I was wondering how all of you invest your money. Or do you guys just have savings accounts? lol I wanna open up a stock portfolio but have no idea where to start. Should I go to the bank? lol
If I were you, I would start off with mutual funds to test the waters first. After you have built up some assets through mutual funds, cash it out and invest it into stocks.
If you are looking to trade, then I would suggest going through online discount brokers because the commission fee is alot cheaper compared to the banks. But then again, you would have to be an active trader for this to work.
If you want an advisor to trade for you, you'll need to have at least $100k+ of assets to be considered.. I'm even lowballing that number.. should be more like $250k+.
If you want an advisor to trade for you, you'll need to have at least $100k+ of assets to be considered.. I'm even lowballing that number.. should be more like $250k+.
:sad: I was thinking more along the lines of $1000 to start and than gradually increase into wtvr im investing in depending on how it goes, I dont want to invest my entire savings considering the current economy .. so i can technically trade online too right? but i was checking out eTrade a few days ago and you have to pay monthly fees...
What are my options when considering mutual funds and GICs..and what are the average rate of returns on these?
mutual funds 8-12% (not guaranteed), GICs....3-5% (guaranteed but locked in)
you can get a mutual fund without paying any fees, but if you withdraw it within like 7 years, they'll charge you up to 7% withdrawal fee, but it depends how they want to do it. mine had a decreasing fee..like 6 or 7% if you withdraw in the first year, then it dropped by about a % every year.
and you dont need $100K+ to invest. i think the minimum is like $500 actually. well, any less than that and they'll give you your money back and close your account. there are also things where you can invest some money monthly..can have them take it straight from your bank account if you want. forget what those are called..
anyway. lots of options. talk to an financial advisor..they'll tell you your options. just don't let them pressure you into anything! maybe talk to your 'rents or something before making a big investment.
you can get a mutual fund without paying any fees, but if you withdraw it within like 7 years, they'll charge you up to 7% withdrawal fee, but it depends how they want to do it. mine had a decreasing fee..like 6 or 7% if you withdraw in the first year, then it dropped by about a % every year.
I'm not sure where you get your information from but if you invest in mutual funds, you have to pay fees. There is a fee thats called the MER (management expense ratio) which is a percentage (varies from 1-3%, depend what fund) that will go towards management expenses. This will be deducted from your assets within your fund.
The fee you are referring to is called a "sales charge" and the one you have is called the "deferred sales charge (DSC)" or "back-end load". The back-end load will be charged at redemption and yes it will diminish through time; however, thats only because they make it back from the MER through time. You have the option to have a "front-end load" where you will be charged when you buy. Make sure your financial advisor explains the different types to you..theres more than those two I've mentioned.
and you dont need $100K+ to invest. i think the minimum is like $500 actually. well, any less than that and they'll give you your money back and close your account. there are also things where you can invest some money monthly..can have them take it straight from your bank account if you want. forget what those are called..
You'll need $100k+ to invest if you want an investment advisor in a boutiques firm like Canaccord Capital. For those that don't know what a boutiques firm is, they basically pick out stocks from various sectors tailored to a client's risk profile and goals... so every client has a different portfolio. This kind of service is quite specialized hence they have minimum net worth requirements for it to be worthwhile for them.
And yes, mutual funds you can start with as low as $500 lump sum. Or $50 PAC (preauthorized chequing) because its pooled money managed by professional portfolio managers. You have less say of what to invest in in mutual funds, but its a good way for new investors to build up assets because its less risky compared to cherry picking stocks... as well, new investors usually have less money to work with, hence if you went directly to the stock market, you may be able to buy a couple of shares in a blue chip stock or something... haha.
:sad: I was thinking more along the lines of $1000 to start and than gradually increase into wtvr im investing in depending on how it goes, I dont want to invest my entire savings considering the current economy .. so i can technically trade online too right? but i was checking out eTrade a few days ago and you have to pay monthly fees...
What are my options when considering mutual funds and GICs..and what are the average rate of returns on these?
The monthly fees/commission charges you pay through online discount brokers is significantly less compared to the banks. You could look into other discount brokers like TradeFreedom, Interactive Brokers, and Questrade. Plus, ETrade is bought out by Scotia, not sure what the future holds for Etrade.
There are so many mutual funds out there, its difficult to explain all the options you have. As for GICs, the returns are so low after you factor in the inflation rate, you either lose buying power or break-even... in my opinion, its not worth the time.
On top of that, some GICs work in a simple interest format, hence you do not get the compound interest effect.. so that will definitely effect your bottom line too.
Well dont most of the GICs work that way? I know for sure my 1 year one is like that (locked in at 1 year @ fixed rate from time it was locked in) The GICs were I can take my money back after 1 month = compound interest rate in that the interest rate shifts with market value after each month, and is the interest is paid out after each month.
I'm not sure where you get your information from but if you invest in mutual funds, you have to pay fees. There is a fee thats called the MER (management expense ratio) which is a percentage (varies from 1-3%, depend what fund) that will go towards management expenses. This will be deducted from your assets within your fund.
