https://padlet.com/alyssamambretti/dol7mjyk82osuhzu Exploring the risks and benefits of three top viable investment options available; by Alyssa Mambretti en-us 2021-02-23 23:55:25 UTC 2023-11-25 23:48:56 UTC hello@padlet.com alyssamambretti https://padlet.com/alyssamambretti/dol7mjyk82osuhzu/wish/1237990244 There are many potential profitable benefits to investing in stocks, however, there are also always risks. Some of these risks include 1. Returns (money) you make off of investments are not guaranteed, and 2. You may even lose money. If you consider the risks you are able and willing to take, understand investing in stocks, or get advice from a knowledgeable investor, then you can be well on your way to benefiting from your choice to spend your money on investing in stocks.

This is a useful site to learn how to mitigate the risks of investing in stocks. Some suggestions include 1. Hold a diversified portfolio. This can include investing in different types of industries, company sizes, and types of stocks, such as common vs. preferred. 2. Invest for the long-term. Don't invest money that you will need again soon, as you may have to end up selling your share when its price is low and lose money. Another important factor I learned about from this site, is to understand and know the volatility of the stock you want to invest in. This is the measurements of the ups and downs of the stock's price. The beta measurement of volatility is measured in comparison to a benchmark such as an S&P 500 Index. A beta of 1.0 is the standard (what the overall stock market experiences) and anything under 1.0 has less fluctuations and less risks, and anything over 1.0 is more risky. Understanding this will help you mitigate risks of an investment in stocks.]]> 2021-02-24 18:59:41 UTC https://padlet.com/alyssamambretti/dol7mjyk82osuhzu/wish/1237990244 alyssamambretti https://padlet.com/alyssamambretti/dol7mjyk82osuhzu/wish/1246686368 In this post, we will be looking at two different kinds of bonds: real-return and regular. Real-return bonds were created to compensate for economic inflation rates. Bonds work by a lender giving an agreed upon amount of money, called the principal, to a company or organization, which will be paid back on an agreed upon date, called the maturity date. The lender will then also receive interest, generally semi-annually during the time the money is lent. With a regular bond, the lender will receive a fixed interest rate based on expected inflation rates during the time the bond is held. However, if inflation rates rise higher than expected the lender takes a loss as that rate is now worth less in comparison to the economic inflation rate. So, in comes real-return bonds to save the day from this undesirable possibility. This type of bond will adjust the interest rate based around the economic inflation rate, so if the inflation rates go up, the lender will receive a higher interest rate to make up the difference. However, one caveat is that if the economy happens to face a deflation rate, the lenders interest rate will actually fall.

There are two major risks with a real-return investment, the first is if the economy crashes and faces deflation. The second is, since bonds get taxed each year, the lender will owe tax on the amount the bond is worth that year, however, by the time the lender receives their principal back it may be worth less and the lender paid more on taxes than it was really worth for them. The main risk with fixed/regular return bonds is if inflation rates rise higher than anticipated. The #1 reason why I chose this article to use for reference was that it specified that real-return bonds only protect the lender from unanticipated inflation rates, as fixed/regular bonds use anticipated inflation rates to determine the lenders interest rates. This was the first time I saw that while first learning and researching this topic, and I thought it was helpful in understanding the differences.]]> 2021-02-26 19:09:40 UTC https://padlet.com/alyssamambretti/dol7mjyk82osuhzu/wish/1246686368 alyssamambretti https://padlet.com/alyssamambretti/dol7mjyk82osuhzu/wish/1246694020 This wall will be used as a collection of ideas to keep in mind when deciding to start investing. You can expect to find out about the many risks and benefits of some of the top investment options on the market today. 
Happy investing!]]> 2021-02-26 19:11:31 UTC https://padlet.com/alyssamambretti/dol7mjyk82osuhzu/wish/1246694020 alyssamambretti https://padlet.com/alyssamambretti/dol7mjyk82osuhzu/wish/1255846411 The level of risk associated with a mutual fund is dependent on what is invested in. The most common types of risk are broken down into six categories: 
1. Market risk - investment decline due to unavoidable risks that affect entire market
2. Liquidity risk - when investment value declines because there is no buyers
3.Credit risk - if a bond issuer can't repay a bond, investment becomes worthless
4. Interest rate risk - value falls when interest rates rise
5. Country risk - due to political changes or instability in the country the investment was issued
6.Currency risk - if other currency declines against the Canadian dollar, the investments value drops
Another risk to keep in mind about mutual funds is the fact that you are putting your trust in the portfolio manager's skills at picking investments.

