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Financial/investing advice

Hello, my husband and I will be coming into a bit of money and would like some suggestions on investments, or where we can go to learn more about investing, or just any advice on how to get our money to work for us.

Thank you very much.

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35 Responses

  1. Buy stocks in auroa they toing to boom.

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  2. I’m a independent financial planner. I help people manage their own investments in a low cost way

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  3. I went to my bank

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  4. Talk to Tim Murdock, he is the best!

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  5. Sue Dubya Sue Dubya says:

    Your bank should have financial advisors. If you would like to keep your money close to home, that will work. Otherwise, I highly recommend a company called Edward Jones. PM me, and I can set you up with an incredible advisor.

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  6. These days just go to your bank. Be weary of people who own their own “business”. My uncle is a financial planner and has owned his own business for decades but most of the time people who say that are really part of an MLM.

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  7. Metro offers courses so you can understand investments. Maybe that will help you make right investments.

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  8. Todd James Todd James says:

    You could donate some to a worthwhile cause… me.

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  9. Joanne Hall Joanne Hall says:

    Edward Jones has great advisors!

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  10. Clinton Kirk Clinton Kirk says:

    Is this for profits from a heist, or why would you not go to your bank?

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  11. Nicole Getty Nicole Getty says:

    Odion Welch is amazing give her a try

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  12. I had absolutely no satisfactory results with my bank. But I did eventually find a financial planner that has worked wonders with my investments. He is a numbers genius, but also able to break things down and explain to me why he recommended the things he did, not just “Do this, do that.” Feel free to message me if you’d like contact information 🙂

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  13. What you invest in depends largely on time frame, tolerance for risk and objectives. Stay away from MLM-type advisors and anyone who works on commission. While opening up an investment account and be an active trader in stocks is one option it does take time to learn. If you want to be a passive investor there are low-cost index funds which have provided a great return (upwards of 35% per year) for the low yearly cost of 1.2% per year. Best bet is to go to your bank and interview a couple of their employees. You want someone who will invest the money your way and not theirs. If you meet someone who says “What I would do is….” stay away from them. If you invest in mutual funds (an easy option) look at the returns for the last ten years. The worst year for any fund’s performance should have been 2008. Stay away from investments that charge you to sell. Even with just the bare minimum of knowledge it is possible to make a very healthy return on your investment without paying a ton of fees to an ‘advisor’.

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  14. Win Chan Win Chan says:

    There is no “true” financial advisor; most are salespeople or an information source, as people truly “good” with money don’t need to work for someone else and are busy managing their own money. The world is investing is very vast and people rarely agree on anything; you are best to do your own research and undergo your own experience. The general rule is no risk, no return. So the more risk you’re willing to take, the more you can potentially make… and everyone’s appetite for risk is different.

    The standard measurement of your money you make is the ROI – return on investment: profit (or loss) divided by your initial investment; how much you put into it. There is also ROA (return on assets) and ROE (return on equity), but ROI is the one you should be looking at right now.

    Generally the safest end of the investment spectrum is cash savings accounts, GICs, or the like, where the interest rates hardly keep up with inflation…. that is, your money rots quicker than it grows.

    Next in line is mutual funds or ETFs (exchange traded funds; “collections” of stocks bundled into an individual stock you can buy off the exchange).

    – These offer a broad exposure to part of the market of your choosing for relatively low cost and formalities. Mutual funds charge much higher fees, but some people have emotional attachments to their banks.

    – You can buy these through your TFSA trading account so you don’t get taxed on gains. Generally most people are happy to make a few % or a bit under 10%.

    – Being so spread apart with your money, your money likely won’t fluctuate very much.

    – They are a lazy way to make a decent return without debt, hence the term “couch potato investing” – as you don’t have to worry as much about individual stocks.

    – The downside is the bad eggs (bad stocks) will pull down your returns, as each fund is a collection of a widespread collection of stocks.

    – They also do not pay dividends, unlike individual stocks.

    Then the next most common is leveraged real estate – using other peoples’ money to make money through mortgages.

    – This is relatively easy to understand – get a mortgage, collect rent cheques, maintain the place and your tenants, pay down the mortgage, and make cash when you sell your appreciated property down the road.

    – You also can claim CCA (fancy word for depreciation; 4% of the property value) every year, so it helps you get a bigger tax refund.

    – You can write off mortgage interest, maintenance costs, etc… basically mostly anything related to the cost of business.

    – Contrary to popular belief, as per Revenue Canada regulations, your profit is: rent + appreciation – mortgage INTEREST – maintenance – legal fees – other carrying costs… NOT rent + appreciation – mortgage payment – maintenance – … etc.

    – Contrary to popular belief, your return on investment (ROI) is profit/initial investment, where initial investment is how much money YOU put into it, not the total asset size. So if you buy a $400,000 condo that makes $40,000 net profit, and you put $80,000 downpayment, your return is 50%, as 40000/80000 = 0.5… it is NOT 40000/400000 = 0.1; 10%. Most bankers/financial advisors, general public, etc. will not tell you this as debt is usually frowned upon, and banks are usually risk averse. They rather you buy their expensive but low-return funds. Also, mortgage interest is a tax write-off, and we all know the government wants to collect more tax; you pay LESS tax this way. This is one of the main draws of real estate, as you can use others’ money to make high returns.

