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 Replies: 56 / Views: 6,419 |
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Valued Member
United States
317 Posts |
You're in Canada so I think you would have to find Canadian stocks to invest in probably like on the Toronto Exchange unless you have access to world markets like American Nasdaq or NYSE. I read a few posts on the thread and I don't know if AT&T trades on the TSX. But if you're young say 35 and under I wouldn't go near a bond like a telco stock but look at things that have the potential to really grow and that might interest you since you have time to recoup a loss in a high flying stock as opposed to bond like stock like a telco.
If you can trade American stocks I'd look at Disney because of the Marvel movies and upcoming Star Wars movies and Apple because people still wait around the block for one of their products. But for Canadian companies I was thinking about Tim Horton's (I don't know if this is a private company now because of the Burger King merger) coffee is good or TD Bank but I'll leave that up to you.
And if you're really interested in retirement savings you need to focus on how to shield capital gains. In the US we have Roth IRAs where you don't pay any tax on gains in that account but I don't know too much about tax shelters in Canada but you really need to figure out how to protect your gains. It doesn't make a lot of sense to me to risk capital then have the fortune of a gain then have tax people come for their share especially if you can prevent tax people from taking a larger portion of your money.
Precious metals are nice but can't appreciate like companies nor pay you in the form of dividends or payouts.
Apple reports in a few hours, hoping it gets killed so I can buy some cheap shares today.
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Pillar of the Community
Canada
1747 Posts |
News flash....anyone can invest money in any stocks, regardless of being traded on the TSX.
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Pillar of the Community
United States
711 Posts |
You can definitely purchase less than 100 shares at a time. You pay the same flat commission of say $7 a trade or whatever. So if you are buying 25 shares of a $10 stock you are charged $25 per share times 10 shares equals $250 plus $7 commission for a total of $257. If you had bought 100 your cost would be $1007. As a percentage of the transaction, you are paying much higher commissions to purchase fewer shares but you can do that if you want no problem. It just makes it more difficult to make money in the short term.
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Bedrock of the Community
United States
17884 Posts |
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huynhhh, being in Canada, you should before you open any investment account, make sure your $1000 is inside of your TFSA (Tax Free Savings account) having the money in this account which is free to set up at all banks and CU's (you just need to give them your SIN#) and then all capital gains from the investments are tax free.
This is one of the great perks of being Canadian. We have something similar, called a Roth IRA. You put in after tax money and then use that money for investing. All growth on funds invested through the Roth are tax free, unless you withdraw the funds before age 59 1/2. If you do you pay 10% tax on all withdrawn funds. |
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Valued Member
United States
194 Posts |
Buy Silver as cheap as you can. It has a better chance of going up than any Bank account. LOL
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Pillar of the Community
Canada
3049 Posts |
Guys: right now the OP is 17 yrs old... #1 he doesn't pay tax on any income from investments as he's a minor... #2 In the short future he may have some very big expesnses such as education, wedding, children... all of which require money that can't be tied up in tax accounts... A TFSA is great but I find it's great to use in combination with RRSP contributions (especially after you max out your RRSP yearly allowance) Mutual funds are also a good way to go.. but there are so many different types out there and some mutual fund managers can change ship and you'll never know until you see poor performance. They also have a pretty high cost to them. An ETF that matches the indicies is the best of both worlds.... it's low cost and your performance is EXACTLY what the market has done. Something like a VFV would be decent. When the dollar was closer to par. I made sure I purchased a couple blocks of VOO.... not only can you capitalize on the gains of the market but with the difference in the dollar I have also gained another 14% (after exchange fees) with the exchange. so while you may get this kind of advice.... Quote:
Buy Silver as cheap as you can. It has a better chance of going up than any Bank account. LOL Which I completely agree to be accurate and true... I also feel you may be better off just going to the hardware store and buying $1000 worth of screws... a year later there will be at least a 5% difference in the price of screws so when you return for a refund you'll make 5% (better than the bank)... you'll have something that very useful and also easy to sell and not so frequently desired by criminals... (I can leave a box of screws in my car with my windows open... can't do the same for silver or gold) And finally if you can't or don't return for a refund and increase you initial investment of 1K... you could say you've really been screwed! I would say at this phase of your life you might be better off looking at an ETF... but of all the options presented.. take your time and do your own research... when in doubt... just pick up a box of screws LOL! |
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Moderator
 United States
23522 Posts |
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Which I completely agree to be accurate and true...
