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I have just recently been offered a job in my career of choice, and now that I will have a solid job - I would really like to begin investing.

My main goal from an investment would be to retire as early as possible (not to sound narcissistic) and really make my money work for me.

I am really a beginner when it comes to all things investment, I've had my attempts at trying out Questrade for stocks and whatnot, but never really made a commitment.

I'm really looking to be pointed in the right direction, as far as investing goes - so any help or tips would be great.

A little about me, I am from Ontario Canada, 22 years old. If you need something more, just ask.

Thanks

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1 Answer

It really depends a lot on you and how much time you are putting into it.

Since you're saying you want your money to work for you I'm going to assume you want as little hassle as possible.

A few general tips:

Save a fixed percentage of your monthly income

Don't try to save "whenever you have money left over", you will just end up spending it somehow.

Invest long term - don't trade

Don't try to beat the market - it will just take up too much time and statistically you will end up making less.

Hedge

If you invest in the company/industry you work in, you will be double screwed if the sector drops (lose job + savings at the same time).

Optimally you should invest in something that will benefit when the company you work for is doing bad.

Pay off high interest debt

Usually debt will have a higher interest than any safe investment you can make.

Spend money to save/make money

Sometimes the best investment you can make is on stuff that will save you money in the long run. Like buy an apartment close to work (less transport costs) or get a more expensive car that will save you money on gas, insurance etc.

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Those are really good tips, I never even thought about Hedging in the way you explained it. And yes, I'm looking for as little "hassle" as possible - so as far as what to do with my money, Should I be looking at things like mutual funds and Retirement funds? (I really don't know what how either of them work - I've just "heard things".) Thanks again! –  Colin Jul 16 '12 at 0:34
    
Find out what retirement programs you can get through the company. See if they match your funds. –  mhoran_psprep Jul 16 '12 at 1:14
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I would recommend most people to stay away from managed funds, and go for an index fund instead. Most of the time the reduced fees will make up for the slightly lower return and you don't run the risk of bad investors running the fund. Also look into available retirement/saving programs available in your country. Some might have good tax benefits. –  OMGKurtNilsen Jul 21 '12 at 10:51
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