Monthly Income Mutual Fund or Other recommendation?

You could put 50% in an EQ Bank TFSA, the other 50% in a TD e-series portfolio with a much lower MER than the CIBC 1. And make withdrawals from each as needed. But there is high potential of market volatility as more covid waves become a thing.

https://cdn.canadiancouchpotato.com/wp- ... ec2020.pdf

I was also recommended segregated funds from a financial advisor. What are your opinions on this? Is more in fees with more protection/insurance. I'm in my mid 30s. I have never heard of seg funds.

fakejordan wrote: ↑ I was also recommended segregated funds from a financial advisor. What are your opinions on this? Is more in fees with more protection/insurance. I'm in my mid 30s. I have never heard of seg funds.

They typically have very high MER fees so I don't use them. Seg funds are also locked in for a long term (usually 10 years) so you have no flexibility to make withdrawals. If your risk tolerance is low might as well look at savings accounts and GIC's where you are 100% guaranteed to get positive results without having to pay the high fees and more flexibility.

fakejordan wrote: ↑ have about 70k sitting around. Went to my bank and sat thru a consultation with an advisor I never worked with. Was recommended the following.

https://www.morningstar.ca/ca/report/fund/performance.aspx?t=0P0000707U

Goals for this money is
1.) Short - Long term
2.) Flexible (can pull out at anytime)
3.) Looking for a monthly payout (to either reinvest or use it to pay off expense i.e mortgage payment)
4.) Looking for something with YTD above 5%
5.) Return/Payout can be tax deductible

I don't mind splitting this into 50% low risk with monthly payout and 50% higher risk but higher return. Other than walking into the other big banks asking for hr long consultation with advisors. What other options are available?

Thanks in advance

I was in same boat in Jan and put in TD mutual fund as I didn't wanted anything in stock. TD comfort made good bit of money in last 4 months. TD Comfort Portfolios

callernamet wrote: ↑ I was in same boat in Jan and put in TD mutual fund as I didn't wanted anything in stock. TD comfort made good bit of money in last 4 months. TD Comfort Portfolios

If you don't mind sharing, which portfolio did you picked? What ROI you are getting so far? Does this fund issue payout monthly?

How about BMO ETF ZWC.TO. This fund holds Canadian stocks and so the dividends will offer a tax credit. The yield is 7.2%.

https://www.morningstar.ca/ca/report/et ... lang=en-CA

fakejordan wrote: ↑ have about 70k sitting around. Went to my bank and sat thru a consultation with an advisor I never worked with. Was recommended the following.

https://www.morningstar.ca/ca/report/fund/performance.aspx?t=0P0000707U

^^^ thats OK with 5.77% + it has some growth potential

edit: to include a few other look at's.
for just income with flat growth, take a look at the following (mix or match/pick 5) for a blended rate of 7%+

XTD.PR.A , YCM.PR.A, YCM.PR.B, XMF.PR.B,

LFE.PR.B

ZWU

SBC

EIT.UN

https://www.bmogam.com/ca-en/advisors/z ... ities-etf/

https://www.quadravest.com/xtd-fund-features

https://www.quadravest.com/ycm-fund-features

https://www.quadravest.com/xmf-fund-features

https://www.bromptongroup.com/product/l ... plit-corp/

https://www.quadravest.com/lfe-fund-features

https://www.canoefinancial.com/eit-income-fund

The real tragedy here is that this is the type of "advice" available to most people in their 30s without a high six-figure balance to invest.

-A salesperson at the bank selling their monthly income fund (all banks have 'em and all banks sell them to all customers)

-An insurance salesperson selling segregated funds

Luckily the OP will probably get some good advice on here. I can't recommend anything specific because I am an actual investment advisor, but the two bits of advice I'll offer are: 1) run away from the seg fund seller and never look back, 2) every time you're in the bank, no mater who you're interacting with, realize that you are a customer (not a client) and that every person you speak with is a salesperson (not an advisor). Just take it all with a grain of salt.

Thalo wrote: ↑ The real tragedy here is that this is the type of "advice" available to most people in their 30s without a high six-figure balance to invest.

-A salesperson at the bank selling their monthly income fund (all banks have 'em and all banks sell them to all customers)

-An insurance salesperson selling segregated funds

Luckily the OP will probably get some good advice on here. I can't recommend anything specific because I am an actual investment advisor, but the two bits of advice I'll offer are: 1) run away from the seg fund seller and never look back, 2) every time you're in the bank, no mater who you're interacting with, realize that you are a customer (not a client) and that every person you speak with is a salesperson (not an advisor). Just take it all with a grain of salt.

I agree I dont trust people at TD and do it on my own. which I am doing fine imo. And if you make it you take the credit or if you lose you take the blame. end of story.

Thalo wrote: ↑ The real tragedy here is that this is the type of "advice" available to most people in their 30s without a high six-figure balance to invest.

-A salesperson at the bank selling their monthly income fund (all banks have 'em and all banks sell them to all customers)

-An insurance salesperson selling segregated funds

Luckily the OP will probably get some good advice on here. I can't recommend anything specific because I am an actual investment advisor, but the two bits of advice I'll offer are: 1) run away from the seg fund seller and never look back, 2) every time you're in the bank, no mater who you're interacting with, realize that you are a customer (not a client) and that every person you speak with is a salesperson (not an advisor). Just take it all with a grain of salt.

Given the requirements stated by OP, I think the advice given by the bank rep covers most of what he asked for. He could do a lot worse than buy that CIBC fund, especially if he has no previous experience in investing or little interest in spending a lot of time learning about it.

OP also has the option of looking for a fee-only advisor but many 30-something folks will spend big bucks on a vacation while balking at paying for financial advice. This is where people trip up with insurance - those guys will offer hours of "free advice" to sell those terrible insurance products. I actually think that basic financial literacy has to be taught in high school. The relationship between risk and reward is a concept everyone needs to understand.

What we are missing in OP's post is his overall financial outlook, e.g. has he already used TFSA's/RRSP's, what other assets/liabilities does he have, and what provisions is he making for retirement. The best advice for the $70k might be to spend the money in other ways, e.g. paying down debt.