14 year old interested in Investing. Do mutual funds work?
Hey guys, Im wondering if a Mutual Fund is the thing for me. TD Bank (in Canada) looks very promising, but very complicated as well. Right now, I have about $1,500 and my younger brother has about $4,200, both of us are thinking of doing a joint-account, but not on paper (because you have to be the age of majority). So instead, my father will register our “Non-Registered” account in TD bank for us, and when we want to stop, we will split the money by original investment percentage (If it does go through ,then both of us have put in $5,700, me being propetier of about %26.31 of the investment, while the scrooge, my brother, will be owning about %73.68 of it.
Are there any other types of Investments that will probably work for me? Im looking for medium/high income from the Fund/Bond.
Please excuse my retardedness in Investments , but whats the type of investment that has a fixed annual rate of income (no risk at all) like a 8% annual growth but your capital isnt exposed to risk ?
Awesome! I wish I invested a bit when I was 14! You have no idea how incredible your measly investment “Could” be a meal ticket for you some day.
Got Excel? Download this template from Microsoft::
Now.. Example… Lets go NO risk.. CD’s are great fro that…
I go to
Bankrate.com and look up the best CD rates. (often Banks that you can work by mail and online will have a lot better rates than anyone local. Make sure you check that before you go to your local B of A or WElls Fargo)
Rates stink right now for CD’s a year ago they were over 5% at some banks…
But I see First Internet Bank of Indiana has a one year CD at an APY (Anuual Percentage Yield) of 3.65%
SO plug into the template I sent above and look down the road 7 years of that rate… I have you in seven years having $7,356.00!
String that out to when you are 28 … 14 years from now… There will be $9,465.00
The point is the magic of investing and compound Interest. And that is a lousy rate. You are going for 8%… OK thats probably a safe rate to shoot for in mutual funds or a good steady stock.
SO I plugged in your $5,700.00 at 8%
7 years gets you a $9,960 return 14 years is $17,404 !!!!!
(before taxes, your interest will be taxed each year.. But you’re 14 don’t worry too much about that now… You don’t make enough in the end to owe anything and or very little because you are a dependent)
Thus if you’re mutual fund choice gets say an average return of 10% (such should be your minimal goal in my opinion) your $4,700.00 will go to 7 years $11,445.00 14 years $22,792,01 and 20 years just for kicks… $41,770.00!)
You have upped your risk in mutual funds.. It maynot work out to 10%in the end. BUt it is not likely to lose you money over that time…. If Mutual funds did that.. I doubt there would be much business for them.. How about you
Lets up the risk… I gambled $2500.00 I inherited and left it be … Back in 80′s it was invested in BUD.. Anheuser-Busch…
When I cashed it out 20 years later it was over $70,000 after dividend reinvestment. (and actually it is still invested in stocks five years later and is now worth over $200,000.00)
My point is… When you are 14.. You have the opportunity to gamble… Now that I have this large amount of money saved… I personally have moved a lot of it to less risky.. Like the CD’s mentioned above.
You can learn a lot from Bankrate.com as well as http://investopedia.com
My point is.. That 6 or 7 thousand dollars might look juicy say 7 years from now. Down payment for a car? ( I know it’s both you and your bro’s but I am trying to keep things simple here). Personally the only reason I would consider taking it out in 7 years would be for college…
As for scrooge… Well he’s sitting prettier than you bud… Time to get to work and put a lousy $5 a week into your future. You might remember this question answer someday very very fondly .. While you sip your drink after snorkeling and para sailing on some tropical beach…
Point is.. You’re 14… I say take the higher risk.. But not too high. Work with people you believe in and are reputable. Find a stock or two and put it in. (or a good low fee, no or low load mutual fund) Act like the money does not exist. Act like you lost it for a few years. When you find it again.. You’ll be hooked up!
Best of luck!
HELP! 401k enrollement?
