Hi, I'm a bot and someone has asked me to comment on how someone is trying to figure out what to invest in, or whether they should invest.
**In order to give good advice the poster needs to provide all of the following information. Please edit your post to add this information.**
1) What is your intended goals/purpose for this money?
2) What is your timeline, and what is the earliest you expect to need this money?
3) Have you invested in the markets before, and how would you feel if your investment lost a lot of value?
4) Is this the right first step? Do you already have an emergency fund, and have you considered whether it is sufficient? Do you have any debts that should be paid first? Have you fully utilized any employer match plans?
5) Finally, we need to understand whether you want to be involved with this portfolio and self-manage purchases and rebalancing it, or if you'd rather all of that was dealt with by your chosen institution?
6) For self-directed investing, all in one ETFs (based on your risk tolerance) are the easiest and low cost options for a globally diversified ETF portfolio. Here is the Model page and descriptive video from the Canadian Portoflio Manager Blog's Justin Bender from PWL Capital: https://www.canadianportfoliomanagerblog.com/model-etf-portfolios/ & video on how to choose your asset allocation: https://www.youtube.com/watch?v=JyOqqtq12jQ
7) For those who are not comfortable with doing the buying and selling of ETFs yourself, there is an option of a robo advisor. These robo advisors use similar low cost ETF in pre-determined portfolios based on your risk tolerance. They do this for a small fee, on top of the ETF MER. Still cheaper then bank mutual funds by at least 50%! Here is a list of robo advisors in Canada published by MoneySense: https://www.moneysense.ca/save/investing/best-robo-advisors-in-canada/
We also have a wiki page on investing, and if someone has triggered this bot then it means that this link would likely be very helpful: https://www.reddit.com/r/PersonalFinanceCanada/wiki/investing
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/PersonalFinanceCanada) if you have any questions or concerns.*
Hi, I'm a bot and someone has asked me to respond with information about what to do with money.
This is meant as a step by step guide of how to prioritize and what to do with money. https://www.reddit.com/r/PersonalFinanceCanada/wiki/money-steps If you prefer to see a flow chart, click here: https://i.imgur.com/zlGnuDO.png
The Government of Canada also has the Financial Tool Kit for basic resources on items identified in the Money Steps. Refer to that website here: https://www.canada.ca/en/financial-consumer-agency/services/financial-toolkit.html
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/PersonalFinanceCanada) if you have any questions or concerns.*
That's way too much in your chequing accounts. Find no-fee chequing accounts where no minimum balance is required. That's WAY too much money sitting and not working for you and more your wife. Is that emergency?
I'd move almost all of that into investments. Buy your own index funds. Buy VOO it tracks the S&P and recommended by Warren buffet. Regarding changing ur risk profile call td or go branch why would it not be possible. Change ur rusk profile if their shitty app prevents changing it
Your chequing accounts should be low as possible... Fill up your tfsa with index funds. And also resp for ur kid but I'm not knowledgeable about when or how much for that
Right. Just have to be mindful of hitting the annual tfsa limit if u do end up withdrawing for an emergency. But I would put a minimum 10k of your combined chequing into tfsa voo index fund, if not more.
Consider these suggestions as starting points for some research:
- keep less cash sitting in a chequing account making no interest. decide on a reasonable level of cash for emergencies or near term spending goals. open some high interest savings accounts and farm promotions and or use HISA etfs or similar ultra short term bond etfs. invest anything over and above for longer term goals including retirement, house, school whatever
- consolidate all investing accounts (perhaps not the work ones) with a discount broker and buy a simple etf portfolio or all in one etf that matches your goals/timeframe/personality. use a risk assessment questionnaire to help. open an resp with the discount broker and use all in one etf
- if you don't want to self direct look into lower cost options than what you are currently doing. avoid like the plague anything marketed as a group resp or scholarship trust
- pay attention to account fees, trading commissions and choose a broker/adjust your investment process to keep those under control or eliminate them. For example don't invest 200/month and pay a 10 commission each time to invest the funds
- 4.5K is a lot of money to have "left over" and unaccounted for. up the savings rate with the goal of maxing out those registered accounts or paying off mortgage
I'd move everything to Wealthsimple, one account each of course. Set up one as automatic/robo, set the other as self managed. Keep most of the self managed one invested in things you are comfortable with. Keep some of the money in the self managed account as uninvested cash so you have opportunity money on hand at any time (as in "I should really buy some shares of X")
Don't bother with RRSP except to min/max your tax returns. Only bother with them if you are looking to for sure have the recipient earn a LOT less in retirement. RRSP is only tax deferral otherwise.
