investing for dummies.. who are vegans..

[andgbr]

I don't know anything about investing ( i barely know how it works ), but i'm really interested, to see if i can use my savings to make extra money while i'm helping all those things related to veganism.. ( is it safe? )

so, if you know something, and you're willing to explain.... please, help me understanding this...

[JW]

whoaa that is a big question

 

There are many different avenues available.

 

Firstly, you have to determine what risks you are willing to take.

 

the money you invest is called the pricipal. If you don't want to risk losing any of it, you would be looking for low risk interest yielding investments.

These are typically lower yielding but your principal amount is completely safe.

You can invest in anything from a savings account to a term deposit.

In a savings account you can take your money out whenever you want.

A term deposit locks your money in for a specified time period (could be months or years) Term deposits pay more interest than savings accounts.

 

You could also look at mutual funds which are funds of money invested in different investment vehicles. Low risk ones would be Money Market Funds.

Bond Funds will pay more interest but there is a risk of losing some of your principal.

Balanced Funds invest in income yielding investments such as bonds, T-Bills and stocks.

Growth Funds invest primarily in stocks and are the riskier options as there is significant fluctuation in the stock prices.

 

Historically, the stock market has increased over time but with some significant corrections. To buy stock you would have to purchase through a broker who would charge you a commission to buy or to sell.

Many stocks pay dividends payable 4 times a year. Usually, these don't pay too much ... about 1-3% annually

 

I would STRONGLY suggest reading A LOT before investing in the stock market. The common mistake made which costs people money is investing by emotion. It happens so so often where you buy a stock thinking it will go up, it starts going down...you start getting nervous...it goes down some more...you sell in a panic and lose money.

A couple months later you look at the stock price and it is much higher than what you originally paid for it!!!!

Sometimes you get lucky, a lot of the time not

 

Look at websites like the Motley Fool

Banks also have a good deal of information available.

The Library is full of informative books.

 

Sorry for the rambling note but there is a ton of info to cover...

 

Good luck

[andgbr]

thanks for taking my confidence away and replacing it with realism.. lol.. oh well, i guess you're right, i'll try to find more information and if i do learn enough without losing the rest of my confidence i'll try to make my next move..

[offense74]

Even though I largely agree with JW I think you can think ahead better than most pros, if you think long term investment. Most, if not all, experts are talking about short term investment since the tools they use are worthless for long term analysis. The methods do not, for example, cover global warming or peak oil which are more important for long term investment than any other factor. Instead they look at oil and copper prices (among other similar things) over the next week and thus determine the value of the companies that uses these things. It would therefore meen that if you, for example, would invest in a company that patented and makes "plastic" bags from renewable, non-oil sources, you could be rich in 20 years. Today these stocks would be worthless since the price of oil is too low.

 

You still need to do research though, just consider more sources than the economics.

[bvp663]

I just finished a stocks & investing course at university and have begun foray into investing. I started out with a mutual fund and also opened a Roth IRA to start saving for retirement. I agree with JW on checking out motleyfool.com They offer tons of information and well-written articles you help educated yourself on finances and investing.

[JW]

Now if I were starting out at a young age, I would look for well established, profitable companies which provide an essential product or service and pay a dividend. I would favour companies which have a DRIP ( Dividend Re-Investment Plan )

 

If you purchase even a few shares of a solid company with a DRIP, you can enroll in their plan. This allows the dividends to purchase additional shares in the company with NO commission fees.

You can also purchase additional shares in the company by sending them a cheque ( also with NO COMMISSIONS)

If you selected solid companies and were dilligent about sending in some money every quarter ( or month) you'd be amazed at the growth you'll see in 10 years.

 

I used to do this but sold them (I'm still kicking myself)

 

Some companies even offer a discount on purchases! How's that for a bonus?

 

If you do this option, try to ensure that the money stays in the accounts. Don't go in with the idea of selling right away. Time is your friend!

[willpeavy]

My strategy is to go long on high dividend stocks and bonds. I run a site all about high dividend stocks whpinvest.com . If you have any specific questions just ask

[willpeavy]

Many stocks pay dividends payable 4 times a year. Usually, these don't pay too much ... about 1-3% annually

 

There are also a lot of stocks that consistently distribute yields of greater than 10%

[JW]

Many stocks pay dividends payable 4 times a year. Usually, these don't pay too much ... about 1-3% annually

 

There are also a lot of stocks that consistently distribute yields of greater than 10%

 

very true... but these are usually ones with more price fluctuations and risk. If their operating results are solid and the future looks secure, I don't really care about the price fluctuations because of the income stream.

 

 

I was hoping you'd see this thread willpeavy

[andgbr]

thanks guys... i'm gonna do some research to see what i'll do..

[willpeavy]

There's a number of management funds have good long-term capital appreciation and distribute a yield of 10%+ too though. For example, FF has been paying out a solid dividend since 1987

[Guest]

I suggest simply buying bonds, silver or gold until you have more money. These things are safe and metals are getting more and more pricey every year. Silver stocks are going to explode in 5 yrs or so. I've got 34oz of scrap from school and most of it was purchased at $10 per oz but it will be $20 per oz in a few years...its very good if you can buy lots of it...plus it will go up more than gold(in terms of percentage) and its safe since silver is neccesary for everything involving electronics. Once you have enough cash and more business sense...then maybe you can invest in some vegan businesses...like mine

[pelicanAndrew]

My grandparents got me a ton of savings bonds for xmas when i was a kid. I thought they were lame except i have about 4400 dollars in them now and not all of them have totally matured yet. I think they'll all be totally matured by 2030.

[JW]

My wife thinks the same thing about me

[gigachad]

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