At my job, i have been told i need to do my 401K enrollement.. the only thing is.. i have no idea what i should invest in. what percentage should go where… Please help me by telling me the basics of the 401k and how it applies to my life…
I am a college student, and am not dumb or anything like that. I understand that I am going to need my 401k and that it rolls over… I just do not know anything else about 401k/ investments
Can you help break it down for me…
BY THE WAY.. I am being asked to set of investments for future contributions. What percentage should i choose for each
Short-Term Fixed Income Fund 0% %
Stable Value Fund 0% %
Government Inflation-Protected Bond Fund 0% %
Core Bond Fund 0% %
Intermediate Bond Fund 0% %
High Yield Bond Fund 0% %
Large Cap Value Index Fund 0% %
Large Cap Value Fund 0% %
Growth and Income Fund 0% %
S&P 500 Index Fund 0% %
Large Cap Growth Index Fund 0% %
Large Cap Growth Fund 0% %
Mid Cap Value Fund 0% %
Mid Cap Growth Fund 0% %
Small Cap Index Fund 0% %
Small Cap Core Fund 0% %
Small Cap Blend Fund 0% %
International Large Cap Value Fund 0% %
International Large Cap Index Fund 0% %
International Large Cap Core Fund 0% %
International Small Cap Fund 0% %
JPMorgan Chase Common Stock Fund 0% %
Moderately Conservative Portfolio 0% %
Moderately Aggressive Portfolio 0% %
Aggressive Portfolio 0% %
You need to talk to your HR department. It also might make sense to read a financial book or two. You need to get a sense of your own tolerance for risk and then try to match investments to that and at the same time make sure you’re well diversified. You’re not going to get that all here on YA!You need to do some homework. This is your money not ours.
need help with accounting question?
1.Which of the following is false?
a. Conversion of bonds would have no cash flow impact
b. Calling our bonds would reduce cash under financing activities.
c. Interest reduces cash flow from financing activities.
d. All of the above are false.
e. None of the above is false.
2. In 2003, Harrah’s times interest earned ratio was 2.98 while Trump Casino’s ratio for that year was .38. Which of the following statements is false?
a. Harrah’s ratio appears to provide marginally adequate coverage of interest from its present earnings.
b. Since Harrah’s is actively pursuing growth through investment in other companies, its ratio may improve once those investments begin to generate additional profit.
c. Trump Casino’s ratio is very low and they present high risk to their creditors and investors.
d. None of the above is false.
No false statements. :0)
Stupidity and Ignorance on Capitol Hill Our congressional leaders showed their true colors during this week?
Stupidity and Ignorance on Capitol Hill
Our congressional leaders showed their true colors during this week’s sit-down with the Fed.
Federal Reserve Chairman Ben Bernanke presented his semi-annual monetary report to Congress this week. Bernanke was disciplined and on message. Unfortunately, the same cannot be said of Congress.
Members of both the House and Senate appeared ill-prepared and off-message, using their time to address the extraneous and irrelevant (to monetary policy). How, for instance, is the Fed chairman supposed to influence poverty and college loans with the federal funds rate?
Many congressmen and women have tried to beat up Bernanke over wages not rising fast enough relative to inflation (including food and energy). Not only do many members of Congress have their facts wrong (real non-supervisory wages have risen at two times the rate during this cycle than the first five-and-a-half years of the last), but they’re inconsistent since not one would want the chairman to hike the funds rate because of the elevated energy prices they decry.
In other words, congressional “leaders” berate the Fed chairman over high energy prices, lampoon him for a focus on core inflation, and then scold him for having raised rates too much! It’s a heady combination of hypocrisy, stupidity, and ignorance that’s otherwise known as Washington D.C.
In any event, for those who were actually listening, there were several important takeaways from the Bernanke testimony. The Fed slightly lowered its estimates for 2007 and 2008 growth, but kept its inflation forecasts unchanged. This necessarily implies that the Fed has lowered its estimate for productivity (potential), which is why the downward tweak to its growth estimates didn’t impact its outlook for inflation or the unemployment rate.
The Bernanke Fed is trying to be forward-looking by anchoring policy to a forecast and by using inflation expectations as a guide. Any change in the fed funds target rate from current levels likely will result from the Fed having to defend its forecast for growth and inflation. The forecast thus is the anchor for policy, while inflation expectations, derived from surveys and spreads in the bond market, are the bridge between current policy and the forecast.
The Fed minutes released yesterday suggest more balanced risks to growth, with business confidence, non-residential investment, exports, and a tight labor market likely to offset the ongoing adjustment in the residential sector. That fact that the economically sensitive Dow Jones Transportation Index has reached record highs into the teeth of $75-a-barrel crude oil prices sends a powerful message about growth.