A mutual funds risk is very similar to a stocks risk, as they are both a part of the equity market, whereas bonds are a part of the fixed-income market. I chose this website to conduct my research on because it was Canadian, had lots of helpful information on mutual funds rather than just the risks, and also included the safeguards that can protect your money. These safeguards being, if the firm you invested in goes bankrupt, and you are a member of either the Canadian Investor Protection Fund (CIPF) or the MFDA Investor Protection Corporation, you can file a claim and be protected of up to $1 million.]]> 2021-03-01 23:07:58 UTC https://padlet.com/alyssamambretti/dol7mjyk82osuhzu/wish/1255846411 alyssamambretti https://padlet.com/alyssamambretti/dol7mjyk82osuhzu/wish/1330079766 There are safe and risky investments. Safe investments generally consist of GICs, government bonds, corporate bonds, and high yield savings accounts. While risky investments consist of stocks, futures, and options. There is also a type of investment that falls between the safe and risky types, this is called an index fund. It is a moderately safe investment that can come with  decent gains.

This website was useful by adding what type of investment is likely right for an individual, in case they are unsure, that is based on their income. Generally speaking, if you have a low income you should stick with the safe investments and the moderate index funds. The higher your income and extra available cash flow, you can generally be more risky, depending on your stress tolerance, and can go for those more risky options.]]> 2021-03-19 14:51:50 UTC https://padlet.com/alyssamambretti/dol7mjyk82osuhzu/wish/1330079766 alyssamambretti https://padlet.com/alyssamambretti/dol7mjyk82osuhzu/wish/1330338586 This video had a lot of great information packed into it about investments in general, so I'll jump right into the most important tips it had to say, that haven't been discussed on here yet already. 
1. Are You in a Position/Ready to Invest?
This was mentioned a little bit under "website 4" but to take it a step further, one should consider if they have a lot of debt and if they have an emergency fund. These should be taken care of first, before investing.
2. Establish a Strategy
Figure out what kind of approach you want to take to investing before you start investing. Are you interested in a growth strategy or maybe a dividend strategy? Are you more comfortable with a passive or active approach?
3. Utilize a Sheltered Account
This is a place to put your money to compound and be sheltered from being taxed. In Canada we have TFSA, RSP, RRSP.
4. Being a Canadian, Don’t Limit Yourself to Only Canadian Investments 
Canadian makes up such a small part of the global economy. Only makes up 2-4% of the global economy.
5. Canadian vs US Traded Stocks
If there is a Canadian and American version of the stock, make sure you pick the Canadian. Can do this by adding “:TO” at the end of stock symbol when looking up stocks.
6. Research your Investments
Good markets to invest in, in Canada, are financials (banks), energy, industrials, and materials (like gold, copper, silver).
7. Withholding Tax-US Dividends (TFSA)
If you have a US stock and put its dividends in a TFSA it will be subject to 15% tax. Option to avoid this is to hold it in an RSP instead. 
8. Know That Learning About Investing Never Stops
There is always something new to learn.

This video had a lot of great tips for a beginner investor in general but also some specific tips for Canadians, that would be really useful to know before beginning to invest.]]> 2021-03-19 15:47:29 UTC https://padlet.com/alyssamambretti/dol7mjyk82osuhzu/wish/1330338586 alyssamambretti https://padlet.com/alyssamambretti/dol7mjyk82osuhzu/wish/1330429827 This video is from the same guy in video #1, this time explaining some things to avoid when beginning to invest. Most of these tips can be applied to all of stocks, bonds, mutual funds, and even other investment options.
1. Don't Fall for New Trends and Fads
These are usually new and upcoming technologies and products, but usually by the time you hear about them, most of the growth has happened and they don't do so well long-term. Stick mostly with what markets are proven to work over the long-term, like banking, energy, industrials.
2. Don't Always Wait to Break Even
This can be a risk in itself, but sometimes it is best to take a loss on an investment and sell it, even for less than what you paid for it, in order to put that money into a more successful investment. This is especially true if the investment was not a "tried and true" proven to succeed investment, as some companies never recovers. 
3. Investing Too Much Money
Don't invest beyond your means due to eagerness.
4. Don't Trust the Media Headlines
They can be good to learn terms and about the markets, but the information is generally more so for entertainment purposes and has short-term statistics.
5. Know That Even the Experts Can Be Wrong
They tend to seem very confident and act like they know everything, and will make bold predictions that could affect how you invest if you take what they say to heart, and more often than not, these bold predictions are actually wrong, which could hurt your investment portfolio if you listened to them.

