How to Check Investment Products

How to Check If Stocks, Bonds, Mutual Funds, ETFs, Securities Are Legit and Not Scams

First Published Date : August 10, 2011 ADawnJournal.com

I discussed how to check out your financial advisor in this article: How to Do a Background Check on Your Financial Advisor, Investment Advisor, Broker, Financial Planner. Today, I will further discuss how to check investment products so your hard-earned money does not go down the drain.

My Best Advice

When you are ready to buy your investments, my best advice would be not to rush into it and take your time to do some research before buying any investment products such as stocks, bonds, mutual funds, GICs, ETFs, or anything else you can possibly imagine.

Tools and Resources You Can Use to Check Investment Products

I am going to give you lots of useful links leading to various tools and resources in this section. I suggest you bookmark or save this article so you can come back and read it later or you can access this article whenever you will need to use these tools and resources.

Know About Internet and Investment Fraud and Scams

This is the first thing to do – have a basic understanding about Internet and Investment Fraud and Scams. Once you have some knowledge on how con artists work, everything else will be a lot easier for you to follow. Here are the links to some great articles on A Dawn Journal:

– Internet and Investment Fraud and Scams

Here are some free eBook links:

– Protect Your Money: Avoiding Frauds and Scams

– Investing and the Internet

– Scam Artists Pursue Adults Over 50

Information about Individuals and Companies Which May Pose Risks

– OSC Investors Warning Page

A List Containing Individuals and Companies Which May Pose Risks

– OSC Investors Warning List Page

OSC Tools and Resources Webpage

– Investors Protect Against Fraud Page

OSC Investment Fraud Checklist

– Check Before You Invest

IFE (Investor Education Fund) Money and Investing Information Site

– Get Smarter About Money

U.S. Tools and Resources Links

– Protect Your Money: Check Out Brokers and Investment Advisers

– FINRA Protect Yourself Page

Remember, use your common sense and vigilance as they are your best defence. If you ever believe you have been a victim of fraud and scams, here is what you can do:

– Call your local RCMP detachment or your Police Department

– Report your situation online through Reporting Economic Crime Online

– Visit PhoneBusters, send an email to info@phonebusters.com, or call 1-888-495-8501

How Many Credit Cards Do You Need?

How Many Credit Cards You Should Have

First Published Date: August 16, 2011

When I was a student, getting my first credit card with a $500 credit limit gave me the feeling of conquering a country – it was a feeling nothing like I had experienced before. And then I got addicted to applying and getting more credit cards. I wanted to have them back then just because they looked cool and I wanted to have a collection of all sorts of cards. However, things are different now. There is no need to acquire cards one after another just to make your wallet fat. Today, I am going to talk about how many credit cards you should have and if there is any perfect number you need to stick with.

Let’s look at how having more than one credit card affects you in terms of your FICO® score. Your debit-to-credit ratio is your combined credit card balance divided by your combined credit limit. Credit-to-debit ration represents 30 percent of your credit score. If you carry a balance on your credit card, the more credit cards you will have, the better (lower) your debit-to-credit ratio percentage will be. For example, if you have one credit card with a credit limit of $1000 and you spend the full $1000, your debit-to-credit ratio will be 100 percent. However, if you have 4 credit cards with $1000 credit limit each, spending the same $1000 will make your debit-to-credit ratio only 25 percent. So having more credit cards does help in your FICO® score; however, you should not worry too much about this 30 percent of your score as there is 70 percent remaining to improve your score. And besides, if you have difficulty controlling your spending, more credit cards translate into more spending.

Now, how many credit cards do I think you should have? There is no ideal answer because it all depends on your personal situation. However, from my point of view you should have at least three (VISA, MasterCard, and American Express) major brands. One of the main benefits of having all is that not every place/merchant accepts all cards and having each of them will come in handy, especially when you travel. Another benefit of having more than one card is you can use them for different purposes.

As I mentioned earlier, if you have a spending problem, strictly stick to one credit card and only use it for emergencies. And then when you think you are responsible enough to handle more credit cards, you can look into getting more based on your needs.

Canadian Gold ETFs

Gold ETFs Canada

First Published Date: August 24, 2011 ADawnJournal.com

As global stock markets stumble and take a deep plunge, investors across the globe take shelter in one specific metal – gold. Gold has had an immense impact on human civilization. It caused the fall of nations, pushed the Age of Discovery, made some people rich and others poor. It is something that we all cherish and we all want more of it. In search for more gold, what can be better than gold ETFs? Today, I am going to discuss some gold ETFs I like. ETFs trade on stock exchanges just like stocks and you can buy them through your discount brokerage account or through a licensed financial advisor. For more information on ETFs, please visit A Dawn Journal ETF Section.

Central Gold Trust ETF (TSX: GTU.U) – Established in 2003, this is a pure gold trust holding gold bullion stored in the treasury vault facilities of a bank in Canada. As of the end of December 2010, GTU assets consisted of 604,676 ounces of gold bullion, 6,156 ounces of gold certificate totalling 610,832 ounces.

iShares S&P TSX Global Gold Index Fund ETF (TSX: XGD, MER: 0.57% ) – This ETF tracks the performance of the S&P/TSX Global Gold Index – which tracks the world’s leading gold companies. iShares ETFs are managed by BlackRock Asset Management Canada Limited.

