TFSA isn't an investment. It is a type of account. You should be using it but based on your post I don't believe you understand what it is.

Thailand (originally from UK)
6 figures a year
Low-medium (I already have money away in bonds; esavers; FTSE companies)
3-5 years
Zero debt

I've just turned 23 and have around $100,000 to invest - I already have most of my money in what I listed above; was posting here for any advice on diversifying my savings.

Any advice is greatly appreciated - thanks.

C

Country you live in: United States
Income: $54K
Risk Tolerance: Medium to High
Timeframe: Retirement (I’m 26 and plan to retire around 55)
Debt: Student Loans $8,500 at 3.5% (In 4th year of a 15 year payment plan) and Car Loan $7,200 at 4.39% (In 5th month of 36 months)
Other Info: I rent an apartment. I’ve looked into buying a house but don’t think I’m ready for that type of commitment, and am not totally sure I’ll be staying in my current location long-term.

I am a government employee and 10% of my earnable salary is automatically contributed to my pension. In addition, my employer contributes 14%. I do not contribute to Social Security.

I have a Roth IRA which I have not been very diligent in making contributions to.

My employer also offers the following:

SAVINGS BONDS

Employees may purchase “Series EE” or “Series I” U.S. Savings Bonds through payroll deductions. Some of the advantages of this payroll savings plan are safety, bonus interest, exemption from state and local income taxes and property taxes, retirement income, and tax-free funds for education. Currently, savings bonds mature in 17 years.

The minimum payroll deduction is $5 per pay period. Once your deductions have accumulated to the purchase price of the bond, the bond will be automatically issued and mailed directly to your home address.

Bonds cost $ 50 Face Value $ 100
Bonds cost $ 100 Face Value $ 200
Bonds cost $ 250 Face Value $ 500
Bonds cost $ 500 Face Value $1,000


So, my plan has been to max my Roth IRA and then go from there (considering I’ve failed in doing that I haven’t had to worry about anything else). So, is my assumption that maxing my Roth IRA is the best option correct? Is there any value in buying these Saving Bonds? Should I be thinking about paying down my debt faster than scheduled? Basically, after my pensions/Roth IRA what should I be looking to put my money into next? Any other suggestions or considerations would be great.

Thank You!

I don't have a lump sum amount to invest right now, I figure the TFSA 5000$ year should be enough. just keep paying 5000$ a year rather than paying like 30k lump.

TFSA is just that - a tax free account. You can put whatever you want into it - stocks/mutual funds/bonds/t-bills/money.

Whatever capital gains you realize on the $5k are tax free. Also, you'll likely have $10k available for a TFSA (last year and this year, since it has carryforward).

Anyway, general advice for TFSA is put something with very high capital gains potential. If you can afford the risk, think equity equity equity. Sticking a bunch of bonds/t-bills etc in a TFSA is a poor use of tax free potential and should only be done if you can't afford higher risk investments, since they're realistically only going to earn ~3% right now. If this was the 1980s and interest rates were lolhigh, ya go nuts. But since the potential for huge capital gains is in stocks/equity mutual funds atm, the blanket statement is that you should be investing equity.


Edit: I re-read your initial post, and it says your risk tolerance is low. Really not a lot of money to be made in the market atm in low risk investments, since interest rates are so low. All that you're going to do by sticking money in bonds/GICs/t-bills is at best retain the purchasing power of your investment.

You need to get better educated before doing anything. You still think a TFSA is a type of investment rather than a type of account that holds investments.

I knew that, just I don't see much value in mutual funds/bonds or t-bills, so TFSA means stocks to me.

Recently I have been reading this fund.

http://www.evolutionfund.ca/index.html

I never had any experience with mutual funds, it seems like this fund is based on the thriving housing market of Vancouver. When the housing market is good, the return is okay, but what happens when the market bubbles? Should I be worried about it? Is there more value in stocks? I am skeptical about mutual fund, but don't mind putting 5-10k in it.

Bump. This available anywhere?

Hi,

I am a financial advisor with a independent financial group from Vancouver and we have been recommending this fund for our clients in the past year. Their target is 12% which is infinitely better than any mutual fund we sell. Note however that Evolution Fund is NOT a mutual fund.

We also recognize how it's susceptible to a real estate bubble, therefore we constantly re-evaluate it if we need our clients funds' to quickly GTFO. We do consider it a short-term investment that needs constant re-evaluation, unlike something like mutual funds.

The head of my financial group has a great relationship with Tess Lawson, the current CEO. I did some research in attending a company function to talk to Tess personally and going to a few conventions hosted by Metro Vancouver (http://en.wikipedia.org/wiki/Metro_Vancouver), discussing the green initiative in the Lower Mainland.

In regards to your questions, I want to emphasize that I don't represent Evolution Fund. That being said, I have found the answers to these questions that I asked months ago.

