I was fortunate to inherit 50k from a family member I never met. Managing my money in stocks is chinese for me. After talking with friends they suggest going into the green investments. Another friend told me to buy bit-coins. I talked to my guy at the bank and it seems he doesn't know shit and just repeats what he learned. When I ask questions he search on his computer to answer me. Not the kind of a guy you want to handle your money. Friends recommend not dealing with my bank because of the fees they take. I need some insights and recommendation. thanks
Investment recommendation for dummies
- Thread starter Roadyvh
- Start date
Put it in a 30 or 60 day deposit, do not do anything before getting good advice.
Most managers take a commission or fees. They may be up front, or when you take your money out.
I would buy an index fund from BMO (bank of Montreal or TD). It is literally no work, money is fairly secure, and you get a dividend cheque.
Leave it long enough and it will grow.
Also...do not tell anyone about it. Money brings out the worst in people.
Most managers take a commission or fees. They may be up front, or when you take your money out.
I would buy an index fund from BMO (bank of Montreal or TD). It is literally no work, money is fairly secure, and you get a dividend cheque.
Leave it long enough and it will grow.
Also...do not tell anyone about it. Money brings out the worst in people.
Well if it's the same recommending bit coins I am not sure I would listen to them either
One thing to look at, if you are working and if you have not been contributing to our RRSP, you may be able to make one of more large contributions to your RRSP. With this you will get a nice big tax refund and you will now have 50,000+say 10,1000 to invest. Of course this all depends on how much you earn. Then you have to worry about investing 60k. NO BIT COINS
Find a person that is going to look at your overall situation, with elements like above and that will ask about our personal goals, for example do you plan to but a house, condo....and then optimize a strategy. It's not easy, lots of bozos out there.
I like gallantca and westwoody's suggestions
@Roadyvh, it sounds like you don't need the 50k for immediate living, so you can definitely invest it for the long term. If you haven't already contributed to your RRSP or TFSA, do so. Then watch this 3-minute video. It explains opening a brokerage account and putting your money in ETFs/index funds.
http://www.moneysense.ca/videos/how-to-invest-in-3-minutes/
@Roadyvh, it sounds like you don't need the 50k for immediate living, so you can definitely invest it for the long term. If you haven't already contributed to your RRSP or TFSA, do so. Then watch this 3-minute video. It explains opening a brokerage account and putting your money in ETFs/index funds.
http://www.moneysense.ca/videos/how-to-invest-in-3-minutes/
Yeah if you don't need it and your RRSP or TFSA isn't maxed out, it should be the first thing to do. These aren't going to be spectacular growth but it's going to be sheltered from tax in April. You can use those funds to invest in ETFs/Index funds. I actually converted my CAD to USD so I could get in on some US funds and I have no clue how this is going to affect my withdrawals when that day comes (probably should've consulted an advisOr before doing that...) If you're familiar with tech, Questrade or Virtual Brokers can help you cut down on managerial fees.
I wouldn't say no to BTC but you definitely need to understand the underlying tech behind it or you'll be stuck with worthless BTC at some point. I really think this currency is here to stay as more and more entrepreneurs get fed up with their local banking system.
Or you could be a sheep and buy into the Wealthsimple mentality. Don't come crying when you realize there's no wealth, nor is it that simple.
HTH
I wouldn't say no to BTC but you definitely need to understand the underlying tech behind it or you'll be stuck with worthless BTC at some point. I really think this currency is here to stay as more and more entrepreneurs get fed up with their local banking system.
Or you could be a sheep and buy into the Wealthsimple mentality. Don't come crying when you realize there's no wealth, nor is it that simple.
HTH
Do you already have a home? If no that is perfect down payment. If yes maybe evaluate if possible to cut down mortgage with such money?
Do you already have a broker looking at your savings? If so is he good? Believe me in montreal top of the line broker are interesting if you bring in half a million minimum, less then thath they are no working for you but for the firm or bank they represent.
Cheers
Do you already have a broker looking at your savings? If so is he good? Believe me in montreal top of the line broker are interesting if you bring in half a million minimum, less then thath they are no working for you but for the firm or bank they represent.
