Having a vaccine background helped her (microbiologist by training).
- She loves the speed/demands of her job. She felt like making a change after several years and she likes doing sales, so she made the move and started thinking about previous experiences that translate to sales so that she could use them to get the job.
- After publishing in a high impact journal paper, nothing happens. What was conflicting for her was that all that work led to a high impact journal paper would not progress much beyond that. Thus, she wanted to do something about it and started a company.
- She came from a large, well-funded research group, so she says she had resources. She also did studies toward a MBA. Postdoc’d at day and hustled at night.
- Her postdoc did not prepare her for any of this! The learning curve was very steep. When starting a company you do wear 5 hats 40 hours a week. The postdoc prepared her for the science part (to sell the idea to investors), but not the business side of it. She didn’t know how to incorporate a company, how to pay her employees, how to provide them with benefits… People management is a whole different subject to deal with when setting up a company.
- Realized didn’t want to do research 3 or so years into the PhD, but he pushed through. He went to the tech transfer office and asked if they had an intern position. He now wears 3 hats at his job.
- No need to be an attorney to become a patent agent.
- Soft skills from the postdoc to apply for a job: the dealing with people, wearing twelve different hats.
- Sought out what other options are there. He found other postdocs who started a small consulting group and he joined them. That helped him stand out among a pool of job applicants when he finished his postdoc. Think outside the box!
- Took a different path: he did graduate school in molecular biology but as he progressed through grad school he realized that he didn’t want to necessarily do that.
- Skills: Learning does not often solely happen in the class room. You learn valuable skills at your work place. Rarely the person who knows more in the lab is not the PI (not in terms of the everyday requirements). It’s usually the lab manager/technician.
- He looks for people with passion and knowledge. Doesn’t care about people coming from top schools alone.
- A major skill is to ask the right questions! In his case: what does a specific sector need? How can he become an asset to their organization? Utility-centered approach. Take initiative. Know where you want to go. Be honest to yourself about not knowing. Get it out of your system.
- Much easier to teach PhDs about management than management people learning how to do science!
- Started by writing for the student magazine at Berkeley. Went to a bio-hacking talk and was intrigued by it. Moved to Boston and acquired teaching experience at Harvard, then found out about space open to do science at Somerville. Science classes open to all backgrounds (a lot of them are engineers interested in learning biotechnology!)
- Events during the weekends and a forum this Monday 9/26/16 at LabCentral.
- She is also a visiting scientist at the Broad Institute.
- In the future she wants to do the community lab (BosLabs) full-time.
- She thinks the biggest problems in the world can be addressed by science. Knew she wanted to be a geneticist when she was 13 (wanted to feed the world).
- Incredible compulsion to solve problems.
- When in Harvard she realized that many labs had a surplus of or were wasting equipment that could be used further, so she started Seeding Labs 5 years even before she officially started Seeding Labs.
- Got funding for Seeding Labs even before she started writing her thesis.
- Started doing networking events and met people that helped her learn about finances and management.
- She had to learn about 7 different languages she would not have learned when in academia to run the labs.
- You will never be prepared for the next step! You make it as you go along.
Speed Networking & Career Panel
During this webinar hosted by BioCareers, Lauren Celano, founder of Propel Careers, covered tips on how to build an effective resume for industry. Click through to find out more!
– Differences and similarities between resume and CV
– Content Advice
– Formatting Advice
– Resume examples
– What happens to your resume, CV and cover letter after you submit an application
– Differences and similarities between resume and CV
Be succinct, include big picture summaries of your research
– Want to include a personal email address so that your email doesn’t bounce if you move institutions
– Important to tailor your research for each role as people may not be as familiar with the science
Resumes: Do not include:
– Personal Information (DOB, family or relationship status)
– Be careful with hobbies: interesting hobbies are okay if they are inline with company culture (e.g. the whole office goes rock climbing)
– Academic CVs do not show what you did and what techniques you did…
– A resume provides more details that the reader can take away vs. a CV which does not provide a lot of clarity around what you have done.
– In a resume, you get to choose to highlight what you choose to share among your experiences and should be really tailored to the position/industry you are applying for.
