i want to ask ..
currently i have 25.96 and 21.68 in "Cash" sitting in my tfsa and rrsp accounts, i bought some etfs from vanguard that my sister recommended .. and then i have these two small amounts of cash leftover.. this might be a weird question, but because i feel that the etfs grow slowly.. and anything sitting in cash is not ideal (kinda like, what's the point of it if its not in some etf format), do you know of any good etfs that can be purchased for the prices above?
.. i guess i would be wanting to purchase 1 of each lol.. its just to avoid anything sitting in cash, even though its "just" twenty something dollars you know ..
quote=gekaizer post_id=27475679 time=1487195096 user_id=410077]
Sorry to hear about your situation, I do hope it improves.
I think putting in the life savings to ETFs is quite risky since no one can predict what will happen in the market. This 25k is your emergency fund as well right? What happens if the market suddenly crashes and your ETFs drop by 40%.
As well, what happens if you need access to the 25k due to circumstances (i.e. you need to go on EI for extended period than originally anticipated due to prolonged illness, or tough job search)?
You will be in quite a bind.
I don't believe you can live off the ETF dividends alone, the common index ETFs don't really go above 5% and assuming a reasonable annual yield of 10% of your ETF portfolio, you'd only be getting 2.5k; which would support you for almost 2 months.
I assume you are trying to use this strategy for the short term, until you get back into routine, but I believe there are numerous financial risks involved.