As you know from reading about the fund, Evolution Fund invests in equipment leasing and equipment financing. The equipment leasing is paid for by tenants of buildings. The leases become as necessary to pay as strata fees. They are simply expenses that each building owner will force its tenants/owners to pay for.

A potential real estate market bubble is definitely the biggest thing to worry about it when investing in this fund. My personal opinion is that a real estate market bubble will affect the fund with some time lag. If/when it does happen, it's my personal belief that it won't collapse before anyone can blink. It would be more gradual than that, at least if you kept an eye on the market. In terms of who gets what when an apartment complex does go bankrupt, I'd have to search through my files and figure out who gets priority, and where Evolution Fund investors are at. Let me know if you really want to know about this.

---

I feel like I need to add a disclaimer that I am quitting my job as a financial advisor in a few months because personal finances are too simple to keep me satisfied. As I slowly learned through my experience and this subforum, financial planning is a sales job and not an actual job in the financial industry.

Hey all. You have been all very helpful. Hopefully you can answer this question.

In August. I made a cash offer on a 1800 sqft house in florida for 65k. it was a shortsale. The primary holder of the house (lien holder?) is BOA for 62k. There is a secondary mortgage holder of 3k.


Now. I was told by the realtor in august it would be a very short close. She has been F*ing around saying "we should hear next week" for the past few months. Now finally she says that they are ready to close.

Here is why i am pissed. Now in august, I was hoping to be able to collect rent 850$/month from the people who live there currently (people who are approved for short sale). we have a verbal agreement that they will sign a 1 year lease. Figuring that I would have gotten sept oct nov and dec. rent this is like 3500$.

But The realtor says those people who are living there paid ~300k for the house 5 years ago. Here is where I am confused. If they are not paying their mortgage for a while (and approved for a shortsale) why would the bank be dragging their feet so much? They are getting nothing by sitting on the place correct?

This doesnt pass the smell test to me. Why would people who didnt pay their mortgage be rewarded by living in their house (which the banks own the mortgage on) for free after approved for a shortsale.


also according to Spex/lonnie 850*12= 10200$ /year. -1000 insurance, and 1000 in taxes, plus random 25% other. i am left with about 6000$. 6000/65000 is like 9%, so this is a solid investment on paper correct?


for teh record, I am not planning on taking a mortgage out on this place because i have the means to pay cash, and will have plenty of cash left over+ am leaving for afghanistan in 6 months, 1 making more than i usually do, and 2 not spending any money, 3 not having any need for money, so why pay for interest on a mortgage right?

So they bought a house 5 years ago for 300K, there's only ~65K owing on it now and they're prepared to lose the house and pay $850/month rent? Nothing makes sense here.

It is a short sale. I think they owe upwards of like 250 k on it.

Country you live in : USA
Income : $~1k a month
Risk Tolerance : High
Timeframe for investment: 2-3 years, then decide where to go after college degree
Debt: None
Any other information you might have that would help us:

I have about $500 I want to invest right now, maybe some penny stocks to begin. I would consider bigger stocks, like GM (wuld need money online quick and get it for less than $35/share) but would have to be dead sold at first. I have a "mentor" at work that is fairly successful, that I am beginning to meet with/pick his brain. I am fairly ignorant of trading in general, and realize the effort it will take to be even moderately successful.

The sites that seem best for small investors:
Scottrade ($7 trades, highly respected)
Sharebuilder/TradeKing (No minimum deposits, friendly to new/small investors, Sharebuilder offers $25 free)

I need site suggestions and book suggestions (I will check out book thread also)

Thanks for your time and help.

Country you live in : UK
Income : full time poker player, expected $10k/month
Looking to invest : $20k initially, probably more around mid 2011.
Risk Tolerance : cautious
Timeframe for investment : depends on the expected return.
Debt : none.

have looked into investment options at the bank and have found an external fund pool focused on 'cautious growth' which looks relatively appealing. last 2 years have returned 7.6 and 7.4% respectively. funds can be added or withdrawn at any time as far as i can tell. wondering if there are any better options though.

Country you live in : USA
Looking to invest : $6k (thats just sitting in tradeking account)
Tolerance : very risky
Timeframe for investment : long term
Debt : none.

I have $6k just sitting in my tradeking roth ira account. I would like to put it in something where I don't have to touch it for 5-10 years. I am very risk tolerant as well. What fund should i Pick?

With a longer term horizon and high risk tolerance I'd consider a real estate index such as the Vanguard Fund VGSIX (ETF equivalent VNQ) In fact I'd probably split it between that and the new foreign Real Estate Index offering (VGXRX, ETF VNQI) - but probably something like 80/20 rather then 50/50.

Your other option could be the emerging markets fund VEIEX (ETF VWO).

