Investing

Small Investment advice

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  • Jul 27th, 2012 5:48 am
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[OP]
Newbie
Jul 24, 2012
49 posts

Small Investment advice

Hi there im a 20 year student I have around 10000$ that I would like to invest but I'm not sure what I should do with it. I want to invest mostly long term ranging. from 3-20 years. I was thinking index mutual funds and some stocks. I want to make a lot of money hopefully double what I invested so duration is open for anything. I'm currently at rbc and thinking of opening a DI account but I also might apply to TD I don't know of the eseries is suitible for what I'm trying to do.
16 replies
Newbie
Jul 23, 2012
9 posts
1 upvote
WHITBY
Screen some mutual funds with high dividend payouts. I'm 23 and currently own around the same amount as you, in 3 different mutual funds that pay monthly dividends of between 9-14% (annualized), and i have it set up to reinvest whatever dividends are paid.

I use TD and create my own screeners on their webbroker website, im sure RBC has the same type of screeners - one of my mutual funds is actually the RBC monthly income mutual fund
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Jun 26, 2005
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My best advice: Get an education on investing. REAL one, not just from books. They teach you all the wrong things.
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raxdax10 wrote:
Jul 25th, 2012 4:14 pm
Hi there im a 20 year student I have around 10000$ that I would like to invest but I'm not sure what I should do with it. I want to invest mostly long term ranging. from 3-20 years. I was thinking index mutual funds and some stocks. I want to make a lot of money hopefully double what I invested so duration is open for anything. I'm currently at rbc and thinking of opening a DI account but I also might apply to TD I don't know of the eseries is suitible for what I'm trying to do.
If you're interested in TD e-Series index funds, at TD Canada Trust you can set up a pre-authorized purchase plan (PPP) for as little as $25 per fund on a regular basis.
Deal Addict
Nov 26, 2005
3085 posts
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Vancouver
raxdax10 wrote:
Jul 25th, 2012 4:14 pm
Hi there im a 20 year student I have around 10000$ that I would like to invest but I'm not sure what I should do with it. I want to invest mostly long term ranging. from 3-20 years. I was thinking index mutual funds and some stocks. I want to make a lot of money hopefully double what I invested so duration is open for anything. I'm currently at rbc and thinking of opening a DI account but I also might apply to TD I don't know of the eseries is suitible for what I'm trying to do.
if a double is all you ask for 20 years, go for high rate interest account/high yield bond fund. all you need is 3.5% per year to get it.

also be aware of mutual funds, they tend to payout return of capital in distribution to make it looks like high yield. return of capital is not income. it is not money earned by the fund.
[OP]
Newbie
Jul 24, 2012
49 posts
ccyk wrote:
Jul 25th, 2012 5:23 pm
if a double is all you ask for 20 years, go for high rate interest account/high yield bond fund. all you need is 3.5% per year to get it.

also be aware of mutual funds, they tend to payout return of capital in distribution to make it looks like high yield. return of capital is not income. it is not money earned by the fund.
well 2x is good but if i can get even more ill deff want to do that. I'm just curious do you think it is smart for me to invest at this age with $10000? Will i get good returns for investing such a small amount at this age?
Deal Addict
Aug 28, 2010
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matthook wrote:
Jul 25th, 2012 4:26 pm
Screen some mutual funds with high dividend payouts. I'm 23 and currently own around the same amount as you, in 3 different mutual funds that pay monthly dividends of between 9-14% (annualized), and i have it set up to reinvest whatever dividends are paid.
Are you sure you aren't making the same mistake rfdrfd is making and confusing distribution and dividend? Because those dividend yields seem extremely unlikely.


market-update-1195114/2/#post15094803
Deal Addict
Aug 28, 2010
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raxdax10 wrote:
Jul 25th, 2012 5:55 pm
well 2x is good but if i can get even more ill deff want to do that. I'm just curious do you think it is smart for me to invest at this age with $10000? Will i get good returns for investing such a small amount at this age?
One of the first questions you need to ask is why you are investing?


Is it for retirement? Save for a home? Or some other reason?

Just investing without knowing why is never good. Only when you know why you are investing and if you should be investing, can you start to determine what the appropriate investments are.
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Aug 21, 2007
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FunSave22 wrote:
Jul 25th, 2012 9:22 pm
Are you sure you aren't making the same mistake rfdrfd is making and confusing distribution and dividend? Because those dividend yields seem extremely unlikely.


market-update-1195114/2/#post15094803
thats what im wondering b/c i doubt any mutual fund is giving that kind of dividend yield
[OP]
Newbie
Jul 24, 2012
49 posts
FunSave22 wrote:
Jul 25th, 2012 9:25 pm
One of the first questions you need to ask is why you are investing?


Is it for retirement? Save for a home? Or some other reason?

Just investing without knowing why is never good. Only when you know why you are investing and if you should be investing, can you start to determine what the appropriate investments are.
I'm investing just to make more money
[OP]
Newbie
Jul 24, 2012
49 posts
would buying telus bell or rogers stock be good for me?
[OP]
Newbie
Jul 24, 2012
49 posts
I was also wondering whether i should stick with rbc my main bank or go to TD any suggestions?
Deal Addict
Aug 28, 2010
3521 posts
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Halifax
raxdax10 wrote:
Jul 26th, 2012 1:11 am
I'm investing just to make more money
You need a better reason than that.

There's a huge difference between investing for 3 years and investing for 20 years. The length of time is going to have a large impact on your asset allocation and risk tolerance. So you need to figure out how long your are investing and that usually highly depends on why you are investing.
Newbie
Oct 24, 2010
79 posts
4 upvotes
I've been getting my investing education on books and on youtube, where do I get a REAL education on investing?

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