Investing (in Off-topic)

Hello, I was looking around, and am wondering if anyone here uses any online investment programs.

If you do, could you tell me it, becuase I was looking for somewhere to put some of my money to make it "grow".

Thanks.

The growth can also be negative...

Investment programs? Do you mean a program that allows you to invest as you choose or mutual fund of some sort where professionals invest for you?

Either way the idea that your money is guaranteed to grow is a lie. There is no guarantee, just a difference between a safe bet and a risky one.

Oh, Thank you, I wasn't really sure about all of these things.

Hmm... I don't know what I should do with this money then..

Mutual funds aren't bad, but people do make the mistake of thinking they are 100% fool proof. The way it works is that you along with many other customers give money to people who think they know more then you, and probably do when it comes to investment. Then they use that money to buy stocks from a wide variety of companies.

Now, depending on the type of mutual fund, the companies they invest in can vary a lot. If a mutual fund flaunts a record of high gains then it is likely they are of the type that invests in growing companies (high risk for big gain) trying to score a big chunk of the next Apple or Amazon. Then there are those that only invest in established companies, companies that would never grow more then 3% because they are already so big (low risk).

A mutual fund invests in a wide variety of companies in order to maintain stability and to limit the impact of failed investments. Your money will often be stretched to the point where you don't even "own" a complete stock but rather share it with other clients.

I could go on an on but at this point there are too many details to cover. Just know that each plan has it's differences.

You also might want to consider bonds instead of stocks. The guarantee that you'll get your money (plus interest) back from a bond is about as good as the guarantee that your government will still be there when you go to collect your money. Let's also not forget that banks often offer a wide variety of savings accounts. Some come with restrictions disallowing you from collecting your money before a curtain date in exchange for a better return through higher interest rates.

The real problem with mutual funds is that managers' incentives are not aligned with investors'. Most are set up so managers get a commission for every trade they make, with the unsurprising result that most execute a lot of trades, cutting into investors' returns.

That's why index funds are increasingly popular; there's no such incentive for the fund manager to screw you over. All an index fund does is track the index; no more, no less. (Even so, some charge more than others for this service, so you still should do your homework.)

If you want an easy solution to start with, may I suggest ING Direct.

Just open a savings account with them, and their interest rate is currently 3%. This means that on a balance of $1000, you would get ~$30 a year, which is just under $3.00 a month. You can get your money at any time, and your money can grow while you make up your mind. There are also no fees! It's absolutely free! It's great for short term savings or just somewhere to put your money until you decide what to do with it. I have one, it is great and I have had nothing but exceptional service from them.

ING Direct also offers GICs and Mutual Funds. I personally don't have these two products so I don't know many of the details, but you might also want to check these options out.

Without worrying about compounded monthly interest, the estimated doubling time under the Rule of 72 is roughly twenty-four years. Not much in the way of growth, Kultur.

Hmm...

I never said it was a long term solution. But it is good for the short term, it is guaranteed income, there are no fees, and he has access to his money whenever he decides on to invest in a more profitable long term solution.