Investing

Safe investing of $10-$100K?

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  • Jul 12th, 2018 12:47 pm
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[OP]
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Sep 21, 2010
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Safe investing of $10-$100K?

Any ideas instead of letting it collect cobwebs in the savings account? Thanks.
15 replies
Deal Guru
Aug 2, 2001
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You have to define "safe". To me safe means the principle is guaranteed. That means a HISA or GIC. If you're willing to accept a little risk there is more that can be explored, but that involves potentially losing some of the principle when you choose to withdraw it. This can also be a problem if this is short term savings as the potential for losing principle is greater (as you do not have the luxury of time to make it up).

So I guess you would need to discuss a bit more around your goals before anything better than a HISA or GIC can be discussed.
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Jun 10, 2013
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Safe to me means less than 20% loss in any given year (60 stocks/40 bonds portfolio)...Very subjective. HISAs are safe short term but dangerous long-term from inflation. Based on government figures that they have interests to understate, the value of your money will erode by half every 35 years. In reality, it probably halves every 15-20 years or so.
[OP]
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I just want to earn more vs bank savings but, yes, don't want to put the principle in risk. I guess GIC is the obvious choice but I dunno what other options are there, if any, so am seeking guidance. TX again.
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Dec 8, 2010
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Over the long term, a stock/bond mix is 'safe'.

You can get 3.5% on a 5 year GIC at Oaken and EQ Bank.
Deal Addict
Jul 23, 2007
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If this is for a long term investment you might want to consider something like Harry Browne's Permanent Portfolio. The portfolio has had very low volatility and the long term returns have been pretty good (although not as good as a Global Couch Potato).
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Jan 4, 2017
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What does $10k-$100k mean?

If it's only $10k, and you're likely to want access to it in the short term, your highest guaranteed return is likely to be by using the $10k to satisfy promo requirements on new account welcome bonuses. $300 bonus with TD requires $4k to waive the minimum balance, $300 bonus with CIBC requires $3000, etc. Deploy the capital towards those and the welcome bonus is your "return". When you do the math, it's actually a pretty good return, you won't find anything in the HISA/GIC space that can match that. But then, you do have to do the legwork and make sure you meet the requirements to get the welcome bonuses. To me it's a no brainer, but if that sounds like too much effort, then HISA/GIC are your next bet if you're not willing to accept anything "not guaranteed".

If it's $100k, you might be satisfied just churning HISA promos that offer >2% and remain CIDC insured. For that option you'd look towards the likes of Tangerine, EQ, Simplii, etc. The 'big 5' do infrequently offer similar promos, so worth keeping an eye out. At $100k, a 1% difference may be worth the effort to churn, but it's really up to you.
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Jul 27, 2017
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outside of a 12 mth 2.75% GIC or 2.3% HISA

12 mth churns 6% safe'ish investing +/- 3% fluctuation on the capital is possible for $10,000 - $1,000,000

my few suggestions & I have others

https://web.tmxmoney.com/funds-ca-quote ... bol=RBS401

http://northerncoast.ca/funds/northern- ... egic-fund/

https://web.tmxmoney.com/quote.php?qm_symbol=DRM.PR.A

https://web.tmxmoney.com/quote.php?qm_symbol=VB.PR.A

https://web.tmxmoney.com/quote.php?qm_symbol=PWF.PR.I


.
Last edited by porticoman on Jun 10th, 2018 8:06 pm, edited 1 time in total.
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Hobotrader wrote:
Jun 10th, 2018 5:26 pm
Safe to me means less than 20% loss in any given year (60 stocks/40 bonds portfolio)...Very subjective.
I almost fell off my chair when you posted 20% loss, that too me means all my investments go to zero in 5 years
[OP]
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I haven't decided how much I wanna lock up, hence the wide range.

TX for the info, will be researching.
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tranquility922 wrote:
Jun 10th, 2018 8:17 pm
I haven't decided how much I wanna lock up, hence the wide range.

TX for the info, will be researching.
$10k to a zillion, you could divide it up across several investments including, HISA, GIC, other ....

what ROI are you looking to get safe'ish?

maybe also something like the following.

http://vanguardinvestment.ca

Google is your friend to check what is available in Ontario or across Canada in 'mortgage investment corp's. There are private as well as ones listed on the TSX
Sr. Member
Nov 6, 2015
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Guelph, ON
porticoman wrote:
Jun 10th, 2018 8:04 pm
I almost fell off my chair when you posted 20% loss, that too me means all my investments go to zero in 5 years
He said "any given year", not 5 years in a row. Any given year might be 20% drop - usually because of general downtown in the markets and not because you picked bad stocks, and he is OK with that. He's not saying he's OK with picking stocks that are so risky that they could realistically drop to nothing in 5 years.
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Jun 23, 2017
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porticoman wrote:
Jun 10th, 2018 8:04 pm
I almost fell off my chair when you posted 20% loss, that too me means all my investments go to zero in 5 years
... You mean your investments would go to 33% of original value in 5 years.

You start with a $100 portfolio .. after a bad year (20% loss) it would be worth $80 ... let's say, the next year is another bad your (another 20% hit), at the end of year 2 your portfolio would be worth $64 ... etc. mathematically, it would never go to 'zero'
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Nov 12, 2014
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905P4N6 wrote:
Jul 10th, 2018 11:52 am
... You mean your investments would go to 33% of original value in 5 years.

You start with a $100 portfolio .. after a bad year (20% loss) it would be worth $80 ... let's say, the next year is another bad your (another 20% hit), at the end of year 2 your portfolio would be worth $64 ... etc. mathematically, it would never go to 'zero'
Eventually it would get to zero...
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Apr 23, 2006
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I think a high dividend blue chip (4-5% yield) is "relatively" safe. Like Canadian Banks, utilities/telecom, oil pipelines (riskier but higher div).

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