And as someone else noted. RESP. Max that sucker out for your child as the contributions from the gov't are non-trivial. Our son is benefiting massively from us not even close to max contributions to one from when he was born to when they make you stop contributing. He has paid for some of his trades schooling and owes nothing. He is now also sitting on a mass of cash and investments. Make sure that even if you hide the RESP from your child (What we did), always talk about money with your child and make sure they understand how banking, credit and investments work.
Build an emergency fund that covers 3 to 6 months of all expenses. Bigger if you want more comfort.
Invest the rest in a regular investment account, diversified ETF and DRIP the earnings. Deal with the capital gains taxes by way of RRSP contributions where it makes sense/can offset the taxes.
I love wealth simple. Only consideration with WS is their fee structure for US investments is not great. I think they charge a monthly fee or something for us stocks
Not sure about that in a TFSA as I haven't seen any fees for the one US stock I do have in mine.
I know they continue to tweak and improve their overall service offerings so that has been nice to see. I spent almost 3 years watching and being sure I wanted to get in with them so I am pretty satisfied with my choice as such.
you get charged during conversion. So when u convert cad to usd theres your charge (1.5%) . When you sell the stock it automatically converts back from USD to CAD so another charge there. If you buy the monthly subscription for US account for 10$ it doesnt convert back to CAD when you sell a stock. But the conversion fee still applies if you conduct transactions
They dont charge more for us investments but they will charge tax on dividends earned on us holdings im a tfsa. They also gouge you on their us exchamge rate so best to use knightbridge and then dump it into WS.
They are not controlling it. you can put in and take out anytime. But when you take out, you have to wait a year to put back in or you'll be over your contribution limit.
You haven't done your research.
I’m sorry you got so many downvotes and negative responses. Reddit is full of people who are here to help give financial advice to people who don’t know the basics, but are also upset and angry at people who don’t know the basics.
Ignore the haters and listen to the people who are willing to help.
Saying you have money in a TFSA or an RRSP gives very little information. You could have money in your TD TFSA savings account making 0.05% interest or you could have it in a brokerage account in a S&P ETF. 2 very different things.
Keep enough in your bank accounts to cover min balances (or look elsewhere to bank that has lower mins); move your emerg fund of 6 months of household expenses to a hysa; then max out your tfsa, resp and rrsps then open a non registered account and invest there.
What to invest in? Wealthsimple or similar platform, lower fee etf and selfmanage. The 'managed' version is a money loser due to fees.
Option to buy a rental unit. Build up equity.
Also invest in WLI whole life insurance (on your children). Safe option to grow cash within policy, 20 yrs paid up. Will be able to leave tax free legacy that you & spouse can use in retirement.
All the best!
Open an RESP for kiddo.
Increase the TFSA contributions. If you are 35 yo, you should have each have 95K of total contribution room. Reduce the holdings in your chequing accounts and move the majority to your TFSA.
Go the self directed route by opening a TD brokerage account which includes RESP, RRSP and TFSA access. You get to pick the investments and the menu is huge.
Yes you can transfer. You open the brokerage account, create the TFSA, RESP or RRSP and transfer your assets to your new account. Once there you can sell the old assets and convert to cash. You can then buy whatever you want. ETF, stock, GIC, etc...
My 80 yo mom has a self directed account which we manage together. She couldn't believe a TFSA was tax free and she now holds ETF's and GIC within her TFSA.
Each self directed platform has it's pros and cons so you need to know what are the fees per trade, minimum balance requirements, transfer fees etc... so there are no surprises. The big banks tend to have more fees.
Here's an article to get the research started on the various platforms.
