Heres the game You have $20,000 what do you do? not talking about investment property, just different banks and accounts (GIC's, savings accounts, RRSP) It cannot be locked in for over 5 years
Five years? Depends on risk tolerance. I'm assuming not much... I'd probably open a TFSA with my bank, and throw $5k into a decent ETF (exchange traded mutual fund). The remainder, I'd probably put into a good bond fund or GIC's, and over the next four years, add those investments to my TFSA so that by the fourth year, all $20K would be tax sheltered. If your risk tolerance is higher, go riskier. Markets suck right now, and probably will all year, but over the course of the next five years, there will probably be some great gains to be had...
Nice work dude!! Especially while your interest rate is down. In his case though, unless he's selling in the next five years, it's a no go. Sounds like he needs the $20K + in five years.
I thought about this...but here is my logic I have two mortgages both at 1.9% Why would I want to put more money down when it is essentially free to borrow money right now(ie 1.9% mortgage rates) To me it makes more sense to want to pay down the mortgage when the rate is high. Paying it down faster when its 1.9% is like wasting this time of really great interest rates. When i say its free to borrow money please do not take it literally. It's just really nice to see my mortgage payments are more then half going to principle. I am no expert and I see your point on this. I could be totally wrong on my logic, but do you see where I am coming from? I also like have some liquid sitting in an account. would rather not tie it up in my houses. There is enough equity in both that I am not worried. I was more looking to see what banks had the best saving account interest rates.
Oh I see your logic for sure, but putting money against the principal in my situation is ideal because the principal would be considered high by most. Giving my situation and the economy the way it is, with some uncertainty in annual income, it makes sense. Also, I figure if the rates jump in the next little while, I would rather be paying them on a lesser principal. Different strokes.
It's a decent product especially right now. The g/f is 100% risk averse, so I have her in market growth gics. In 5 years she'll be in good shape.
hmmm I am not aware of these You got any info...i know...google what bank or financial institute do you recommend for these?
I checked on RBC's website, and they've got a few options. Check with whoever you do your banking with...
what type of return could you guess over 5 years on $15,000? I know you have no crystal ball, but best guess
I'd put it aganist my high interest debt and enjoy "making" 8-11% off the money. after that I have no idea.
Why not put the $20K in your RRSP in an aggressive profile mutual fund. Take your tax refund (probably around $6-$7K) in April and put $5K into your TFSA then in an index-linked GIC. Take the rest and use it to pay down any debt you have.
Ignoring Gooch's 5 year plan, would you go 3 or 5 on one of these right now? I just borrowed some money to top up my RRSP's before the end of tax season, but it's currently sitting in a money market fund (my financial advisor got shitcanned the day I went in to deal with things). I had been thinking of putting it in bonds or something along those lines, but this looks interesting.
The rest of my investments are diversified up the ying yang. I have ~10k going in that I'm looking to put into something that I can expect some form of return on compared to the rest of my diversified portfolio that has been gasping for air.
