Investment In Uncertain Economic Times

There seems to be a lot of varying information out there regarding investment during uncertain economic times.  One train of thought advocates buying stocks when the value is lower so that when the economy eventually rebounds, the value of the stock you bought at a depressed rate will rise and result in a decent profit.  Another train of thought advocates reconsidering your current investment mix to attempt to reduce risk.  One thing that is clear is that in any case, maintaining diversity in the types of investment and different industry you are investing in when you buy stocks is key.

Ing Direct Canada offers 3 different mutual fund investments with different levels of risk.  The mutual funds are broken up into categories based on the level of risk inherent in investing in them.  So there are low, moderate and higher risk.  The general idea is that the higher the risk, the greater the potential for profit.  What is important to remember is to always use common sense.  If it is going to keep you up at night worrying because of your investment choice, then just don't do it!!  If you are okay with the potential for a lower rate of return, but less chance that you will lose money, then go with a mutual fund that is weighted more towards bonds.  If you are more of a risk taker and plan to keep your money invested for a longer period of time, then go with a mutual fund that has more stocks.  ING Direct Canada offers a great set of tools and information that will allow you to assess the amount of risk you want to take.

For more information:

http://www.ingdirect.ca/en/mutualfunds/learningcentre/index.html#

And remember if you decide to open an account with a minimum $100 investment to use Orange Key 35638912S1 to get your FREE $25 for just opening the account!!    

RSP Guaranteed Investment

Get the guaranteed benefits of an ING DIRECT GIC, combined with all the tax savings of an ING DIRECT RSP.  It has one of the best rates going, no fees, no service charges and an early redemption interest rate of 0.5% just in case you need it sooner...and all safe and secure while you save for your retirement. Your interest is compounded annually and paid at maturity.

Current Interest Rates

1 Year	1.75%
1 ½ Year	2.25%
2 Year	2.30%
3 Year	2.75%
4 Year	3.00%
5 Year	3.25%

Remember to use Orange Key 35638912S1 with a minimum $100 deposit to get your free $25!

A Good Old Fashioned Savings Account

As part of my savings plan, I keep a contingency fund that equals three months wages in case something happens where i can't work.  Its a good practice that everyone should try their hardest to accomplish since you never know what will happen in life.  For this, I have an investment savings account with ING Direct Canada

http://www.ingdirect.ca/en/save-invest/savingsaccounts/index.html

While you will not make as much interest as on a GIC or other savings vehicle that requires your money be locked in, a savings account will let you make a little and still have the ability to access your money at a moments notice should you need it.  ING Direct Canada offers a very competitive 1.5% interest rate on their Investment Savings Account.  And with ING Direct, the entire 1.5% interest rate goes into your pocket, not eaten away be fees as with other banks

Use Orange Key 35638912S1 when opening an account, deposit a minimum $100 and get an additional $25 FREE to get a jump start on your savings. 

A Couple of People Like Free Money!

I had a couple of people take advantage of the great deal offered by ING Direct and we all benefitted by getting $25 for each new account opened with a minimum $100 deposit.  Now they too will have the opportunity to make additional money through the referral system.  Congratulations!


Head on over to www.ingdirect.ca and enter Orange Key 35638912S1 today!!

My Experience With ING Direct Canada

I have been extremely pleased with my ING Direct experience so far. I opened a Balanced Growth mutual fund within a TFSA. For more information on this type of investment, see the link below:

http://www.ingdirect.ca/en/mutualfunds/index.html

The Balanced Growth Fund involves a mixture of bonds and stocks, which are indexed. This means that the mixture of stocks and bonds chosen reflect those that are doing well on the stock market, mimicking the chosen indexes. Rather than have the funds actively managed (where a fund manager chooses the stocks based on experience, luck, hope, etc) the stocks included in the fund are those that are performing best against the chosen index (for instance Canadian stocks are measured against the S&P TSX 60 Canadian Stock Index). The Balanced Growth fund is considered to be "riskier", that is it contains a higher percentage of stocks within the fund. If you are looking for less risk, ING Direct Canada offers other mutual funds that have a greater number of bonds included in the investment mix.

The important thing to remember is that when investing in this type of mutual fund, growth occurs over the long term. So if you are expecting returns right off the bat, you are looking at the wrong type of investment vehicle. When you invest in this type of fund, expect to be in for the long haul.

Another advantage of ING Direct Canada is the low MER (Management Expense Ratio). The MER represents service charges that investment banks charge for their services. As an index fund, which requires little active management, the MER for ING Direct Canada is low, thereby allowing you too keep more of your investment. And being located within a TFSA, remember that your investment earnings are tax free.

The Orange Key program is the icing on the cake. I unfortunately didn't know about this program when I first opened an account with ING Direct. Had I known, I would have gotten an extra $25! Now that I have an account I can see what a great program it is!

