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What can I do with 100k that I'm waiting to invest in ~2 months?

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  • Jun 15th, 2020 7:44 am
[OP]
Member
Apr 26, 2010
269 posts
33 upvotes

What can I do with 100k that I'm waiting to invest in ~2 months?

Hey guys!

So I just invested ~250k in my RRSP and TFSA.

I have a remaining 100k sitting in my non-reg online brokerage account.

I'd like to wait 1-2 months before investing it to "diversify my timing" a bit and I like keeping the opportunity of investing another significant amount in case the market drops again shortly.
Also, there's a possibility I may need 20 to 30k of this money later this year.

This 100k is currently sitting in my online brokerage non-reg. account doing nothing.
Would you just let this money like this or is there a product with no short-term trading penalties and very low stock % that could be useful in this situation?

Any major downside of dumping all of it in VAB for example? Or is it to correlated to the market and would cancel my initial intention of "diversifying my timing"?

Thanks!
12 replies
Deal Addict
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Dec 16, 2015
2015 posts
1521 upvotes
Canada
Market recovered already while pandemic is still going on...V shape recovery while fundamentals still at the bottom
Deal Addict
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May 11, 2014
4020 posts
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Iqaluit, NU
There isn't really a reason to "wait" to invest, you can chunk the purchases if needed. (eg. 20k per month) but long term, it makes little to no difference. You will lose out if timed wrong, you'll lose if you do extra transactions. In 30 years, that couple percentage difference makes little difference.

Just keep the 20k you may need on the side as cash uninvested. Bonds are still risky investments. If interest rates were to rise, you could still be at a loss. CSAV which is a savings account ETF earns 0.75%, earning approx $12.50 per month. Whether paying commission to do this is worth it, is up to you to decide. You could also look at a money market fund with zero commission, but not sure what Disnat has available.
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Jun 15, 2012
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1004 upvotes
Saskatoon
Redsanta wrote: Market recovered already while pandemic is still going on...V shape recovery while fundamentals still at the bottom
There’s no guarantee, but rather probably likely to see ugly fall and winter, when market will get back to macro economic reality. Trump might not get re-elected and vaccines might be ineffective or unsafe. There are just too much uncertainty right now to be optimistic.
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[OP]
Member
Apr 26, 2010
269 posts
33 upvotes
Redsanta wrote: Market recovered already while pandemic is still going on...V shape recovery while fundamentals still at the bottom
I'm sorry I'm new to all this and not sure what conclusion you're implying from this:

Do you think it implies that there may not be another "correction" incoming since the market already recovered while fundamentals are still at the bottom?
Or do you think it's unreasonable that the market already recovered (too optimistic) while while fundamentals are still at the bottom so another "correction" is to be expected?
Deal Fanatic
User avatar
Sep 21, 2007
5105 posts
490 upvotes
Winnipeg
IMO with that kind of money.. you should read the basics on how to trade and the fundamentals of it..
https://www.investopedia.com/simulator/

use this simulator.. it gives you 100k to invest.. play around with it. But something before putting it in.
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Member
Dec 13, 2005
285 posts
153 upvotes
Cash is a position too. Fed and others predicting worst recession in a long time.

Take a look at markets in 2008-2009.
Sr. Member
Aug 18, 2003
966 posts
232 upvotes
Terrace
Malkavian wrote: Hey guys!

So I just invested ~250k in my RRSP and TFSA.

I have a remaining 100k sitting in my non-reg online brokerage account.

I'd like to wait 1-2 months before investing it to "diversify my timing" a bit and I like keeping the opportunity of investing another significant amount in case the market drops again shortly.
Also, there's a possibility I may need 20 to 30k of this money later this year.

This 100k is currently sitting in my online brokerage non-reg. account doing nothing.
Would you just let this money like this or is there a product with no short-term trading penalties and very low stock % that could be useful in this situation?

Any major downside of dumping all of it in VAB for example? Or is it to correlated to the market and would cancel my initial intention of "diversifying my timing"?

Thanks!
learn how to do oom naked puts or credit spreads also oom. big ranges between call and put. you should be able to do weekly options ~ $2k or so (with 100k)

youtube search it.
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Deal Addict
Jul 23, 2007
4141 posts
2220 upvotes
Malkavian wrote: Hey guys!

So I just invested ~250k in my RRSP and TFSA.

I have a remaining 100k sitting in my non-reg online brokerage account.

I'd like to wait 1-2 months before investing it to "diversify my timing" a bit and I like keeping the opportunity of investing another significant amount in case the market drops again shortly.
Also, there's a possibility I may need 20 to 30k of this money later this year.

This 100k is currently sitting in my online brokerage non-reg. account doing nothing.
Would you just let this money like this or is there a product with no short-term trading penalties and very low stock % that could be useful in this situation?

Any major downside of dumping all of it in VAB for example? Or is it to correlated to the market and would cancel my initial intention of "diversifying my timing"?

Thanks!
Aside from the 20 to 30k on the sidelines which should be kept safe, I'm still puzzled with the rest of the money as to what your risk level is and what your long term investment goals are or if you even have any?

I'm doing similar but spreading the investing out monthly over near two years and combining with any savings and dividends for each month. The rest meanwhile stays in a HISA. Personally I'm risk adverse but I like to attempt to grow my income and assets in retirement and that's my goal. So I continue to invest whenever the cash is available, just not all at once, unless it's going into an investment vehicle like a balanced ETF, but again for a very long term holding.
Deal Addict
Sep 2, 2009
1003 posts
707 upvotes
Ottawa
Charles wrote: learn how to do oom naked puts or credit spreads also oom. big ranges between call and put. you should be able to do weekly options ~ $2k or so (with 100k)

youtube search it.
I know you're trying to teach someone new... But are naked puts, from youtube no less, where you think someone new should use 100k to learn?
Penalty Box
User avatar
May 15, 2016
6148 posts
2072 upvotes
Charles wrote: learn how to do oom naked puts or credit spreads also oom. big ranges between call and put. you should be able to do weekly options ~ $2k or so (with 100k)

youtube search it.
What do you mean by this?
Deal Fanatic
Jan 21, 2014
5059 posts
2686 upvotes
Charles wrote: learn how to do oom naked puts or credit spreads also oom. big ranges between call and put. you should be able to do weekly options ~ $2k or so (with 100k)

youtube search it.
Also search found 20 years old without income, killed himself after losing $700K on trading options

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