Retirement investing question

[Tonington]

For long term investments like my retirement plan, are there certain classes of funds that do better over the long term historically than others? I'm currently invested in an S&P/TSX composite index fund, one bond index fund, and a Fidelity asset allocation fund. I choose these funds because their historic rate of returns had the highest return to fund management fee ratio, I don't even know if that makes sense or not but would love to hear some opinions from others who have had more experience investing for their retirement.

 

[petros]

One word. Silver.

 

[darkbeaver]

copper

 

[petros]

No. Copper will drop soon. X markets are hunting for money for leases. Last summer's recycling will hit the books in a month or two. It always drops when the fiends go recycling to buy their "green" crack.

Silver is already in shortage by 10-13 million tonnes.

 

[darkbeaver]

thanks for the info, I will smoke my cash in that case, I recycled last summer

 

[Avro]

For long term investments like my retirement plan, are there certain classes of funds that do better over the long term historically than others? I'm currently invested in an S&P/TSX composite index fund, one bond index fund, and a Fidelity asset allocation fund. I choose these funds because their historic rate of returns had the highest return to fund management fee ratio, I don't even know if that makes sense or not but would love to hear some opinions from others who have had more experience investing for their retirement.

I use a financial planner for this sort of thing and it helps that my wife is a CA.

One of the best things you can do is buy some land if you can.

I have about 600 acres of land, some of it has doubled in value in a short time.

Also lots of great deals down in the states....we almost bough a home in Arizona for nothing until we realized it was in Arizona. My brother got a good price on property in Florida right on the waterfront.

 

[DaSleeper]

Most financial institutions (Banks) have investment counseling, Check out at least three of them before making up your mind.
I would trust one of them before trusting an unknown entity on the Internet.

One thing though.....once you have made up your mind where you put your money, since you seem to have at least 30 years before you retire, don't drive yourself nuts by checking the status of your investment too often.....stocks go up and they go down...and if you diversify you're bound to gain in the end.

 

[Tonington]

...stocks go up and they go down...and if you diversify you're bound to gain in the end.

I think that's why my TSX index fund is a winner over the long haul. I'm not invested in any one stock, rather the whole index. I remember reading an analysis when gold prices were climbing. An analyst looked at adjusted prices for gold and the Dow Jones Industrial index and found that even with the high prices of gold now, that the rate of return for gold is a pittance compared to the stock index as a whole.

Also, there's quite a few mining companies on the TSX, so if Copper or Silver are doing well, that may also be reflected in the performance of my fund.

 

[petros]

Before you invest clear all your debt.

 

[Tonington]

Before you invest clear all your debt.

I'm paying down my debt, student loans. My retirement investing is through my employer, there's a defined benefits portion, profit sharing, and my own RRSP.

 

[TenPenny]

Until you have a decent pot of money, it's hard to get decent returns on individual investments. So you're often better off using index funds or mutual funds for a while as you build. Typically, equities will give better results but with more volatility. At your age, I would lean towards mostly equities, probably focus on the resource sectors (mining, oil & gas) technology, and financial.

As you build your nest egg, consider high quality preferred shares that have a track record of decent dividends with growth, as well as things like real estate.

My original retirement plan involved marrying one of the Irving girls, but then I realized that it would mean 18 hour days, 6 days a week, working in the company businesses until I was 70 years old. So I scrapped that one.

 

[darkbeaver]

I think Avro is right, land, they don't make it anymore you know.

 

[Tonington]

Good suggestions. I'm already in one equity!

 

[petros]

Also, there's quite a few mining companies on the TSX, so if Copper or Silver are doing well, that may also be reflected in the performance of my fund.

You missed the 9/11 gold rush.

Your labour goes in gold when dollar markets are extremely shaky. When a currency fails the only investments with real assets are minerals. They set the currency rate but don't be deceived by ****ty currency rates or inflation with value.

Silver though is an industrial mineral and the industries that are burgeoning like solar cells require far more silver than is on the a market.

Keep in mind every dollar you invest in mining is another dollar invested in the dirtiest industry on the planet.