Country you live in: USA (New Jersey)
Income: 41k
Risk Tolerance: medium
Debt: 35k
Net Worth: 10k (Savings Account)

I am about to graduate college and am going to start a job that pays 41k as a base salary plus benefits. I want to start investing, paying off debt, save for retirement in 401k, and have spending money on hand. I do not have to pay interest on my debt, my parents simply loaned me the money.

I do not have a lot of expenses, but want to utilize my money well. My employer matches the money I put in my 401k (up to 3%).

I am definitely new to this process, and may not be looking at things the correct way. I am looking for advice on the following income distribution.

BTW since I do not have a lot of expenses, I want to be fairly aggressive with investing (even though I know I do not have a lot of capital to currently work with)

Pay off Debt: 5%
Invest:15%
401k:3%
Save/Use for expenses:77%

How much do you recommend that I start off investing? And in what type of investments would be the best for my situation( Vanguard bonds??)

Any advice on investing, income distribution, types of investments would be very helpful.

Thanks

Country: Canada
Income: 90K (In US dollars)
Amount to Invest: 25K (In US dollars)
Risk Tolerance: low
Timeframe for investment: 6-12 months
Debt: None

Basically, I live in Canada but get paid in US dollars because I'm doing consulting work there. Most importantly I just made about 25K (after taxes) in US dollars from cashing in some stock options from a company I use to work for there.

I'm planning on using this money for a down payment (which I'll have to pay in Canadian dollars) sometime in the second half of 2011. Just looking for good ideas on what to do with this money, when to convert, all that jazz.

Can you give some more details on this?

i will try... it was offered to be my natwest. it seems to be called 'expert managed solutions'. there are a few options - cautious growth, adventurous growth etc.

have a bit of paper with some info, for cautious growth it says "the fund has diversified investment predominantly within equities, fixed interest securities, property and cash. equity exposure is restricted to 40%".

there are various managers within different markets and the managers are reviewed on a quartlerly basis. the fund was launched 09/06/2008. last 2 years, sector averages were 7.6% and 7.4%. not sure what else i can find on the sheet of interest.

Country: Canada
Income: 80K
Amount to Invest: 10K + $500/month
Risk Tolerance: high
Timeframe for investment: 10+ years
Debt: 20k student loans
Age: 36
Investment experience: total noob but have read a lot in last two months

I think I have decided how to invest. Here is what I am going to do. Any major flaws you can see?

-10K initial then $500/month ongoing

-7k into an RRSP and 3K into a TFSA on Questrade

-I will be self directing both accounts

-I want to invest 25% ($2500) in a medium risk Mutual fund, something that focuses on the energy sector probably.

-the other 75% ($7500) I will split. It will put about 4k in a small cap ETF and the other $3500 into about 4 stocks, probably in the Energy, Biotech, and Tech sectors. This will be mostly mid and low cap companies with maybe a little in a large cap energy company.

for the $500 and month I will mostly buy more of what I already have but will modify the portfolio as I see fit.

Seem reasonable? Now the big question, what is my best Canadian resource for actually picking the specific, MF, ETFs and stocks?

Amount to Invest: $600,000-$1 million
Risk Tolerance: High

I have an investment question: I invest with my family in a handful of real estate developments. These developments produce high returns which is great, but the capital outlays required are very "chunky". I.e. a year may go by with no need for investment, and then a large 6-figure investment in infrastructure may be needed the next year.

I want to park a large sum ($600,000+) and get healthy returns on it, but at the same time have it available to withdraw from when those capital outlays are needed. I won't need the money for living expenses or anything except capital accrual, and I'm willing to take on a high amount of risk in order to get the highest long-term returns.

Suggestions?

Or to be more specific, with what ETF strategy and with which ETF provider should I be investing this?

dumb question for the Good Canadian Boys ITT:

Does anyone here have any of their cash converted to Aussy dollars to take advantage of the higher interest rates by the ACB?

Their interest rate is now 4.75%.

FXA has a yield of 2.8%

Is there another instrument I can use to get a better yield?

I'm looking at the 10 year historical exchange and I'm not too concerned about currency risk, although I need to investigate further. Our dollars look to be a lot more correlated in the past 5 years with the explosion of oil prices and the mining sector.

I have maybe 40k sitting around in a high yield PC bank account ..... well it used to be high yield, it only pays 1.5% now.

EDIT - Ok maybe currency risk is something I need to factor in here. Historically we were at 1.1 - 1.2 AUD/CAD but now we're down to parity with the AUD on a tear this year ..... is this a consequence of ZIRP by the central bank?

If it's all after tax money, you can put it into many different funds and withdraw any amount at anytime. Just don't set up an A-share (upfront commission charge) or B-share (deferred charge if withdrawal is early) and your money will be more liquid.

There is a lot more information needed than you provided to make the best recco, but it seems like you shouldn't be extremely risky if capital is most likely needed shorter-term. The flucuation of a higher risk investment might mess up the plan to accrue long-term returns if you withdraw during a down time.