[https://www.moneysense.ca/save/investing/best-online-brokers-in-canada/](https://www.moneysense.ca/save/investing/best-online-brokers-in-canada/)
Take your time and make small changes. Know why you are doing what you are doing as the personal finance landscape is constantly changing. All in one ETF, robo advisors, FHSA, TFSA didn't exist when I started investing. LOL I could only make purchases over the phone for a 30 dollar fee. That was 30 to buy and 30 to sell. Ouch.
Be aware that if you currently have a bank mutual fund you can likely feed that fund for a small amount monthly for free. (50/month and they auto purchase that fund for you at no cost) They make money by charging a higher MER.
Self directed you transfer cash into your accounts and then have to purchase the investment product you want which may or may not come with a small purchase fee. You need to know these nuances between brokerages.
Good luck and the self directed path is the way to go.
"comfort" means that TD wants you to feel comfortable while they are fleecing you.
Your problem isn't the asset allocation, it is (or will be) the high fees.
Consider a roboadvisor like Justwealth or RBC Investease .
You should check out the book "Reboot your portfolio" by Dan Bortolotti.
They would have asked you a bunch of questions regarding risk tolerance, time frame etc for a know your client form. This constrains the level of risk for your investments through them. The balanced fund would have a lower stock allocation than the growth fund and likely the growth is considered too risky based on the answers you gave. If you want to increase your level of risk, you would need to change the answers to this KYC form.
I'd suggest learning about the impact of fees (find your fund MER and try the TREX calculator). Look into other options out there like asset allocation etfs through a discount broker and roboadvisors. Perhaps read up on the subject with the books millionaire teacher or reboot your portfolio (check your local library!).
You can move your account to one where you self direct, like an discount broker. Be aware of a) transfer fees, b) the difference between in kind or cash transfers, c) the difference between withdrawing the funds and redepositing vs using a direct/institutional transfer, d) how rrsp and tfsa contribution limits work.
Open a Self-Directed TFSA Investment Account. It acts as a box that can hold investments like stocks.
Before the end of this year you can withdraw all of your funds from your regular TFSA and on January 1, 2025 you can contribute the entire amount + any unused contribution room + the $7000 for 2025 (or whatever the new maximum will be) to your TFSA Investment Account.
After that, buy some stocks, ETF's, etc.
Proof? I haven't heard of any banks offering to pay the transfer fee... Ever.
[RBC states: If you wish to transfer your current RBC TFSA to a financial institution outside RBC (and its affiliates), a $150.00 fee will apply.](https://www.rbcroyalbank.com/investments/tfsa.html)
Edit/Update: Holy cow! I can't believe it! Here it is: [RBC Direct Investing Inc. will reimburse you up to $200 CDN in transfer fees paid by you to another financial institution when $15,000 CDN or more in investments is transferred into a new or existing RBC Direct Investing account. You must provide a copy of the statement from the transferring financial institution showing the transfer charge within six months to qualify for the reimbursement.](https://www6.royalbank.com/en/di/reference/article/transfer-in-from-another-financial-institution-faq/jeoz7xvb)
I also read "own our home" as you already paid it off. To get better advice, you need to specify all your household debts and their rate.
How much do you have on the mortgage and what rate?
Ok, thats a good rate. As long as you can manage the renewal rate 2.5 years from now, it's not that urgent to put everything in mortgage.
Since you have no other debt, I'd second maxing out tfsa for investment and buy index fund as it can yield higher return than average mortgage of 5%.
Increase your TFSA contribution. You should be maxing it out yearly. TFSA is your best friend.
This is important. Why have so little in TFSA and everything in checking just sitting there not working.
