Investing $6000

[hamburgler]

Hey guys, I just sold my car. I never took out a loan for the vehicle when I purchased it about 3 years ago. Now I have $6000 to invest. The money is currently sitting in my savings account. I am wanting to buy a house in about 2 years once I'm done school. What might be a good thing to do with the money in the mean time? Ive just started looking into this. In the past Ive always blown the money on car parts! Not anymore. Thanks

[JAYMEZ]

I would have a sit down with one of your bankers. Just do a long term investment.. Dont jump into any crazy stocks.

[schocker]

Perhaps some kind of term deposit or GIC if you are wanting to hold onto it until you are done school?

[Crymson]

Storm or Cinch energy.

[hamburgler]

What are the current interest rates on a GIC? If Im only going to make 20% in two years (ie. ~ $1200 on $6000), Id rather do something more risky. I'm going to try and find a way to double it.

[TYMSMNY2]

Look into corporate bonds. Lock it in for 1 yr, roll over till you graduate and then figure things out. Think conservative my friend.

[gohan_bcc]

Originally posted by hamburgler
What are the current interest rates on a GIC? If Im only going to make 20% in two years (ie. ~ $1200 on $6000), Id rather do something more risky. I'm going to try and find a way to double it.

gic's are like 4-5% usually.

[Grogador]

Buy 3lbs+ of weed and dime it out. Lather, rinse, repeat. You'll definitely double your money, just don't smoke it all.

:thumbsup:

[Rat Fink]

.

[gqmw]

How about the tax free savings account that is starting in 09?

http://langley-financial-planning.blogspot.com/2008/02/tax-free-savings-accounta-savings-plan.html

[schocker]

Originally posted by gqmw
How about the tax free savings account that is starting in 09?

http://langley-financial-planning.blogspot.com/2008/02/tax-free-savings-accounta-savings-plan.html
what kind of returns would there be on that type of savings?

[Schwa]

I recommend an energy trust like Paramount (PMT.UN)

16% returns on dividends only.

Also 20% return is amazing. If you want *bigger* returns than that you need to look into leveraging your money like investing in options.

Since you need to ask about how to invest $6,000 this is not something I would recommend.

[A790]

$6,000 isn't enough money to make serious high-yield investments. Take it, put it into a GIA account with TD or something (2.75%) and sit on it until you can commit to something that is a bit more substantial.

[Schwa]

Originally posted by A790
$6,000 isn't enough money to make serious high-yield investments. Take it, put it into a GIA account with TD or something (2.75%) and sit on it until you can commit to something that is a bit more substantial.

If I'm making 20% it's 20% of $1000 or $10,000.

Please explain how you feel there is a minimum amount to make a certain percentage?

[A790]

Originally posted by Schwa


If I'm making 20% it's 20% of $1000 or $10,000.

Please explain how you feel there is a minimum amount to make a certain percentage?
Lots of high yield investments have minimum buy ins. Other options for him include investing in businesses or join ventures. If all he's got is $6K, the last thing he should do is throw it in some high risk stock to try and double it. As was mentioned earlier, you don't do that with money you can't afford to lose.

[Rat Fink]

.

[r0g3r]

Originally posted by Rat Fink
Just going on that part of not investing with money you can't afford to lose....

I remember the first substantial loss I ever faced from the stock market like it was yesterday. It was 7 years ago now, and I lost a healthy part of my student loan. The amount I lost is an insignificant amount to me now and I have made it back several times over, but back then it was a shitload of money. I seriously felt sick, and didn't trade with real money for 6 years after that. LOL. At that same time, I had a preggo scare with the girlfriend, my car was stolen, and it was during exam week of college to boot....

Seriously, don't invest what you can't afford to lose. I couldn't afford to lose that money so I really shouldn't have even started into trading at that time......I also couldn't afford to lose my sanity so I eventually broke up with that stupid girlfriend (worst "investment" ever - should've just railed hookers)...but that's another story for another time. (maybe Ask Leo?)


how much was it?:eek:

[analbumcover]

ZorroAMG has a fool proof investment opportunity, just need at least $10k

[Rat Fink]

.

[hamburgler]

In the grand scheme of things, $6000 isn't that much money. I'm young, I can afford to lose it, but I'm smart enough that I wont. I have two more years of school left that is free from some stuff that I did in the past. Ill look into a few different things. Ill probably buy and sell a few stocks, throw a couple thousand into GIC's and think of something creative to do with the rest. I might even buy a pack of toothpicks however that wouldn't be very original...