 

[JLM]

For long term investments like my retirement plan, are there certain classes of funds that do better over the long term historically than others? I'm currently invested in an S&P/TSX composite index fund, one bond index fund, and a Fidelity asset allocation fund. I choose these funds because their historic rate of returns had the highest return to fund management fee ratio, I don't even know if that makes sense or not but would love to hear some opinions from others who have had more experience investing for their retirement.

As a young fella 45 years ago I started saving for retirement by depositing $9.60 a month with Investors Group and would recommend I.G. for a place to park at least some of your money, as I've been satisfied with the overall progress. Having said that you really have to get a lot of savvy yourself. Some of their representatives are better than others and I've experienced some at both ends of the spectrum and only time and experience allows you to evaluate the individual ones. A considerable portion of your portfolio should be in mutual funds as they spread out both the good side and the down side. Have diversion between fixed income and equities and then transfer back and forth between the two according to their prospective performance. Canadian Natural Resources have done remarkably well over the past couple of years but perhaps the time for putting money there is coming to an end. While you are in your earning years I would recommend a 70/30 split with 70% in equities and then increase the fixed income portion after you retire to things like Gov't bonds and mortgages. Before investing in anything check the record of the recent past. Be careful with anything that has "boomed".

One positive aspect- When you lose financially you generally compensate by gaining in knowledge. :smile:

 

[petros]

Here is what they said about the future demand of silver in Sept 2007 when silver was $13.50.

http://news.silverseek.com/SilverSeek/1190753471.php

It has more than doubled since then and is $27.50CDN today.

http://www.kitcosilver.com/index.html

Solar Energy

As the price of fossil fuels rises amid less availability, scientists and engineers are growing more interested in the promise of solar cells to produce electricity.

Silver paste is used in 90 percent of all crystalline silicon photovoltaic cells, which are the most common type of solar cell. Around the world, solar arrays are being tested for large and small-scale electricity production. In Europe, photovoltaic systems commonly are used to power private homes and local businesses. South Korea is constructing photovoltaic electric power plants to provide significant sources of electricity for the nation’s power grid. In the United States, nationwide stores such as Macy’s and Wal-Mart are installing photovoltaic systems on the roofs of their buildings to contributing up to 40 percent of their power needs. Photovoltaic systems are simple and provide immediately useful power with no pollution.

Silver is used in another way to generate electricity by reflecting and concentrating solar energy onto collectors containing salts which are used to run generators. Near Barstow, California, for example, 1,926 silver-coated mirrors reflect solar heat onto black-coated stainless steel tubes atop a 300-foot tower. This heats the tubes and the nitrate salt inside them to over 1050 degrees F. The scalding hot salt is then piped to boilers, turning water to steam which drives steam turbines that run electric generators. They generate electricity to power 10,000 homes.

 

[JLM]

Good suggestions. I'm already in one equity!

Generally speaking I think it's best to avoid "get rich quick" schemes like the plague- with investing "time" is the best ally. If you start in your 20s and invest a few bucks a month at an average return of 5%, you'll be fairly weathy by the time you reach your 60s.

 

[eh1eh]

My financial planner, who is a stock broker too, had me divest my portfolio of all mutual funds. I now have various stocks and also have started using my margin account. I've seen over 10% gain in the last year.
Real estate is always a good long term investment.

 

[JLM]

My financial planner, who is a stock broker too, had me divest my portfolio of all mutual funds. I now have various stocks and also have started using my margin account. I've seen over 10% gain in the last year.
Real estate is always a good long term investment.

Keep an eye on that guy- sounds a little impetuous to me. Generally speaking mutuals are a little safer than stocks. That 10% you mention is not surprising and your broker is owed no credit for it- on my own intuition back in '08 I borrowed 10 grand and invested it in mutuals including Natural Resources and made more than that in a few weeks following March '09. Real HAS always been a good long term investment - N.B. the past tense.

 

[Nick Danger]

I dredged this old thread out of the dust to ask a question somewhat related to investing. Years ago I remember the Globe and Mail used to periodically publish a fairly comprehensive report on mutual funds in the paper. Does anybody know if they still do that or has everything moved online ? If they do, when ? I still like the feel of paper in my hands.