I'm totally new to investments, need advice!

[eddie1]

I LOVE this! The OP has asked for financial advice and people have given it freely (and sometimes quite poorly), yet YOU say do not engage a financial advisor. Why? Because they are expensive? Because they are in it for themselves? Because they don't add value? Hmm, having been a financial advisor for over 20 years, I know that my clients are better off, having listened to my advice. And yes, they are content paying the fees I charge.

Now, frankly, a $5000 account isn't worth my time, but that doesn't mean there isn't an advisor who is starting out that wouldn't love to sit down and help the OP. Recognizing that on an equity mutual fund, he'll make a whopping $50/year.

Or he can go it alone - judging by his initial question and obvious lack of experience and knowledge, I'm sure he'll do soooo much better than he would if he consulted someone who's livelihood is dependent on providing reasoned and suitable advice.

Timbit

Do you work for a bank or are you independent? Could you provide an example portfolio for someone in their 30's with an annual salary of 80k? Thanks.

 

[Lady fisher]

I have been investing for years now

Say I have $5000 that I can set aside to invest in something.

The goal is to maximize the growth at the end of 5 years. What should I do?

And I now strictly find stocks that have interest in the times like now

I am invested with Canadian Solar since this past august and timed it relatively right

This stock has had it's ups and downs

I also protect my investment with put options and scale them up with market movement

Plus I create extra income with covered calls on the stock I own

This all takes a bit of practice and knowledge

This the KIP method knowledge is power

 

[lucky_blue]

And I now strictly find stocks that have interest in the times like now

I am invested with Canadian Solar since this past august and timed it relatively right

This stock has had it's ups and downs

I also protect my investment with put options and scale them up with market movement

Plus I create extra income with covered calls on the stock I own

This all takes a bit of practice and knowledge

This the KIP method knowledge is power

You are not investing, you are speculating.

Most people dramatically underestimate the risks of owning individual stocks. I'm not saying you should not gamble or speculate, if you have money you can afford to lose, you should be free to do as you wish. Just don't confuse it with investing.



http://gallery.mailchimp.com/6750fa...s/The_Capitalism_Distribution_12.12.12_1_.pdf

 

[lucky_blue]

I LOVE this! The OP has asked for financial advice and people have given it freely (and sometimes quite poorly), yet YOU say do not engage a financial advisor. Why? Because they are expensive? Because they are in it for themselves? Because they don't add value? Hmm, having been a financial advisor for over 20 years, I know that my clients are better off, having listened to my advice. And yes, they are content paying the fees I charge.

Now, frankly, a $5000 account isn't worth my time, but that doesn't mean there isn't an advisor who is starting out that wouldn't love to sit down and help the OP. Recognizing that on an equity mutual fund, he'll make a whopping $50/year.

Or he can go it alone - judging by his initial question and obvious lack of experience and knowledge, I'm sure he'll do soooo much better than he would if he consulted someone who's livelihood is dependent on providing reasoned and suitable advice.

Timbit

A good advisor can add up to 3% to client returns. The problem is that most advisors are not good advisors. Less than 5% in my opinion.

 

[newanda]

Fees are too high for mutual funds and a single stock is absolutely investing.

ETF funds like Vanguard are way better than mutual funds.

LMAO

An ETF is not a mutual fund!
One is passive crap (vanguard being the worst)
the other is active.

 

[Denmae]

LMAO

An ETF is not a mutual fund!
One is passive crap (vanguard being the worst) is
the other is active.

Maybe you should learn to comprehend what you read.

No where did I say an ETF is a mutual fund.

 

[Denmae]

Buy a Mutual fund, a single stock is not investing

So owning 1 share of Apple is not investing ?

 

[katsrin]

So owning 1 share of Apple is not investing ?

Or a single share of Berkshire Hathaway Inc. (BRK-A), only $196,000!

 

[Barca]

So owning 1 share of Apple is not investing ?

I kind of agree with him. I wouldn't call that investing. I'd call that speculating.

Investing to me means a diligent and prudent effort in the use of capital to make it grow. If it's not diligent and prudent it's not investing, it resembles something more like gambling.

 

[GPIDEAL]

http://www.warrenmackenzie.ca/resources/


(Plenty of investor tools and even an article for DIY investors or traders).

 

[Indiana]

Im going to put all my money under King Koil.

 

[asian_sampler]

I'm curious as to how you guys feel about investing in a start up company?

My thoughts ??? I could do worse with $5000 like line the pockets of SP'S & MPA'S :frusty:

 

[andydude]

I'm curious as to how you guys feel about investing in a start up company?

My thoughts ??? I could do worse with $5000 like line the pockets of SP'S & MPA'S :frusty:

startups are likely the riskiest bet u can make, wether a public or private startup company is going to provide for an ample amount of risk. that risk might be worthwhile so its really up to the individual. for 5k, u could also invest 1k into 5 public tech stocks for instance and hedge your bets (if u wanted to invest in startups that is)

 

[Yoga Face]

When you buy a individual stock you are competing against brilliant grads from business schools with computer models and that is like a novice playing poker against Texas Slim - you got no chance

but if you insist buy a blue chip with preferred shares that reinvest their dividends and hold

my 2 cents

 

[lucky_blue]

When you buy a individual stock you are competing against brilliant grads from business schools with computer models and that is like a novice playing poker against Texas Slim - you got no chance

but if you insist buy a blue chip with preferred shares that reinvest their dividends and hold

my 2 cents

Bad advice - especially for non taxable accounts.

 

[Barca]

When you buy a individual stock you are competing against brilliant grads from business schools with computer models and that is like a novice playing poker against Texas Slim - you got no chance

but if you insist buy a blue chip with preferred shares that reinvest their dividends and hold

my 2 cents

Canadian Prefs took a 20% hit last year. That wouldn't have been the move to make.

 

[barnacler]

For Pete's sake, with Discount Brokerage accounts he could buy say 10 stocks for maybe $70 in commissions. so yes with $5,000 he COULD have a diversified portfolio.

Buy 4 boring Canadian stocks, 4 American, a global EFT and an Emerging market EFT and you are good to go.

Never ever watch BNN.

but one person mentioned that "investing' for 5 years is not really investing. Investing should probably be with a time horizon much longer.

Brilliant grads? LOL, what a crock. Investing just takes common sense and patience. Nothing whatsoever to do with computers or models.

Take a look for instance at Intact Financial. Symbol IFC on the TMX. Property insurance. You gotta have it. It's boring, profitable, occasionally there are disasters, they pay out then raise their rates.

http://www.intactfc.com/English/investors/events-and-presentations/default.aspx

Buy 7 or 8 companies like that in different industries. Nothing speculative. Just boring plodders. Then do nothing for 20 years.

http://web.tmxmoney.com/charting.php?qm_page=18671&qm_symbol=IFC