My experience with the stock market began with an analyses of mutual funds. I read the book "The Wealthy Barber," which was great at teaching me the importance of saving at a young age and watching my money grow - the book suggested that almost anyone can save at least 10 per cent of their income by erasing unneeded expenses such as coffee from Starbucks and eating out, as opposed to dining at home. This was a great lesson at the time, but the book recommended putting my money into mutual funds. This is a long road to making money on my investments and there are much better options available.
10 per cent average
Since its creation in 1923, the S&P 500 has increased by an average of 10 per cent per year. The average mutual fund increases at about 10 per cent per year, but you have to pay the fund manager about 2.5 percentage points of your earnings. However, if you choose to invest in an index fund, which follows the stocks on an entire exchange and is even more diversified and secure than a mutual fund, you will average about 10 per cent and you don't have to pay the 2.5 per cent MER (management expense ratio) fee.
Mutual fund boundaries
Mutual funds are also much worse than an index fund or regular stocks because the mutual fund company is only legally allowed to invest up to 5 per cent into one stock. This means they need to find at lest 20 stocks worth investing into. After you know my formula, which has earned me an extremely high rate of return, you won't be able to find 20 stocks worth buying in Canada or in the U.S. This is because the formula that I use, cuts down risk and increases reward by choosing a select group of stocks, consisting of about 8.
Types of investments
You have your GIC's, bonds, treasury bills, etc., these sometimes don't even keep up with inflation, but they are great if you want extreme security. However, if you have a bit of time to ride the highs and lows of the market, you should at least invest into an Index fund - definitely not a mutual fund - and ride the market wave. But, once you learn a formula, which I will teach you, that can virtually guarantee top market return, you will be wondering why anyone invests in Index funds, and you'll definitely wonder why they bother with mutual funds.
Tip of the Day: Banks do a great job at selling people on mutual funds, but it is only because they make 2.5 percentage points (on average) off your investment.
10 per cent average
Since its creation in 1923, the S&P 500 has increased by an average of 10 per cent per year. The average mutual fund increases at about 10 per cent per year, but you have to pay the fund manager about 2.5 percentage points of your earnings. However, if you choose to invest in an index fund, which follows the stocks on an entire exchange and is even more diversified and secure than a mutual fund, you will average about 10 per cent and you don't have to pay the 2.5 per cent MER (management expense ratio) fee.
Mutual fund boundaries
Mutual funds are also much worse than an index fund or regular stocks because the mutual fund company is only legally allowed to invest up to 5 per cent into one stock. This means they need to find at lest 20 stocks worth investing into. After you know my formula, which has earned me an extremely high rate of return, you won't be able to find 20 stocks worth buying in Canada or in the U.S. This is because the formula that I use, cuts down risk and increases reward by choosing a select group of stocks, consisting of about 8.
Types of investments
You have your GIC's, bonds, treasury bills, etc., these sometimes don't even keep up with inflation, but they are great if you want extreme security. However, if you have a bit of time to ride the highs and lows of the market, you should at least invest into an Index fund - definitely not a mutual fund - and ride the market wave. But, once you learn a formula, which I will teach you, that can virtually guarantee top market return, you will be wondering why anyone invests in Index funds, and you'll definitely wonder why they bother with mutual funds.
Tip of the Day: Banks do a great job at selling people on mutual funds, but it is only because they make 2.5 percentage points (on average) off your investment.
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