The short of it is that when you use my Orange Key and deposit at least $100, we both get $25. Once your account is established, you will get an Orange Key that gives you the same opportunity. I have had one person so far (as of May 1, 2011) use my Orange Key so far, and we both got $25. That means there are still 49 opportunities (Each account gives you 50 referrals per Orange Key) for you to make $25! Since I have a mutual fund account, ING Direct Canada opened me an Investment Savings Account, which currently has an interest rate of 1.5%. Compare that to my other bank, BMO, which offers a pitiful 0.25% on the Premium Rate Savings Account, and 1.35% on the Smart Saver Account, which requires a minimum balance of $5,000!!! And remember, there are the inevitable fees on top of those pitiful interest rates that will eat away any of the gains made. ING Direct Canada has no service fees.

In addition to 2,300 abm's (no fees charged using the EXCHANGE Network) ING Direct Canada also has the option to link an external account to your ING account to transfer funds in and out. This way, if you need to access the money in your investment account, you can simply transfer the money to your external account and use your regular chequing account. ING also offers the THRiVE chequing account should you wish to change exclusively to ING Direct. I prefer to keep my existing chequing account, so this is a convenient option for me.

So if this sounds good to you, then head on over to www.ingdirect.ca, and choose the account that most appeals to you. Remember to enter Orange Key 35638912S1 to get your $25!

A Little More on TFSA's

A Tax Free Savings Account is a great way to not only save, but watch your money grow.  As the name indicates, it is tax free, which means you do not pay any tax on money you make in interest accumulated within the account.  When you first open an account you are permitted a maximum $5000 limit by the Government of Canada for investment into a TFSA.  Every year after, you gain an additional $5000 in which you can invest, tax free.  So, for example:

YEAR	LIMIT PERMITTED	LIMIT USED	LIMIT LEFT OVER
Year 1	$5,000	$3,000	$2,000
Year 2	$10,000	$2,000	$5,000
Year 3	$15,000	$4,000	$6,000

From the example, you can see that by Year 3, you are permitted to invest up to $15,000 tax free, and with investing $9,000, you still have $6,000 left to invest tax free.  If you are not able to invest the full limit allotted each year, it simply carries over.  Additionally, if you withdraw money from your permitted amount, you don't lose the ability to re-invest that amount.  For instance, if you withdraw $1,000, you will gain the ability to re-invest that $1,000 beginning the next year.  So in our example, your $15,000 limit is not reduced to $14,000.

ING Direct Canada currently offers 2% interest on the Tax Free Investment Savings Account, which is higher than the 1.5% offered at BMO, the 1.4% on TD Bank's so called High Interest TFSA Savings Account, 1.4% at RBC and 1.25% at CIBC.  Better yet, with ING Direct, there are no service charges to eat away at your interest.

Just remember, open your TFSA with a minimum $100 deposit and use Orange Key 35638912S1 to get an additional $25!!

For more info:
http://www.ingdirect.ca/en/save-invest/taxfreesavingsaccounts/index.html  

GIC's

GIC's or Guaranteed Investment Certificates are a different way to invest your money with little risk.  The longer you put your money in for, the more you will make.  Currently ING Direct Canada offers up to an incredible 3.5%!!  Better yet, there are no fees and the interest rate is generally higher than most savings accounts.

For more info:
http://www.ingdirect.ca/en/save-invest/gics/index.html  

And don't forget to enter Orange Key 35638912S1 when you open your account and deposit a minimum $100 for your FREE $25!! Its just that easy.

Savings Calculator

Curious to see just how much you can save with an Investment Savings Account with ING Direct?? Well, click on the link below to find out!  And remember, by entering Orange Code 35638912S1, you can earn yourself $25 when you deposit a minimum $100!!

Investment Savings Calculator:
http://www.ingdirect.ca/en/tools/calcs/Savings_Calculator_ISA.html

ING Direct 2011 Orange Key Code

When I opened my ING Direct account, I was unaware of the Orange Key program. I quickly learned that had I known, I would have received an extra $25 by entering in an Orange Key code!

The program is quite simple. You use this code 35638912S1 when you sign up, deposit a minimum $100, and we both get $25! Once you have an account, you'll get your very own Orange Key code to share, and you can start making extra money too! Up to $2000! So simple, it would be crazy not to!

To sign up, this is all you need to do:

Head over to www.ingdirect.ca
Choose the account you want to open
Enter Orange Key 35638912S1
Deposit a minimum $100 into the account
Enjoy an additional $25 and receive your very own Orange Key!

For more information on the Orange Key program click on the link: www.ingdirect.ca/referafriend/

Streetwise Funds

ING Direct offers a series of mutual fund investment opportunities:

Balanced Income Fund
Balanced Fund
Balanced Growth Fund

For information on these investment opportunities, check out:
http://www.ingdirect.ca/en/mutualfunds/index.html#

ING Direct Personal Savings Accounts

ING Direct offers a number of great ways to invest and save your money:

Investment Savings Account. Currently offering a interest rate of 1.5%, this rate consistently matches or exceeds those of the big Canadian banks. With no fees, no minimum balances, and a great interest rate, your money will actually grow!

RSP Investment Savings Account. Same as the Investment Savings Account, offers a 1.5% interest rate. Makes saving for retirement just a little bit easier.

Tax Free Investment Savings Account (TFSA). Offering a 2% interest rate, you can save your money and earn interest, TAX FREE!! No minimum balances, no service charges to eat away at your investment. Watch your money grow!

Source: www.ingdirect.ca