OMG...what horrible advice. It's people like you that cause others to lose their shirts investing.
50k Investment
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Some sanity thank you. There is no one "right" answer that can be given without an analysis of a person's risk tolerance and time horizon.
Hi there,
I thank those for the compliments, I hope that my post does help the OP.
I will reply to the post about proper investment professionals. I would respectfully disagree, not all investment professionals are individuals just looking to pump commissions and screw the client. Believe me, I have alot of problems with the industry and how it is structured. But there are folks who are dedicated, hard working, talented and not only want to make money themselves but for their clients too. For the record I do not work for any of the firms, but I do know folks who work with retail and they are hard working honourable people.
Also, i'd respectfully disagree that a zero cost collar is risk free.
Have a great weekend!
Goodguy
yeah dude what does that have to do anything? the only compnaies I reccommend are high quality juniors with great assets that are very well advanced, and it just so happens they have been in a bear market for the past 2 years and are trading extremely undervalued. companies with a NPV of close to a billion trading at less that 1/10 their NPV
I guess the mutual fund guys (with their book of 30 funds, pick "one") leave a bad taste in my mouth. Any time I've encountered real talent it wasn't being used to make money for other people.
Well it's as good as it gets (Certainly there is a risk of getting called away at a profit which I don't consider to be a risk. I suppose if the underlying was to be delisted and therefore become worthless but there would be plenty of warning signals, I've seen that happen but the protective put reaches maximum value first...). We also employ a slightly different method going out 18 to 20 months where the outcome is a mathematical certainly for 20 - 25% profit (realized only very near expiration).
Have a great weekend!
Nice advice to the OP. I echo both yours and John LaRue's comments. Diligence, thoroughness, patience and discipline are key for investing success...
The only self-respecting investment professional who will bother to give
advice on where to invest $50k I can think of is one of the mutual fund
agents (if they can even be called investment professional) from the likes
of Investors Group and Manulife. Perhaps a financial planner is what the
OP needs. I'd suggest the OP seeking out a personel in his bank first
assuming he has his money in one of the major banks like CIBC and RBC.
He won't get any sophiscated suggestions. But at least he will get to know
what options he has and he doesn't have to pay any fee.
Getting some basic financial planning in a bank branch is probably the easiest, and leaves you least prone to making a snap decision.
OP, when doing your research, no means no. Money is one of the worst things to make impulse decisions over. Ignore the sales pressure.
Unless we knew what the whole net woth statement of the OP is, and what the long term goal is, it's hard to give proper advice.
Your advice is terrible. Buying penny stocks is for people who can tolerate going to zero. It doesn't matter what you think of them. The OP can't verify a word of it, and may not know how to. You'd do your reputation a favour by stopping with the one size fits all high risk advice you like to give out.
Can't disagree with this. I also believe what I pay should be commensurate with
what I need. If I have $50k in one of the big banks say CIBC should I approach one
of the bankers in my branch for advice or would it be a better idea to turn to Wood
Gundy? The latter could charge several thousand bucks in service fee although they
probably won't even bother to take on me as a client to help with a $50k investment
portfolio.
Any decent banker in your branch (not one of the bank tellers but the more
senior staff in an office) will introduce you to the kind of investment vehicles the
bank provides. They may also offer you basic financial planning advice regarding
your financial future. These bankers generally do not work as fund agents for the
bank so it is not likely they will try hard to push you to buy any of the bank's mutual
funds. Information provided by the banker will merely be a starting point for you to
explore further options you have to invest your money.
Well my experience with this is two fold.
The bank has sent their best to meet with me on multiple occasions as I showed up on their radar a few times for having more than 4 or 5 figures in my checking account. I was polite, receptive, listened, but not at all impressed with anything they could offer to do for me. Most of their suggestions were pretty lame and the financial planner was embarrassed to even be suggesting them (given my level of knowledge), but I do still hear from him from time to time to ask my advice
Many people I know are so unhappy with anything provided by the banks (and the return they are getting) they want me to manage their money for them and I simply won’t (why would I?).
