someone told me to invest in which practically means i have to each week for the rest of my life. is it a smart move to become a millionaire?
And what are the legit companies?

 

  • BTGNow.net 7:44 pm on October 19, 2009

    Is investing money each week/month for the rest of your life a smart move? Yes, yes and YES! And the earlier you start the richer you will become, thanks to compound interest.

    Here’s an article I wrote with the mathematical proof, with a calculator you can follow along with: http://www.btgnow.net/2008/08/compound-interest-is-free-money-part-1-simple-vs-compound-interest/

    Investing in mutual funds is a braod statement: it’s like saying you should invest in stocks. But which ones? That you’ll have to determine yourself by doing research and becoming interested in investing (or you could talk to a fee only financial planner to see if they can recommend anything, but again, always do your research before you invest on anything anyone tells you!).

    I personally like index funds, a type of mutual fund that is designed to mirror a market index like the S&P500. These market indexes are the benchmarks that mutual fund managers are trying to beat. 2/3rds of them fail to beat the index in a given year (read A Random Walk Down Wall Street by Burton Malkiel, which I review on my site).

    Index funds aren’t for everyone though, so again, do your research. You can use the excellent Globefund.ca resource to research and analyze mutual funds: I wrote a tutorial on how to interpret their reports here:
    http://www.btgnow.net/2008/08/globefundca-part-1-my-portfolio/

    But let me state again: START INVESTING YOUNG AND CONTINUE FOR THE REST OF YOUR LIFE! THIS IS THE BEST WAY TO ENSURE YOU BECOME WEALTHY!

  • BeenAroundTheBlock 7:44 pm on October 19, 2009

    Investing in mutual funds means you have to invest money each week for the rest of your life??? Huh? Who told you that?

  • burntles 7:44 pm on October 19, 2009

    To be honest you should’nt ask that type of question on this board. It really depends on a lot of different situations. And no you don’t have to invest money every month if you don’t want to.

  • src50 7:44 pm on October 19, 2009

    "invest money each week for the rest of my life"? Where do you come up with that conclusion?

  • tallal d 7:44 pm on October 19, 2009

    Some might say that it’s a way to get rich but it all depend on the risk your willing to take. Mutual funds come it different form, closed ended and open ended.

    Closed-end funds (investment trusts)
     Cannot increase or decrease the number of shares. It is possible with shareholders-approval to change the fund into an open-end fund, and only then to change the number of shares. These funds are also known as “investment trusts”.

    Open-end funds (mutual funds)
    Can issue additional shares upon demand and eliminate shares when they are redeemed. In these kind of funds, the mutual fund trade directly with its investors.

    However, just as a word of caution usually mutual funds don’t do better than the index. There are empirical results for some mutual that succeeded to beat the market once in a while but not in a consistent way.

    You have many different options then you ask about companies that will trade your mutual funds. I would suggest ETF because you can get them to mimic the index of your choice. (Exchange Traded Fund) such as SPDR (for S&P 500), QQQQ (for NASDAQ 100), Diamonds (for DIA), IWB (for Russell 1,000), IWM (for Russell 2,000) or IWV (for Russell 3,000).

    Peace

  • agoodquestion 7:44 pm on October 19, 2009

    I would invest in Exchange Traded Funds, very similar to mutual funds but much less costly. You pay more fees with mutual funds just to have someone manage them. Investing money each week for the rest of your life (dollar cost averaging) is the slow but steady way to become a millionaire.

  • Formerly known as Frank Castle 7:44 pm on October 19, 2009

    1) No.
    2) Yes.
    3) There are thousands of them.