# Where to start?



## number12spicy (Dec 19, 2017)

Hello, so I am now at a point where I want to start doing some investing, first a little bit about me.

I am in my late 20s, have a net-worth of about 30k and an ok job in the B.C Public service after monthly expenses I have around 2300 or so to play with each month.

I very recently opened a TFSA where I now put $125 of each pay in there and it goes into a basic mutual fund with CIBC.. it has made me a little profit so far in the couple months that it has been opened and now I am at the point where I really want to learn more and go harder at something.

I mentioned before that I would like to start off with buying some Gold and Silver certainly not alot to start off and build it over time.

Should I stick with some mutual funds? I like the idea but would probably change it to one with a chance of greater returns and a higher deposit per pay too..enough to max it out of the year. I feel now is the time as I have no real obligations to anyone and don't plan to in the near future but who knows.

What else should I look into?


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## james4beach (Nov 15, 2012)

Welcome to the forum! As a starting point, it's probably a good idea to steadily put money into a good mutual fund. One of the more attractive options at CIBC that I see is *CIBC Balanced Index Fund*, which contains a mix of Canadian & international stocks as well as fixed income. This has performed better than the average mutual fund of this type and has a good 19 year track record.

Next I would suggest reading more to learn about investing. Take a look at this thread for some resources to read:
http://canadianmoneyforum.com/showthread.php/124866-My-friend-is-interested-in-DIY


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## number12spicy (Dec 19, 2017)

Thank you for the reply I am really just starting out and have now decided to up it to $1000 a month.. I currently have it in the "CIBC Managed Balanced Port" and I guess it is ok, for just doing some very brief reading I think right now I will switch to either the US Index fund on the Asia Pacific fund.

Just really interested in it right now, even though there are some well I am sure really basic things I don't quite get yet.


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## fatcat (Nov 11, 2009)

honestly ... seriously ... it’s fine to own a little bit of silver and / or gold but it really is not the place to begin investing

both silver and gold ... cost ... money to own and only pay if the price rices which it hasn’t done for several years

you are far better to put intial money into something like dividend growth stocks

buy mutual funds or etf’s but save the gold and silver until you have an established portfolio


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## milhouse (Nov 16, 2016)

IMO, it's best to keep things simple, focus on the basics, and avoid/limit mistakes in the early going in building your portfolio. Most of one's wealth during the early stages is generally built through shear savings versus investments returns. So, ideally, I also think a low fee mutual fund (with no stupid charges like DSC's) would be the way to go in the early stages to limit trading fees while allowing for easy regular contributions.


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## number12spicy (Dec 19, 2017)

fatcat said:


> honestly ... seriously ... it’s fine to own a little bit of silver and / or gold but it really is not the place to begin investing
> 
> both silver and gold ... cost ... money to own and only pay if the price rices which it hasn’t done for several years
> 
> ...


Yeah i'm not going to go really hard on any gold or silver right now..might buy a couple coins of each but nothing crazy.


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## number12spicy (Dec 19, 2017)

milhouse said:


> IMO, it's best to keep things simple, focus on the basics, and avoid/limit mistakes in the early going in building your portfolio. Most of one's wealth during the early stages is generally built through shear savings versus investments returns. So, ideally, I also think a low fee mutual fund (with no stupid charges like DSC's) would be the way to go in the early stages to limit trading fees while allowing for easy regular contributions.


Yes I agree on the savings part, I am planning to put 1k a month into CIB500 at cibc it seems like a good choice.

What is a good MER rate? The one I am looking at is 1.18% which doesn't seem too high


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## fatcat (Nov 11, 2009)

number12spicy said:


> Yeah i'm not going to go really hard on any gold or silver right now..might buy a couple coins of each but nothing crazy.


great way to do it, buy a gold coin or 2 when you are feeling flush and put them away for a rainy day ... in 10-20 years, you will have a nice stash ... but during those 10-20 years, it will be stocks in good companies that will make your fortune


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## TomB16 (Jun 8, 2014)

Generally speaking, commodities are speculation, not investing.

