Investing tips?
 

Koskenkorva

Yeah, but investing in funds with such low investment will give me nothing in return, also considering sales tax for them, I'll be killed there as well me thinks.

Or? I don't know. I might be wrong. So, LordShiva, other suggestions?

A low-load index fund or three will keep fees down. I didn't think about sales tax though. Do they charge sales tax on fund purchases in Finland?

In Sweden, you pay a 30% tax on the gain when you sell off funds or stocks. And if you lose money on an investment, you could exchange it for gains on other stocks you sold, and end up paying zero tax, as long as the events happen within the same fiscal year.

In my opinion, you should only invest in single companies when the index is low. There is normally an overshoot of both highs and lows. Investors act like idiots, they pay anything for a fancy stock. One example is Ericsson. If you look at historic dividend, the true value of the Ericsson stock is about 1€ (which would result in a direct annual payoff at about 5%). But there was a time when it was valued above 20 €. Then came the IT stock crisis, and the Ericsson stock fell to 25 c. That was the time to buy. Just a few months after the crisis, the Ericsson stock was at 2-3 €. Today, I think it's even higher, haven't checked in a long time. Too bad I had no money to invest when the time was right.

Right, I mean, 'common' people will buy stocks that are already in their prime. They look at the growth index of last year or 3 years, looks good, let's put money in it, without knowing the overall situation. If companies would double their growth every year, especially big companies, well, that would be kind of weird.

Get it low, sure.. I was thinking, one company, but relatively low risk. This is because I could get in pretty soon and learn my way while doing it. So after I learn some, then I can do things that acquires more knowledge.

But yeah. It's funny, because everyone knows the rule, buy low, sell high, yet people buy high, if it's a good company, because 'it made so many people rich'. Of course, because they bought in EARLIER http://www.discussworldissues.com/fo...lies/smile.gif

I would have an access to online brokerage that seems pretty decent, at least it is recommended by many people, plus a friend of mine who works in this field also uses it as his own personal place of business (ironically not using his money where he works, that does investing). The fees are better in there.

What is a no load index fund? I know what a fund is, but what is no load index fund?

Ah ok, got it. In fact, I didn't know they would have up-front investment fees.. oh wait, except I did know. There are some funds where you have to have a minimum of say, 5k or so. Yes, definitely no load for me.

Well this was one of the two options (besides investing in a single company). I'm just not sure what kind of money would be good for starters, as I said, I'll start with 1k and build up 1k every two months, does it make sense to invest in funds? Sure, there's some steady funds with good returns if you are willing to hold it at least 5 years, but but but.. I always figured you should start those things with way much more money, as in 10k or so.

What is an ETF?

DanS, right. I thought the diversifying would come into once some money has been accumulated. Of course with funds it's a different thing, however, I don't see investing into one or two funds for 4 years, I would be looking at a minimum investment of 20k (pure investment, so add possible profits in there too and growth)... would you recommend playing into one fund for the whole time, assuming it gives me.. say, even 30% returns in a 5 year time?

LordShiva, ah ok.. learn something new every day http://www.discussworldissues.com/fo...lies/smile.gif

Ok it seems like the tax is pretty high in here. They say if you put an index of 100, finland is somewhere around 90, and the average of EU is somewhere around 40, as well as OECD average. Go figure http://www.discussworldissues.com/fo...ons/icon13.gif

Tax on dividend is 19.6% alone (was raised in 2005, so the trend is up, not down..). In case both parties are paying taxes on it, it 'll be around 40%. It's called double taxation, but it's not like the socialist ****s in here give a **** about that.

The salex tax on stocks is 28%.

But then there are all kinds of other taxes also, that play into the actual profits.

Of course on the profit http://www.discussworldissues.com/fo...lies/smile.gif

BUt when you calculate other taxes and stuff, man, bring on Chavez!! http://www.discussworldissues.com/fo...lies/smile.gif

Anyway, with this online brokerage I've been thinking about getting into, they do offer locals like OMXH, but also NYSE, NASDAQ etc...

Save those 1000 € in a Swiss bank account and wait for the next Eurocrash. Do you expect our currency to be valued this high for long?

Originally posted by Straybow
Invest in Coca-Cola
10-13% per annum for decades.

Originally posted by Zkribbler
Ask the investers in Enron. http://www.discussworldissues.com/fo...lies/frown.gif That would be stupid, since they're obviously the atypical case.

Originally posted by Straybow
Invest in Coca-Cola
10-13% per annum for decades. Another tip: past performances are not an indicator for future performances.

Originally posted by Datajack Franit
Save those 1000 € in a Swiss bank account and wait for the next Eurocrash. Do you expect our currency to be valued this high for long? http://www.discussworldissues.com/fo...milies/lol.gif Italians

Watching train wrecks are better when you aren't on the train.

Originally posted by Dauphin
Watching train wrecks are better when you aren't on the train. I don't shy away from risk. I'm considering taking out a loan at 10% interest to invest it in stock where I think I can get a 30% return just following the index http://www.discussworldissues.com/fo...ilies/cool.gif