With headline inflation elevated, commodity prices in the stratosphere, the dollar weak, and inflation-linked bond spreads above their 10-year moving average, there would seem to be upside risks to the Fed’s 2008 inflation forecasts, which may require higher short rates to achieve. However, this may be a 2008 event instead of a 2007 reality.
In the meantime, it would be helpful if the congressional leadership resisted lowering structural productivity to a rate below the Fed’s reduced forecasts by way of totally unnecessary and growth-retarding tax hikes on capital and labor.
Sadly, the U.S. shift toward economic populism and tax hikes, and away from free trade, is coming at a time when most of the rest of the world is moving down the Laffer curve by cutting tax rates and removing obstacles to commerce.
Perhaps it’s time for Congress to end the clown show and become acquainted with the basics of monetary policy and pro-growth economics. American competitiveness and prosperity depends on it.
Unfortunately well informed and well presented information like this is lost on the majority of those frequenting yahoo answers. Ignored due to its length. You are right though it is time for Congress to get its act together. It’s a shame the very nature of Congress seems to repel those with knowledge, talent and vision.
can some one summarize this article? “US economy in transition from recovery to expansion phase”?
Stocks advanced yet again last week in light of rising optimism about economic growth, strong corporate earnings and a continued fading of the fears that kept many investors away from risk assets over the past couple of years. For the week, the Dow Jones Industrial Average climbed 1.5% to 12,273, the S&P 500 Index rose 1.4% to 1,329 and the Nasdaq Composite advanced 1.5% to 2,809.
In our view, while the rally has been strong, it is not yet exhausted. Although a short-term correction could take place at any time, equities remain relatively inexpensive and we believe the bull market should continue.
Economic growth in the United States has continued to improve in recent weeks. Business confidence measures have moved to multi-year highs, sales levels are rising, profits are improving and business investment levels remain robust.
The economy is clearly transitioning from a recovery phase to an expansion phase. The difference between the two is that the former is dependent on monetary and fiscal stimulus while the latter is based on improvements in demand from the consumer sector as well as on companies’ top-line growth and growing trends in capital investment — trends that are more self-sustaining.
It is important to remember, however, that the significant long-term issues that drove the economy into recession (the fiscal crisis and resultant deleveraging) have not gone away and will still take some time to address. It is clear that the launch of QE2 in late 2010 as well as the extension of the Bush-era tax cuts (plus additional sweeteners) has helped lift near-term economic prospects, but what happens in the second half of the year and beyond remains an open question.
The murkiness of the long-term outlook combined with the fact that economic growth expectations have improved result in some additional risks. At present, expectations for 2011 economic growth have risen to around the 3.5% level, meaning that it will be an increasing challenge for data releases to result in positive surprises.
It is extremely difficult at this point to make any sort of assessment as to what the economy will look like in 2012, but we expect 2012 to be a year marked by a Federal Reserve that is slowly working to normalize rates, by emerging economies that are continuing to experience faster growth levels than the rest of the world, by a political backdrop that will make President Obama eager to promote growth-friendly policies and possibly by a housing market that is able to make some contributions to economic growth levels.
One factor that we do not believe will be a significant issue in the year ahead is inflation. Rising food and energy prices have received their share of headlines, and while these factors are highly significant in emerging economies (where purchases of food and energy make up a much larger percentage of consumer spending), they are less so in the developed world. There is still a great deal of slack in the world’s developed market economies (which can be seen in the labor markets), and we do not believe we need to be overly concerned about inflation.
Given the improving economic backdrop, it should not be a surprise that we are seeing a broad asset allocation shift among investors from bonds toward equities. Some observers have suggested that the recent inflows into equity mutual funds mean that the rally in stocks may be coming to an end, but we do not share that view and continue to believe that equities are a good place for most investors to be.
From a geographic perspective, we continue to believe that US stocks are very well positioned relative to alternatives. US economic growth is continuing to improve, while Japan and Europe are continuing to face some problems. Emerging markets do represent some attractive opportunities, but in some cases (such as China) growth levels are too high and inflation is becoming a problem, causing authorities to ramp up tightening efforts.
For many investors, the shift into equity markets is still in the early stages and equity valuations are hardly stretched, suggesting that the upward moves have further to run. While pullbacks and corrections will no doubt occur along the way, we believe they should be short and shallow and should be taken advantage of to add to positions.