If you search the Investing forum on this site for the annual predictions contest, you may find it interesting that most people error on the side of pessimism. This phenomenon seems to be fairly universal.

For this reason, most people do best by making continuous deposits over a long period of time, with no respect for market trends or sentiment.

On the other hand, you could get lucky with your commodity move or you might have a gift for predicting market but, if this is true, it would be a mistake to ask us for advice.

My advice is this: Invest conservatively while you learn what you're doing. Once you know what you're doing and have some big ideas, continue to invest conservatively for a period of 1~2 years while you study your ideas before putting your money on the line.


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## milhouse (Nov 16, 2016)

number12spicy said:


> Yes I agree on the savings part, I am planning to put 1k a month into CIB500 at cibc it seems like a good choice.
> 
> What is a good MER rate? The one I am looking at is 1.18% which doesn't seem too high


Different types of funds have different comparable MER's. 
Generally speaking, the lower end of the mutual fund MER spectrum are funds from TD's e-series, Mawer, PHN, Tangerine, etc. I'd check against comparables (ie balanced vs balanced, US Index vs US Index, etc) for those funds.


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## number12spicy (Dec 19, 2017)

lisakent17 said:


> This is the best time to invest in some good rated Mutual funds only. The market can see some consolidation in early 2018, I am not very sure but mutual fund is something one can easily go after with low risk.


Ok.

I want to also start getting into some stocks but will leave that until more middle of the year.

Focus on one thing at a time


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## humble_pie (Jun 7, 2009)

> Originally Posted by lisakent17
> 
> This is the best time to invest in some good rated Mutual funds only. The market can see some consolidation in early 2018, I am not very sure but mutual fund is something one can easily go after with low risk.




sorry, but does cmf forum even have a member named lisakent17? cannot find this personnage ...

is it possible that we are being visited by a mutual fund sales phantom each:

in any event i disagree with the above statement. All securities have risk. All mutual funds present risk, even money market funds.

cmffers generally eschew mutual funds because of their high operating costs, which are now viewed as excessive. Investors have moved past mutual funds into the world of ETFs, investment vehicles with problems of their own that have not yet surfaced.






number12spicy said:


> I want to also start getting into some stocks but will leave that until more middle of the year.
> 
> Focus on one thing at a time


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## Mukhang pera (Feb 26, 2016)

humble_pie said:


> sorry, but does cmf forum even have a member named lisakent17? cannot find this personnage ...
> 
> is it possible that we are being visited by a mutual fund sales phantom each:


Me too, hp, not able to figure out where the lisakent17 quote comes from. It's made to look like it it comes from this thread. What can you tell us, #12spicy?


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## Spudd (Oct 11, 2011)

lisakent17 was a spammer so I suspect her profile and posts were deleted, but since she was quoted, her quote remains as a reminder of the spammer that once was.


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## james4beach (Nov 15, 2012)

Spudd said:


> lisakent17 was a spammer so I suspect her profile and posts were deleted, but since she was quoted, her quote remains as a reminder of the spammer that once was.


Ghosts of past spammers... spooky!


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## number12spicy (Dec 19, 2017)

huh?


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## james4beach (Nov 15, 2012)

number12spicy said:


> huh?


Sorry, we got side tracked talking about someone who used to post but has disappeared, because I deleted them for spamming.

To get back to your original question, I think that picking one of the good mutual funds and accumulating savings is a fine way to get started. Precious metals are probably not the best place to start (and I say this as someone who is a heavy precious metals investor). As you build up a balance, you should continue reading and learning about other aspects of investing. When I started investing, all my money was in a couple RBC mutual funds. They weren't the best funds, but starting there forced me to learn about investing and grew my money a bit -- so I'm glad I started with big name mutual funds.

If you're with CIBC, I still think CIBC Balanced Index (fee MER 1.20%) is the better mutual fund option. The one you mentioned (CIBC Managed Balanced Portfolio) has an awfully high fee MER at 2.25%. You should ask CIBC about mutual fund fees and check about hidden deferred sales charges (DSC) as well.


