| cupcake |
My friend got all upset at me yesterday since I'm not taking a greater role in investing my money, such as getting a financial advisor and getting bonds, mutual funds, etc. (Can you tell she's trying to recruit me for her portfolio as she's writing her cerification exams soon?) Currently, I have a GIA and have made contributions toward my RRSPs. My mom also bought me a bond or something but I don't take a proactive role in all that stuff. I'm a fairly low-risk person, and she called me "risk aversive" like it's the worst thing in the world.
As a background, I'm doing an internship right now but am going back to school for my last year come September. I have no debt. (You can all make fun of me for living at home, but it works for me.) I intend on going back to school for another degree and this one may not be in Edmonton.
Does anyone have any suggestions on what else I can do to ensure I am getting the most out of my money that's just sitting there? What did you guys do when you were in a situation similar to mine? And what is everyone doing to invest their money?
It'd be interesting to hear about investment options from people who aren't looking to make money off of me. |
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| STiPWR |
| Realestate, you will never lose money. |
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| Twigs_Dee |
quote:
Originally posted by STiPWR
Realestate, you will never lose money.
I wouldn't say never. If/when the crash comes. Never will be OMFG!!!!!!!! heh :dunno:
I have RSPs, Canada Bonds, a bit in "medium" risks in the stock and a Mutual... But I look at this way, invest lots now, so if things don't follow thru with what is starting to happen for me, I know my future is a lil more secure. I don`t want to retire and have to live off of $700 or whatever a month. I want CHA CHING!!!!!!!!!!!!! :thumbup: |
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| joshturbo |
| i put everything into my house, but now that i am done that i am going to start looking at stocks |
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| Graphicdude |
I have investments and RRSPs, something you should seriously think about starting. Like Twigs said, you don't want to retire and live off of 700 a month. It's never too early to start.
Get a financial advisor. I believe Got Boost (Mike) is one. He could help you out if you're interested. |
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| TrevorK |
I wouldn't call not being pro-active risk-adverse. You can still be pro-active in your investments while being risk adverse.
My recommendation would be to get together all that you have and speak to a professional in the field. They can help educate you on what your options are, what your risk tolerance is, etc.... and help you determine what your best path is.
Regardless of whether you're risk adverse or not you still need to be educated in what you have, what you could have, and why you have chosen what you have. |
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| 30psi_on4banger |
I am at a fairly high risk portoflio in my stocks/mutual funds. I purchase them myself and diversify very largely, Buy and hold for a long time. If the market goes down chances are it will turn around in my lifetime.
I also am just saving alot of money in GIC's for the next 2 years then I plan to buy a small apartment building ,
Longterm Appreciation + a little Monthly cashflow = :blue:
(will be investing in real estate down in ONT, not here. |
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| Beerking |
| Find out how much money you can do without per month ($10, $20, $100, $200) and put that into RRSP mutual fund each month. The more money you make the more you can put into RRSP. Also whatever cash you have lying around put into 30 day GIC, and re-invest it in everytime it matures. This way you are slowly building money, but if you come in a crunch you will not be without cash for more than 30days. Once you feel more comfortable with the amount of cash you have, throw some into some stocks (Id avise buying yourself and save money that way). Just research your stock choices, and do not buy out to early, even if you want to. If it goes down it will go back up like someone else said (unless that company goes broke then you fawked). You're young and can make mistakes and re-bound, but you cannot go broke when your 65+. |
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| Malaria |
| right now im doing currency trading, the profits from that are going to expand my trading account from a mini account to a full trade account, then the profits from the full account will go to a lower risk investment most likely mutual funds for retirement. |
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| ehos |
Don't buy mutual funds. The fees are too high. If you like index's, buy ETF's.
And it's a mistake to think that 'long term investing' is a sure thing. It's not. Look at the S&P + Dow Jones, going back 10 years you would've made 2-3% (believe it, check the charts).
If you paid Mutal Fund MER's in that time, you are in a big hole.
You have to know where you money is going, and if you do, why buy Mutual Funds? If you don't, open up an ICICI bank account and collect your 4.5%. |
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| CKXtreme |
I mix it up a bit. I have a condo, and I've invested quite a good sum into my business.
Outside of that, I have some money tied up into another real estate investment, I have a small RRSP, I'm invested within a couple stocks (including large Canadian Banks), I have some money held with professional forex trader (which I sign annual contracts, and reinvest the profits) and I trade forex on my own (something I just started and am learning).
I've been a big fan of multiple streams of income since I read the book of the same name, for about 4 years now, and am growing different accounts to draw on later down the road.