I could not possibly disagree more. I outlined above why the best scientific minds in business are doing their utmost to make silver a far cheaper commodity by not needing the over-half of the supply they use, and banks will not tolerate low interest rates much longer because it kills their income. And higher interest on loans for their pockets means higher interest on savings for you. The Fed knows this, and doesn't like keeping their rate low either. That's why they only lower their rate in tough economic times. |
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Valued Member
United States
61 Posts |
I'm 22 and I enjoy "investing" in PM's.
I'm not convinced they are an investment yet, but they are a form of saving that also satisfies my love of collecting things... and it helps that they're shiny.
At least in a savings account you SHOULDN'T lose your money, but you won't really gain any either. Stocks are stocks.
I say diversify, but don't depend on PM to be a money maker.
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Pillar of the Community
United States
992 Posts |
You just bought over $700 of silver, and are 17 years old. Put the rest into the bank and stock fund as suggested above and keep on working for a living. Don't even think about spending it, ever, ever, ever. You don't need it.
Then make sure you find another $1000 each year, or twice a year, and do the same thing with it, for the next few decades.
This is in addition to the 10 to 15 per cent you should be socking away for savings.
When you're ready to retire, you can thank us for the advice.
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Pillar of the Community
Canada
3049 Posts |
SsDd: I certainly hold everything you say in the highest regard. You're a brilliant mind but this may be one area where we will probably have to agree to disagree.
It is my belief that interest rates really may not change that much in at least a 2 yr window and perhaps not even that great in a 5 yr window. I do see that banks are dealing with this by charging greater fees. This includes having a general fee for a basic savings or chequing account.
A $5 per month basic account over 2 years will end up costing $120...
For the same loss silver would have to drop from $16/oz to $14.08 for 1K invested.
And while they are developing new materials that may replace the industrial need for silver I still am unsure as to when that may actually happen. Furthermore I believe that silver has been seen like gold as simply a precious metal similar to gold... and you can't tell me that the price of gold has been driven by industry that utilizes gold.
Having said that like you I do not believe silver to be an investment vehicle that shows a lot of promise. I see no momentum right now upwards. For my personal investments I do NOT buy down trends... I am okay that I didn't get in a ground zero of a certain item... I would much rather buy high and sell higher.
So in short... no I don't like silver as an investment right now... but I actually would see it as a better option than a basic savings account especially if that account were to have fees. As I have stated in this thread there are some other ETF's I would suggest as very conservative avenues and there are also some great stocks out there with dividends that also would do well over a 3 - 8 yr window.
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Moderator
United States
16679 Posts |
The key is remaining well diversified. Do not put all your eggs in one basket. I personally have multiple investment vehicles which includes a little PM.
swcoin.ecrater.com
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Moderator
United States
189219 Posts |
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The key is remaining well diversified. Do not put all your eggs in one basket. I personally have multiple investment vehicles which includes a little PM.  |
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New Member
 Canada
19 Posts |
Let me further explain my situation.. I have 30oz of silver and 1/2 oz of gold, I have 3K of money not willing to lose and 1K play money. The 3K I'm most likely gonna put in a gic and the 1k probably mutual funds, will invest in drip when I'm 18, in two months..
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Pillar of the Community
United States
711 Posts |
I think you are doing great huynhhh. Out of all the investments discussed I would like to add one more, skills and the tools to use them. If this is play money, maybe you'd like playing around with electricity, carpentry, or plumbing. Doesn't sound much like play, but it can be. Check out this link and find a project that let's you scratch that itch and put a couple of dollars into play and learn some universal skills while playing. http://makezine.com/projects/?path=FromNav |
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Moderator
United States
23522 Posts |
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It is my belief that interest rates really may not change that much in at least a 2 yr window and perhaps not even that great in a 5 yr window. We don't disagree at all, then.  Per the OP's request, I'm thinking purely a 50-year window. Near-term windows as you're discussing, I'm bullish on precious metals. They're low, and I think artificially low. Again, move money with prudence, but I'd get into silver today if my planned hold was <10 years. I'd just be waiting for the moment to flip. And honestly, if return wasn't a high priority I've no problem at all with "parking" money in PM or well-chosen coins. They're not going to solve all of silver's uses in one fell swoop, leaving ample notice to get out of it. You'd have to move then, though, because the moment the first technological hurdle falls the rest will follow quickly. |
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Posted 04/27/2015 4:14 pm
