What to do with $30,000 in my chequing account?
Purchased some funds earlier this year and now -6%. So I prefer some safer options...
New immigrant... don't have much knowledge on Canadian financial stuff...
Jul 21st, 2015 12:33 pm
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Jul 21st, 2015 2:27 pm
Agreed. In fact, chances are you should buy more of the ones that dropped the most. For example, Bank Preferred shares are on sale right now. AND also, if you're going to invest, invest in ETFs and given your experience in it, pay someone to manage it for you. You could follow the Canadian Couch Potato series if you want to DIY.
Jul 21st, 2015 2:46 pm
How can you be so sure? A more prudent approach is to hold US, Canadian and International equities. BTW, generally speaking, when interest rates drop, stocks prices go up and not down (since companies can borrow for cheap).
Jul 21st, 2015 2:48 pm
Lend it to me, I'll pay you 3% interest per year
Jul 21st, 2015 3:07 pm
I agree in general but if a new immigrant, how can s/he have RRSP contribution room since it is based on previous year's earned income?nickscott wrote: ↑If you have a fairly secure job (if there is such a thing) I suggest keep 3 months expenses in a TFSA earning low-interest, but at least some interest. If you can leverage your balance in order to pay zero fees, then do it. Fees will cost you more than you could make back in interest.
What ever extra you aren't saving for a specific purpose you should invest in a low-cost index fund RRSP. You can build these yourself using TD E-Series for example.
Next, look at why you amassed that amount of cash and plan to use ongoing cash flow to regularly contribute to that RRSP. When you contribute small, regular amounts in to an Index fund, you dollar-cost average your purchase price and over the long term don't need to worry about those -6% times. Markets are volatile but don't be afraid, as you can mitigate your risk without being a pro.
Jul 21st, 2015 3:36 pm
Yeah that's what I did. An easy way to get started is to just buy some ETFs or a few blue-chip stocks out of your TFSA. There's a bunch of them so pick your taste. Canadian Couch Potato website gives a good rundown. Regarding the OP's comment about knowing little, doing the above is very simple. Don't need to be a genius.akaManny wrote: ↑Are you the kind of person that wants to learn about financial issues or wants someone else to take care of them? You really can't go wrong in the short term by putting the maximum into a TFSA. Your maximum depends on when you came to Canada. Although there are many investment options in a TFSA, start with a savings account until you are more knowledgable or have a financial advisor. There is a thread here on TFSA Savings Accounts.
Says the same for many companies- so another option again is to buy their fixed income and hold until maturity.
Jul 21st, 2015 4:01 pm
Jul 21st, 2015 5:04 pm
Nothing is ever sure... but the US economy is firing on all cylinders and the CAD$ dropping further will raise inflation in Canada. The Fed has all but promised to raise interest in the US in the fall further exacerbating the divide between Canada and the US and putting more downward pressure on the Loonie. Canadian RE is highly overvalued, especially in the largest cities ( 80% of Canadians live in Urban areas ) raising consumer debt and reducing personal liquidity across the nation. Oil has tanked and there is no raise in sight for it as Shale Fracking has meant our biggest buyer doesn't need our expensive to produce oil. The Chinese economy is unstable and trying to avoid a bubble collapse ( thought it's still up YTD, just not making the pace it was before ).
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