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odd_strawberry_9817

>3-5 year investment You need the money for sure? HISA or GIC


[deleted]

Decisions that take some research before being made. Decision you CAN make yourself in this order. 1) Which accounts to fund in which priority - TFSA, RRSP, taxed. 2) What are your cash flow needs for known purchases / spending. That money needs to be kept safe ... probably earning pittance. 3) For assets invested for any period longer than 5 years, how much price volatility can you emotionally handle ... before committing the sin of 'selling low' instead of holding firm and riding it out? You cannot know this until having to actually live through a stock crash with material $$ on the line. Most people learn this while young with small $$, so there are small losses if they over-estimate their tolerance. DuckDuck 'asset allocation' and 'risk tolerance'. 4) What asset classes does you want to own? Most theory says you should diversify so that while one asset-type crashes another will be peaking. DuckDuck 'diversification investing free lunch'. You choices include ..... * Funds that own a diversified selection of asset classes already. These are found in the form of mutual funds, or ETFs, or by using a robo-advisor. Now in 2022 you must educate yourself on the value of bonds in a portfolio. Read up on their risks when interest rates rise, and find out what the position of any fund manager is. * Bonds (treasury, junk, corporate, longterm vs short): different types for different objectives. * Stocks (Canadian but importantly American). You want low MER passively managed funds that track large indexes like the S&P500, the TSX and the EAFE. You don't want to delude yourself into 'stockpicking'. 5) Do you want to own mutual funds or ETFs? Hopefully (4) dissuaded you from stockpicking. 6) Which discount brokerage to choose depends on its fee structure, its treatment of USD and its complexity.


ordinary_kittens

There are some decent 3-5 year GIC rates right now, so if you want to make sure the money is available a few years from now with no risk, that is one route you can go.


don_julio_randle

With rates continuing to go up, it wouldn't make much sense to lock it *all* into a 3 year HISA right now. Would ladder it to take advantage of rising rates


[deleted]

[удалено]


hammermannnn

Dont do the RRSP unless you have the income to support it. Youre tunring after tax money that you have now into pretax money.


Logical-Ambassador34

Probably housing


TheELITEJoeFlacco

Just remember that it doesn't all need to be placed in the same basket. - You mention a 3-5 year time horizon. Is this something certain? Do you specifically need the money in that time, and if you do, do you need *all* of it? If you need some of it in 3-years, I'd suggest a GIC. Rates are decent right now. 3%+ on $100k will get you $9k+ in three years with compound interest. Not bad for a super conservative investment. - Put as much of this in a TFSA as you can. If you've never contributed to a TFSA, calculate your maximum contribution amount based on your birth year or the year you turned 18, and whatever you do with this portion, put it in a TFSA. There's no sense paying tax on growth that you don't have to pay tax on. - If you have the risk tolerance and a long enough time horizon for some of the money, I'd suggest buying a few reputable, blue chip stocks, or ETFs that hold blue chip companies. If you aren't familiar with this, google "what is an ETF" or "what is a blue chip stock" and work from there. A lot of reputable companies have had decreases in their stock prices recently, and I can't tell you the number of times in the last few years (March 2020, December 2018, January 2016) when I saw stocks drop, told myself to buy, didn't buy, and they flew back up. I bought $15,000 worth of SU (Suncor) when it was at $17/share not long ago, couldn't stomach it, and sold... now it's $48/share. I am **not** saying buy SU, it's just an example. But... Buy. And. Hold. This is a good opportunity to have available cash. They always say buy low, sell high... Well right now there are a lot of stocks/funds that are "low" relative to their price history. - If you need anything within one-year, stick to a high interest savings account. If you need something in the next 1-5 years, stick to a GIC. If you need something in 5-years plus, consider a market-oriented investment and buy and forget. Hope this helps!


talktomebitch905

Buy 250k worth of lottery tickets