What should you highlight?
It depends on where you are applying!
Think about what you have done and how it can align with a future job!
10 seconds is the average time a HR person looks at your resume or CV!
How do you format your documents so that your application gets through the initial screening process?
– Number of pages depends on the field, finance etc, may be 1 page
– Your name with credential (e.g. PhD), have a professional email, if you are international and have US citizenship/green card, PUT THIS ON YOUR RESUME otherwise they may assume you cannot legally work in the US.
– Summary of Qualifications (vs. Objective – as this may change)
– What are the top 3 things you want people to know about your qualifications? Science skills, leadership, management etc.
Example for industry R&D scientists:
Wording matters – e.g. “Research studies the role of XXY with an emphasis on key proteins such as A and B”. — vs. “Research studies chronic X disease and the role of key proteins in XX environment”. Make it easier to understand!!
– Sub headings can be useful!! Different strategies:
– Small company biotech
Values grants and appreciates entrepreneurial mindset
Highlight project leads, business-orientated competitions and diagnosis
– Non-bench application:
Collaborations, not highlighting techniques
– Business Development Roles:
Highlights business experience over research experience
For bench roles:
– List your experience and what you want to do. If you don’t want to do animal work etc, don’t list it!
For non-bench roles:
– List other skills, i.e. imaging software, statistical software etc
– Have someone else review your resume, outside your field for several reasons:
1. Wording is okay and understandable to outsiders
2. Details!!! Formatting is correct: bullet points are aligned, etc
If using 2 pages, use a full second page. i.e. try not to squish sections, add other sections if you need to overflow. Use all the space you have!
– Use bullet points and formatting to help focus attention! Rolls of text is hard to read and focus on.
Writing a cover letter:
Often cover letters get separated from resumes, so make sure you list contact info!
Indicate you have read the job description, so tailor the cover letter! It’s okay to reiterate job requirements from the job ad.
Focus on the items mentioned that you KNOW they want and don’t waste space talking about irrelevant items.
What happens to your job application?
– Not everyone gets both cover letter and resume (or reads them).
1. HR Person – gets both resume and cover letter, reads cover letter
2. Hiring Manager – maybe gets both, reads resume
3. Interviewers – resume, perhaps very late. Don’t usually get the cover letter.
Thus, its okay to repeat/reiterate what is in the cover letter and ensure you cover the important points of how you fit the job in both!
Question: How often do people looked at LinkedIn?
Answer: ALL THE TIME! If you are on LinkedIn, you want to have a professional photo that makes you look approachable, a good summary of your background and if you can, mention what you are looking for, career wise.
Question: How do you design your resume if you are switching fields where you may not have a lot of existing skills?
Answer: Focus on the transferrable skills!
Question: How long it take from submission to job offer.
Answer: 1.5 – 3 months typically. Once you submit it can take 1 day to 2 weeks to contact you initially (and may contact you up to 6 months later!).
Feel free to use this document to guide your way around the USA. Currently this document is curated from experiences that I have had, and will hopefully help you when you come to explore the great United States of America! Given my background, it is more tailored to Australian visitors, but all of the advice is applicable to other nationalities as well.
(From Consumer Finance.gov)
- Pay your bills on time, every time. One way to make sure your payments are on time is to set up automatic payments, or set up electronic reminders. If you’ve missed payments, get current and stay current.
- Don’t get close to your credit limit. Credit scoring models look at how close you are to being “maxed out,” so try to keep your balances low in proportion to your overall credit limit. Experts advise keeping your use of credit at no more than 30 percent of your total credit limit.
Note: You don’t need to revolve on credit cards to get a good score. Paying off the balance each month helps get you the best scores.
- A long credit history will help your score. Credit scores are based on experience over time. The more experience you have with getting credit and paying your bills on time, the more information there is to determine whether you are a good credit risk. Ania’s note: This tends to hurt international scholars the most, as you need a few years of good credit for it to be usable, even if you have a great score.
- Only apply for credit that you need. Credit scores look at your recent credit activity as an indicator of your need for credit. If you apply for a lot of credit over a short period of time, it may appear to lenders that your economic circumstances have changed negatively.