Cheers
This is the business I am in. I have been an investment advisor for over 25 years. Anyone investing should be well informed and today more than ever should be questioning what fees are being charged and why. Depending on the amount of your portfolio you should have balance and the investments should be inline with your goals. IE: If you are in your 20's and saving for a home, you should be invested in the safest possible investment vehicles. If you are putting money aside for retirement be more aggressive but ensure you have good companies in your portfolio. If you are in your 40's or beyond, you are approaching retirement and a more balanced approach is better (you don't want to lose the money you have made in the past 20 years being aggressive ) Beyond 60 best to protect capital but still remember that you can garner a dividend of 4-5% with a well established company vs having a term deposit or a GIC that will return only 1-2%
The key is to find an advisor who will listen, take YOUR goals seriously and ensure that the fees are reasonable . I charge a fee of 1.5% annually for the management of client accounts up to 1 million and over that 1% with very large accounts having a further reduction of fees. If your advisor is charging you fees like this but then putting investments into the portfolio that are also charging a fee you will NEVER reach your goals. Also be aware that a portfolio of mutual funds is likely charging a fee of an average of 2.5% + or - and this will impact your net returns.
I hope this helps someone.
Tip. Look into marijuana stocks, they have had great returns, Canopy and Aurora would be the best picks. I have heard Aurora may hit $20 before July 2018. Be prepard to sell shortly after as they might crash.
Thanks for the insights and great informations everyone. I should print the comments and show them to my banker so he can get better at giving good info lol.
I do not need that money so I can let sit and grow as I already have a House and my rrsp are fully funded. I will do my homework. Thanks again.
I do not need that money so I can let sit and grow as I already have a House and my rrsp are fully funded. I will do my homework. Thanks again.
Putting money from an heritage into an RRSP is a mistake...
Heritages are tax-free... Why would you put it in an RRSP thus making it taxable? The tax return is a cloud of dust... Someday, you'll have to turn your back from the RRSP and you'll then be taxed out, precisely at the time where you have a lower income.
Put that money in your TFSA. If it's already maxed out, just buy ETF.
Shares of financial canadian chartered corporations are safe and give you good return on your investments in mid-term to long term.
Index funds are also safe (just read what Warren Buffett says about those. When Warren speaks, I listen).
Heritages are tax-free... Why would you put it in an RRSP thus making it taxable? The tax return is a cloud of dust... Someday, you'll have to turn your back from the RRSP and you'll then be taxed out, precisely at the time where you have a lower income.
Put that money in your TFSA. If it's already maxed out, just buy ETF.
Shares of financial canadian chartered corporations are safe and give you good return on your investments in mid-term to long term.
Index funds are also safe (just read what Warren Buffett says about those. When Warren speaks, I listen).
Sam21... Why would you want to defer taxes to a period where you have less money to live?
Most people are middle-class when they are working and stay middle-class when they get to retirement... They don't pay less tax. They just defer that payment to a period of their live where they need it. That is a non-sense.
You get 50 000$ from inheritence... it's tax free... you put it your RRSP, it becomes taxable... You'll talk about the tax return from your contribution to your RRSP? Unless you invest it, you won't get anything from that but you'll have to give it back to the government later, with your lowered retirement revenue.
TFSA is great... If you choose wisely, you'll get all your marbles back anytime, tax-free. PLUS, it does not count against social benefits because it's not a revenue account.
Most people are middle-class when they are working and stay middle-class when they get to retirement... They don't pay less tax. They just defer that payment to a period of their live where they need it. That is a non-sense.
You get 50 000$ from inheritence... it's tax free... you put it your RRSP, it becomes taxable... You'll talk about the tax return from your contribution to your RRSP? Unless you invest it, you won't get anything from that but you'll have to give it back to the government later, with your lowered retirement revenue.
TFSA is great... If you choose wisely, you'll get all your marbles back anytime, tax-free. PLUS, it does not count against social benefits because it's not a revenue account.
RRSP:
It’s a tax deferral… so if you’re fortunate to have a great pension, you will be taxed to the nines when you are in retirement, especially when you are forced to take your RRSP out when you turn 71 via Registered Retirement Income Fund (RRIF). Some people end up paying an even higher tax rate than they would have during their early working years.
Tell me again that I don't know how RRSP works.
YOU should read up on it... Financial advisors are gradually turning their back on RRSP in favor of the TFSA. Common people don't invest their RRSP tax return.
With lower ROI and lower interests rates like we are experiencing since, what, 10 years, you better use the TFSA... People are making the common mistake of thinking only about the period of investment. Most people forget about planning the period of withdrawal... To be able to receive 10 000$ net, you have to withdraw 10 000$ from you TFSA. For getting the same net amount from your RRSP, you'll have to withdraw between 15 000$ and 20 000$. With a 3% or 4% growth, the investment effort is a lot harder with the RRSP.
