Personal Finance

What To Invest In Terms Of Mutual Funds. 20yr Old With 12,000$

  • Last Updated:
  • Oct 22nd, 2012 11:19 am
[OP]
Newbie
May 25, 2012
17 posts
Toronto

What To Invest In Terms Of Mutual Funds. 20yr Old With 12,000$

hey guys,

i need advice in investing some money that's just sitting in my bank account. i just turned 20. and have 12 000 dollars that am willing to invest.

what suggestions can you guys give me.

i was thinking about starting to invest in retirement.

dont really like the idea of GIC's and having your money locked. if the interest rate is relativity high, i have no problem.

i have thought about gold. but at this point, not really.

thank you for your suggestions.
8 replies
Deal Addict
User avatar
Jun 14, 2012
1717 posts
150 upvotes
Maybe the ING streetwise funds? It's a balanced index fund that they rebalance automatically so you don't have to do anything.
Deal Expert
User avatar
Feb 11, 2009
17580 posts
4554 upvotes
Toronto
Because of your age, you should be more accepting of risk IMO. Have you ever considered stocks? I would invest the money in a high paying dividend stock with growth potential. My favourites are the canadian banks as well as the oil sands.
Real Estate Agent, MAcc, CPA, CA
[OP]
Newbie
May 25, 2012
17 posts
Toronto
******* wrote: is this money you will need in the next year, 2 years, 5 years? etc?

No school debt?

correct no school debt, this money will not be needed in the near future.
Deal Fanatic
User avatar
Jun 26, 2005
9960 posts
1836 upvotes
Toronto
First advice, learn how to invest, get an education. Don't believe everything you read in the books or websites. See for yourself in person. Learn about risk management.

Congrats on having sooo much money. Be careful of losing much of it, if you don't learn how to really invest in this market.

What funds? I say none of them. Just do ETFs and do a balanced approach if you don't know what to pick. Canadian, USA, bonds, Emerging markets, etc (google this approach and %). But then again, you should know WHEN to buy into these. Market timing is very important. Buy and hold doesn't work no more. Be smart and you can profit when the market is up or down.

For example, markets are selling off these weeks, so wait till it is a good turning point to buy in.
Deal Addict
User avatar
Dec 26, 2010
1735 posts
771 upvotes
Calgary
rfdrfd wrote: First advice, learn how to invest, get an education. Don't believe everything you read in the books or websites. See for yourself in person. Learn about risk management.

Congrats on having sooo much money. Be careful of losing much of it, if you don't learn how to really invest in this market.

What funds? I say none of them. Just do ETFs and do a balanced approach if you don't know what to pick. Canadian, USA, bonds, Emerging markets, etc (google this approach and %). But then again, you should know WHEN to buy into these. Market timing is very important. Buy and hold doesn't work no more. Be smart and you can profit when the market is up or down.

For example, markets are selling off these weeks, so wait till it is a good turning point to buy in.
Another piece of advice for the OP. Beware the false prophet.
Deal Addict
User avatar
Dec 8, 2010
2444 posts
868 upvotes
+1 for Canadian Couch Potato.

Figure out what you want to be "in" over the longer haul, how much risk you want, how much currency risk you want. Hard to say it better than at the CCP website!
Sr. Member
Dec 18, 2003
581 posts
106 upvotes
Hold on to it as cash as emergency money if I were you. since you still young, you never know what may come up in the next few years. (car, girl,parents,etc) and having that kind of money will give u a lot of flexibility that most ppl don't have. (you know the saying, if is a problem money can fix, it's not a problem)

if you really want to invest....hold on to the money you have now, and put most of what you make from your paycheck into investment every month, that way you buying into both the up and the down of the market.

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