This was a good resource to learn more about some things to avoid in order to limit risks in investing from a different perspective than those typical searches you'd find with a quick google research. ]]> 2021-03-19 16:07:35 UTC https://padlet.com/alyssamambretti/dol7mjyk82osuhzu/wish/1330429827 alyssamambretti https://padlet.com/alyssamambretti/dol7mjyk82osuhzu/wish/1330714462 This video is about online brokers and which one/s are best for Canadians. The two most common are Questrade and Wealthsimple, which both are good for Canadians. However, there are pros and cons to each. Each pro could be considered a benefit and each con could be considered a risk. The best one for an individual will be based on which of the pros or cons outweighs the other. Some things to consider when deciding which one to use are:
1.Types of accounts supported
2.Types of investment products offered
3. Commission fees
4. Currency commission fees
5. Minimum balance & inactivity fees
6. Platform

Of course, one can always use both platforms to diversify their investments. This particular video was good at breaking down some of the most important factors to consider when deciding which online broker to use, or if you would want to use both/multiple.]]> 2021-03-19 17:09:33 UTC https://padlet.com/alyssamambretti/dol7mjyk82osuhzu/wish/1330714462 alyssamambretti https://padlet.com/alyssamambretti/dol7mjyk82osuhzu/wish/1330819265 Before deciding to buy a stock, whether for a long-term or short-term investment decision, one should figure out what the intrinsic value of a stock is before buying, in order to minimize the risk of losing rather than gaining money when you decide to sell. In order to figure out the intrinsic stock value, you want to start by finding the company value, and then the shares outstanding. Then divide the company value by the shares outstanding. The example given in the video is this:

The companies value is $10B.
The company has $100M shares outstanding. 
So, you would divide 10 billion by 100 million and get $100. 

This will give the value of the stock. If the price it's being sold for in the moment is under that amount, then the stock is currently being sold undervalued which can potentially yield in higher returns. If the value the stock is being sold for is over intrinsic value then the stock is being overvalued and generally won't yield as much growth, at least in the short-term.

I think this strategy can be beneficial for both long-term and short-term investments, however, much more so for short-term investments, as a company's value can drastically change over a longer period and the result of this calculation could be very different over the long-term. Overall, I found this to be an interesting tip that I had not heard of from anywhere else.]]> 2021-03-19 17:31:42 UTC https://padlet.com/alyssamambretti/dol7mjyk82osuhzu/wish/1330819265 alyssamambretti https://padlet.com/alyssamambretti/dol7mjyk82osuhzu/wish/1330949584 This images' writing was hard to read as just an attached photo, so I linked the website in order to be able to enlarge and zoom in to read it. This infographic goes over some basic things to consider when considering starting to invest, in order to decide if you are truly ready for it or not.]]> 2021-03-19 18:01:15 UTC https://padlet.com/alyssamambretti/dol7mjyk82osuhzu/wish/1330949584 alyssamambretti https://padlet.com/alyssamambretti/dol7mjyk82osuhzu/wish/1331033671 This image displays some types of investment options and their risk level. It does not list out stocks in the infographic, but they would generally be considered high or middle risk, depending on the type. Mutual Funds are often considered middle risk, and bonds can be either middle or low risk, depending on their type as well.]]> 2021-03-19 18:22:33 UTC https://padlet.com/alyssamambretti/dol7mjyk82osuhzu/wish/1331033671 alyssamambretti https://padlet.com/alyssamambretti/dol7mjyk82osuhzu/wish/1331036783 The top thing I learned about within this topic that probably surprised me the most is that Canada only makes up 2-4% of the global economy. ]]> 2021-03-19 18:23:20 UTC https://padlet.com/alyssamambretti/dol7mjyk82osuhzu/wish/1331036783 alyssamambretti https://padlet.com/alyssamambretti/dol7mjyk82osuhzu/wish/1331049420 I don't have any experience of investing myself, yet. With yet being the key word here though. I do plan on starting to invest once I get a job out of school and start to have a stable income and some money put away first. This was a great way to learn more about investing while in school as it contributed to my school marks and didn't take time out of my personal time to get this much of a foundation of the knowledge. I think learning to invest is a smart move for anyone who is capable (and comfortable with, of course).]]> 2021-03-19 18:26:33 UTC https://padlet.com/alyssamambretti/dol7mjyk82osuhzu/wish/1331049420 alyssamambretti https://padlet.com/alyssamambretti/dol7mjyk82osuhzu/wish/1331088019 I think trying to pick just one thing specifically about investing to tell them would be very difficult, as there is so much information in the investing world, which is what I think scares most people away. The thing I would tell them is, that even though, yes there is a lot to learn, you don't have to know it all to get started and make some good investments. As well as it is worth taking the bit of extra time to learn the basics to get started as that’s all you really need if you don't want to get too serious/advanced.]]> 2021-03-19 18:36:46 UTC https://padlet.com/alyssamambretti/dol7mjyk82osuhzu/wish/1331088019 alyssamambretti https://padlet.com/alyssamambretti/dol7mjyk82osuhzu/wish/1331162561 Same as above, but in a word document.]]> 2021-03-19 18:57:09 UTC https://padlet.com/alyssamambretti/dol7mjyk82osuhzu/wish/1331162561