Investing

[pearl_toronto]

I have some money to invest I would love to have someone to help. Just open my first 2 compagnies in the last month.

in what should I invest. please come in private ?!

 

[Goodoer]

Open up your own trading account and buy ETFs that are indexed to the markets: TSX, Dow, S&P 500, NASDAQ. You'll get diversification all over the place. Put as much money as you can while you're young as you'll benefit substantially more from growth. Sit and wait.

I'd suggest you max out your TFSA room as you're young.

 

[oil&gas]

I suppose some money is not a lot of money.

Book an appointment with some banker in your
branch to open an investment account. The account
could be either a non-registered investment account
or registered account which could be a RRSP and/or
TFSA account. You can of course sign up for all three
type of accounts. You can get something like a guide
or handbook of investment products offered by your
bank.

Study the guide or whatever you are given thoroughly
before you decide what to invest in. Your banker
should be able to help you to figure out what level
of investment risk you are comfortable with. At this
time of rising interest rate the safest and most liquid
investment would be a money market fund or T-bill fund.
You may also consider parking your money in a
1 to 3 year GIC to take advantage of current rate which
may or may not drop next year.

All banks offer a monthly income fund and/or a
balanced fund which carry slightly higher risk than
a bond fund but lower risk compared with a stock
fund. For long term return you may consider investing
in such funds instead of fixed income products like GIC.

 

[pearl_toronto]

lol some money it’s really relative for me some money it’s 100k for some it’s 300$ ahahahaha. I will read this this week when I be free of time

 

[oil&gas]

Just one more thing.

If you have never invested in a TFSA account make sure you check
what your cumulative contribution limit is. Depending on your age
you are allowed to contribute anywhere between $6,000 and $88,000
to a newly opened TFSA account within this year. All the money earned
(interest + dividend + capital gain) in your TFSA account is tax free. However
you must remember you can't claim any capital loss incurred in the
account.

 

[poker]

Individual stocks are just that… companies like Google or Apple are blue chip

Funds… are groups of stocks.

You can purchase things like a market fund.
Example can be…
* TXE fund (Toronto Stock Exchange)
* An S&P500 Fund

If you are new to investing, the advantage of a Market Fund is, over the long run, the markets always go up. You don’t have to worry about guessing what individual stocks will perform the best, and which companies have peaked.

S&P500

 

[jeff2]

You can consider all in one etfs if you don't want the hassle. Vanguard and Ishares are both good.
I don't know what your risk tolerance is. If you want to use a financial advisor, try to find one that is a fiduciary(putting their clients' interests ahead of their own).

Asset Allocation ETF Showdown: Vanguard vs. iShares | Canadian Couch Potato

In the brief time they’ve been around, asset allocation ETFs have transformed the way DIY index investors manage their portfolios. These balanced funds have become the default choice, as it’s harder…

canadiancouchpotato.com

 

[Ceiling Cat]

QUOTE="lanah_montreal, post:
Just open my first 2 compagnies in the last month.



??? What two companies did you open?

Personally I am stepping back at this time. I believe that the worse times will be upon us in a short time. These was a recession due already in 2019 when the pandemic hit, we have been propped up by stimulus all this time. The countries of the world will have to pay for all the spending in the last two years on stimulus and medical care.

The short term future does not look bright. Consumer orders made to China is down 30% at this time, people are cutting back. You will see unemployment increasing in the new year. Even though I can still pick the gainers, the margins are getting thin. Your best choice at this time is to prepare for better times. Know the world economic conditions, know what you are investing in. In better times I spend 4 hours a day checking the market conditions and have done very well in the past. I am being cautious and still spending about 4 hours a day to know what the market condition are, but I think it is time well spent invested in the future.


QUOTE="poker,

If you are new to investing, the advantage of a Market Fund is, over the long run, the markets always go up. You don’t have to worry about guessing what individual stocks will perform the best, and which companies have peaked.




The buy and hold approach is fine for a portion of your portfolio, but I also like the submarine commander approach as well. I like to hunt and kill. These stocks should make a few bucks this week.