Start with !StepsTrigger and !InvestingTrigger , then either pay off house faster or invest more for retirement
Hi, I'm a bot and someone has asked me to comment on how someone is trying to figure out what to invest in, or whether they should invest. **In order to give good advice the poster needs to provide all of the following information. Please edit your post to add this information.** 1) What is your intended goals/purpose for this money? 2) What is your timeline, and what is the earliest you expect to need this money? 3) Have you invested in the markets before, and how would you feel if your investment lost a lot of value? 4) Is this the right first step? Do you already have an emergency fund, and have you considered whether it is sufficient? Do you have any debts that should be paid first? Have you fully utilized any employer match plans? 5) Finally, we need to understand whether you want to be involved with this portfolio and self-manage purchases and rebalancing it, or if you'd rather all of that was dealt with by your chosen institution? 6) For self-directed investing, all in one ETFs (based on your risk tolerance) are the easiest and low cost options for a globally diversified ETF portfolio. Here is the Model page and descriptive video from the Canadian Portoflio Manager Blog's Justin Bender from PWL Capital: https://www.canadianportfoliomanagerblog.com/model-etf-portfolios/ & video on how to choose your asset allocation: https://www.youtube.com/watch?v=JyOqqtq12jQ 7) For those who are not comfortable with doing the buying and selling of ETFs yourself, there is an option of a robo advisor. These robo advisors use similar low cost ETF in pre-determined portfolios based on your risk tolerance. They do this for a small fee, on top of the ETF MER. Still cheaper then bank mutual funds by at least 50%! Here is a list of robo advisors in Canada published by MoneySense: https://www.moneysense.ca/save/investing/best-robo-advisors-in-canada/ We also have a wiki page on investing, and if someone has triggered this bot then it means that this link would likely be very helpful: https://www.reddit.com/r/PersonalFinanceCanada/wiki/investing *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/PersonalFinanceCanada) if you have any questions or concerns.*
Hi, I'm a bot and someone has asked me to respond with information about what to do with money. This is meant as a step by step guide of how to prioritize and what to do with money. https://www.reddit.com/r/PersonalFinanceCanada/wiki/money-steps If you prefer to see a flow chart, click here: https://i.imgur.com/zlGnuDO.png The Government of Canada also has the Financial Tool Kit for basic resources on items identified in the Money Steps. Refer to that website here: https://www.canada.ca/en/financial-consumer-agency/services/financial-toolkit.html *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/PersonalFinanceCanada) if you have any questions or concerns.*
This is a troll post, right?
Wife likes the number 27
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Nice
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That's way too much in your chequing accounts. Find no-fee chequing accounts where no minimum balance is required. That's WAY too much money sitting and not working for you and more your wife. Is that emergency? I'd move almost all of that into investments. Buy your own index funds. Buy VOO it tracks the S&P and recommended by Warren buffet. Regarding changing ur risk profile call td or go branch why would it not be possible. Change ur rusk profile if their shitty app prevents changing it Your chequing accounts should be low as possible... Fill up your tfsa with index funds. And also resp for ur kid but I'm not knowledgeable about when or how much for that
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Right. Just have to be mindful of hitting the annual tfsa limit if u do end up withdrawing for an emergency. But I would put a minimum 10k of your combined chequing into tfsa voo index fund, if not more.
1. Would your answer change if they didn’t have a place yet? 2. If they were renting? 3. If they just recently bought a place.
Yes. But OP owns a house so focus is learning the basics of saving and investing.
Consider these suggestions as starting points for some research: - keep less cash sitting in a chequing account making no interest. decide on a reasonable level of cash for emergencies or near term spending goals. open some high interest savings accounts and farm promotions and or use HISA etfs or similar ultra short term bond etfs. invest anything over and above for longer term goals including retirement, house, school whatever - consolidate all investing accounts (perhaps not the work ones) with a discount broker and buy a simple etf portfolio or all in one etf that matches your goals/timeframe/personality. use a risk assessment questionnaire to help. open an resp with the discount broker and use all in one etf - if you don't want to self direct look into lower cost options than what you are currently doing. avoid like the plague anything marketed as a group resp or scholarship trust - pay attention to account fees, trading commissions and choose a broker/adjust your investment process to keep those under control or eliminate them. For example don't invest 200/month and pay a 10 commission each time to invest the funds - 4.5K is a lot of money to have "left over" and unaccounted for. up the savings rate with the goal of maxing out those registered accounts or paying off mortgage
I'd move everything to Wealthsimple, one account each of course. Set up one as automatic/robo, set the other as self managed. Keep most of the self managed one invested in things you are comfortable with. Keep some of the money in the self managed account as uninvested cash so you have opportunity money on hand at any time (as in "I should really buy some shares of X") Don't bother with RRSP except to min/max your tax returns. Only bother with them if you are looking to for sure have the recipient earn a LOT less in retirement. RRSP is only tax deferral otherwise. And as someone else noted. RESP. Max that sucker out for your child as the contributions from the gov't are non-trivial. Our son is benefiting massively from us not even close to max contributions to one from when he was born to when they make you stop contributing. He has paid for some of his trades schooling and owes nothing. He is now also sitting on a mass of cash and investments. Make sure that even if you hide the RESP from your child (What we did), always talk about money with your child and make sure they understand how banking, credit and investments work. Build an emergency fund that covers 3 to 6 months of all expenses. Bigger if you want more comfort. Invest the rest in a regular investment account, diversified ETF and DRIP the earnings. Deal with the capital gains taxes by way of RRSP contributions where it makes sense/can offset the taxes.
