DavidH wrote:... the mutual fund returns that they've shown me have always been below GIC's which are guaranteed.. gah.
jareds wrote:Second, GICs vs mutual funds. I agree that with EvanED that you should at least strongly prefer index funds if you look at stock mutual funds. However, I say bond mutual funds can also be considered.
EvanED wrote:Yes, I have a mix of stocks and bonds (though nearly all stocks because I'm both young and crazy); I didn't mean to imply you should put everything into stocks. My impression is that even mutual funds that are a mix of bonds and stocks are still usually called index funds if the term applies to the stock portion, though you should check that out. My main point is to be very wary of managed funds.
LikwidCirkel wrote:One thing is certain though - if some crisis was to happen tomorrow that drastically affects our digital money system, physical assets and gold in your own personal safe are obviously superior to anything intangible.
DavidH wrote:Growing up and having an actual income has led me to a problem. I had always just stored my money in a savings account, but the returns are terrible. My account gives me only 0.3% interest (at the bank of Montreal). This is obviously far below inflation, but it has been convenient so far. I looked into other Ontario banks, and the best savings account I could find was 1.34%. Better, but still (far) below inflation.
Or should I withdraw it all and make a fort out of $5 bills?
DavidH wrote:And I don't mean under the bed!
Growing up and having an actual income has led me to a problem. I had always just stored my money in a savings account, but the returns are terrible. My account gives me only 0.3% interest (at the bank of Montreal). This is obviously far below inflation, but it has been convenient so far. I looked into other Ontario banks, and the best savings account I could find was 1.34%. Better, but still (far) below inflation.
I'm wondering if there's a better way? I don't even need my money to grow, I'd just rather it not lose value. This is when I regret not taking an economics class in university! I have about $55,000. Of that I need $25,000 to be readily accessible and safe, so that has to go into a savings account. I can tie up the rest any way I'd like, and I'm willing to be risky with at most $20,000. I've gone to various banks asking for advice on investing into mutual funds but they've all given me different answers (always recommending their own), and the mutual fund returns that they've shown me have always been below GIC's which are guaranteed.. gah.
I'm not opposed to researching this myself, but I can never figure out where to start. Every time I think I have a grasp on mutual funds I discover some hidden fee or gotcha. Is there some book that gives a straightforward summary of mutual funds (which is ideally applicable to Ontario law)? Or an actual trustworthy institution that I can take advice from? Or am I better off just keeping everything safe in a bank account? Or should I just pour it all into GICs? Or should I withdraw it all and make a fort out of $5 bills?
AvatarIII wrote:can't you buy an apartment and rent it out or something? as long as rent pays for you mortgage repayments, you would be set with a real asset rather than just money in the bank.
Jorpho wrote:By the way, how is Universal Life Insurance (yes, that's what it's called) as an investment tool? I never could find straight advice about that.
A simple way to get into the stock market is to pick a low stake and put it into a single FTSE100 company using u-trade or similar (fictitious trading company used to avoid accusations of bias). Now, just play the ups and downs. Sell as soon as the value exceeds your threshold, then wait for it to come down. That way you can learn the particulars of your chosen trader and get a feel for the process at a relatively low risk.Adacore wrote:From a UK perspective, my money is in a mixture of fixed-term bonds, a cash ISA (tax-free savings account) and an online savings account. I would like to expand my profile a little to include some stuff with a fair bit more risk (I'm on the very low risk end at the moment, obviously), but I don't want to lock my money up for too long, and most stock/share based options recommend leaving your money there for at least 2 years. I guess I could just try to get directly into the stock market myself, but I'm not sure I want to devote the effort that would entail.
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