Just starting out, would like some advice on investing
Hi all,
I'm 26 years old and have been working for just over a year now, and have built up sufficient emergency funds over the past year that I am ready to start looking at other investment options. I'm leaning towards investing in index funds (probably e-series), as I would prefer not to have to actively manage my investments, but would like to hear thoughts from people out there.
Here's a little of what my finances look like:
TFSAs: ~13k mostly laddered in GICs (~8k), some in ING high interest savings (~5k), but I plan to start transferring them to index funds as the GICs mature over the next 5 years.
RRSPs: ~1k, started small ($500) with ING streetwise funds to get a feel for how index investing/mututal funds work, and I contribute $100 every month to keep it going for now.
Regular chequing and savings accounts have enough to cover my expenses and emergency funds.
Moving forward, I plan on investing in the TD e-series funds with my TFSA (starting with the $5k I have sitting in my ING TFSA account and the additional $2k room I still have for this year), but based on my past year's budget and experience in building up my emergency funds, I'm pretty sure I can expect to save ~$10k/year. $5k will go into the e-series TFSA MF account, but I will still have room to invest another $5k.
So a couple of questions:
1) Would if be a good idea to invest in TD e-series funds with a non-registered account with TD as well after I max out my TFSA contributions? Or should I consider some other form of investment?
2) Or would it be a better idea to instead increase my RRSP contributions? I'm making about 50k/year and my marginal tax rate is ~30%, so I'm not sure that using RRSP contributions right now is the best use of my contribution room.
3) I think my concern is that it seems like I'm only investing in TD e-series and ING streetwise mutual funds across the 3 types of savings that I have (non-registered, RRSP & TFSA), and although I know they index funds are already diversified, they still look a lot like only 1 type of investment. Are my concerns about diversification valid or should I just not worry about that?
My ING Streetwise MFs are my first type of investment outside of savings accounts and GICs, so I'm pretty much a novice when it comes to investment options, and would love to hear what people think.
I'm 26 years old and have been working for just over a year now, and have built up sufficient emergency funds over the past year that I am ready to start looking at other investment options. I'm leaning towards investing in index funds (probably e-series), as I would prefer not to have to actively manage my investments, but would like to hear thoughts from people out there.
Here's a little of what my finances look like:
TFSAs: ~13k mostly laddered in GICs (~8k), some in ING high interest savings (~5k), but I plan to start transferring them to index funds as the GICs mature over the next 5 years.
RRSPs: ~1k, started small ($500) with ING streetwise funds to get a feel for how index investing/mututal funds work, and I contribute $100 every month to keep it going for now.
Regular chequing and savings accounts have enough to cover my expenses and emergency funds.
Moving forward, I plan on investing in the TD e-series funds with my TFSA (starting with the $5k I have sitting in my ING TFSA account and the additional $2k room I still have for this year), but based on my past year's budget and experience in building up my emergency funds, I'm pretty sure I can expect to save ~$10k/year. $5k will go into the e-series TFSA MF account, but I will still have room to invest another $5k.
So a couple of questions:
1) Would if be a good idea to invest in TD e-series funds with a non-registered account with TD as well after I max out my TFSA contributions? Or should I consider some other form of investment?
2) Or would it be a better idea to instead increase my RRSP contributions? I'm making about 50k/year and my marginal tax rate is ~30%, so I'm not sure that using RRSP contributions right now is the best use of my contribution room.
3) I think my concern is that it seems like I'm only investing in TD e-series and ING streetwise mutual funds across the 3 types of savings that I have (non-registered, RRSP & TFSA), and although I know they index funds are already diversified, they still look a lot like only 1 type of investment. Are my concerns about diversification valid or should I just not worry about that?
My ING Streetwise MFs are my first type of investment outside of savings accounts and GICs, so I'm pretty much a novice when it comes to investment options, and would love to hear what people think.