Why am I talking about 3% or 4%? Because that's the norm... You might be able to get 7% or 8% some years. Some little amount of people are able to get even more. But common people (monsieur et madame tout-le-monde) are more "savers" than "investors". I'm managing 55 million$ and half of that is parked into bonds. Some of my clients won't have the time to spend all of their money before they die. I'm trying to convince them to be a bit more bold, more aggressive. They are scared of losing their money. They don't want to take it out because of the tax they'll have to pay. Most of them would never have used a RRSP if the TFSA had been in force for the last 30 years. The got into RRSP because that was the only solution back before 2009.
Those are facts.
It’s a tax deferral… so if you’re fortunate to have a great pension, you will be taxed to the nines when you are in retirement, especially when you are forced to take your RRSP out when you turn 71 via Registered Retirement Income Fund (RRIF). Some people end up paying an even higher tax rate than they would have during their early working years.
Tell me again that I don't know how RRSP works.
YOU should read up on it... Financial advisors are gradually turning their back on RRSP in favor of the TFSA. Common people don't invest their RRSP tax return.
With lower ROI and lower interests rates like we are experiencing since, what, 10 years, you better use the TFSA... People are making the common mistake of thinking only about the period of investment. Most people forget about planning the period of withdrawal... To be able to receive 10 000$ net, you have to withdraw 10 000$ from you TFSA. For getting the same net amount from your RRSP, you'll have to withdraw between 15 000$ and 20 000$. With a 3% or 4% growth, the investment effort is a lot harder with the RRSP.
Why am I talking about 3% or 4%? Because that's the norm... You might be able to get 7% or 8% some years. Some little amount of people are able to get even more. But common people (monsieur et madame tout-le-monde) are more "savers" than "investors". I'm managing 55 million$ and half of that is parked into bonds. Some of my clients won't have the time to spend all of their money before they die. I'm trying to convince them to be a bit more bold, more aggressive. They are scared of losing their money. They don't want to take it out because of the tax they'll have to pay. Most of them would never have used a RRSP if the TFSA had been in force for the last 30 years. The got into RRSP because that was the only solution back before 2009.
Those are facts.
Sorry nylonlegs but condos are the worst in properties investments...
They are easy to buy and really hard to sell...
By the way... Do you know how much you really make when you inhabit the property you are buying? Read this http://www.brassardgouletyargeau.com/publications/livre_chez_moi.aspx.
In properties, you make money only with the doors you are lending... Not the one you are living behind.
They are easy to buy and really hard to sell...
By the way... Do you know how much you really make when you inhabit the property you are buying? Read this http://www.brassardgouletyargeau.com/publications/livre_chez_moi.aspx.
In properties, you make money only with the doors you are lending... Not the one you are living behind.
Titileur is right about the inheritance being tax-free. The thing is I can't say for sure if the OP meant it as legally inherited or just received access to a bank account with the funds. There's a big difference from a legal standpoint and one notaries will setup to protect you in case the revenue agency comes knocking.
Everyone's needs are different and all our advice are based on limited information from the OP. Some of us are basically forced to max out RRSP first and then TFSA because of our income bracket so the advice is obviously going to be different from one person to another. However neither one of these 2 options are investments. They're TOOLS for you to use in order to invest. The RRSP allows you to defer any capital gains tax into the future, tax-free. While the TFSA allows you to not pay any taxes on your capital gains. If you ever tried your hand at investing you know how stupid both tools are. The max contribution to these accounts do not give you enough capital to make any kind of real investment. You'd have to partner up with several individuals to create any type of respectable capital.
The TFSA is still relatively new so there are some loopholes such as getting lucky on a penny stock which could generate tremendous gains tax free but the RRSP is completely out of date. Ever wondered why the contribution limit is 18% or around 26k?
As for condos, I think oversupply is a good thing but too bad they don't use a modular approach to setup the interiors..
Everyone's needs are different and all our advice are based on limited information from the OP. Some of us are basically forced to max out RRSP first and then TFSA because of our income bracket so the advice is obviously going to be different from one person to another. However neither one of these 2 options are investments. They're TOOLS for you to use in order to invest. The RRSP allows you to defer any capital gains tax into the future, tax-free. While the TFSA allows you to not pay any taxes on your capital gains. If you ever tried your hand at investing you know how stupid both tools are. The max contribution to these accounts do not give you enough capital to make any kind of real investment. You'd have to partner up with several individuals to create any type of respectable capital.
The TFSA is still relatively new so there are some loopholes such as getting lucky on a penny stock which could generate tremendous gains tax free but the RRSP is completely out of date. Ever wondered why the contribution limit is 18% or around 26k?
