Where to put money?

[brucebanner]

Have $5000 to invest and was wondering what would be a good place to put it in. Looking for long term with the best returns, also with the ability to continue adding money whenever I want to.

Don't really know much about making money grow, so I turn to you beyond.

Lets here it. :thumbsup:

[89coupe]

How does a little over 9% on your money sound?
On $5000 that would be $37 every month you would make. Does that sound good to you?

Gauranteed till at least 2013 as well.

[kaput]

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[89coupe]

Buy PIF.UN

They are currently trading at $17.55

They pay $1.56 per share. The company has a very solid track record.

Info
https://research.tdwaterhouse.ca/research/public/Stocks/NewsArticle/ca/pif.un?documentKey=100-075c2262-1

Curve over the past 10+ years.
http://www.bradstaylor.com/images/pif.jpg

[kaput]

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[roopi]

Originally posted by 89coupe
How does a little over 9% on your money sound?
On $5000 that would be $37 every month you would make. Does that sound good to you?

Gauranteed till at least 2013 as well.

How is this guaranteed until 2013? (I'm assuming this was referring to Pembina).

[mac_82]

Originally posted by roopi


How is this guaranteed until 2013? (I'm assuming this was referring to Pembina).

In the link.


Based on internal projections and certain assumptions, Pembina expects to maintain its current distribution level of 13 cents per Trust Unit per month ($1.56 per Trust Unit per year) through 2013.

[89coupe]

Originally posted by roopi


How is this guaranteed until 2013? (I'm assuming this was referring to Pembina).

I'm being optimistic, with current trends its a pretty good bet. If you want a 100% guarantee then its not for you.

I've been investing with them for the past 5 years now and my returns have increased every year.

I will continue to invest in them for another 5 years with zero hesitation.

[roopi]

Fair enough I see your point. Pipelines are usually very stable however when a companies earning/share are less than their dividend it can't hold up for long. Something will have to eventually change. Either the earnings go up or the dividend goes down.

[89coupe]

Originally posted by roopi
Fair enough I see your point. Pipelines are usually very stable however when a companies earning/share are less than their dividend it can't hold up for long. Something will have to eventually change. Either the earnings go up or the dividend goes down.

Well if you read what they are doing and how they are spending their money, you would most likely feel more comfortable in investing with them.

[BigMass]

http://graphics8.nytimes.com/images/2006/05/07/business/gold.span.jpg

[ExtraSlow]

I'll second what 89coupe said, get yourself into an income producing equity. Dividends or distributions are excellent ways to build wealth.

I've used dividendinvestors dot ca previously for research, and it's very helpful. They do charge for the "full" package. I'm not a subscriber anymore.
I also like SPB for a very stable company. That one has the advantage that it's already converted to a corporation, which PIF.UN will have to deal by the end of the year.
REI.UN is one of the premiere REITs.
Check out the long term investments thread, myself and several others have made in-depth posts about income trusts and dividend paying corporations.
No matter what you do with it, make sure you do it inside either a TFSA or RRSP. You want to reduce tax wherever possible.

[89coupe]

Originally posted by ExtraSlow
I'll second what 89coupe said, get yourself into an income producing equity. Dividends or distributions are excellent ways to build wealth.

I've used dividendinvestors dot ca previously for research, and it's very helpful. They do charge for the "full" package. I'm not a subscriber anymore.
I also like SPB for a very stable company. That one has the advantage that it's already converted to a corporation, which PIF.UN will have to deal by the end of the year.
REI.UN is one of the premiere REITs.
Check out the long term investments thread, myself and several others have made in-depth posts about income trusts and dividend paying corporations.
No matter what you do with it, make sure you do it inside either a TFSA or RRSP. You want to reduce tax wherever possible.

If you read the link I provided you will see that PIF.UN is already in the process of converting.

[mr2mike]

http://thevoiceforschoolchoice.files.wordpress.com/2009/01/cash-stash.jpg

On a serious note: TFSA and then go from there. If you're going the stock route, invest small until you get a good feel for the market, etc.

[Feruk]

I'm in a similar situation and want something other then more stocks.

nyone have a recommendation for investing $5000 into something that's NOT a stock or garbage GIC? Medium risk acceptable.

[ExtremeSi]

How about (following the book "The Wealthy Barber") finding a suitable mutual fund to invest for very long term?

For those of you not familiar with the book, he recommends investing 10% of your income from every paycheck into a mutual fund over the course of your life.

How would I go about picking a good one? Any tips?

[ExtraSlow]

Originally posted by ExtremeSi
How would I go about picking a good one? Any tips?
I highly recomend a mix of ETFs for your mutual fund. You may want a mix of Index funds and actively managed ETFs. The big advanage to ETFs is thier lower fees compared to "traditional" mutual funds. 1% lower fees means 1% higher return. Learn about asset mix and diversification, and make them part of your plan from day 1.

Also note, I'm not talking about any of the Leveraged ETFs, like the BetaPro 2x or 3x garbage. Those are an entirely different animal, and not suitable for most investors.

In addition to the Wealthy Barber, I like the sleep easy investing book by Gordon Pape. He's the Canadian guru of self directed, low to mid risk long term investing. He's got several other books out there, but I like that one best.

[kaput]

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[brucebanner]

Thanks for the suggestions guys, ended up going with a mutual fund (medium risk) until I get a better feel for the market and want to branch out more on my own.

[bastardchild]

If you invest low risk you will profit nothing with inflation. That amount of money is not even worth investing.

[Feruk]

Anyone know of any mutual funds that typically BEAT the market (after fees of course)?

[89coupe]

Man, I give you guys the perfect stock that gives you 9% return on your money and you want to buy a mutual fund? LOL

:facepalm:

[ExtraSlow]

Originally posted by Feruk
Anyone know of any mutual funds that typically BEAT the market (after fees of course)? The key to doing wellon your mutual fund, after fees, is to have LOW FEES.

However, I'm going to have to agree with 89coupe for once. There are a few stocks that give high dividends and are quite secure.
PBH, SPB, RSI.UN, PIF.UN, AVF.UN
ALL of these pay more than 8% and are stable, well run companies. I own them all.
There are some smaller cap dividend paying companies, but I won't recomend them on here because they are more speculative, just because of thier size. Some of them pay even higher. Read the long term investments thread, there is a lot of good info in there.

[bluerush]

Originally posted by Feruk
Anyone know of any mutual funds that typically BEAT the market (after fees of course)?

most will lag the market (some say as high as 80% lag the market after fees).

It was mentioned before, consider looking into ETFs. Most management fees are less than 1% (compared to 2-2.5%).

couch potato portfolio (http://www.moneysense.ca/2006/04/05/couch-potato-portfolio-introduction/)