Looks like RBC is offering ~4% on two year GIC's...not bad for a GIC but Im looking for more of a return.

[Rat Fink]

.

[dezmarez]

Originally posted by hamburgler
What are the current interest rates on a GIC? If Im only going to make 20% in two years (ie. ~ $1200 on $6000), Id rather do something more risky. I'm going to try and find a way to double it.


buddy
if u use rule of 72 as a general guideline to doubling your money,
your looking at needing an annual return of 36%!!! If you think your "smart enough" to get this return and risk not losing any money you should do this for a living and sign me up!! Because those are outrageous expectations. That sucks that your not happy with a 20% return, maybe you should try hitting up the craps table at the casino...

[hamburgler]

I'm not saying I'm going to invest my money with the bank or try to double my money with stocks or GIC's. Im going to think of another way to double it over 2 years. And I wouldn't do this with any larger sum of money. I do agree there is tremendous risk involved. I will do this keeping everything 100% legal!

[dezmarez]

oh ok
well best of luck to you!!
what are some of your ideas
im actually curious and not being sarcastic haha

[Masked Bandit]

Originally posted by analbumcover
ZorroAMG has a fool proof investment opportunity, just need at least $10k

Fool Proof eh?

Or do you mean Foolish?

ZorroAMG????? Paging ZorroAMG........

[Schwa]

Nothing is foolproof or guaranteed except for a savings account / GIC. Current annual rates are 2.75%.

If you're going to dabble in stocks, only buy 1 or 2 otherwise you're just going to lose all your money on the commission rates.

[hamburgler]

Originally posted by dezmarez
oh ok
well best of luck to you!!
what are some of your ideas
im actually curious and not being sarcastic haha

Lemonade sales on busy street corners, j/k!

[barmanjay]

be a loan shark :D

or use it to buy a slummy house (small deposit + 100% financing) rent it our for some ridiculous amount and be a slum lord.

[A790]

Originally posted by dezmarez



buddy
if u use rule of 72 as a general guideline to doubling your money,
your looking at needing an annual return of 36%!!! If you think your "smart enough" to get this return and risk not losing any money you should do this for a living and sign me up!! Because those are outrageous expectations. That sucks that your not happy with a 20% return, maybe you should try hitting up the craps table at the casino...
It depends on what he does with it. I took $10,000 eight months ago and turned it into $45,000 by developing a business. I'm not saying it's always that easy, but it can be done if he plays his cards right.

[hamburgler]

Thanks for the encouragement guys! Ill keep you posted.

[Kloubek]

People really into investments probably will disagree, and likely for good reason.

But I'm thinking this: If he DIDN'T need the money in 2-3 years, and just wanted to make an investment, would it not be a good idea for him to invest in his RRSPs?

1) He would get roughly 40% back with his tax return
2) He will be getting fairly decent rates. My returns lately have actually been very good - though they took a tank for a few months. I'd average 8-10%.

Granted, he cannot take the money out without being taxed up the ass, unless he has no other income. But over his lifetime, that 6,000 will grow pretty quickly.

I only started putting into rrsps about 5 years ago. But had I been able to even have a lump investment early on, it would have grown a lot by now....

I am really interested in that Canadian account... I'm gonna make a thread if there is not already one.

Oh, and OP: IUf you were smart enough not to lose your investment, then you would not be asking users on beyond what you should be doing with your money.

[hamburgler]

Originally posted by Kloubek


Oh, and OP: IUf you were smart enough not to lose your investment, then you would not be asking users on beyond what you should be doing with your money.

Ok, what I meant to say is that I'm smart enough to look into my investments with great detail. I would never just throw into a stock, or business opportunity without having done some research. Obviously I don't want to loose my money so I will do everything I can before hand. I'm smart enough not to buy 10 shares with PotashCorp just before word of a strike...

Now you may ask "Why are you posting advice on a car forum?". Well there might be some bright people out there who can give some good advice. I just like to hear what others have to say and base my decisions on gathered info.

Keep in mind I do eventually want to take the money out as a small (or large) down payment on a house in the near future.

[max_boost]

Originally posted by analbumcover
ZorroAMG has a fool proof investment opportunity, just need at least $10k

It's an excellent opportunity to get into the real estate game and make some solid returns. I really like this project.

My investments have been all over the place the past 4-5 years so I hope this is the stable one where I can finally reap some good returns!

[TYMSMNY]

2 year time horizon boys...

Corporate/Provincial bonds will give you RoR above GICs and you're able to find a maturity date that suits your schedule as well.

One thing comes to mind.. "Keep it simple.... " The ending is actually suppose to be "stupid". What movie was that from again?