Augusta Gold Corp. (G.TO)
G2 Goldfields Inc. (GTWO.V)
Lundin Mining Corporation (LUN.TO)
Outcrop Silver & Gold Corporation (OCG.V)
Sigma Lithium Corporation (SGML.V)
Kolibri Global Energy Inc. (KEI.TO)
WesCan Energy Corp. (WCE.V)
First Hydrogen Corp. (FHYD.V)

 

[John_Jacob]

I have some money to invest I would love to have someone to help. Just open my first 2 compagnies in the last month.

in what should I invest. please come in private ?!

The following is my approach. YMMV.

Things to remember;

1) Be an investor, not a trader.
2) The dead or inactive investors have the best returns
3) If it's a good investment, why are you selling it? If you're selling it, why did you buy it to begin with?
4) Investing (not trading) is ultimately about self-control, controlling your greed & impatience.

For long term investing in Canada, there are only a few (15 to 20ish) long term stocks/companies that you'd want to purchase. This is my path - individual stocks. I don't think that would align with your time or interest though.

Assuming you want to spend the minimal amount of time on your investments, choose an ETF like VGRO which is pretty diversified & has a low annual cost. Open an account with Wealthsimple (free trades), open a TFSA account, a taxable account and a RRSP account. Fill your TFSA first, next - assuming you claim taxes - you can then fill your RRSP up to your limit.

Once that is done, choose a dividend ETF like ZEB and continue to invest in the taxable account. You want a dividend ETF in your taxable account because Income from Eligible Canadian Dividends in the taxable account are tax-free up to about $53K and are more tax-efficient than capital gains up to ~$130K-ish on a total tax (not marginal) basis. In addition, for up to $50K income, Eligible Canadian Dividends also provide negative non-refundable tax credits that you can use to reduce taxes on your RRSP/RIF withdrawals for when you depend on income your investments. If it helps, my income last year was ~$90K-ish and my tax rate was ~3%. The tax rate of $90K income would normally be in the range of 20%. That's the magic of dividends for income.

At a minimum, invest 10% of your annual income. Setup automatic withdrawal/automatic investing and put it on autopilot and forget you have them. Increase it when you can.

Resources

Financial Wisdom Forum - Index page

This forum is full of wickedly smart people. I'd go here first. They have a number of noob investor guides that are quite, quite good.

https://www.reddit.com/r/PersonalFinanceCanada/ (look under the Relevant Links section)
.....Reddit usually has come Camgirl asking what she should do with her $ so search the history.

 

[Ceiling Cat]

[QUOTE="John_Jacob,

The following is my approach. YMMV. Sometimes they vary by light years

Things to remember;

1) Be an investor, not a trader. If I am not a trader than I am a submarine commander ( hunt and kill strategy )
2) The dead or inactive investors have the best returns An overnight investor can have better returns ( see 24 hour results below )
3) If it's a good investment, why are you selling it? To make a quick profit If you're selling it, why did you buy it to begin with? To make a quick profit
4) Investing (not trading) is ultimately about self-control, controlling your greed & impatience. That applies to hit and run investing as well


24 hour results :

Augusta Gold Corp. (G.TO) +2.45%
G2 Goldfields Inc. (GTWO.V)--------------TBA
Lundin Mining Corporation (LUN.TO)--------------TBA
Outcrop Silver & Gold Corporation (OCG.V) +8.22%
Sigma Lithium Corporation (SGML.V) +2.92%
Kolibri Global Energy Inc. (KEI.TO) +3.29%
WesCan Energy Corp. (WCE.V)--------------TBA
First Hydrogen Corp. (FHYD.V) +7.10%

 

[John_Jacob]

All true if you have the time & expertise in a particular area - natural resources obviously being yours. Two thumbs up.

The questions is, how long can you time the market well when the vast majority (2/3rd minimum IIRC) of investors, both retail & individual, can't beat the index? You likely can but you must admit the vast, VAST, majority of people just can't due to lack of time or knowledge.

Taking your first stock - which I recognize - the compounded rate of returns for G since 2002 has been -86%-ish or -95% since 2010. This is using the link below so I'm open to be wrong but it's usually pretty good. I haven't checked your other ones because I'm lazy.