The bank has sent their best to meet with me on multiple occasions as I showed up on their radar a few times for having more than 4 or 5 figures in my checking account. I was polite, receptive, listened, but not at all impressed with anything they could offer to do for me. Most of their suggestions were pretty lame and the financial planner was embarrassed to even be suggesting them (given my level of knowledge), but I do still hear from him from time to time to ask my advice
Many people I know are so unhappy with anything provided by the banks (and the return they are getting) they want me to manage their money for them and I simply won’t (why would I?).
Hello there,
Thanks for the response, I'll add a different mix to what you wrote, just to show a different perspective.
I know working in a retail bank branch is a tough job but on average alot of the staff are mainly sales driven, thus they have mutual fund sales targets, GICs, new money in etc... thus the "free" advice is not really free as the no load mutual funds have a usually "closet index" manager or a higher associated MER. And lets be honest but they usually push past performance which doesn't necessarily mean alot. And to use CIBC (Not picking on them they were just used before) most of their retail branch staff wouldn't be CAs, CFAs or CFPs.
On the Gundy side it's a much trickier story, they are all pretty much independent advisors with just the "label" to market off. So one Gundy advisor would act differently from another. Thus I would seek out those who are well trained (CFAs, CAs, CFPs) plus some work off what's called a "fee based model", thus their comp is driven by increasing the base of assets. They make me more, they get paid more, they lose me relatively more money, i pay them for the period and leave. I've had lengthy conversations with friends who are retail advisors and this model seems the best.
Sorry to rant but I think I was reading somewhere that the CFP or CFAs are moving towards requiring all their members who serve retail to disclose ALL fees to clients. This is definately a healthy trend.
Hope this helps and best of luck!
Goodguy
I read an article once where a monkey outdid the "experts" in picking stocks in that particular year.
the truth is, he's better off there than u.s. govt bonds. My advice isnt terrible at all and I wouldnt invest all the 50k into "penny stocks" as you like to call em. If you know how to pick a grest company they arnt high risk at all. Of course there is risk, no risk no reward. One thing I can tell you, keep it as cash in a savings account and you will lose 20% purchasing power or more during the next decade unless you believe govt inflation numbers. the risky penny stocks are companies with zero assets looking for a mineral resource, the majority of those fail. The companies I invest in are the small minority that have run the gauntlet and are close to the finish line, stocks that are not penny stocks bc their market cap is too large. stocks that have a NPV of a billion dollars or more.
Is the money clear? Not an RRSP? I have my TFSA set up as a stock trading account. You can have up to 20500 as of this year. I use Scotia trade. Only like 9 bucks a trade. I'm mostly into incometrusts. Pay out monthly dividends totaling up to 10% per year if you hold them. If you monitor them weekly you can trade around for say 1% gains sometimes. Hold them around the monthly dividend time. And all moneys earned will be tax free. Forever.
Not sexy but steady growth.
And the monthy dividends have helped where I jumped the wrong way a couple of times.
Not sexy but steady growth.
And the monthy dividends have helped where I jumped the wrong way a couple of times.
Your advice is completely inappropriate for 90-95 % of all investors
It is certainly inappropriate for the OP.
It appears you are more interested in pumping up your ego than helping a novice investor
Not at all, I see firesale prices right now in the market and I want everyone to take advantage of it. the same thing happened in 2008/9, quality junior companies then rallied 10-20x in value during the next 2 years and now the sector has been hammered again a la 2009. bottom line is if you believe commodities are going higher these companies are a steal and are heading much higher. now, im a young guy so obviously I have a very high risk tolerance, my vanilla advice would be to have 10-20% of his portfolio in small caps and the rest id put in a high yielding energy trust. If he wants exposure abroad there are high yields abroad with solid companies. if he follows the conventional wisdom spread by the big banks and mainstream investment brokers he will get killed, these are the people who give out bad advice and sadly the chances are he will follow their advice. If he wants professional money management, I would reccommend europac canada, they have a diverse portfolio of funds geared towards commodities, and foreign stocks
My bad your right. It is the 5th year now with the 5000 limit per year raised to 5500 this year.
Either way showing some diligence and running your own has been benificial to me. I earned about 5% the last 2 months. Hopeful to keep it up and improve( not all my calls have been perfect) as time goes on.
