Your Questions About Investing For Dummies

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George asks…

Investing for Canadian Dummies?

I’m wondering about how the best route would be. I currently am 16 years old (and yes, i know, i need to be 18 to get into the stock market or else have someone older such as a guardian sign, etc.) I have saved up roughly $12,000 that I worked for and at the moment I am making 4% interest compounded monthly which comes to $40/month in interest.

I am looking for a way to make more cash since i cannot get into the stock market yet. I have tried setting up a few small businesses in the past and have come up with some great product ideas, but obviously none of them took off.

I’m pretty much losing my motivation and I don’t know where to invest my money. Working at minimum wage just doesn’t cut it. It’s ridiculous. You cant even buy a 12″ subway combo for $8 CAD.

Any ideas or suggestions?

financi4 answers:

I’m not sure if this is a possibility in Canada but can you get an adult to open a Custodial Account for you? That way you can invest in the market and the money would stay in your name.
Also don’t discount 4% – that is not a bad rate! And after a little while of compounding you WILL be amazed at how fast it grows! All while you enjoy being 16!

Steven asks…

what is the best book to invest in , about investing?

i was thinking about –investing for dummies– mutual funds for dummies– and – stock market for dummies– stock investin for dummies– and-stock options for dummies– Im a beginer and i’ve heard “for Dummie’s “books are good i only have about $1000 to use for my investing so soething that will teach me about investing within my financial reach

financi4 answers:

When i first started out the dummy series were my first books but honestly they were a waste of money, they teach you absolutely nothing and you’ll get nowhere with these shallow books. Ended up throwing them away. Regardless a book i strongly recommend is The Neatest Little Guide to Stock Market Investing by Jason Kelly. And a more advanced read would be the best book on investing The Intelligent Investor by Benjamin Graham.

Joseph asks…

Can I buy into more than one mutual fund?

I am an investing dummy..Just know I need to save for retirement….I have a Scottrade account with a ROTH, and currently only have added funds to the IRA to fund CAIBX. Can I add additional funds to my account and buy into other mutual funds in this same IRA? If so, any one that anyone would suggest for a moderate risk?
I am very good in my profession, but please explain as if you were explaining to a 12 year old, as I am lost in your explanations

financi4 answers:

Yes you can buy more than 1 mutual fund and since your primary concern is investing you can attain good asset allocations by investing in more than one mutual fund.

Yes you can expand your IRA o ROTH IRA with additional funds.

Without having more information about your personal information, such as age, current income and other data such as risk tolerance, martial status, and demographics it would be very inappropriate for me or any other responsible person to provide specific investment information in this type of media.

Also it would not be appropriate for any professional to provide any specific investing advice based on the information provided. And it would not be prudent for you to accept any investment advice from unknown individuals here at YA or a similar media.

There are many people just like you that are, or were looking to invest and those that did bought Mutual Funds and/or Exchange Traded Funds (ETFs). One purpose of mutual funds is to help investors like you, who are either just entering the investment world or who have no investing experience. Once you feel you at least have an understanding of investments you should look into ETFs which are similar to mutual funds but are traded on the exchanges.

Mutual Fund companies as well as ETFs have an entire array of products many will fit your needs. Read about the various products and in doing so you will be getting investment ideas and at the same time educating yourself about investing.

You could also contact the funds companies for more information. I have found that Vanguard ( & Fidelity Investments (
can meet your needs for mutual funds. The service and information they provide is all free and you will find it helpful. Or you can call Scottrade and speak to one of their Reps that specialize in fund products, once again this service is free.

Good luck on your journey

Charles asks…

How to invest in the stock market?

What recommendations should I follow? How do I know what stocks to buy or sell? I want to know every detail of the process, like “investing for dummies” 😀

financi4 answers:

If you’re a rookie in investing or stocks, go to

Open up a portfolio without using real money. You can give yourself as much or as little money to try out the market. The stocks you want to focus on is consumer staples, consumer discretionary, and healthcare. These are DEFENSIVE stocks that will survive through good and bad times. Most of my positions are in these stocks. Some names include 3M, Procter & Gamble, Kimberly Clark, Exxon Mobil, Walmart, Costco. Everybody’s got to eat and wipe their butts regardless of the state of economy. Many of these companies survived through the Great Depression.

That’s the benefits. You can sleep at night knowing your money is doing well. There are NO guarantees that you won’t lose money. It’s just that these stocks are the best. They pay good dividends too.

Then once you’re comfortable and test the waters of the market, you can finally put some real money in. Go to They’re excellent for beginners.

If you’re new to stocks, DON’T DAY TRADE. You’ll a rookie in a world of professionals. I tried day-trading with Citigroup and AIG when they were a little bit over $1. I had some luck at first, making about $30 a day but I was way over my head. My luck didn’t last long and I had to rethink my strategy.

Day trading involves A LOT of commissions to the broker. With all the commissions deducted from each trade, you’ll be lucky if you only lose half your money.

I would just day trade using Yahoo! Finance. Open a stimulation account, give yourself $100 worth of fake money and play it in the stimulation format. You’ll see what I mean by losing money every easily.

Good luck.

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