Investing

[accuFLEX]

I have about $9,000 saved up, and im planing of re-investing the rest. I’ve been doing the GIC thing for about 4 years now ranging from 3-4% interest.

I haven’t really look at other options. Mutual funds, stocks, bonds etc. And I don’t plan to. Im a university student and don’t like the idea of my entire savings bound up with me having no way to get at it.

At least with a GIC I can get 4% interest and have access to my money within 10 days.

But is this the best route for me? Am I really limiting myself for potential earnings?

What im looking for is something better then a GIC. Im not looking for high risk with the possibility of a higher return. Since that also comes with the risk of a greater loss. And im not looking to put this money away for more then two years. So investing in a long term growth stock is out of the question.

PS: Im in Canada

[Mik]

accu

there are other options rather than putting it all in GICs. Much of it depends on whether you are willing to take any risk whatsoever or want a guarantee, time frame (you said 2 years) what the money is earmarked for etc.......

If you'd like I can give you some more options. I'm a Financial Planner/Investment Advisor in Canada. PM me if you want more info.

[nejar462]

Spyder ETF.

[Bohizzle]

I have about $9,000 saved up, and im planing of re-investing the rest. I’ve been doing the GIC thing for about 4 years now ranging from 3-4% interest.

I haven’t really look at other options. Mutual funds, stocks, bonds etc. And I don’t plan to. Im a university student and don’t like the idea of my entire savings bound up with me having no way to get at it.

At least with a GIC I can get 4% interest and have access to my money within 10 days.

But is this the best route for me? Am I really limiting myself for potential earnings?

What im looking for is something better then a GIC. Im not looking for high risk with the possibility of a higher return. Since that also comes with the risk of a greater loss. And im not looking to put this money away for more then two years. So investing in a long term growth stock is out of the question.

PS: Im in Canada
President's choice has a savings plus account which gets u 4%, no fees or anything. dunno if that helps at all.

Andrew

[Mik]

Spyder ETF.

He wants to avoid or minimize risk over a 2 year time frame.

[accuFLEX]

President's choice has a savings plus account which gets u 4%, no fees or anything. dunno if that helps at all.

Andrew

Im with that bank now, and love it. Thats what I was thinking of getting

Mik, ill PM you when I get home from school

[McIrish]

Yeah, if 4% was all you wanted, use something like ING online. I think their online savings accounts have somewhere between 4-5%. Go with whatever Mik says, though, I figure.

[Bohizzle]

since ur already with president's choice, just go to a kiosk and open up an interest plus savings account, and transfer ur money in until u can find something that will work for u. that way in the week/whatever time ur waiting u can still accumulate some money.

Andrew

edit: and when mik does tell u what ur best choices are, let me know too, cuz i have some money i'd like to invest as well :D just less of it :(

[sCaRz*Of*PaiN]

Invest in gold and silver. :thumbup:

The value of silver went up 100% recently. 100%...4%...hmm...

[galileo]

eTrade is 5.15%

[Mik]

Invest in gold and silver. :thumbup:

The value of silver went up 100% recently. 100%...4%...hmm...

But what if today was May '06 and he wanted the money today?

http://www.kitco.com/scripts/hist_charts/yearly_graphs.plx

[sCaRz*Of*PaiN]

Gold is steadily going up.

And I was referring to longer term investing. I know what you mean though.

[ElPietro]

If you have 2 years or less, leave it in GICs or high interest bank accounts. Anything else would be foolish and pointless.

[Mik]

If you have 2 years or less, leave it in GICs or high interest bank accounts. Anything else would be foolish and pointless.

Buy Income trusts they are on sale! ;)

[shootermcgavin7]

At least with a GIC I can get 4% interest and have access to my money within 10 days.

But is this the best route for me? Am I really limiting myself for potential earnings?


Make sure that you keep the inflation rate in mind - if you're getting 4% interest, and the inflation rate is ~3% (as it has been in the US YTD), your real interest rate is only 1%.

[_8_Ball]

Mik,

How about you share the knowledge publicly, I would certainly love to hear it too as I am starting to consider my options for investing.

[Mik]

Mik,

How about you share the knowledge publicly, I would certainly love to hear it too as I am starting to consider my options for investing.

The only reason I didn't throw out any specific ideas was because it/they might not apply to different people. Keep in mind I'm in Canada.............

For cash/short term savings President's Choice (as has been mentioned) offers a very competitive rate of 4%. I've been using and recommending however a fixed income mutual fund with a floating rate. This has meant that as interest rates have risen so has the monthly payout. The vehicle I currently use has an annual distibution of 6% with very little volatility. We may see rates start to come back down early '07 so this strategy may change but for now it's working.

For a 2-3 year time frame (or longer for that matter) if an investor can withstand some short term volatility it's hard to beat blue chip dividend paying stocks (banks and such). In today's low interest environment and the preferential tax treatment of dividends these funds have shown below average volatility while still participating in upside performance. The one I use has only shown 1 negative year in 12 (-.2%).

As a more aggressive play (which likely wouldn't apply to you accu) are income trusts. They've been beaten down roughly 18% in the last couple of days due to the Liberals anouncement on how they are going to tax these vehicles. The fundamentals however remain sound and the yield is attractive (roughly 9%). This week I moved from a 2% weight to 12% personally.

Pretty generic points here and obviously everyone's thoughts and objectives differ so this is meant to be blanket advice but more general thoughts. I could go on and on......................................

[PHOENIX]

currently chevy chase has CDs that yield a good 5.5% for 6 months.
i think that's hot