The fee you are referring to is called a "sales charge" and the one you have is called the "deferred sales charge (DSC)" or "back-end load". The back-end load will be charged at redemption and yes it will diminish through time; however, thats only because they make it back from the MER through time. You have the option to have a "front-end load" where you will be charged when you buy. Make sure your financial advisor explains the different types to you..theres more than those two I've mentioned.
You'll need $100k+ to invest if you want an investment advisor in a boutiques firm like Canaccord Capital. For those that don't know what a boutiques firm is, they basically pick out stocks from various sectors tailored to a client's risk profile and goals... so every client has a different portfolio. This kind of service is quite specialized hence they have minimum net worth requirements for it to be worthwhile for them.
And yes, mutual funds you can start with as low as $500 lump sum. Or $50 PAC (preauthorized chequing) because its pooled money managed by professional portfolio managers. You have less say of what to invest in in mutual funds, but its a good way for new investors to build up assets because its less risky compared to cherry picking stocks... as well, new investors usually have less money to work with, hence if you went directly to the stock market, you may be able to buy a couple of shares in a blue chip stock or something... haha.
err.. is that MER taken off the interest accumulated, or regardless if you're making money? i think i've been terribly misinformed. bastards got me good :p
and yah.. PAC, that's what i was thinking of... oh well. i'll keep my nose out of finances and stick with what i'm good at :)
Well dont most of the GICs work that way? I know for sure my 1 year one is like that (locked in at 1 year @ fixed rate from time it was locked in) The GICs were I can take my money back after 1 month = compound interest rate in that the interest rate shifts with market value after each month, and is the interest is paid out after each month.
Yeah, thats why I said some are and some aren't. So its important to know what you have because it will affect your bottom line.
By the way, what is the guaranteed return on your GICs if you do not mind me asking.
err.. is that MER taken off the interest accumulated, or regardless if you're making money? i think i've been terribly misinformed. bastards got me good :p
and yah.. PAC, that's what i was thinking of... oh well. i'll keep my nose out of finances and stick with what i'm good at :)
MERs are taken off regardless if you're making money. For example, if your average return is say.. 10% and your MER is 2%, your posted return would be 8%.
Just remember that you have to pay to use other people's expertise, in this case it is the portfolio manager's. It can be a good and bad thing that is why you need to know who the portfolio manager is and what he plans on doing with his portfolio. Your financial advisor should be updated with that information. If you have a good portfolio manager, sometimes paying a little more MER isn't so bad because the portfolio manager will help you achieve higher returns compared if you invested the money yourself on the stock market.
Don't worry, I don't mean to point out your mistakes. Just wanted to properly inform you! :angel:
How about bonds??? more specifically..CSB's...good returns?
Well, since your young, these guaranteed investment vehicles just do not cut it. Usually guaranteed investments will give you low returns because its guaranteed; however, at the moment bonds and perhaps CSBs may look attractive, but that's not going to be the case once the market rebounds. Another point to make is bonds work in an inverse relationship. When interest rate drops, bonds are more attractive and vice versa. The reason being is if the interest rate drops, newly issued bonds would be issued at relatively the same level as the new interest rate, therefore the bond you purchased before would be more attractive. On the other hand, if interest rates rise, then the bond you have purchased would be less attractive because if your bond yields say..5%.. and the interest raise rises to 10%.. newly issued bonds would yield a 10% hence making your bond less attractive. At the moment, there's quite a bit of uncertainty going on; however, if nothing big changes (e.g. bailout plan to be passed or housing prices go up again) then we should expect the Feds to cut rates.
The reason I say age or time horizon matters is you have lots of time to weather out market risk, so why not be a bit more aggressive now when you can?
I see what you mean.....theres too many options to choose from and im only willing to put down ~1000$ for now. Isnt there any reliable penny stocks i can look into?
I see what you mean.....theres too many options to choose from and im only willing to put down ~1000$ for now. Isnt there any reliable penny stocks i can look into?
haha. Certain banks down in the states can be considered penny stocks now..lol. Honestly, if you are only willing to put down $1000, you should just stay away from the stock market. Your best choice would be mutual funds.
say i manage to get my hands on some aig stocks...lol there way down now and there bound to bounce back eventually...so isnt there potential to make a lot of money? im not sure if this is right but these stocks are trading at like 6 dollars, when they were originally 60-70 dollars but realistically i guess ill look into mutual funds a bit.
say i manage to get my hands on some aig stocks...lol there way down now and there bound to bounce back eventually...so isnt there potential to make a lot of money? im not sure if this is right but these stocks are trading at like 6 dollars, when they were originally 60-70 dollars but realistically i guess ill look into mutual funds a bit.
Sure, but you are basically just gambling rather than investing since you have no idea where AIG is going. If you are intrigued about investing in specific companies, make sure you understand their business first. Do not invest with emotions because emotions is one of the major drivers to this market turmoil right now.
say i manage to get my hands on some aig stocks...lol there way down now and there bound to bounce back eventually...so isnt there potential to make a lot of money? im not sure if this is right but these stocks are trading at like 6 dollars, when they were originally 60-70 dollars but realistically i guess ill look into mutual funds a bit.