Claymore Gold Bullion ETF (TSX: CGL, MER: 0.54%) – This ETF physical gold and tries to replicate the performance of gold bullion price.

iShares COMOX Gold Trust ETF (TSX: IGT, MER: 0.40% ) – This is a U.S. gold ETF that trades on the TSX. It owns physical gold and trades in Canadian dollars.

Horizon COMOX Gold ETF (TSX: HUG, MER: 0.65%) – This ETF tries to track the performance of the COMEX gold futures. BetaPro Management Inc. is the portfolio manager.

BMO Junior Gold Index ETF (TSX: ZJG, MER: 0.55%) – If you like junior gold companies, this may be for you. This ETF tracks the performance of the Dow Jones North American Select Junior Gold Index.

Disclosure – This article is for information purposes only and No information is intended as investment, tax, accounting or legal advice, or as an offer to sell or buy or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security, ETF, or fund. The author assumes no liability for any inaccurate, delayed or incomplete information, nor for any actions taken in reliance thereon. You bear responsibility for your own investment research and decisions, and should seek the advice of a qualified financial professional before making any investment decision. I own some of the ETFs mentioned here.

Canadian Gold Mutual Funds

Gold Mutual Funds Canada

First Published Date: August 31, 2011

Recently, I discussed Canadian Gold ETFs. Today, I will further discuss some Canadian gold mutual funds. A Dawn Journal has some great articles on mutual funds, and I encourage you to check out ETFs and Mutual Funds section as well.

CI Signature Gold Corporate Class Fund – This mutual fund primarily invests in gold bullion, gold-related stocks, and other precious metals. Fund manager is CI’s Signature Global Advisors. MER is 2.44 per cent.

Mackenzie Universal Gold Bullion Class Fund – This mutual fund is a pure gold play. As of July, 2011, 93.1 per cent portfolio of this fund is invested in gold bullion. MER is 2.58 per cent.

RBC Global Precious Metals Fund – This fund primarily invests in gold, silver, and platinum related stocks across the globe. MER is 2.09 per cent. Its low MER is a bargain.

Dynamic Strategic Gold Class Fund – Invests in gold bullion and gold equities. Fund manager shifts between gold bullion and gold stocks based on their analysis. MER is 2.47 per cent.

BMO Precious Metals Fund – BMO Precious Metals Fund primarily invests in Canadian gold and other precious metals industry. As of this writing, its Canadian holding stands at 76.2 per cent. MER is 2.32 per cent.

TD Precious Metals Fund – Similar concept like BMO Precious Metal Fund, but with a lower MER. MER is 2.22 per cent.

Sprott Gold and Precious Minerals Fund – This fund primarily invests in gold and other precious minerals companies and their certificates. As of this writing, its Canadian holding stands at 94.8 per cent. MER is 2.50 per cent.

Sprott Gold Bullion Fund – Similar concept like Mackenzie Universal Gold Bullion Class Fund, but with a lower MER. As of May, 2011, 99.6 per cent portfolio of this fund is invested in gold bullion.MER is 1.14 per cent.

Disclosure – This article is for information purposes only and No information is intended as investment, tax, accounting or legal advice, or as an offer to sell or buy or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security, ETF, or fund. The author assumes no liability for any inaccurate, delayed or incomplete information, nor for any actions taken in reliance thereon. You bear responsibility for your own investment research and decisions, and should seek the advice of a qualified financial professional before making any investment decision. As of this writing, I do not own any of the funds mentioned here.

What Is a Debt Consolidation Loan and How Do You Use It

What Is Debt Consolidation?

First Published Date : November 10, 2011 ADawnJournal.com

A debt consolidation loan is a loan to consolidate all your debts into one single loan and one payment. For example, let’s say you have four credit card balances, two retail store credit card balances, and other consumer loans for which you pay several monthly payments to each of these loan providers. A debt consolidation loan would pay all these loans and you are left with one single payment – which would be a lot less headache and a better money management option to handle your daily finances.

Advantages of a Debt Consolidation Loan

Lower Monthly Payments – If you were previously making 10 payments , making one payment will likely lower your monthly payments.

One Single Monthly Payment – You will be saving time and hassle by making one payment every month instead of many payments.

Save Money on Interest – Interest charged by your loan provider will be lower than those of your credit card or store card loans, thus saving you a lot of money on interest.

Disadvantages of a Debt Consolidation Loan

Further access to credit – A consolidation loan will free up your credit or store cards and you will have access to more credit than before. If you are not able to control yourself, you will likely end up sinking yourself more into debt.

Collateral – Your financial institution may ask you to provide some sort of collateral against your consolidation loan.

A longer term – Because you are dealing with one large payment, your payment term will be longer and it will take you more years to payoff your loan in the end.  

A Few Things to Remember

– Don’t forget that not all debts are eligible for a debt consolidation loan. An example would be your existing mortgage. Your financial institution where you are obtaining this loan from will be able to tell you what types of loans are eligible and what types of loans aren’t.

– Also, you may not be eligible to obtain a debt consolidation loan if your credit score and other circumstances do not meet the requirements of your financial institutions’ eligibility criteria.

– Don’t forget to make a list of your all outstanding loans and take this list with you when you visit your financial institution.

– Don’t take your consolidation loan before checking with a few financial institutions. If you shop a few of them, you are likely to find a better rate then just taking it from the first institution you walk into.

If you can discipline yourself to not wrap yourself up with more loans, a debt consolidation loan is worth considering and it is your first step to take control of your personal finances and walking out of debt.