As for getting a professional advisor, is your friend willing to no-load any accounts you open with her?
I had mutual funds, they did nothing. Take ehos' advice on this one.
Useless tidbit of the day(feel free to stop reading if you don't dig this stuff):
Heres the way a mutual fund works, for any who may not know: A fund manager pools multiple accounts (thousands upon thousands) together to purchase multiple stocks within a series of parameters (ie: money markets, high risk, etc..). The concept is a good idea, as it uses investors money to leverage risk, thus being "safer" while still providing a gain. Except for the fact that this "management" has 3 flaws:
1. It costs money. The money it costs to manage this fund is directly removed from the profits, thus your return % is less.
2. Fund Managers rarely dive into an emerging stock until it has some proven results, at which time, its generally at or near the peak. This is in fear of taking a hit, and looking bad, or risky.
3. Any gains actually realized have to be divided amongst the thousands of fund holders, so the portion any one person would receive would be very minimal on one stock gain, thus most holdings would have to perform extremely well for any one person to actually notice a difference.
These 3 inherent disabilities basically cap the real gains from even the most "aggressive" fund holding mix.
Anyways...I'm done rambling.... |
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| Malaria |
| so with mutuals out of the picture since i want to get the most out of my investment. ETF's look interesting but im still trying to understand how to participate in it. im doing forex because there is alot of help on the net and in books. and it was super easy to start, it is also a very liquid market so i know right away if a trade is paying off. which in turn helps my risk management skills. i think in the mean time while im trying to decide how to re-invest the money i will just leave it in a high interest savings account. |
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| rocklee_86 |
quote:
Originally posted by ehos
Don't buy mutual funds. The fees are too high. If you like index's, buy ETF's.
And it's a mistake to think that 'long term investing' is a sure thing. It's not. Look at the S&P + Dow Jones, going back 10 years you would've made 2-3% (believe it, check the charts).
If you paid Mutal Fund MER's in that time, you are in a big hole.
You have to know where you money is going, and if you do, why buy Mutual Funds? If you don't, open up an ICICI bank account and collect your 4.5%.
I've never heard of a bank account paying out 4.5%. But even then, 4.5% return on your money is pretty poor....especially with a time horizion 10 years and up.
Personally, putting the majority of your money in a savings account is the least efficient thing you could do with your money, unless you need it now.
Also, the most basic fundamental rule of investing, diversification, relies on the idea that you DON'T know where your money is going. 99% of the greatest financial minds in the world would never argue against diversification.
Long term investing actually is as sure a thing as you'll ever see in the financial world....just ask Buffett.
10 years is not exactly long term...if you invested in mutual funds for 20 years, and made consistant deposits every month, you would have gained much more significantly (relative to your risk) then you would have had you invested in bonds/Tbills at almost any period of time since 1900. Also, your risk would have been lower with stocks.
Especially for a risk averse investor, I would at least 50% of your portfolio be inested in mutual funds. If you don't know enough about stocks or have enough money to divesrify properly, trading online will only kill your wealth. If you buy mutual funds and set up monthly deposits, and automatically re-invest your dividends, all you have to do is look at your monthly statements (if you want to). |
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| REFLUX |
quote:
Originally posted by Twigs_Dee
I wouldn't say never. If/when the crash comes. Never will be OMFG!!!!!!!! heh :dunno:
Real estate is a long term investment, if you invest in real estate short term, you have a greater chance of losing money (read: flippers).
Historically, real estate prices have increased with time.
Never is a inaccurate statement but when compared to other forms of investments, real estate is one of the most stable investments you can make. There are various types and styles of real estate investments available, some with higher (again, flipping) and some with lower risk profiles (read: raw land).
I would have to agree with Aaron on this one, Real Estate + "traditional" investments for diversification.
Speak with a financial planner, give "GOT BOOST" a PM.
If you want to talk a bit more about real estate investments, give me a PM. |
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| GOT BOOST |
quote:
Originally posted by cupcake
My friend got all upset at me yesterday since I'm not taking a greater role in investing my money, such as getting a financial advisor and getting bonds, mutual funds, etc. (Can you tell she's trying to recruit me for her portfolio as she's writing her cerification exams soon?) Currently, I have a GIA and have made contributions toward my RRSPs. My mom also bought me a bond or something but I don't take a proactive role in all that stuff. I'm a fairly low-risk person, and she called me "risk aversive" like it's the worst thing in the world.