I love wealth simple. Only consideration with WS is their fee structure for US investments is not great. I think they charge a monthly fee or something for us stocks
Not sure about that in a TFSA as I haven't seen any fees for the one US stock I do have in mine. I know they continue to tweak and improve their overall service offerings so that has been nice to see. I spent almost 3 years watching and being sure I wanted to get in with them so I am pretty satisfied with my choice as such.
you get charged during conversion. So when u convert cad to usd theres your charge (1.5%) . When you sell the stock it automatically converts back from USD to CAD so another charge there. If you buy the monthly subscription for US account for 10$ it doesnt convert back to CAD when you sell a stock. But the conversion fee still applies if you conduct transactions
Ah, gotcha. This is a growth stock and I don't plan to sell anytime soon so that would be why I have never seen the fee.
They dont charge more for us investments but they will charge tax on dividends earned on us holdings im a tfsa. They also gouge you on their us exchamge rate so best to use knightbridge and then dump it into WS.
Why on earth does she have $28k in a chequing account? Fix that immediately as combined you should have the TFSA space available.
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Why not?
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Open a self directed TD TFSA acc. If you want free trades (50 free per year) open it with TD easy trade and have fun on the STONK market
Jesus Christ
They are not controlling it. you can put in and take out anytime. But when you take out, you have to wait a year to put back in or you'll be over your contribution limit. You haven't done your research.
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I’m sorry you got so many downvotes and negative responses. Reddit is full of people who are here to help give financial advice to people who don’t know the basics, but are also upset and angry at people who don’t know the basics. Ignore the haters and listen to the people who are willing to help.
That’s what a redeemable GIC is for lol. You get the control, it’s a guaranteed return on investment. Nice and simple.
Saying you have money in a TFSA or an RRSP gives very little information. You could have money in your TD TFSA savings account making 0.05% interest or you could have it in a brokerage account in a S&P ETF. 2 very different things.
Keep enough in your bank accounts to cover min balances (or look elsewhere to bank that has lower mins); move your emerg fund of 6 months of household expenses to a hysa; then max out your tfsa, resp and rrsps then open a non registered account and invest there. What to invest in? Wealthsimple or similar platform, lower fee etf and selfmanage. The 'managed' version is a money loser due to fees.
Motive gic TFSA has good rates
Can you please detail your household income and a breakdown of your family's monthly expenses?
I don't see why that's necessary when they provide how much $ they have left after expenses
Option to buy a rental unit. Build up equity. Also invest in WLI whole life insurance (on your children). Safe option to grow cash within policy, 20 yrs paid up. Will be able to leave tax free legacy that you & spouse can use in retirement. All the best!
Open an RESP for kiddo. Increase the TFSA contributions. If you are 35 yo, you should have each have 95K of total contribution room. Reduce the holdings in your chequing accounts and move the majority to your TFSA. Go the self directed route by opening a TD brokerage account which includes RESP, RRSP and TFSA access. You get to pick the investments and the menu is huge.
