Re: [serious]ask me about personal finance
ahh nice. yea i don't quite know the market in canada for housing, though i can assume the colder the area == easier to get a house lol.
damn everything rubix said is pretty much spot on, i'm just here to give generic financial advice that isn't biased toward any agenda except self-improvement. i also don't see anyone asking me precise questions so my answers will be broader:
You can't honestly speculate a market like BTC in the short-term. I will say that long-term it will continue to increase, but short-term (1-4 years) is 99% subjective. There are uses for cryptocurrencies (i.e. SilkRoad transactions, VPN purchases, etc.), and there's even an ATM in Canada for BTC popping up. It's new, there's no governing body, nothing is insured, so you have a chance of losing it all. But if you were lucky as the engineer I heard about on NPR who owned 24 BTCs or something in 2009 where BTC was @ $.004/per and now it's @ $200+/per well, you'll be a lucky guy eh?
The market is there, and there is potential, but you should be wary and research more about it yourself. I might make a position in the future.
Live within your means and don't acquire unnecessary debt. FINISH school, otherwise your investment is a wasted effort unless you're a prodigy.
Yes. No.
fucker.
a 401k is the same thing as an Individual Retirement Account, it's just a fancy way of saying that whichever company you're working for, is offering you a retirement account. An IRA itself is individually owned; you control it - you manage it. They have different yearly limits (IRAs are generally around 5-6k, whereas a 401k is around 16-17k) A Roth IRA or Roth 401k is almost the exact same thing as above, but instead of being taxed when you take your money OUT of your IRA/401k, in a Roth, they tax it IMMEDIATELY.
Why do you want to invest in a Roth IRA first? Because it's gaining interest over decades, tax free!! You're also betting tax rates will increase over time...You don't have to know economics to know taxes will be going up, wholly and/or individually.
A Certificate of Deposit is something a bank gives you for letting them borrow your money. $1k, 3k, 5k, are usually the smaller amounts you give a bank to issue you a CD, and however long they keep your money (6mo, 1yr, 5yr, etc.) will give you back a certain % of interest. I don't recommend doing this right now, because the return rates are like 3-5% over like fuccen 5 years.
A bond is something the government (any federal agency or municipality, or corp, but mostly the gov't) gives you for letting them borrow your money. Same thing as above. I don't recommend doing this, because the rates are like 1-2% over like fuccen TWENTY years.
The above two are extremely safe forms of investment assuming your individual retirement accounts are sufficiently maxed out.
A stock is a portion of a publicly traded entity/company/business that they give you when you let them borrow your money. We'll use a cake metaphor, where a cake is a company and a slice is a stock:
There are many different many different flavors of cakes which can range from agriculture to big oil, to tech, to money, to good, to commodities; there are many. There are many different sizes of cakes and within them you can get many different slices of said cake; if you were richer you would obviously be able to afford more slices.
There are plenty of cake enthusiasts that like particular types of cake whom are willing to pay a certain price for the cakes, depending on what people say about them, and sometimes the smaller, or not-well-known types of cake and be easily swayed by public opinion and the reviews written about that cake. Suddenly your cake might seem extra-extra special because of a special ingredient the baker announced he put in the cake. Sometimes the cake lovers might not be so enthused to enjoy the new ingredients in the cake. Bigger and more popular cakes on the other hand general don't get swayed often unless the head chef says something important about the cake, and that could have hugely detrimental or substantially positive effects on the price of the cake because more people make or may not want to keep buying the same cake. Some people might say they're tired of the cake and move on to another cake that has potential to grow into a niche between a few cake enthusiasts. And in between them, they will divvy up the slices and give themselves a shitload of pieces because we're America and we're fat bastards.
A mutual fund is a group of stocks where you give your money to "professionals" [people] and hope that they get you a decent return while giving themselves a cut of the profits by charging you a 2% fee on your profits. The margin of profit may be high or lower. Probably higher. This is also called a hedge fund. opinion: It's a fucking waste
An Index is a broad spectrum of companies that have an accurate representation of the current health of the market. The most popular one nowadays is the Dow Jones (Dow) and the Simple&Poor 500 (SnP/S&P). If you beat the S&P in their overall earnings for the fiscal year, you 'beat' the market!
ForEx = Foreign Exchange. Think stocks, but with money!