I’ll summarize it for you…
It’s all lies. There is no recovery.
After the treason of “globalism” became accepted, all traditional financial rules and indicators mean nothing. This recession was CAUSED by the big corporations making more money using foreign slave labor. The health of these corporations is no longer an indication of the nation’s general economic health. Actually, the opposite is more likely. This crash started at the consumer end. The rich got richer and the poor could no longer afford to pay their debts. NOTHING HAS CHANGED. Get ready for round 2.
There is little growth now and no reason to expect any. Stock prices are being held up by “bailout” money stolen from taxpayers and the expectation of inflation. The stocks will simply be worth more devalued dollars, even though there is little growth because consumers still can’t get good paying jobs like they could in the past. NOTHING HAS CHANGED. What caused the first part of the recession will continue to cause more problems. Basically, the parasite has killed the host and workers can no longer support a growth economy due to “globalism” and slave labor.
The “elite” have consolidated the world’s wealth and they are not going to give it back. They will use each crisis they caused to take more control and more of our freedoms in order to “rescue” us. The control they already have over “our” government is pretty plain to see. Everything is being done AGAINST the will of the people and MANY unconstitutional things are being done. By some strange coincidence, a police state is also being built at this time to protect us from “terrorists”. Let me tell you… The “terrorists” they are getting ready to control are you and me when we’re even more broke and pissed off. The timing is no coincidence and building 7 did not implode in it’s own footprint from small fires.
There is also still a GIANT BLACK HOLE of worthless derivatives held and traded by the banks. The truth is, they are all insolvent and they will continue to find more ways to steal from us and try to fill the black hole. There will be more bailouts, schemes for selling “carbon credits”, etc…
The price of gold is just $2.00 off the all-time high at this moment. This is no sign of recovery! This is a sign of a world in financial turmoil, where all currencies are losing value in unison (intentionally to make it less noticeable).
If you want to hear more truth, I suggest you hit YouTube and listen to anything Max Keiser has to say…
Is this proof once and for all that trickle-down economics does not work?
“This situation underscores the limits of Washington policy makers’ power to stimulate the economy. The Federal Reserve has held official interest rates near zero for almost two years, which allows corporations to sell bonds with only slightly higher returns — even below 1 percent. But most companies are not doing what the easy monetary policy was intended to get them to do: invest and create jobs…The cheap money may be having yet another effect unintended by policy makers eager to cut the nation’s 9.6 percent unemployment rate. Several of the corporations borrowing billions on bond markets are using the money to put their own financial house in order rather than to create jobs…All of this may enrich the corporations’ shareholders and cut company costs in the long run, but it does not necessarily lead to more jobs and it does not represent the big investments in growth that could fuel a sharp economic recovery for everyone…”
You’re correct. The Bush tax cuts have been in effect for 10 years now and what’s the current unemployment rate? How long has it been that way? So where are the jobs? They got the cuts.
They never did build all the factories they were supposed to. They took the money and ran!!
GE got a 1.1 BILLION tax refund.
Why your tax bill is higher than GE’s
Some of the world’s biggest, most profitable corporations enjoy far lower tax rates than you do — if they pay taxes at all.
How to pay less tax
The most egregious example is General Electric. Last year the conglomerate generated $10.3 billion in pretax income but ended up owing nothing to Uncle Sam. In fact, it recorded a tax benefit of $1.1 billion.
Cheap Debt for Corporations Fails to Spur Economy
Companies like Microsoft are raising billions of dollars by issuing bonds at ultra-low interest rates, but few of them are actually spending the money on new factories, equipment or jobs. Instead, they are stockpiling the cash until the economy improves.
Rich Americans Save Tax Cuts Instead of Spending, Moody’s Says
Give the wealthiest Americans a tax cut and history suggests they will save the money rather than spend it.
Tax cuts in 2001 and 2003 under President George W. Bush were followed by increases in the saving rate among the rich, according to data from Moody’s Analytics Inc. When taxes were raised under Bill Clinton, the saving rate fell.
It’s a shame some fools still believe that trickle down crap works. They could be slapped with reality and facts all day long and they’ll still swear by it.
is this spam (im guessing yes) and has anyone ever recieved an email like this?
this is the email i got, its got to be a hoax/spam, what do u all think and has anyone recieved anything similar?