    – Now as for ROE – return on equity. Return on equity is your profit divided by your equity – how much money you currently have sunk into your profit-bearing asset. ROE will differ from ROI for mortgaged income properties because it decreases as the mortgage is paid down. That is, per dollar you have sunk into the place that you can be potentially using for something else, you’re making less money. At some point it becomes more profitable to re-mortgage, or sell and re-buy another property – to obtain a more efficient use of your dollars.

    – The public’s fear/savings (bank) is the cheapest source of money, but also the hardest to get… there are many formalities involved, many transaction costs, many upkeep costs, many risks involved with the housing market and bad tenants. It’ll also be a nightmare if you’re a business owner, as the system is designed to be in favour of the lifelong consistently indebted employee. e.g. Almost EVERY tax write-off you use to put MORE cash in your pocket, is used against you; the bank considers you less credit-worthy. But compared to most other investments, you can access more of other peoples’ money.
    – Without other peoples’ money, real estate is often not worth it over funds or individual stocks, since your ROI/ROE is much lower – per dollar you’re using, you are making less. Say for example, in Edmonton most people are happy to see about 4% property appreciation; $400,000 home going up by $16,000. You’d collect about $20,000 in rent, then pay $3,000 in property tax, $600 legal fees spread over 5 years, commission $1200 spread over 5 years, then maintenance say, $1,200. Net profit is $29,000. This is only 7.25% return, so given all your headaches, you’re just better off buying many ETFs or individual stocks… goes against the common “paid off, cash flowing properties” retirement dream as the best dream.

    Then there is individual stocks and futures, which are an entirely different world of their own. You can make (or lose) anywhere from around 10% return to 100%+ (doubling your money).

    – “Blue chip dividend stocks” are most peoples’ favourite, as most of the major outfits such as BMO, TD, Bell, Rogers, Apple, etc, are relatively safe buys and pay in the high single percentage points in returns, plus 3-5% dividends (which is cash dropped quarterly usually into your account).

    – You can collect these in your TFSA to start.

    – You can get a margin account where you can go up to 2x leverage on some stocks. So with $50,000 – you can have the power of $100,000 – with the cost of some interest. A trick is to use this to buy solid dividend stocks, and use the dividends to pay the interest. Interest also is a tax write-off, as per cost of doing business. The drawback aside from interest is that if the stocks drop too much, then the bank can seize them (margin call).

    – Individual stocks are also much more volatile than funds, as your money is less spread part. You also will have to pay commission for each transaction.

    – Futures are a colourful way to hedge other investments or to bet on prices of commodities or even stocks, such as oil (one of the most commonly traded ones). You can say, buy one that gives you a right to buy a barrel of oil at $60 for next 3 years, or the right to sell a barrel of oil at $60 for the next 3 years. So if the price of oil goes higher than that by then, you can get a “deal” on oil for the buy. If the price of oil drops, then you would have “hedged” that risk since the other party has to still pay you $60 for the barrel. This is what a lot of oil companies do to protect their production, especially as of late among the oil prices bouncing so much – at a cost of course. Or, you can buy a fund that follows 3x the performance of oil. So if the price of oil goes up by 5%, you make 15%. If the price of oil drops 5%, you lose 15%. Some people make a career out of this.

    – As for stocks categories, there are endless books written on these topics. The big money is in the “growth” companies – the small companies that are just getting started out and have a lot more potential, especially the exploration ones looking to make a producing oil/gas well or mine. But they are extremely volatile and risky, so most investors are not comfortable with them.

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    • Great post. A couple of points about mutual funds: I pay 1.08% per year to own my funds. The return has been in excess of 30% per year since 2010. Also, why they do not pay dividends, they do pay ‘income distribution’ which is a nice bump as well.

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  15. I got an email from a member of the Nigerian royal family looking to help someone invest, I can pass it along if you want

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  16. Ruth Chalk Ruth Chalk says:

    You could just give me some lol.

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  17. There’s a Keyspire event coming to Edmonton. It’s a free event and well worth the time!

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  18. Tony Reid Tony Reid says:

    So many of you talk about the banks like they are some holy establishment. Banks are just businesses, too. They follow the same rules and are subject to the same compliance laws as any financial professional, except they are less likely to have fully educated staff. The banks will educate you on their products only. Give your head a shake.

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  19. We are with Edward Jones. Best decision ever.
    Stay the hell away from MLM types (cough cough world financial). Bottom of the barrel.

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  20. What ever the bank offers its all garbage. Youll be better off educating yourself and investing it on your own. Maybe look at an ETF as a start

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  21. Odion Welch Odion Welch says:

    I hold multiple financial licenses. You can look at my page ” Odion Welch ” for more information.
    Take the time to look at all options including the banks, primeraca, wfg, SunLife and investors group to name a few.
    See who makes you feel comfortable and listens to your current and future goals.
    Never go with someone who makes you feel you have to do it today.

    There’s lots of people talking bad on here see people commenting to stay away from commission but i prefer that because I know if I trust them they will work hard and be 100% transparent about everything. Most of the time salary people still get bonuses so they feel ” pressure ” to recommend the product of the month as well. Personally I don’t like salary as one of my designations is in recruiting so I see the revolving door and many individuals who do the bare minimum for their job.

    However again it comes down to trust and your goals but I can not state enough how important it is to look around. Every one offers different products for different reasons and will all say there’s is the best.

    Also watch some cbc marketplace videos so that you know what questions to ask.

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