BTC = Bitcoins
Futures = Kind of like stock options but not really. http://www.investopedia.com/video/pl...act-explained/
Options = Buying and selling of contracts* of certain stocks at a specific date for a specific price. The closer you are to the price of the slices of cake at the target date, the more valuable your contract is.
* 1 contract = 100 shares.
ahh nice. yea i don't quite know the market in canada for housing, though i can assume the colder the area == easier to get a house lol.
damn everything rubix said is pretty much spot on, i'm just here to give generic financial advice that isn't biased toward any agenda except self-improvement. i also don't see anyone asking me precise questions so my answers will be broader:
The market is there, and there is potential, but you should be wary and research more about it yourself. I might make a position in the future.
Live within your means and don't acquire unnecessary debt. FINISH school, otherwise your investment is a wasted effort unless you're a prodigy.
Yes. No.
fucker.
a 401k is the same thing as an Individual Retirement Account, it's just a fancy way of saying that whichever company you're working for, is offering you a retirement account. An IRA itself is individually owned; you control it - you manage it. They have different yearly limits (IRAs are generally around 5-6k, whereas a 401k is around 16-17k) A Roth IRA or Roth 401k is almost the exact same thing as above, but instead of being taxed when you take your money OUT of your IRA/401k, in a Roth, they tax it IMMEDIATELY.
Why do you want to invest in a Roth IRA first? Because it's gaining interest over decades, tax free!! You're also betting tax rates will increase over time...You don't have to know economics to know taxes will be going up, wholly and/or individually.
A Certificate of Deposit is something a bank gives you for letting them borrow your money. $1k, 3k, 5k, are usually the smaller amounts you give a bank to issue you a CD, and however long they keep your money (6mo, 1yr, 5yr, etc.) will give you back a certain % of interest. I don't recommend doing this right now, because the return rates are like 3-5% over like fuccen 5 years.
A bond is something the government (any federal agency or municipality, or corp, but mostly the gov't) gives you for letting them borrow your money. Same thing as above. I don't recommend doing this, because the rates are like 1-2% over like fuccen TWENTY years.
The above two are extremely safe forms of investment assuming your individual retirement accounts are sufficiently maxed out.
A stock is a portion of a publicly traded entity/company/business that they give you when you let them borrow your money. We'll use a cake metaphor, where a cake is a company and a slice is a stock:
There are many different many different flavors of cakes which can range from agriculture to big oil, to tech, to money, to good, to commodities; there are many. There are many different sizes of cakes and within them you can get many different slices of said cake; if you were richer you would obviously be able to afford more slices.
There are plenty of cake enthusiasts that like particular types of cake whom are willing to pay a certain price for the cakes, depending on what people say about them, and sometimes the smaller, or not-well-known types of cake and be easily swayed by public opinion and the reviews written about that cake. Suddenly your cake might seem extra-extra special because of a special ingredient the baker announced he put in the cake. Sometimes the cake lovers might not be so enthused to enjoy the new ingredients in the cake. Bigger and more popular cakes on the other hand general don't get swayed often unless the head chef says something important about the cake, and that could have hugely detrimental or substantially positive effects on the price of the cake because more people make or may not want to keep buying the same cake. Some people might say they're tired of the cake and move on to another cake that has potential to grow into a niche between a few cake enthusiasts. And in between them, they will divvy up the slices and give themselves a shitload of pieces because we're America and we're fat bastards.
A mutual fund is a group of stocks where you give your money to "professionals" [people] and hope that they get you a decent return while giving themselves a cut of the profits by charging you a 2% fee on your profits. The margin of profit may be high or lower. Probably higher. This is also called a hedge fund. opinion: It's a fucking waste
An Index is a broad spectrum of companies that have an accurate representation of the current health of the market. The most popular one nowadays is the Dow Jones (Dow) and the Simple&Poor 500 (SnP/S&P). If you beat the S&P in their overall earnings for the fiscal year, you 'beat' the market!
ForEx = Foreign Exchange. Think stocks, but with money!
BTC = Bitcoins
Futures = Kind of like stock options but not really. http://www.investopedia.com/video/pl...act-explained/
Options = Buying and selling of contracts* of certain stocks at a specific date for a specific price. The closer you are to the price of the slices of cake at the target date, the more valuable your contract is.
* 1 contract = 100 shares.
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