Investing

TD Mutual funds , set and forget

  • Last Updated:
  • Apr 17th, 2018 5:25 am
[OP]
Newbie
Nov 6, 2017
3 posts

TD Mutual funds , set and forget

Hi everyone , just a quick question for anyone willling to reply. I have 35,000 to invest in mutual funds , I basically want to buy and forget plus 1000 a month auto deposit. Any advice on the best way to go ? I already have a account opened. Thanks
14 replies
Member
User avatar
Oct 21, 2009
257 posts
61 upvotes
Convert your account to be able to purchase e-series mutual funds.
Find a peroper risk allocation between CAN, US, INT and bonds. Something like 25/25/25/25 is a good place to start.
You can setup an automatic plan to deposit whatever amount you want per month. If you want to contribute 1000 per month, I would setup 200 into each fund automatically. The other 200 i would deposit manually once a month, or once every other month to re-balance your portfolio to the proper levels.
Deal Fanatic
Jul 4, 2004
7350 posts
605 upvotes
Toronto
Follow CCP model portfolios.
[OP]
Newbie
Nov 6, 2017
3 posts
So when the market crashes it always comes back higher in 18 months , so know this why not just invest in the high risk high return ?
Deal Addict
User avatar
Mar 16, 2010
2372 posts
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Burlington
Sutton17 wrote:
Apr 4th, 2018 3:45 pm
So when the market crashes it always comes back higher in 18 months , so know this why not just invest in the high risk high return ?
100% correct, market always come back. 25% Cad, 50% US, 25% International.
Deal Guru
Aug 2, 2001
14975 posts
5254 upvotes
Sutton17 wrote:
Apr 4th, 2018 3:45 pm
So when the market crashes it always comes back higher in 18 months , so know this why not just invest in the high risk high return ?
What if you need the money when the market crashes?

Take a look at the Couch Potato sample portfolios and their historical returns:
http://canadiancouchpotato.com/wp-conte ... s-2017.pdf

Notice for the 20 year return you're at 5.85% for Conservative and 6.25% for aggressive? And for a 1 year returns you're at 5.63% for Conservative and 12.29% for Aggressive?

This helps show the problem with higher risk funds. They have the potential to fluctuate and because you cannot predict when they will dip they may dip when you actually need to withdraw (or just rebalance for retirement).


Investing should be based on your risk tolerance - if you can tolerant the highs and lows, higher risk might be for you. If you cannot stand seeing your investments drop 10% in a month, perhaps choose more risk adverse funds/portfolio.
Sr. Member
Dec 4, 2016
746 posts
268 upvotes
Don't set and forget. At least check your account daily to see if they're still there. I phoned in to request closing my USD accounts, and a few months later, TD closed my CAD TFSA account, after I purchased stocks. I phoned in, and the rep confirmed it's a mistake. If it had been an RSP account, I would be looking at a huge tax bill.
Deal Fanatic
Mar 24, 2008
5502 posts
1542 upvotes
Toronto
Sutton17 wrote:
Apr 4th, 2018 3:45 pm
So when the market crashes it always comes back higher in 18 months , so know this why not just invest in the high risk high return ?
Dpack22 wrote:
Apr 4th, 2018 3:50 pm
100% correct, market always come back. 25% Cad, 50% US, 25% International.
Lol, is this a joke? How do you know that market always comes back and that too in 18 months?
Illegitimi non carborundum
Deal Addict
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Mar 16, 2010
2372 posts
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Burlington
ksgill wrote:
Apr 5th, 2018 9:44 am
Lol, is this a joke? How do you know that market always comes back and that too in 18 months?
This topic has been done to death already, I figured I would mix things up a bit.
Deal Fanatic
Jan 27, 2006
8719 posts
2998 upvotes
Vancouver, BC
Sutton17 wrote:
Apr 4th, 2018 3:45 pm
So when the market crashes it always comes back higher in 18 months , so know this why not just invest in the high risk high return ?
Given enough time in the market place, that might work. However, Murphy's Law always comes into play and you can't predict with any certainty when a crash will happen and when you will need the money - they can happen within weeks of each other.
Member
Jan 4, 2017
258 posts
104 upvotes
+1 for the TD e-series. I held some for a while, they are a good relatively cheap way to get a nice allocation giving you a diversified exposure. If I recall correctly there's no fee to buy/sell them too, and the MER is significantly lower than most other mutual funds, even the Tangerine ones. You can achieve a similar spread of funds for cheaper yet via ETFs, but other than that it's a pretty solid deal. You can buy TD e-series via EasyWeb or TD Direct Investing, which means you don't necessarily need to set up a brokerage account if you're not looking for that.

But yeah, you never want to set and totally forget lol. Make sure they're still actually there and all that. But other than that ignore them and dollar-cost-average and/or periodic lump sum and you're all set. Can't really go wrong with that.

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