LOL i got into aig at $1.52 they are at 1.14 now brb getting bent over
Website revenue has a big thing to do with the amount of traffic it recieves. According to stats from Compete, Google gets approximately 135 million visitors per month, while Yahoo gets about 130 million. Even if these numbers are off, Yahoo has established itself as the second largest search engine (which is why Microsoft tried to buy them at $35 a share in 2008). It's only a matter of time before Yahoo begins to monetize this traffic more effectively...if they can't figure out how to do that, Microsoft will.
It's at 12.81 right now, which in my opinion is a lot less that what Yahoo is potentially worth.
Comments
If you are looking to trade, then I would suggest going through online discount brokers because the commission fee is alot cheaper compared to the banks. But then again, you would have to be an active trader for this to work.
If you want an advisor to trade for you, you'll need to have at least $100k+ of assets to be considered.. I'm even lowballing that number.. should be more like $250k+.
pm me if you wanna learn more.
mutual funds are probably good...if you've got like 7+ years on your hands.
so i can technically trade online too right? but i was checking out eTrade a few days ago and you have to pay monthly fees...
What are my options when considering mutual funds and GICs..and what are the average rate of returns on these?
you can get a mutual fund without paying any fees, but if you withdraw it within like 7 years, they'll charge you up to 7% withdrawal fee, but it depends how they want to do it. mine had a decreasing fee..like 6 or 7% if you withdraw in the first year, then it dropped by about a % every year.
and you dont need $100K+ to invest. i think the minimum is like $500 actually. well, any less than that and they'll give you your money back and close your account. there are also things where you can invest some money monthly..can have them take it straight from your bank account if you want. forget what those are called..
anyway. lots of options. talk to an financial advisor..they'll tell you your options. just don't let them pressure you into anything! maybe talk to your 'rents or something before making a big investment.
The fee you are referring to is called a "sales charge" and the one you have is called the "deferred sales charge (DSC)" or "back-end load". The back-end load will be charged at redemption and yes it will diminish through time; however, thats only because they make it back from the MER through time. You have the option to have a "front-end load" where you will be charged when you buy. Make sure your financial advisor explains the different types to you..theres more than those two I've mentioned. You'll need $100k+ to invest if you want an investment advisor in a boutiques firm like Canaccord Capital. For those that don't know what a boutiques firm is, they basically pick out stocks from various sectors tailored to a client's risk profile and goals... so every client has a different portfolio. This kind of service is quite specialized hence they have minimum net worth requirements for it to be worthwhile for them.
And yes, mutual funds you can start with as low as $500 lump sum. Or $50 PAC (preauthorized chequing) because its pooled money managed by professional portfolio managers. You have less say of what to invest in in mutual funds, but its a good way for new investors to build up assets because its less risky compared to cherry picking stocks... as well, new investors usually have less money to work with, hence if you went directly to the stock market, you may be able to buy a couple of shares in a blue chip stock or something... haha.
There are so many mutual funds out there, its difficult to explain all the options you have. As for GICs, the returns are so low after you factor in the inflation rate, you either lose buying power or break-even... in my opinion, its not worth the time.
The GICs were I can take my money back after 1 month = compound interest rate in that the interest rate shifts with market value after each month, and is the interest is paid out after each month.
and yah.. PAC, that's what i was thinking of... oh well. i'll keep my nose out of finances and stick with what i'm good at :)
By the way, what is the guaranteed return on your GICs if you do not mind me asking.
Just remember that you have to pay to use other people's expertise, in this case it is the portfolio manager's. It can be a good and bad thing that is why you need to know who the portfolio manager is and what he plans on doing with his portfolio. Your financial advisor should be updated with that information. If you have a good portfolio manager, sometimes paying a little more MER isn't so bad because the portfolio manager will help you achieve higher returns compared if you invested the money yourself on the stock market.
Don't worry, I don't mean to point out your mistakes. Just wanted to properly inform you! :angel:
The reason I say age or time horizon matters is you have lots of time to weather out market risk, so why not be a bit more aggressive now when you can?
Isnt there any reliable penny stocks i can look into?
there way down now and there bound to bounce back eventually...so isnt there potential to make a lot of money? im not sure if this is right but these stocks are trading at like 6 dollars, when they were originally 60-70 dollars
but realistically i guess ill look into mutual funds a bit.
http://finance.yahoo.com/q?s=AIG
glad you didnt get into AIG now dontcha =D
brb getting bent over
fucking economy
Website revenue has a big thing to do with the amount of traffic it recieves. According to stats from Compete, Google gets approximately 135 million visitors per month, while Yahoo gets about 130 million. Even if these numbers are off, Yahoo has established itself as the second largest search engine (which is why Microsoft tried to buy them at $35 a share in 2008). It's only a matter of time before Yahoo begins to monetize this traffic more effectively...if they can't figure out how to do that, Microsoft will.
It's at 12.81 right now, which in my opinion is a lot less that what Yahoo is potentially worth.
and lost a bunch on nyse:aig and nyse:fnm
i`m waiting for the Q1 to come out for aig and fnm, they might spike again
i can't remember how much i started with, but i know it was less than that