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Kids Ain't Cheap

But They Sure Are Worth It

When You Really Should….

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try before you buy

While everyone loves getting free stuff it is also smart to try out a product or service in a trial setting, particularly when there is a risk involved in losing and you are someone who is learning the ropes. Given their potential high-risk nature, the saying really couldn’t be truer for the two activities below:

Investing

With the BoC base rate at a historically low rate of 1 percent and no sign that it will rise in the short term bank savings accounts give ordinary investors little to get excited about. Even though inflation has come down in recent months, the chances are that the money you hold in a savings account is actually losing its value year on year. One alternative is of course online share trading, perhaps through an ISA or your local stockbroker.

Picking stocks can be a minefield for the uninitiated. Values go up and down and the array of options to choose from is bewildering. Are you investing for growth or income? Do you want access to international shares or just the Canadian market? It is enough to scare anyone off taking a crack at the whole world of online share trading. But, there is a way you can dip your toe in the water. Some online trading platforms, like Selftrade, offer virtual accounts where you can play around with different types of shares and see how your portfolio does in the real market but without actually risking any money. It is a great way of trying out your investment system in a safe environment before you are ready to invest for real. Virtually investing like this is free and can allow you to make your mistakes upfront, hopefully avoiding some of the more costly beginner’s errors.

As a word of caution, when you are ready to start investing, look into the fees your provider will be charging. Fees are one of the biggest drains on your investment fund and can hobble it if you aren’t careful. For further information on this can be found here.

 Gambling (online poker)

There are thousands of sites for budding card players to choose from and plenty of different ways to lose your money, as well as different forms of gambling such as online slot games. Online poker play is quite different from the real life version. For one thing it is played at a much higher speed than real life poker and it is common to see several thousand hands an hour being played. Other players can also often see each other’s stats so new fish can be at a disadvantage. Even if you are a pretty good player, going online can be daunting when you first try it out. Fortunately there are a multitude of options when it comes to finding a $20 minimum deposit casino Canada (or elsewhere more relevant) so that you can play relatively low stakes, this can allow you to build up your confidence without putting a considerable amount of cash on the line. Do you play aggressively and aim to scare other players into folding? Or do you play it more cagey and suss out other players’ strategy before raising the stakes? For players starting off there are sites available where you can test your strategy before putting skin in the game. Learn how the format works and play a few hands before buying your chips.

Round Out Your Portfolio with Managed Funds

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investingAs most investors know, diversification is a great measure of protection from the depreciation of certain assets. If your investment portfolio is weighted heavily in stocks and the market takes a downturn, so does your balance. But if your investments are spread out among various securities, the loss in value of one can often be offset or lessened by the stability and/or growth of others.

 

What is a Managed Fund?

A managed fund is a type of investment comprised of multiple securities (stocks, bonds, etc.) that involves the funds of multiple investors. The theory here is that with more people investing in a certain fund, the more money the fund can raise and therefore invest for profit.

Managed funds are a great choice for those who have little to invest and want to share the risk with other investors. When the managed fund profits, everyone who has invested in it shares its success. Of course, when the fund’s performance lags or takes a nose dive, everyone shares that as well so be sure you are comfortable with the idea of losing your money.

 

Pros and Cons of Managed Funds

As with any investment tool, managed funds have a variety of pros and cons. The benefits of a managed fund include reduced risk, professional management, convenience and even low costs of entry. Managed funds can also be a convenient way to gain experience as you learn the ropes as a new investor.

On the flip side, managed funds can have high fees, the success of the fund it at the mercy of the fund manager and there is no guarantee that money will be made. In fact, you could lose your initial investment and then some!

 

HOW TO MAKE MANAGED FUNDS WORK FOR YOU

If you’re interested in investing via managed fund, take note of the following tips:

  • Research all of your options including the company and the fund manager
  • Request (and read!) the fund’s prospectus before you hand over any money
  • Ensure you’re aware of any and all fees associated with investing in the fund—both in the short and long terms
  • Have a clear set of goals defined before you invest your money—what are you saving for?
  • Understand all of the costs associated with the investment—including taxes!
  • Monitor the progress of your fund (and its manager)
  • Make all changes via writing and save your records

Before you make any final decisions on what you want to invest in, it’s important that you also look into the stocks’ predicted growth, for example, by looking into Lucid stock price prediction you can gain a better understanding of the market growth trend and what the predicted market forecast is. Looking into these trends will help you make an informed decision. By following the above tips and using the many resources out there, you can be sure that you make a worthy investment.

Do you invest in managed funds?