Investing

Best short term investment?

  • Last Updated:
  • Jun 16th, 2013 6:03 pm
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[OP]
Newbie
Dec 28, 2012
47 posts
2 upvotes
Waterloo
Thanks so much for the replies guys! Looking at all these TFSA through banks are providing an "OK" rate. I won't be making anything due to inflation. So I'm willing to risk a little bit to get a higher ROI. Any other suggestions?

Stocks are an option... but the risk is high as I have no experience in investing in the market.
Deal Addict
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Feb 22, 2013
2028 posts
172 upvotes
Ottawa, ON
KushGandhi wrote:
May 29th, 2013 10:54 am
Thanks so much for the replies guys! Looking at all these TFSA through banks are providing an "OK" rate. I won't be making anything due to inflation. So I'm willing to risk a little bit to get a higher ROI. Any other suggestions?

Stocks are an option... but the risk is high as I have no experience in investing in the market.
A Bond Index Fund is a relatively safe investment in the market, although clearly more risky than savings accounts or GICs. If that's the route you'd like to take I suggest the TD Canadian Bond Index e-Series (https://www.tdassetmanagement.com/stats ... DB909E.pdf). YTD performance is up 0.13%, but the average annualized return is over 8%.

Or you could look into a monthly income fund (also low risk). For example: https://www.tdassetmanagement.com/stats ... DB622E.pdf. YTD performance is up 3.9%.

If neither of these options are acceptable to you, I would suggest creating a balanced portfolio of TD e-Series index funds (http://canadiancouchpotato.com/model-portfolios/). Short of randomly picking winning and losing stocks, a balanced portfolio will offer you the best chances of making a greater return than savings accounts rates.
Deal Addict
Sep 1, 2007
3687 posts
282 upvotes
Markham
LOL this is why you don't ask questions or ask for advice on online forums

You can't be serious
coachpotatoarmchairQB wrote:
May 29th, 2013 12:14 am
wow! nice find! actually this GLD looks better than the GLD I am talking about! I can buy a lot of shares of this and if it rises to $50 then I make a lot of $
Deal Addict
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Jul 28, 2010
1102 posts
350 upvotes
Montreal
I think he's a master troll, but I can't be sure anymore
Newbie
Feb 10, 2013
55 posts
5 upvotes
Mississauga
Rickson9 wrote:
May 29th, 2013 5:10 pm
bus is better than a bike

you can sleep on the bus
Not sure where you are, but where I am the buses are late, usually full (aka no seats to "sleep"), and sometimes just don't show up at all. At least with my bike I know how long it will take me to get from point a to point b.
If taking the bus you are gambling hoping the bus shows up on time.

Plus I get my daily dose of exersize. :D
Deal Addict
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Nov 25, 2010
1611 posts
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Kanada
Shorting the Nikkei is a good short term investment.
Deal Addict
Jul 31, 2004
1479 posts
34 upvotes
GTA
KushGandhi wrote:
May 28th, 2013 1:50 pm
Hey there guys,

I am looking to earn about $50k~ between now and mid-august through my personal business and I was looking to invest that money for 1 year.

What are your thoughts on a short term investment? I prefer a low-risk investment but I understand I won't get more than a 2% ROI (and thats already being generous). I am willing to look at riskier options to get a nicer ROI.

Thoughts?
If you haven't used any TFSA room and turned 18 in 2009 or earlier you can put $25,500 into a People's Trust TFSA which earns 3%. So at least half of the $50K would be put into something "low-risk," and still be beating inflation (though the interest rate isn't fixed/guaranteed). With a time frame of 1 year, there's no stock, combination of stocks, or stock index that would be considered low-risk. How much are you willing to lose?
[OP]
Newbie
Dec 28, 2012
47 posts
2 upvotes
Waterloo
JS2K6 wrote:
May 30th, 2013 11:50 am
If you haven't used any TFSA room and turned 18 in 2009 or earlier you can put $25,500 into a People's Trust TFSA which earns 3%. So at least half of the $50K would be put into something "low-risk," and still be beating inflation (though the interest rate isn't fixed/guaranteed). With a time frame of 1 year, there's no stock, combination of stocks, or stock index that would be considered low-risk. How much are you willing to lose?
I turned 18 in early 2012. So the People's trust is out of the picture.

At the end... worst case scenario I'd still like to have my principle back. But if there was a promising stock I'd be willing to lose 4k-5k.
Deal Addict
Dec 28, 2005
2898 posts
4 upvotes
19yr old making 50k in a span of 3mths? nice...

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