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CJOttawa · 01-26-2013, 08:21 PM

Start HERE: Getting Started - Bogleheads

Vanguard is THE company to go with if you're a US-citizen. They offer a free one-time consult as well, though I don't know if that only applies if you're investing a certain amount of money.

It was founded by John C. "Jack" Bogle and the Vanguard approach has received such widespread approval, there's a whole group of investors called "Bogleheads."

More broadly though, don't invest in individual stocks. Buy equity index mutual funds. They track entire markets (S&P500, Dow Jones in the USA, S&P/TSX in Canada, MSCI EAFE for international, etc).

This all assumes you're saving for retirement and won't be touching the money for 20 years. Equity markets bounce up and down over short periods but over the last 100 years have averaged 8.5% per year.

START EARLY. I wish I had. Now, even if I put away a grand a month, it still won't give me the growth I would have had saving a hundred a month when I was your age. Compound interest is powerful. Einstein even said so.

Rule of 72: Divide the number 72 by the expected rate of return to get the number of years it takes to double your money. Let's say "8%" - that means your money doubles in 9 years. The challenge is, some years you'll be up 15%, other years down 5%. You gotta let it ride.

Want a few good books to read, once you've exhausted the above-linked website?
"Millionaire Teacher"
"The Boglehead's Guide to Investing"
...and if you're feeling particularly ambitious: "The Four Pillars of Investing" or "The Investor's Manifesto." (same author, latter is much shorter and somewhat less detailed but covers the same ground)

01-26-2013, 08:21 PM	#5 (permalink)
CJOttawa Immune to sales tactics. Join Date: Dec 2006	Start HERE: Getting Started - Bogleheads Vanguard is THE company to go with if you're a US-citizen. They offer a free one-time consult as well, though I don't know if that only applies if you're investing a certain amount of money. It was founded by John C. "Jack" Bogle and the Vanguard approach has received such widespread approval, there's a whole group of investors called "Bogleheads." More broadly though, don't invest in individual stocks. Buy equity index mutual funds. They track entire markets (S&P500, Dow Jones in the USA, S&P/TSX in Canada, MSCI EAFE for international, etc). This all assumes you're saving for retirement and won't be touching the money for 20 years. Equity markets bounce up and down over short periods but over the last 100 years have averaged 8.5% per year. START EARLY. I wish I had. Now, even if I put away a grand a month, it still won't give me the growth I would have had saving a hundred a month when I was your age. Compound interest is powerful. Einstein even said so. Rule of 72: Divide the number 72 by the expected rate of return to get the number of years it takes to double your money. Let's say "8%" - that means your money doubles in 9 years. The challenge is, some years you'll be up 15%, other years down 5%. You gotta let it ride. Want a few good books to read, once you've exhausted the above-linked website? "Millionaire Teacher" "The Boglehead's Guide to Investing" ...and if you're feeling particularly ambitious: "The Four Pillars of Investing" or "The Investor's Manifesto." (same author, latter is much shorter and somewhat less detailed but covers the same ground) Last edited by CJOttawa; 01-27-2013 at 11:24 AM.