For comparison, taking a very boring stock like RBC (RY) and the annual returns since 1995 been +15% (as of today) which compares much better than the TSX at 5.53% over the same time period. Given those good rate of returns over a long time period, it's much easier to estimate what your RoRs will be and thus estimate how much you need to invest to meet a particular income goal over a period of time (10+ years). Again, while not worrying what the daily price is.

Compound Returns Calculator | Canada Stock Channel

compound returns calculator

www.canadastockchannel.com

It's much easier for the average person to purchase banks, telcos, utilities & pipelines - or per my original post ETFs that mirror indexes and provide good diversification - and stick with them rather than worry about daily buying and selling.

You're obviously a trader, not an investor and it would appear you're doing well with it. Keep up the good work.

 

[pearl_toronto]

ahaha natural ressources. love it 🤍

 

[John_Jacob]

ya, I had the same thought when writing it.

 

[Ceiling Cat]

All true if you have the time & expertise in a particular area - natural resources obviously being yours. Two thumbs up.

It is too simplistic to say that natural resources are the best investment, they are the best investment today. Oil was a good bet a month ago but it is no longer your best choice. My expertise is not in natural resources, I try to keep up on the market in every way that I can. Even to know that the tourist business in Las Vegas has improved from a year ago, but it has not returned to anywhere near what it was before the pandemic. Accommodation and restaurant prices in Las Vegas has sky rocketed and is driving tourist out. The situation is that things got better but they are just barely surviving at this time and waiting for better times. Retail sales worldwide are drastically down this year and one of the worse Christmas years of our lifetime is expected by big box stores.

You have to keep up with business news, the state of the economy and how the market is doing in order to make the best choices in stock picks. In other words, you must know the whole market.

 

[craig_hoxton]

Not crypto.

 

[John_Jacob]

Not crypto.

My 2 cents...Not crypto, not pot stocks, not 'renewables', not 'ESG', NOT NOT the latest craze that gets you all excited and makes everyone else but you $. Investing should be boring as shit. If you're excited about it, you're not investing. You're either Trading or Gambling.

 

[John_Jacob]

In other words, you must know the whole market.

Sounds like you're making the case for ETFs.

...as the 'bros' say on reddit, "VGRO is all you need".

 

[bver_hunter]

Crypto is a Ponzi scheme to a certain extent. If you invested at the right time in let's say Bitcoin by now you would have been a multimillionaire. But more and more warnings are rife about it including from this actor Ben McKenzie:

Watch: Actor rips crypto as 'largest Ponzi scheme in history' | CNN Business

Ben McKenzie, of "The OC" and "Gotham," has been one of the most outspoken critics of celebrities endorsing the cryptocurrency industry. Hear why he became a skeptic.

www.cnn.com

 

[John_Jacob]

Crypto is a Ponzi scheme to a certain extent. If you invested at the right time in let's say Bitcoin by now you would have been a multimillionaire. But more and more warnings are rife about it including from this actor Ben McKenzie:

Watch: Actor rips crypto as 'largest Ponzi scheme in history' | CNN Business

Ben McKenzie, of "The OC" and "Gotham," has been one of the most outspoken critics of celebrities endorsing the cryptocurrency industry. Hear why he became a skeptic.

www.cnn.com

True - 'greater fool' theory. I had read the other day if you invested 5 years ago, you were now under water.

To me, Crypto is basically another currency except it only has speculation behind it. If I don't explicitly trade currencies (we can't avoid the U$/C$ exchange), why would I buy Bitcoin/Crypto.

 

[Ceiling Cat]

Sounds like you're making the case for ETFs.

How did I make a case for ETFs? It is OK for some people but if you can make 5-20% a week why would you buy an ETF that pays 8-10% a year. I was once an inexperienced investor but I immersed myself in the stock market and in time I became quit proficient. I also have the advantage of being exposed to the stock market at a young age of 10 years old by my father and later from relatives in the financial world. With the internet anyone can learn how to invest.

On the matter of crypto, crypto is only valuable if there are people willing to buy it. They will only buy it if there is a possibility of a profit. Crypto have taken a bullet in the hip and laying on the side of the road bleeding and not sure if it will survive. If it does it will be a long road to recovery. You can compare crypto to Canadian Tire money, it only has value if Canadian Tire is still around to redeem it. How valuable is a store credit or voucher from Eaton's, Simpson's or Sears now?