Business study

1.0        Current financial position and goals

1.1 Short term goals (0-2 years) are needs like holidays and low risk investments. A medium term goal is about 3-5 years for things like a job or car, and a long term goal is 10 years plus and is for things like a house or wealth growth (Moneysmart, 2023).

Ivan makes $450 a week as a student but has $16k HECS debt and a $10k car loan at 10.5% interest. His short term goals include saving for a $10k Europe trip, and his long term goals include saving for a house and his family in 10+ years (Rich, Interview, 2026).

2.0         Investment strategy

2.1 Pay off debt: Pay your car loan debt first because there is a very high interest rate at 10.5% which will cost an extra $1050 a year. You should use your inheritance money to pay it off completely. You should wait with your HECS debt because the government only charges a 0-4% interest rate when earning over $54 thousand (Rich, Interview, 2026).

2.2 superannuation: Ivan should add 30k from your inheritance into superannuation at the balanced option. This 70% growth will help with your long term goals like your house (Moneysmart, 2026).

2.3 Shares: Invest your remaining 160k into vanguard VAS ETF (ASX 300). With it diversified, you will get about 8-10% growth per year for your house fund which is safer than putting it all in 1 share (Moneysmart, 2026). With your weekly $450 pay, keep $300 for things like groceries, electricity and phone bills and more, and then invest $100 into shares every week. With your left over $50, keep that as change like buying stuff you see online or unexpected bills.

3.0       Proposed investment strategy

3.1 Investment strategy justification