Investing 10k
 

Hey, I'm 20 yrs old, and currently live in Canada Ontario. I want to invest 10k of my poker money into something but I have no where to start. A friend of mine told me to put it in a Index Mutral Fund, but I have no idea where to start. I've been investing in GIC's but I know there's better stuff out there. Please any information would help. I.E. Books to read, websites etc. thanks! Please don't send me e-mails on GICS to get referal bonus's I will ignore them.

Re: Investing 10k
 

Just find a total stock market index fund with a very low expense ratio.

Re: Investing 10k
 

International ETF's baby!

Re: Investing 10k
 

Vanguard FTW

Re: Investing 10k
 

One stock: NBG, National Bank of Greece, 7% dividend and currently undervalued.

Re: Investing 10k
 

The friend who recommended index funds gave you good advice. Index funds let you own a whole lot of stocks at once, decreasing your risk while maintaining a constant expected return. Also, index funds can come in ETF form, which is what tonybormin suggested.

I would not listen to ChrisConstantine.

I'm not very familiar with the investment options of Canadians. I'm pretty sure you don't have the same access to Vanguard that Americans do.

If I were you, I would find a low cost brokerage (<$10 per trade) and then put the money in a total stock market index fund. The brokerage you choose isn't a big deal; don't focus on minutae. What matters most is getting your money invested in an index fund.

Re: Investing 10k
 

Of course conventional knowledge is correct to put most investment money into the lowest cost stock indexes preferably in equal amounts over time.

However to put all your money into indexes at one time can be folly or to argue that a relatively small investment (10k) can only be best served in an index is being blinded by conventional advice.

OP didn't state his complete finances, only that he had 10k to invest presumably for a long time but perhaps he would need it within a few years. I believe an "investment" of a small amount ALL AT ONCE can be best served by finding a bargain stock that pays an excellant dividend, an undervalued overlooked company that has been around for decades and that has a history of increasing dividends. Again, one stock at today's price is NBG, National Bank of Greece. If the market goes down over the next year or five years, the 10k is still collecting 7% or so AND, because NBG is undervalued it should go down less than the market and possibly go up in share price especially since it is in Greece and Turkey.

Yes, it is too risky to put ALL your money in one or a few stocks but 10k will not be all his money. A mutual fund stock index bought within an account with that fund family is great for money he is adding every month and for decades.

Re: Investing 10k
 

Now, the problem is I haev no idea where to start. I have no idea how to invest? Do I do it through my bank? Do I sign up for an "Investing Account"? Like how does it work? Is there any books that you guys recommend? Thanks.

Re: Investing 10k
 

[ QUOTE ]
Now, the problem is I haev no idea where to start. I have no idea how to invest? Do I do it through my bank? Do I sign up for an "Investing Account"? Like how does it work? Is there any books that you guys recommend? Thanks.

[/ QUOTE ]

Go to www.vanguard.com and click create account. Then it will walk you through the process.

Re: Investing 10k
 

Sign up with discount brokerage
Send them $10K
Buy MDY
Profit