I am Ma Delun,a staff of Private Banking Services at the
Bank of China (BOC) United Kingdom. I am contacting you concerning our
customer and, an investment placed under our banks management 5 years ago.
I would respectfully request that you keep the contents of
this mail confidential and respect the integrity of the information
you come by as a result of this mail. I contacted you independently of our
investigation and no one is informed of this communication. I would like
to intimate you with certain facts that I believe would be of interest to
In 2003, the subject matter; ref: bb/boc/bank/0012 came to
our bank toengage in business discussions with our Private Banking
Services Department. He informed us that he had a financial
portfolio of 8.35 million United States Dollars, which he wished to have
us turn over(invest) on his behalf.
I was the officer assigned to his case; I made numerous
suggestions in line with my duties as the de-facto chief operations
officer of the Private Banking Services Department, especially given the
volume of funds he wished to put into our bank. We met on numerous
occasions prior to any investments being placed. I encouraged him to consider
various growth funds with prime ratings. The favored route in my advice to
customers is to start by assessing data on 6000 traditional stocks and
bond managers and 2000 managers of alternative investments. Based on my
advice, we spun the money around various opportunities and made attractive
margins for our first months of operation, the accrued profit and interest
stood at thispoint at over 10 million United States Dollars, this
margin was not the
full potential of the fund but he desired low risk
guaranteed returns on investments. In mid 2005, he asked that the money be
liquidated because he
needed to make an urgent investment requiring cash paymentsin Europe. He
directed that I liquidate the funds and had it deposited
with a firm.
I informed him that the bank would have to make special
arrangements to havethis done and in order not to circumvent due process, the
bank would have to make a 9.5 % deduction from the funds to cater for
banking and statutory charges. He complained about the charges but later
when I explained to him the complexities of the task he was
asking of us.Cash movement across borders has become especially strict
since the incidents of 9/11. I contacted my affiliate in and had the
funds available. I undertook all the processes and made sure I
followed his precise instructions to the letter and had the funds
deposited in a security consultancy firm, the firm is a specialist
private firm that accepts deposits from high net worth individuals and blue
chip corporations that handle valuable products or undertake
transactions that need immediate access to cash. This small and highly
private organization is familiar especially to the highly placed and
well-connected organizations. In line with instructions, the money was
He told me he wanted the money there in anticipation of his
arrival from Norway later that week. This was the last communication we
had, this transpired around 9th October, 2005.
In January last year, we got a call from the security firm
informing us that the inactivity of that particular portfolio. This was
an astoundingposition as far as I was concerned, given the fact that I
managed the private banking sector I was the only one who knew about the
deposit , and
I could not understand why he had not come forward to claim
his deposit. I made futile efforts to locate him I immediately passed the
task oflocating him to the internal investigations department of
the bank of china. Four days later, information started to trickle in,
apparently he was dead. A person who suited his description was declared
dead of a heart attack in Canne, South of France. We were soon enough able
to identify the body and cause of death was confirmed. The bank immediately
launched an investigation into possible surviving next of kin to alert
about the situation and also to come forward to claim his estate. If
you are familiar with private banking affairs, those who patronize
our services usually prefer anonymity, but also some levels of
detachment from conventional processes. In his bio-data form, he listed no
next of kin. In the field of private banking, opening an account with us
means no one will know of its existence, accounts are rarely held under a
name; depositors use numbers and codes to make the accounts anonymous. This
bank also gives the choice to depositors of having their mail sent to them
or held at the bank itself, ensuring that there are no traces of the
account and as I said, rarely do they nominate next of kin. Private banking
clients apart from not nominating next of kin also
I receive these types of emails on a daily basis. This is a SCAM. If you click on the below link this site confirms various email scams and provides an online form for the reporting of all scams and frauds – (with links for your own country.)
Unscrupulous thieves have sent you this email and they are trying to part you from your hard earned cash. They will often ask you to call a premium rate number and keep you holding on whilst you rack up a huge phone bill. They are then paid a large proportion of this phone bill. They may ask you to divulge personal information about yourself or ask for your bank or credit card details. Do not divulge any such information under any circumstances. It is surprising how many innocent victims have been duped by these types of messages. Please remember the thieves who send them are very clever and extremely convincing. I suggest you delete it and send it into cyberspace where it belongs.
Check out these sites for further information :
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