[SJW]

PHX.UN

[Rstar]

Originally posted by Kloubek
People really into investments probably will disagree, and likely for good reason.

But I'm thinking this: If he DIDN'T need the money in 2-3 years, and just wanted to make an investment, would it not be a good idea for him to invest in his RRSPs?

1) He would get roughly 40% back with his tax return
2) He will be getting fairly decent rates. My returns lately have actually been very good - though they took a tank for a few months. I'd average 8-10%.

Granted, he cannot take the money out without being taxed up the ass, unless he has no other income. But over his lifetime, that 6,000 will grow pretty quickly.

I only started putting into rrsps about 5 years ago. But had I been able to even have a lump investment early on, it would have grown a lot by now....

I am really interested in that Canadian account... I'm gonna make a thread if there is not already one.

Oh, and OP: IUf you were smart enough not to lose your investment, then you would not be asking users on beyond what you should be doing with your money.

RRSP is a type of account. What you can put inside of it is pretty much anything.

AND if he takes the money out of his RRSP to buy his first house he will not get taxed for it - he just have to reinvest the money back into the RRSP in the following years.

Pretty much the highest GIC/bond rate for ~2 years is barely over 4% You'll get pwnd by inflation if you go this route.

2 years is a pretty decent horizon for stocks. By then this housing crisis and ABCP thing should be pretty much over and the market will hopefully be booming again.

Maybe buy a Growth oriented Mutual fund so all your eggs aren't in one basket.

[lint]

Originally posted by Kloubek
People really into investments probably will disagree, and likely for good reason.

But I'm thinking this: If he DIDN'T need the money in 2-3 years, and just wanted to make an investment, would it not be a good idea for him to invest in his RRSPs?

1) He would get roughly 40% back with his tax return


Here's the flaw in your argument: he's a student. As such, he probably isn't pulling in much income, which means he isn't paying much in taxes. He would also have tuition credits to offset income . If he's paying taxes at all, it will be minimal and will not be in the 40% marginal tax bracket.

Also, if he contributes to his RRSP now, that is room that could be better served in the future when his earnings are higher and his tax rate is higher. He will get the best bang for his buck then. Not now.

[lint]

This question was asked in the finance section on rfd. There are some good arguments for different options in there.
http://www.redflagdeals.com/forums/showthread.php?t=617853

[msommers]

Originally posted by hamburgler
If Im only going to make 20% in two years (ie. ~ $1200 on $6000), Id rather do something more risky. More risky as in buying and selling coke? A 20% return is pretty damn amazing.

[Sadboy]

Guaranteed 20% = Ponzi.

It looks like your risk tolerance is pretty high, just through it into a high growth mutual fund .

[A790]

Originally posted by Sadboy
Guaranteed 20% = Ponzi.

It looks like your risk tolerance is pretty high, just through it into a high growth mutual fund .
Or put everything into Yahoo! stock :P

[three.eighteen.]

go to the casino :dunno:

[88jbody]

Learn to count cards and go play blackjack

[ianmcc]

I dare you to go to the Casino and put it all on black. I will buy you a steak if you lose. A real big steak.
I just want to see it happen.

[ZorroAMG]

Originally posted by analbumcover
ZorroAMG has a fool proof investment opportunity, just need at least $10k

Thanks for the props! :thumbsup:


Originally posted by Masked Bandit


Fool Proof eh?

Or do you mean Foolish?

ZorroAMG????? Paging ZorroAMG........

PM'd ;)



Originally posted by max_boost


It's an excellent opportunity to get into the real estate game and make some solid returns. I really like this project.

My investments have been all over the place the past 4-5 years so I hope this is the stable one where I can finally reap some good returns!

Again, thanks for voicing your satisfaction, I can't wait to start having you reap!

As far as your investment, Hamburgler, sounds like you are too impatient to see real returns without an exorbitant amount of risk at this point but if you are looking for fantastic long term return on $10,000 ($5000 in the new year once the new tax free savings plan kicks in) PM me!

:)

[88jbody]

get in ont the beyond group buying a tanker load of crude waiting for the next huge price jump to sell :thumbsup:

[dooman24]

Originally posted by 88jbody
Learn to count cards and go play blackjack

lol i've been into that lately..

[gqmw]

Originally posted by schocker

what kind of returns would there be on that type of savings?

Typically in this account you'd probably be looking into investing that money into say stocks. But the main thing is that ALL the money you earn is absolutely tax free and you can take it out at any time. I guess it is up to you on how you invest your money.