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## DavidW (May 27, 2016)

number12spicy said:


> Ok.
> 
> I want to also start getting into some stocks but will leave that until more middle of the year.
> 
> Focus on one thing at a time


Robert Kiyosaki in his Rich Dad Poor Dad series of books talks of using REITs as good way to start investing though he also talks about being an entrepreneur and increasing your financial knowledge, I like his second book _The Cashflow Quadrant_ best as it was less real estate focused. Having myself started with mining stocks they can indeed be volatile and test your risk tolerance level. REITs are safer and more of an investment than speculation though certainly not of the same quality as a blue chip utility with consistent earnings. Through their return of capital component REITs can also help introduce the taxation aspects of investing, which in turn can be a component of risk management. I found this article https://seekingalpha.com/article/4134661-managing-risk-separates-best-rest today talking about healthcare REITs which has a few good quotes about risk management.

Healthcare is a sector I have not diversified into and invested in yet. I don't really know anything about pharmaceuticals. I do know of a couple listings on the TSX that are in the sector, one of which is a REIT and the other a hospital. I already have enough opinions I vent about regarding the banking system that as a Canadian I'm conflicted and not sure investing in healthcare is the best route for me.


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## number12spicy (Dec 19, 2017)

So it is a few weeks later and I have my funds spread out over a few mutual funds (US INDEX, Canadian index)

I'm holding off on buying stocks at the moment but when i do should I open a second tfsa for them?


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## Thal81 (Sep 5, 2017)

You mean individual stocks? My take on this is they are not for people starting out. And even then, I wouldn't bother, simpler is better. Your canadian index fund gives you the canadian stock exposure you need.

If I were you I would focus on getting better diversification. It seems you are missing an international index fund. Maybe some bonds wouldn't hurt either... Have you checked out the canadian couch potato suggested portfolios?

cheers


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## kac147 (Jan 12, 2018)

I would suggest your mutual funds account to be your saving for retirement and start learning to invest into stocks at the moment. I would start reading some investing books that best suit your investing style. 

You should decide what type of investor you would like to be. For example, long/intermediate/short term, fundamental/technical/combined, risk tolerance, etc. I am not sure what your financial background is but reading books about learning company's financial reports would be a good start. Learning from the famous investors would also be a good way. Other than the investing technique, you should focus on the investing philosophy and psychology so that you don't implement the wrong strategy to your investing style.


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## lonewolf :) (Sep 13, 2016)

In skiing most beginners waist time learning the dead end movement the snow plow instead of learning movements expert skiers use. Creating bad habits as well instructors have no understanding of tipping movements with flexing to release while holding counter no active rotary is needed when they do go on to teach parrallel. So you have to figure it out yourself or learn from an expert skier.

We are in a vertical market I would suggest using an advanced technique & go long OTM calls on the Dia to limit loss & take advantage of gains. Most/99.9% of the time would not recommend this strategy. though have to play the market your in. First timer no more then 1% on table probably .5% or less best


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## Calmoney (Dec 19, 2013)

I am assuming being in the BC public service you are in a defined benefit pension plan. If you are considering a long term career there, that pension will take a world of worry from you when you are older. Having said that, probably a TFSA would be a great start as you have plenty of tax free room to invest in. I agree with others that starting out and even long term, ETF's are a great way to get your money in the market. If you add every month, you will be dollar cost averaging, over time, this will keep you from buys a alrge amount of shares at high prices and you will be buying more at lower prices.
Using Questrade for monthly ETF purchases will be commission free, whereas, as far as I know, the big 6 banks still charge $10 a purchase. There are great CND, USA, and international funds to start with. Very low MER's as well. Also, slide a hundred or so dollars a month in the TFSA, or outside, for an emergency fund should you find yourself without work at some point, this will keep you from having to sell shares, especially if the market is low.

My two cents.


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