Investment Help

Jampy00

Jampy00

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Hey all,

I have about 9800 bucks in "locked in" RRSP's I had them invested in some low yielding GIC's and they have now been payed out. I want this money to really work for me, but have no idea of what to invest it into that will provide a decent yield with moderate risk. Can anyone suggest anything before I talk to the bank, sadly I don't think they have my interests in mind when deciding investments, also since I understand so little of it I woudl like any help to make better decisions and get this money working for me..

Any help would be great, feel free to reply or PM me.
 
Canadian corporate bond funds, with a target maturity less than 5 years. Safe enough and still gives yield. This will will more than a GIC though. They'll give you some diversification BS. It's a sales pitch. Don't let them talk you into thinking it's easy to get rich. If they'll let you buy ETFs, do that instead of buying one of their high-commission mutual funds. XCB is the best corporate bond ETF.
 
I'm no expert in securities but I do have working experience with retirement savings vehicles (RRSP/401k). Don't consider any of this advice, just something to consider.
If you don't have a personal broker, consider picking a mutual fund that matches your risk tolerance level. Mutual funds are designed for people with little investment knowledge. It allows you to define your risk profile and where you would generally like to see your money invested. The fund manager handles the nitty gritty details about which individual securities are included in the fund at any given time. This can be a good or bad thing as you're putting your trust in the fund manager.

There are many types of funds. Some are considered high risk, some low risk and others change from high to low risk over the life of the fund based on the assumption that you get more conservative the closer you get to retirement. Still there are others that are designed to mimic overall market performance (called "Index" funds). It's up to you which you prefer so there's no getting away from doing a bit of research. Also, when choosing a fund consider any fees that particular fund may have. Some don't have any fees while others basically have fees for buying and selling.
 
Jampy00 said:
Hey all,

I have about 9800 bucks in "locked in" RRSP's I had them invested in some low yielding GIC's and they have now been payed out. I want this money to really work for me, but have no idea of what to invest it into that will provide a decent yield with moderate risk. Can anyone suggest anything before I talk to the bank, sadly I don't think they have my interests in mind when deciding investments, also since I understand so little of it I woudl like any help to make better decisions and get this money working for me..

Any help would be great, feel free to reply or PM me.
Click to expand...

ING direct tax free savings account with a 90 day GIC. 2.50%, not a whole lot but better than any other GIC you'll get and its tax free.
 
Find a financial advisor YOU can trust. Many of them actually do have your best interest in mind, believe it or not.
If one tries to steer you into front & back loaded mutual funds, walk away, find another. Back end loaded are the most common, and in your case, more necessary.
If you have no idea what you're getting into, and want advice from a motorcycle message board..........do yourself a HUGE favour.
Listen to what you will - then use 10% of your cash flow, and follow gtam advice. With the remaining 90%, invest it right back into those GIC's that just matured, for 1 year.
See which 'lump' of money "works" harder for you.
After 1 yr is up, you'll have a bit better understanding.
Or, if you have time, and want to open an online investing account, you can double that $9800 in a month, or you can lose it in 3 days - there's no 'clear cut' answer for you.
If you want dividend paying stock (which makes the most sense), try this site (for divi info only):
http://www.canadastockchannel.com/slideshows/ten-top-dividendrank-stocks/

Good luck - don't waste it.
 
Gary said:
Find a financial advisor YOU can trust. Many of them actually do have your best interest in mind, believe it or not.
If one tries to steer you into front & back loaded mutual funds, walk away, find another. Back end loaded are the most common, and in your case, more necessary.
If you have no idea what you're getting into, and want advice from a motorcycle message board..........do yourself a HUGE favour.
Listen to what you will - then use 10% of your cash flow, and follow gtam advice. With the remaining 90%, invest it right back into those GIC's that just matured, for 1 year.
See which 'lump' of money "works" harder for you.
After 1 yr is up, you'll have a bit better understanding.
Or, if you have time, and want to open an online investing account, you can double that $9800 in a month, or you can lose it in 3 days - there's no 'clear cut' answer for you.
If you want dividend paying stock (which makes the most sense), try this site (for divi info only):
http://www.canadastockchannel.com/slideshows/ten-top-dividendrank-stocks/

Good luck - don't waste it.
Click to expand...

Thanks, at this stage just looking for a starting point, so I thought I woudl post it on a forum I use, so far the advise all seems helpful. I think I will look for someone to help me with this money to ensure it grows.
 
Jampy00 said:
Hey all,

I have about 9800 bucks in "locked in" RRSP's I had them invested in some low yielding GIC's and they have now been payed out. I want this money to really work for me, but have no idea of what to invest it into that will provide a decent yield with moderate risk. Can anyone suggest anything before I talk to the bank, sadly I don't think they have my interests in mind when deciding investments, also since I understand so little of it I woudl like any help to make better decisions and get this money working for me..

Any help would be great, feel free to reply or PM me.
Click to expand...

Invest in BBRY stocks.

:)
 
Paul1000RR said:
ING direct tax free savings account with a 90 day GIC. 2.50%, not a whole lot but better than any other GIC you'll get and its tax free.
Click to expand...
You seem to have missed the locked in RSP portion of his post.

Find an advisor you like and talk to them. Talk about your goals, determine your risk tolerance and find a portfolio of investments that fits your needs.
 
jaymurr said:
You seem to have missed the locked in RSP portion of his post.

Find an advisor you like and talk to them. Talk about your goals, determine your risk tolerance and find a portfolio of investments that fits your needs.
Click to expand...

i think u missed the part where he said its paid out now :)
 
I have my money for rrsp and pensions with my company I work for. We use mutual funds and after all the fees I pay with my funds I still get an average return of 5-6% every month. All depends on if you go aggressive or balanced.
 
^ you are not getting 5 -6%/month. I guarantee it (unless you just started in February, last month).
 
Advice is good, but its just that, its not gospel.
my 2 cents is most Banks cant offer a full range of product, TD which I use is limited to mutuals at the branch service level. Bankers are not your friend, they arent your enemy either but self serving and banks interest ahead of your is the deal.

Some investment advisors, and I was out for beers with one last night, will guide you toward a product that pays THEM the most commision/bouns however its configured. You'll make money to, but they do also. Its a business.

Find one you like and has references you can check. I like the guy I have now, through Edward Jones. I dont expect him to be a financial genius or he be long retired, but he gets paid to know more than me.
 
You might want to check out TD's e-series mutual funds. Low commissions. The only downside is setting them up, which can be a hassle.

Also check out canadiancouchpotato. They have some model portfolios that you can setup yourself.

If I were you, I would do some reading (if you haven't already) before talking to your bank. Investing for Canadians for Dummies and Personal Finance for Canadians for Dummies is a good start, as is Rob Carrick's Guide to What's Good, Bad, and Downright Awful in Canadian Investments Today.

Good luck!
 
I'll put it simply. Is any good resource online that someone knows of that can explain me all this fancy and useful giberish you guys are talking about ?
I want to educate myself but don't know where to start. Thanks.

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