Investing tips?

[DanS]

no load = no up-front investment fee

index = tracks an index such as the S&P 500, Dow Jones Industrial Average, FTSE Index, etc., rather than the investments being actively managed by human beings

fund = investments are pooled with those of others

Generally, these funds are highly diversified, while the administrative/management fees are kept to a minimum (most often around 0.25% per annum). You can't really beat them if you are investing very small amounts.

[Pekka]

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.

[LordShiva]

If it is as you say, and there are weird taxes on fund purchases but not on stocks, ETFs are another option.

[Pekka]

What is an ETF?

[DanS]

Actually a load and a minimum investment are two different things. Think of a load as a sales fee. For some funds, it's 5%.

It doesn't make sense for you to invest in individual companies because with such a small sum, it is impossible for you to diversify your investments to a meaningful degree.

[Pekka]

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]

Originally posted by Pekka
WTF is an ETF?

Exchange traded fund. You buy and sell shares as if it were a stock, but it's really a fund.

[Pekka]

LordShiva, ah ok.. learn something new every day

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

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.

[Zkribbler]

Originally posted by Pekka
The salex tax on stocks is 28%.

OMG....please tell me that's 28% of the profit, not 28% of the price.

[Pekka]

Of course on the profit

BUt when you calculate other taxes and stuff, man, bring on Chavez!!

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

[Pekka]

Also, this place would give me 10 free assignments (spelling?) that are under 10k.... so that's good, they put the value of it as 260 euros. Plus other kinds of offers, well these are some campagn offers they now have. But the place should be worthy of trust and professional. Definitely not a sham

[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?

[Pekka]

No, but I can evade inflation other ways as well.

[Datajack Franit]

[Straybow]

Invest in Coca-Cola
10-13% per annum for decades.