Looking for: Financial Advice
01-11-2012, 08:39 PM
#31
Racer
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Location: Halifax, NS
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Why? What does his tax bracket now have to do with the use of a TFSA. The money can come in and out of the acct. at will. It can be replaced if taken out. The advantage is in ten years the account could very well have 25K in it and there would be no capital gains tax and no tax on any of the dividends earned during that period. Secondly the op will have a job sometime in the next ten years. When is it wrong to avoid paying unnecessary taxes. Where else should he put his money?
You obviously are not familiar with TFSAs.
You obviously are not familiar with TFSAs.
You should probably ask friends for referrals to advisors that they trust. In all honesty, because of the dollar amount, you may not get much help unless they are doing you or your buddy a favour. I would be very hesitant to take advice on Rennlist as much as I respect all the people here, I'm not sure how many are 'experts' or even work in the industry. But even those in the industry often get it wrong.
In addition, I would probably not recommend someone with no investment experience to be placing trades for covered calls. I may as well start talking to you about butterfly spreads. It would probably mean the same to you.
Btw...only invest in the stock markets if you have a long term time horizon (ie. you don't need the money for years upon years in case the market doesn't do well)
Good luck in your search!
In addition, I would probably not recommend someone with no investment experience to be placing trades for covered calls. I may as well start talking to you about butterfly spreads. It would probably mean the same to you.
Btw...only invest in the stock markets if you have a long term time horizon (ie. you don't need the money for years upon years in case the market doesn't do well)
Good luck in your search!
So you own a Cayman at 18 but are worried about how to invest $10,000? Not sure how that works...
Frankly, the only real currency in life is time (attrib to Gordon Gekko in Wall Street 2) - so I say yes, put it somewhere where you can't spend it on something unnecessary (e.g. a custom exhaust) - but if the right opportunity comes up and you don't have enough cash from whatever part-time job you might have at university (good way to get beer money and meet girls) - tap into your savings then. When I was in university many of my overseas jaunts to Europe were "Visa Vacations" - but I don't regret for a second putting them on plastic! When you get older and have a good paying job or profession (you'll need it given that you're driving a Cayman at 18 - I assume that your aspirational car is the 918?) you'll find that you just don't have the time or freedom to do this kind of stuff anymore.
Just go out and live, dude!
Frankly, the only real currency in life is time (attrib to Gordon Gekko in Wall Street 2) - so I say yes, put it somewhere where you can't spend it on something unnecessary (e.g. a custom exhaust) - but if the right opportunity comes up and you don't have enough cash from whatever part-time job you might have at university (good way to get beer money and meet girls) - tap into your savings then. When I was in university many of my overseas jaunts to Europe were "Visa Vacations" - but I don't regret for a second putting them on plastic! When you get older and have a good paying job or profession (you'll need it given that you're driving a Cayman at 18 - I assume that your aspirational car is the 918?) you'll find that you just don't have the time or freedom to do this kind of stuff anymore.
Just go out and live, dude!
01-11-2012, 08:49 PM
#32
Race Car
Most bank "advisors" are mutual fund salesmen. Their advice will be based on what makes them the most commision. Get a fee only advisor if you want objective advice, or do what I said above............most charities are big businesses and spend most of their donations getting more donations. If they spend more than 15% on admin and marketing, forget 'em.
01-11-2012, 09:11 PM
#33
Rennlist Member
Don't spend what you don't have. Governments ought to try it. I don't believe in loans...I'm too poor to pay the extra interest...got to pay cash.
01-11-2012, 09:12 PM
#34
Rennlist Member
ya sorry not big on government plans and was confusing rrsp with tfsa. yes not bad to put in tfsa as no tax charged when you withdraw like in rrsp (what I was thinking of).
again sorry.
I personally like physical assets like bars of gold and silver.
again sorry.
I personally like physical assets like bars of gold and silver.
01-11-2012, 09:46 PM
#35
Rennlist Member
Phil, whatever you end up buying you should do it inside a TFSA for the reasons previously mentioned- this is the one way that you can earn either income and/or capital gains without any tax consequences. The only restriction that you need to be aware of is that any money that you withdraw from the account can't be re-deposited back into the TFSA until the next calendar year.
01-11-2012, 10:41 PM
#36
Captain Obvious
Super User
Super User
Then how about only one car per year (a mere 1 hr/ weekend and it will be done in no time). Invest a total of $3000 and have a ~50% return when it's all done. It's the safest gamble you can do. I don't think one can do better than this with ANY low risk stock. The way I see it, playing the stockmarket is the same as gambling. I'd rather have my money, in something that I can touch, instead of a piece paper but that's just me.
01-12-2012, 12:17 PM
#37
Instructor
Join Date: Jan 2007
Location: North York
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If you are going to be dealing with a bank (and not their brokerage division), I would not suggest BMO. Stick with either Royal/TD/Scotia (as they had recently purchased Dynamic) if its on the retail side. Otherwise, you may want to consider Assante (CI has an amazing lineup as well).
Anyways, ask the advisor questions about their qualifications, and how they do their research. (what tools they have at their disposal). Ask them how performance compares to other fund co's that have done well like CI/Dynamic, and see if they can do a comparison.
If you feel that they are trying to be deceitful or avoiding the questions....then chances are they either don't know what they are doing or looking at what is best for them.
Go with your gut feeling and if it doesn't feel right...there are other banks across the street.
Anyways, ask the advisor questions about their qualifications, and how they do their research. (what tools they have at their disposal). Ask them how performance compares to other fund co's that have done well like CI/Dynamic, and see if they can do a comparison.
If you feel that they are trying to be deceitful or avoiding the questions....then chances are they either don't know what they are doing or looking at what is best for them.
Go with your gut feeling and if it doesn't feel right...there are other banks across the street.
01-14-2012, 12:34 AM
#39
Sounds like you might want to start here.
http://www.investopedia.com/university/#axzz1jP4zpqUy
I think you need to start slowly, first understand all your choices, there are endless instruments to make/lose money.
I'm a huge options player, but would not recommend this for someone starting.
http://www.investopedia.com/university/#axzz1jP4zpqUy
I think you need to start slowly, first understand all your choices, there are endless instruments to make/lose money.
I'm a huge options player, but would not recommend this for someone starting.