As for condos, I think oversupply is a good thing but too bad they don't use a modular approach to setup the interiors..
RRSP are not what I would put forward for people earning more than 60 000$ a year. And I would not recommand it to others earning less than 45 000$ a year.
If you manage to downgrade you tax bracket, that is the only good thing you'll get from RRSP. But when people are working to put bread on the table, pay the rent or the mortgage and everything else, most of them can't put away enough money aside for retirement and the incentives for doing it are not good... RRSP's right to contribute 18% opens the door to save 8100$ for retirement to someone earning 45 000$. Given that from these earnings, more than 15 000$ is going to Revenu Canada, Revenu Quebec, QPP, EI, QPIP and maybe unions BEFORE they even see their wage appear in their bank accounts, they can't afford to max out their contributions to RRSP.
And when you tell them that at retirement they'll have approximately the same purchase power (thanks to gouvernemaman) but the RRSP converted to RRIF would prevent them from receiving that earning that they paid for during their working years, they look at you like a pack of deers seeing a pickup coming right at them on a lonely road in the middle of the night.
And when you tell them the TFSA does not impact those social benefits, they go "whew, aaaaah" and smile and say thanks.
By the way... The cap space under the TFSA is growing and it becomes more and more interesting to invest in it... But even in 2015 it was interesting to see that some peeps would reach over 500 000$ with only 46 000$ in investment https://beta.theglobeandmail.com/gl...29655504/?ref=http://www.theglobeandmail.com&
Can you get over a million in RRSP? Sure... Would it be worth? Not at all... Remember, at 71 you'll be forced to take out 5,28% of that million and that percentage will be growing each year... That amount is fully taxable. If I have one million in my TFSA at that age, I would have to withdraw only around 35 000$ to get the same purchase power. When interests rates are low, as in these days, your fortune would periclit at a steeper rate with the RRIF.
That is what happens to MOST savers...
For those with higher revenues, like I said in a preceding post, they'll just defer their taxes to a period of their life where they have less money to spend while they'll be unable to lower their tax bracket.
Corporate bonds are what you should be looking for if you need a safe and, somehow, performing way of parking some investments... Samples http://etfdb.com/etfdb-category/corporate-bonds/
If you manage to downgrade you tax bracket, that is the only good thing you'll get from RRSP. But when people are working to put bread on the table, pay the rent or the mortgage and everything else, most of them can't put away enough money aside for retirement and the incentives for doing it are not good... RRSP's right to contribute 18% opens the door to save 8100$ for retirement to someone earning 45 000$. Given that from these earnings, more than 15 000$ is going to Revenu Canada, Revenu Quebec, QPP, EI, QPIP and maybe unions BEFORE they even see their wage appear in their bank accounts, they can't afford to max out their contributions to RRSP.
And when you tell them that at retirement they'll have approximately the same purchase power (thanks to gouvernemaman) but the RRSP converted to RRIF would prevent them from receiving that earning that they paid for during their working years, they look at you like a pack of deers seeing a pickup coming right at them on a lonely road in the middle of the night.
And when you tell them the TFSA does not impact those social benefits, they go "whew, aaaaah" and smile and say thanks.
By the way... The cap space under the TFSA is growing and it becomes more and more interesting to invest in it... But even in 2015 it was interesting to see that some peeps would reach over 500 000$ with only 46 000$ in investment https://beta.theglobeandmail.com/gl...29655504/?ref=http://www.theglobeandmail.com&
Can you get over a million in RRSP? Sure... Would it be worth? Not at all... Remember, at 71 you'll be forced to take out 5,28% of that million and that percentage will be growing each year... That amount is fully taxable. If I have one million in my TFSA at that age, I would have to withdraw only around 35 000$ to get the same purchase power. When interests rates are low, as in these days, your fortune would periclit at a steeper rate with the RRIF.
That is what happens to MOST savers...
For those with higher revenues, like I said in a preceding post, they'll just defer their taxes to a period of their life where they have less money to spend while they'll be unable to lower their tax bracket.
Corporate bonds are what you should be looking for if you need a safe and, somehow, performing way of parking some investments... Samples http://etfdb.com/etfdb-category/corporate-bonds/
Do not usually bump up a thread but check Aurora out today, just trying to help.
Aurora is up around 25% to-day on insanely high volume. The stock has nearly doubled during November and its market cap is nearly 2 billion dollars.
Yet its never made a penny of profit.
Is this real or another dot.com bubble ?
Tulip bulbs anyone?
Yet its never made a penny of profit.
Is this real or another dot.com bubble ?
Tulip bulbs anyone?
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