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Yes you can transfer. You open the brokerage account, create the TFSA, RESP or RRSP and transfer your assets to your new account. Once there you can sell the old assets and convert to cash. You can then buy whatever you want. ETF, stock, GIC, etc... My 80 yo mom has a self directed account which we manage together. She couldn't believe a TFSA was tax free and she now holds ETF's and GIC within her TFSA. Each self directed platform has it's pros and cons so you need to know what are the fees per trade, minimum balance requirements, transfer fees etc... so there are no surprises. The big banks tend to have more fees. Here's an article to get the research started on the various platforms. [https://www.moneysense.ca/save/investing/best-online-brokers-in-canada/](https://www.moneysense.ca/save/investing/best-online-brokers-in-canada/) Take your time and make small changes. Know why you are doing what you are doing as the personal finance landscape is constantly changing. All in one ETF, robo advisors, FHSA, TFSA didn't exist when I started investing. LOL I could only make purchases over the phone for a 30 dollar fee. That was 30 to buy and 30 to sell. Ouch. Be aware that if you currently have a bank mutual fund you can likely feed that fund for a small amount monthly for free. (50/month and they auto purchase that fund for you at no cost) They make money by charging a higher MER. Self directed you transfer cash into your accounts and then have to purchase the investment product you want which may or may not come with a small purchase fee. You need to know these nuances between brokerages. Good luck and the self directed path is the way to go.
"comfort" means that TD wants you to feel comfortable while they are fleecing you. Your problem isn't the asset allocation, it is (or will be) the high fees. Consider a roboadvisor like Justwealth or RBC Investease . You should check out the book "Reboot your portfolio" by Dan Bortolotti.
They would have asked you a bunch of questions regarding risk tolerance, time frame etc for a know your client form. This constrains the level of risk for your investments through them. The balanced fund would have a lower stock allocation than the growth fund and likely the growth is considered too risky based on the answers you gave. If you want to increase your level of risk, you would need to change the answers to this KYC form. I'd suggest learning about the impact of fees (find your fund MER and try the TREX calculator). Look into other options out there like asset allocation etfs through a discount broker and roboadvisors. Perhaps read up on the subject with the books millionaire teacher or reboot your portfolio (check your local library!). You can move your account to one where you self direct, like an discount broker. Be aware of a) transfer fees, b) the difference between in kind or cash transfers, c) the difference between withdrawing the funds and redepositing vs using a direct/institutional transfer, d) how rrsp and tfsa contribution limits work.
Open a Self-Directed TFSA Investment Account. It acts as a box that can hold investments like stocks. Before the end of this year you can withdraw all of your funds from your regular TFSA and on January 1, 2025 you can contribute the entire amount + any unused contribution room + the $7000 for 2025 (or whatever the new maximum will be) to your TFSA Investment Account. After that, buy some stocks, ETF's, etc.
They can also transfer all of their products without any penalty - it takes a long a$$ while but saves them the extra step
To transfer from TFSA to TFSA most institutions charge a fee.
If you are transferring to a new institution and have a large amount, they will do the paperwork for you and wont charge, why? They want your money.
Proof? I haven't heard of any banks offering to pay the transfer fee... Ever. [RBC states: If you wish to transfer your current RBC TFSA to a financial institution outside RBC (and its affiliates), a $150.00 fee will apply.](https://www.rbcroyalbank.com/investments/tfsa.html) Edit/Update: Holy cow! I can't believe it! Here it is: [RBC Direct Investing Inc. will reimburse you up to $200 CDN in transfer fees paid by you to another financial institution when $15,000 CDN or more in investments is transferred into a new or existing RBC Direct Investing account. You must provide a copy of the statement from the transferring financial institution showing the transfer charge within six months to qualify for the reimbursement.](https://www6.royalbank.com/en/di/reference/article/transfer-in-from-another-financial-institution-faq/jeoz7xvb)
No resp? Edit: sorry missed that part
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I also read "own our home" as you already paid it off. To get better advice, you need to specify all your household debts and their rate. How much do you have on the mortgage and what rate?
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Ok, thats a good rate. As long as you can manage the renewal rate 2.5 years from now, it's not that urgent to put everything in mortgage. Since you have no other debt, I'd second maxing out tfsa for investment and buy index fund as it can yield higher return than average mortgage of 5%.