How to finanace/budget ourselves properly?

A 401K is a retirment savings plan that is established through your employer. Money is taken out of your paycheck (pre-tax) and put into your 401K account (FYI, The "401K" comes from the section of the U.S. Tax code that covers how these accounts are managed for tax purposes.) In most cases you are given a list of several investment options (usually mostly mutal funds) that you can direct that the funds in your account be invested in.

If your employer has a defined benefit retirement plan than you probbaly won't have the option of a 401K. In most cases you only have one retirement vehicle through an employer. They don't offer competing plans.

The Motely Fool WWW site has a lot of good info on 401Ks (and other investment options too!)
http://www.fool.com/money/401k/401k.htm

(Your RRSP appears to be very similar to what we would call an "IRA" in the U.S. btw!)

All right that's cool, thanks. I guess the only way to invest and see returns is in the long run (years as opposed to days/months from the point we start investing).

How about investing anything in the short-term? I mean returns in days/months as opposed to years. I know stocks is an option at the same time it's pretty risky. I guess it's better to consult my bank about these "money saving options."

IMO, "Investing" means Long term. Things that would fall in to short term I'd refer to as "gambling".

I can't say what you'll find in Canada but here in the U.S. banks pretty much limit investing to very conservative vehicles - money marlket accounts, CDs, etc... Those are fine in and of themselves but unless you are near or at retirement you may want something that provides a better return. Here, you'd have to go to an investment house/company like Charles Schwab or Edward Jones. The range of vehicles through them would be much larger (but not necessarily better!)

Yeah, I kinda figured short-term gambling would be the only way to go. Cause even in stocks (literally if one doesn't diverse and simply to say "puts all their eggs in one basket") pretty much that's like gambling itself. Yeah, I'm not near retirement yet. We have Edward Jones here in Canada. I guess this is something for people who are about to retire.

Since you appear to just be starting out in the wonderful world of investments I'd suggest you go and talk to several places - banks and investment houses - and ask questions. Follow up on what their responses are with some research on the WWW. You don't have to use their services right now. Just go for the information.

You DO want to start investing early in life. You don't have to invest or save much but you need to start and get into the habit of putting money aside. Starting with CDs is fine. It's safe and you can learn and expand as you go along. In the mean time you'd be saving and earning some interest. You do NOT want to wait until you are staring retirement in the face. It is the absolute worst thing you could do.

Hi fishin you still there? I know this post was a few months ago. I have actually been doing my research past these few months ever since I posted here.

I was just wondering what is your take on "Index Funds?" I've only heard good things about them and if I'm starting in investing on funds then it should be on Index Funds because I was told this was low in fees and I don't have to devote time to research on it. Well the research part I'll still look into just not as indepth as mutual funds/stocks.

Somebody else on this forum recommended me fools.com a website that educates all about different types of stocks/funds, etc. I've looked into that site it's a pretty good site. I was just wondering if you or anybody out there knows if there's a huge difference between CDN and USA in terms of stocks/funds? Because from my perspective I think it's all relatively similar except for the different names of pretty much things that does the same/similar things. For instance CDN term = RRSP/RSP and USA term = 401(k). Then there's CDN = S&P/TSX 60 and USA term = Vanguard/S&P 500.

Oh, and I was just wondering if there's anything beyond Edward Jones? I mean I know of course there is it's just that Edward Jones is a big name and it's right in front of my doorsteps so I have heard of them before. I was just wondering if you knew of any other type of investment house companies (in Canada if possible)? I googled "List of Canadian Investment house companies" it gave me a few URL sites and a few companies I've never heard of before. Still I'm gonna take a look at them.

I've been doing my own research and stumbled onto sites such as ishares.ca and etrades.ca. Still I have no clue where to start and I want to start investing/saving with an Index Fund soon. Still after reading as much as thoroughly as I possibly could I still feel held back into investing into anything even if it's Index Fund where it sounds good with it's low-no fees, less risk and less time involved in research. I don't know I guess I'm too afraid to make that jump or take that chance. It's like what you said I'm gonna try and speak to a rep. at Edward Jones soon and post up my opinion about them.

While you are at it, ask to see the paperwork on that class action lawsuit against them that was just waiting for a judge's signature.

Are you serious!? Then there's no point in giving my money to them.

Yes, I am serious. It doesn't mean your money is safe or not safe. They just got caught doing something they shouldn't have and now they have to pay for it.

Oh, all right. I guess I can still go and check them out.