Your Questions About Investing Tips

Robert asks…

Any tips on where to invest my money fo my childs college?

I just had a newborn son and don’t know how to get started investing. Any tips would be nice.

John answers:

Ok – here is some out of the box thinking

US savings bonds

Thomas asks…

investing tips and ideas?

OK i have been asking questions about investing because i personally believe that money can still be made in some areas of a company however i am not getting the response to my question which is that i want to know how to use the system when buying shares/stock etc how do i start of buying or investing and also how do i keep a track of what am losing or making and also how does the system work what are all the symbols and stuff that people see on the computer.

another thing i wanted to know has Google been affected by the credit crunch seeing as it uses pay per click system

all answers and tips will be much appreciated thank you

John answers:

There are sites out there that you can invest online, what i would invest in well me and bill gates actually has a pretty broad base of investments, from other
technology to biotech to stock photography to satellite-based internet
technology to steel and more! I guess do your home work.

Also a great idea is read the news and find out what other company’s are investing in for example google, yahoo, Microsoft. The big buzz word at the moment as you know is internet and its only going to get bigger and faster, plus another word is genetically modified food even cloning gene therapy etc.

David asks…

Tips on investing for my childrens futures In Australia?

Apart from a childrens savings account what else can I do they are toddlers

John answers:


Firstly, a savings account would not be the most effective way of saving for your children. If inflation is high, then the real rate of return on a savings account can be low or even negative – meaning the money you have invested can decrease in value easily..

A managed fund could be beneficial in that even while there could be years of negative or low earnings, over the long term, they are generally high performing, with a lower level of risk when compared to direct share investments. Of course, any earnings on a managed fund will depend on the underlying investment strategy that you choose. The key benefit of a managed fund is that the underlying portfolio of assets is monitored on a full time basis by a team of highly qualified professionals. This means that even if you have little money to invest, or little financial knowledge, you are able to experience the benefits of a complex financial investment.

Managed funds come at a price – with fees that can be high.

If you have a higher level of financial knowledge then a direct share investment might be better. The fees are generally lower since you only have to pay for broking on sale or purchase of the assets – but you will need to make sure that you minimise capital gains tax. You would also need to research and monitor these investments yourself and be prepared to weather through any troughs in the market.

Its hard to give any solid, definite answers to questions like this since it is crucial that an understanding of your current financial situation, your attitudes towards risk and return, and your knowledge of financial markets are addressed. You also could be clearer on your goals. Are the savings for education? A house deposit when they are older? Do you want access to the funds while your children grow up to pay for unexpected expenses (e.g. Dental work)? How much do you plan on investing? When do you plan on handing over the investment to your children? Do you want to control how your children spend the money once it is theirs? Perhaps some sort of trust fund may be required. Have you considered the tax implications of the investments?

You really need to be more specific and think about what you are trying to achieve. It is probably best to consult a financial planner before making any decisions.


Maria asks…

What are some good tips to learn about investing ?

John answers:

Follow the traditional time tested advice:

Have a goal – know what you are investing for, and choose the right investment to achieve it.

Choose the right amount of risk – neither too cautious nor too reckless.

Do your research – choose what’s right for you – not someone else, especially a sales rep.

Be diversified and allocate your investments properly.

Think long term and avoid the Big Money Fast hype.

Don’t invest according to emotion – especially greed, fear or panic.

Don’t just look at the investment – consider fees/taxes/commissions around it.

Read some basic books to teach you the fundamentals. Two excellent reads are The Complete Idiot’s Guide to Investing and Investing for Dummies. You can probably find them in your local library. Before doing anything, make sure you have enough in savings in case things go south for at least 6 months.

John asks…

Online investing- any hidden fees, have any tips for me?

I don’t have that much experience investing. Im thinking about throwing a couple thousand dollars into an online stock broker like etrade, ameritrade, scott trade, etc. Any startup tips for me? Which site do you recommend? Also, they always advertise $7-8 trades….. does that completely cover the trade fees? or are there hidden charges, commission fees, etc? I’m not good with all the lingo in their terms…..
Yeah thanks Common Sense; Ive been playing around on simulators for about a year and I’m doing alright, just dont know how to actually do it with real money

John answers:

Scottrade is great if you know what you’re doing. Schwab & Fidelity (Brokerage) may be better if you need a little assistance.

Don’t do anything until you understand investing. Don’t ever take stock tips. Don’t just buy your first stock because it sounds great or it’s “just always going up”.

Learn Learn Learn before you buy one thing. Have a plan. Understand “asset allocation”. Never buy anything without fully knowing it & why you’re buying it (Uncle Joe says it’s going to triple in two weeks is not a reason to buy).

Good luck. The right approach will make you rich slowly.
The wrong approach will make you poor quickly……….

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