What to do with 25k saved?

robyn1990 wrote: ↑ Not sure how to edit my post but the other option a TD advisor gave me was a GIC and then I get a guaranteed rate? And I can do that within a TFSA or no?

cgtlky wrote: ↑ You put $ in CiBC TFSA until march 30, after that if you transfer it elsewhere you will charge a transfer fee, if you withdraw it you can not put back until jan 1, 2021. That why I still undecided where to put my TFSA this year since the promo period is very short.

MaxPower19 wrote: ↑You’re doing great! Yeah, if you’re buying in a couple years, I’d look at GIC’s for the TFSA or a TFSA savings account with Motusbank where you just leave it till you buy.

After the house purchase, work towards maxing out your TFSA with ETF’s recommended on the Canadian Couch Potato website

hamidd wrote: ↑Keep in mind first time home buyer is now $35K
Depending on your income, try to benefit from the FTHBP as much as possible. It's almost a free loan with tax-return and make sure you keep the tax return and save it for the down-payment and not use it for anything else.
And you basically need to repay your RRSP in 15 years, 2 years after you purchased your house (so almost 17 years to slowly pay back your self)

For short term investments (< 5 years) definitely go very low risk investments.
Also look into wealthbar and wealthsimple they have really good savings rates and you can have TFSA with them too.

Just keep in mind, don't put all your eggs in one basket

sleepyguy wrote: ↑ Nice job and budgeting. I assume you are pretty young... you should take MORE risk imho... but again it's all on what you can deal with, and if you need the money in the near future.

My advice is, you're young... put 100% of it in your TSFA (leave your RRSP room for higher earning yrs) into something like VGRO.

robyn1990 wrote: ↑ Why would you want to transfer it though? And the 2.75% interest does that accure each month or on a lump sum payment. Let me know where you decide to put it I'm still not sure.

Starcraftjunkie wrote: ↑ One thing to keep in mind is that those promotional GIC / bank account interest rates are listed as ANNUAL, and not monthly. So the 2.75% is roughly 0.229% a month (not counting compounding effects). I personally wouldn't go into the trouble of those unless it's 3 months minimum.. and 6+ preferably.

robyn1990 wrote: ↑ Sorry, is your advice then to put into an RRSP vs a TFSA? Or a bit of both. CIBC is offering 2.75% interest till March 1 2020 deposit. That seems pretty good but somebody above said I wont be able to transfer it although I'm not sure why I would want to.

cgtlky wrote: ↑ Last year, Tangerine give me a 3% one year TFSA GIC which will mature in Feb 12, 2020 after that it will go back to my TFSA saving acoount at 1.05%. I still hoping they will offer me another 3% this coming days so i can add my 2020 contribution to it.

HSBC offer me 2.18% for 218 days GIC TFSA but still undecided.

robyn1990 wrote: ↑ I hesitated posting this question as I’m sure many of you will consider it very simple but I’m very new to money management and am pretty confused.

Last year after paying off OSAP, my brother helped me open up a TD Waterhouse investment that had a RRSP, tfsa, chequinG and savings. I put 10k in an RRSP and 5k in a chequing (was told it would waive the annual fee).

I should have done research then but I didn’t, just let my $ sit there. Well this year I have saved about 25k. Not sure what to do with it since I am wanting to buy in two years. So should I put the 25k into my RRSP? I would get $ back and I could always take it out as a first time home buyer? Should I then invest it using the couch potato method recommended here. I don’t want to lose ANY $ though since I will need it soon. Does it make sense to just have it sitting in an RRSP?

Other option is to put it into a TFSA, CIBC has a 2.75% interest right now till March 2020. I haven’t contributed anything to a TFSA yet and this would give me the option to pull out and not pay back. But I wouldn’t get as much back as I would with RRSP. I can also invest in a TFSA portfolio.

So basically my question is RRSP or TFSA? And should I just let the $ sit in both these account or invest it. Thanks

hamidd wrote: ↑ Why not invest in higher risk profiles, if you are in it for a long term? (> 10 years)