Investing

Investing towards retirement - Advice Pls

  • Last Updated:
  • Feb 18th, 2019 7:51 pm
[OP]
Newbie
May 18, 2017
29 posts
9 upvotes

Investing towards retirement - Advice Pls

Hi all

If you had $30,000 for an initial investment and could contribute an additional $100 a month starting at age 40 how would you invest it and in what product to maximize your rate of return? Currently my investments are being chewed up by fees and low rate of returns and seeing year over year of reduced growth. I am comfortable with a moderate risk rating but not overly versed when it comes to self directed investments so looking for something a bit on the easier side. Also not afraid to learn if it would help improve my returns. Target retirement age of 65 or earlier if possible.

thank you,
5 replies
Sr. Member
Nov 6, 2013
630 posts
397 upvotes
Only $100 more a month? Age 40.. you are going to need a lot more cash.
[OP]
Newbie
May 18, 2017
29 posts
9 upvotes
primetimey wrote: Only $100 more a month? Age 40.. you are going to need a lot more cash.
This is in addition to a company pension. I'm just talking about personal investing and maximizing my returns in an effort to generate a discussion surrounding different options.
Deal Addict
Nov 9, 2013
3909 posts
3595 upvotes
Edmonton, AB
I would say buy XGRO / VGRO or XBAL / VBAL (depending on how much equity exposure you're after) and then add savings to that on a regular basis. The only issue you'd have to think about would be commission fees; on a quarterly basis you would only be able to buy $300 (assuming $10 commission that's 3.33%). Buying on a biannual basis would be better (1.67%) and an annual basis would be best (0.8%), from a commission fee point of view.
Keep calm and go long
Sr. Member
Nov 6, 2013
630 posts
397 upvotes
Molsonbeer wrote: This is in addition to a company pension. I'm just talking about personal investing and maximizing my returns in an effort to generate a discussion surrounding different options.
That's good then. Just figure out your equity vs fixed income mix you will be happy with and buy ETFs at a brokerage.
Deal Guru
Jan 27, 2006
14546 posts
7444 upvotes
Vancouver, BC
Before you think about what the next moves are, you should check why you think you are getting "low rate of returns and seeing year over year of reduced growth". If you are like the majority of Canadians, the vast majority of your RRSPs and savings are in the wrong asset mix - ie too conservative (ie GICs, HIA, bonds...), based primarily in Canadian stocks which have had a horrible decade.... Or that your expectations are just not matched to your investment decisions (ie. expect 10% when the market will only give you 5% which is what happened in Canada).

Anyone who invests in low fee products will have many of the same problems if they don't have the right asset mix for the situation - ie you could be invested in one of the all-in-one ETFs like XBAL but expect returns like XGRO so you would be disappointed by your returns.

You stated that you aren't afraid to do some learning if it will improve your returns and IMHO, that's the best attitude anyone can have as that will mean that you will take ownership of your investments. I suggest that you do some deep research on handling investments yourself rather than handing over your investments to advice on an internet forum or generic ETFs.

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