have 20K to invest...where to put other than high interest saving acc ?

[dav1209]

i have around 20K for invest....what should i do with the money...
putting money on saving accoung only make a small profit out of it
any idea ?

[Dibble]

i have around 20K for invest....what should i do with the money...
putting money on saving accoung only make a small profit out of it
any idea ?

goals? timeline? risk averse or risk willing?

you can't just come in here and ask what u should do with $20,000 to invest without providing us with at least some basic answers to the above questions -- there's different solutions for different occasions. if there was one solution that would work for all of us, you wouldn't need to ask that question and it'll be plastered all over every bank's walls.

[tonychau]

i have around 20K for invest....what should i do with the money...
putting money on saving accoung only make a small profit out of it
any idea ?

you should donate to someone who need it ;)

detail please, hav you contribute max. to your RSP for this year?

[controlyar]

Another silly question....

Go see a FA and let them take care of you.

For the sake of responding, throw the money into the Venture Exchange and your money may triple. :lol:

[dav1209]

lol right now all the $$ is in the PCF plus saving account which give me back 4% + bonus
not planning to do anything with the money yet so just put a dumb question here asking...
i'm sure alot of ppls will give a full answer from most risky to the least
have you guys heard about stock option ?

[controlyar]

Stock options through your employer?

[thelefteyeguy]

invest in diamonds...rumour has it that it's an investment ;)

[God_Anubis]

invest in diamonds...rumour has it that it's an investment ;)

DON'T LISTEN TO HIM. That's some terrible financial advice your getting from here.

Your best recourse would be to invest in limited partnerships. The people who have invested in this have made strong capital gains, for minimal risk.

Time shares condos would be another viable option. Just ask various financial gurus on this one. But don't listen to the people on this board.

[ynot]

invest in diamonds...rumour has it that it's an investment
DON'T LISTEN TO HIM. That's some terrible financial advice your getting from here.

Sarcasm escapes you.

[controlyar]

DON'T LISTEN TO HIM. That's some terrible financial advice your getting from here.

Your best recourse would be to invest in limited partnerships. The people who have invested in this have made strong capital gains, for minimal risk.

Time shares condos would be another viable option. Just ask various financial gurus on this one. But don't listen to the people on this board.

You are recommending to the OP (obviously lacks financial experience) to pursue a speculative investment. The poster above you was joking (thus the winky face). You are the one giving terrible financial advice. It is quite amusing reading what you wrote and taking it as a serious recommendation for a new investor. Rethink your statement before recommending a timeshare condo for someone new to investments and with only $20000. :lol:

[Dibble]

DON'T LISTEN TO HIM. That's some terrible financial advice your getting from here.

Your best recourse would be to invest in limited partnerships. The people who have invested in this have made strong capital gains, for minimal risk.

Time shares condos would be another viable option. Just ask various financial gurus on this one. But don't listen to the people on this board.

Ummmm.... best investment under what pretense?
You're giving him financial advice based on absolutely no grounds or analysis of his situation -- which is impossible since he didn't really give any details about what kind of returns he wants to make, or a timeframe, or practically anything about the amount available to be invested

The best solution here, would be to go see a Financial Advisor, like some have suggested, so he can show you some possible options based on certain information you provide him -- i.e. timeframe, risk, etc. are a must

I am telling you right now, you can't waltz in here and ask for sound financial advice. They have no clue what your situation is and they are trying to give you advice -- think about this for a second!

[sparkplug]

Various returns of U.S. asset classes between 1925 - 1999 according to Ibbotson Associates Inc. Canada should have similar rates:
Large cap stocks: 11.3%
Small cap stocks: 12.6%
Government bonds: 5.1%
Treasury bills: 3.8%
Inflation: 3.1%

[Sylvestre]

in keeping with the theme.


I suggest pork futures!

[sexpuppet6000]

DON'T LISTEN TO HIM. That's some terrible financial advice your getting from here.

Your best recourse would be to invest in limited partnerships. The people who have invested in this have made strong capital gains, for minimal risk.

Time shares condos would be another viable option. Just ask various financial gurus on this one. But don't listen to the people on this board.


DON'T LISTEN TO HIM. That's some terrible financial advice your getting from here. .


don't listen to the people on this board.

.

[sexpuppet6000]

Various returns of U.S. asset classes between 1925 - 1999 according to Ibbotson Associates Inc. Canada should have similar rates:
Large cap stocks: 11.3%
Small cap stocks: 12.6%
Government bonds: 5.1%
Treasury bills: 3.8%
Inflation: 3.1%

i dont think inflation is that much now

[sparkplug]

You are correct. Inflation is 2.8% right now. In the past year, the peak was 3.4% last September according to Stats Canada.

[15-20_God]

put your money in a low interest savings account, you'll pay less tax than on the 4% interest you're getting now.

[hitman247]

umm...by that logic wouldnt it make more sense to shove it under his bed and avoid taxation on interest payments all together?

[Dibble]

put your money in a low interest savings account, you'll pay less tax than on the 4% interest you're getting now.

Tax from interest is calculated as a percentage of the interest earned.
So a 4% interest savings account would yield MORE than the 3% interest savings account no matter how you look at it.

Example:
Marginal tax rate @ 50%
Investment Account A @ 4% -> Your after-tax yield will be 4%x(100%-50%) = 2%
Investment Account B @ 3% -> Your after-tax yield will be 3%x(100%-50%) = 1.5%

So I don't understand your logic at all.

[masterhapposai]

Tax from interest is calculated as a percentage of the interest earned.
So a 4% interest savings account would yield MORE than the 3% interest savings account no matter how you look at it.

Example:
Marginal tax rate @ 50%
Investment Account A @ 4% -> Your after-tax yield will be 4%x(100%-50%) = 2%
Investment Account B @ 3% -> Your after-tax yield will be 3%x(100%-50%) = 1.5%

So I don't understand your logic at all.

it could bump you up a tax bracket totally screwing you

hide it under the bed!

[Dibble]

it could bump you up a tax bracket totally screwing you

hide it under the bed!

again, tax bracket works the same way.

just because you are in a new tax bracket does not MEAN your WHOLE income is now under the new tax bracket. it simply means anything in excess of the previous tax bracket is now taxed more.

when you earn interest, you will never earn a negative after-tax income from interests. you will still earn more with a higher interest savings account EVEN AFTER taxes are taken into account.

For example,
Lets say two people with the same financial situation (i.e. same income, same everything) invested in two different projects which both require $1,000 -- One person invested in a 4%/year interest yielding account and the other person invested in a 3%/year interest yielding account.

So for simplicity's sake, lets say the 4% and 3% interest are non-compounding. So at the end of the year, the person who invested in a 4% account would earn $40 and the person who invested in the 3% account would earn $30.

The Marginal tax bracket for both of these fellows are 50% at their current taxable income amount. However, if you earn more than $30 interest, their marginal tax rate for anything over $30 would be 75%.

Now, let's calculate each of their respective after-tax interest income.
Person A (4%) -- $40 --> $40 - $30(50%) - $10(75%) = $17.50
Person B (3%) -- $30 --> $30 - $30(50%) = $15.00

You see how, although Person A was bumped into a higher income tax bracket, he still managed to have a higher after-tax yield?

[coolspot]

i have around 20K for invest....what should i do with the money...
putting money on saving accoung only make a small profit out of it
any idea ?


RRSP - you'll get a tax credit too. Maybe buy some bank stocks (they're safe and provide ~3.x% dividends per year).

[cheukiecfu]

invest in diamonds...rumour has it that it's an investment ;)lol.. u must have watched too much "i want your diamonds.. i've got too much cash.." commercial..