As a background, I'm doing an internship right now but am going back to school for my last year come September. I have no debt. (You can all make fun of me for living at home, but it works for me.) I intend on going back to school for another degree and this one may not be in Edmonton.
Does anyone have any suggestions on what else I can do to ensure I am getting the most out of my money that's just sitting there? What did you guys do when you were in a situation similar to mine? And what is everyone doing to invest their money?
It'd be interesting to hear about investment options from people who aren't looking to make money off of me.
Good of your friend to kick you in the ass to get stuff started.
Too many people when they are young are of the mentality of "I will enjoy life now and save later" Blah, blah blah... fast forward 5, 10, 15 plus years and they are in the same situation.
There is a lot of mis information about the different investment options and the asset classes. It is best to hear it right from the horses mouth.
Best thing for you to do is seek independent advice from one to two more advisors. From there make your decision on who you want to work with.
You want to steer clear of advisors who are transactional and focus more on those who focus on wealth management.
A few things to look for when selecting an advisor is:
1) How do they paid.
2) What do they do for their clients
3) How often do they meet with their clients.
Hope this helps |
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| cupcake |
Wow, thanks guys. I thought this thread died.
I wouldn't say my friend got me started. I mean, as dependent as this sounds, my mom handles my investments and such. She hassles me for a certain amount every year and I give it up. No scrambling and no problems.
I guess I had problems taking advice from her because I know I am better at handling money (saving and spending) than she is. Why would I want to take advice about saving/investing money from someone who's not better off than I am? Assets included. It's like taking advice on how to live like a law-abiding citizen from one of my clients.
Well, this has been super informational. I'll go over all the replies in detail once I'm a little more focused.
Personally, I don't think mutual funds are worth it for me because I would be investing a low amount and the return percentage would be low (from what I understand). So after the pay out to the company, I'm thinking it would be sitting around the same return as putting it in a GIA or some sort of account. Right? Wrong? |
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| CKXtreme |
Mutual Funds= Wrong choice = Not necessarily.
From the sounds of it, someone like yourself, you dont seem to be too enthusiastic about the investing, you just know its a smart move, maybe a Mutual Fund would be better. Over the long haul (20-30 years +) you will see a much better return if you get a good professional who will possibly low-load or no-load (the latter generally hard to get) the funds for you. These are 2 terms for the commission base the agent will receive. You'll also want to kind of interview the person before you do any business with them. How often are they going to look over your accounts and suggest changes? How often will you hear from them? Take a generalized look at how successful they have been, as you're right - you probably shouldnt take health advice from someone who smokes, and you shouldnt take wealth advice from someone whos broke!
You wont become an instant billionaire of course, but I bet over that long haul, you'll see better returns then a GIC can provide.
I look at it this way: Why buy a bank product, when you can buy the bank? Meaning, why buy a GIC, when I can buy shares in the bank itself?.. Just an example, and MF's certainly can do that, and if you're not into keeping track, looking for trends, making the moves yourself, let some company do it for you.
I should make a point here, I rag on some styles of investing, and investment products simply because Ive been in and around the industry since I was 19, and have the education under my belt. Hell.. Its even something I debated getting back into professionally. |
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| AudiInProgress |
I like to blend it up and mix it with milk and protein powder...
Edit: Oh wait... You said inVest, not inGest, my bad... |
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| CKXtreme |
quote:
Originally posted by AudiInProgress
I like to blend it up and mix it with milk and protein powder...
Edit: Oh wait... You said inVest, not inGest, my bad...
Oh I ingest enough of my money.. Just not in the literal sense. F'in buying lunch everyday... FYI: Not a good savings strategy.
.. I just dont like leftovers and sandwiches. |
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| ehos |
"Where's the customers' yacht?"
Don't be a sucka.
http://www.marketwatch.com/news/sto...F11E830B6A21%7D
(Why buy funds when you can do the same exact thing for no fees? They list what they're buying, if you love Mutual funds, pick one, buy the same stocks, TA DA).
They tell you when they sell, they tell you when they buy, why pay them 2%/year? It's $5-10/trade that's it. If you have $100,000 you're handing over $2000 for a 'managers picks' that may or may not beat the index (if you're buying American stocks, then your fund is going to be worse than the index 99% of the time). EVERY SINGLE YEAR FOR THE REST OF YOUR LIFE. (2%MER is 'considered cheap', cheap for who?)
The time to BUY Mutual funds is when your company matches money, you'd be an idiot not to take advantage of free money.
Canadians are lucky however, our market is screaming hot, but guess what, most funds don't beat the index (not as bad as American funds, but still..) |
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