How to invest 15k of disposable income?????

[kaysto]

Looking for suggestions on how to invest $15k of disposable income for maximal growth, medium risk?

[frugal50]

maximize your RRSP and TFSA

[Shwa Girl]

Looking for suggestions on how to invest $15k of disposable income for maximal growth, medium risk?

I see you are new to Smart Canucks.
Welcome.

[jezz]

Go to your local bank and find someone who knows what they are talking about...and don't sign...think about what they say and make an educated decision.

Off the top...use your TFSA to shelter returns (remember if you earn profit it's like your money has a job but you get to pay the income tax on it...unless you use the TFSA).

Look at RSP's...they aren't for everyone anymore but the special programs like first time home owner and education programs might make them right for you. Spousal RSPs are sometimes a good option if you and your spouse make vastly differently incomes.

I'm a HUGE fan of income funds in general so do some research...we have a financial guru on Smart Canucks who talks about "getting rich slowly" by using DRIP funds (basically income funds and reinvesting the dividends). Check them out!

It's your money...do the research...find the help you need explaining stuff you don't understand. And be happy...and wealthy!!

J

[blueeyetea]

Kaysto - the best you can hope for is to have returns like the market - not to beat the market, which is impossible. Follow the Couch Potato Strategy and buy e-series index fund from TD (you'll have to open an online account).

If you're not using the money for retirement, and you have the room - put it all in your TSFA.

[brunt]

One important point - if there exists the possibility that you may need to access this money before retirement, then you should consider a TFSA rather than an RRSP. Money taken out of a TFSA can be returned (just make sure that it is in the next year, or you will have to pay penalties). Money taken out of an RRSP cannot ever be replaced (other than the Home Buyers Plan). Many people are not aware of this important distinction.

[tinambulance]

Have you thought about investing in real estate/rental property? You use some of the $15,000 as a down payment, take out a mortgage (make sure the rent covers all expenses including your downpayment and mortgage), hold the property for a few years, then sell! The interest on the downpayment and mortgage are tax deductible.

[emg]

One important point - if there exists the possibility that you may need to access this money before retirement, then you should consider a TFSA rather than an RRSP. Money taken out of a TFSA can be returned (just make sure that it is in the next year, or you will have to pay penalties). Money taken out of an RRSP cannot ever be replaced (other than the Home Buyers Plan). Many people are not aware of this important distinction.

I did not know that you were in the obligation to return money taken from TFSA accounts. I am confused about the whole thing. Isn't better to use a normal savings account if you know you are going to need the money?

[Frugalbigmama]

No. You don't have to return TFSA $. Poster was just saying if you take money from it you can't return it till the next tax year or you will have to pay a penalty if you have already maxed out your allowed contribution for the year.

[emg]

No. You don't have to return TFSA $. Poster was just saying if you take money from it you can't return it till the next tax year or you will have to pay a penalty if you have already maxed out your allowed contribution for the year.

Thank you so much for clarifying this

[SeekingWealth.ca]

It all depends on your risk tolerance and investment horizon. Typically for a new investor that has a moderate risk appetite, an index fund or index ETF may be a good option.

Dividend paying stocks have been performing well, even though interest rates are expected to rise. If you are ok with more risk, then you may want some more sector specific funds/ETFs as well, like utilities and financials. If you need more information or some recommendations PM me - but checkout what iShares and BMO ETFs have to offer.

[georgenelson]

Before investing you have to get advice from expert in that relevant field. That will create you some different ideas.

[Lynn49]

It's fine to ask for 'opinions' here, but visiting (at no cost) a financial advisor at your own bank would be the best bit of advice you can receive. ITA with georgenelson. No one here knows your needs, wants, future goals or financial situation...that's where a professional comes in.

[brunt]

It's fine to ask for 'opinions' here, but visiting (at no cost) a financial advisor at your own bank would be the best bit of advice you can receive. ITA with georgenelson. No one here knows your needs, wants, future goals or financial situation...that's where a professional comes in.

One note of caution with relying on advisors at banks. The amount of knowledge displayed by them varies a huuuuuuuuuuge amount. Scarily huge. I had one arguing with me when I stated that the value of bonds increases as interest rates decrease.

Not saying that they are all bad, but rather just because they are working at the bank doesn't mean that they know what they are doing.

[Lynn49]

Always pays to shop around; unfortunately, some banks make certain their advisors are held to high standards regarding their education and continuing education while others just seem to pull them off the teller line and give them an office and a friendly computer program.
It's not until one deals with a Canadian Certified Wealth Manager/ Financial Planner, does the playing field level off....still...there are those who excel, and those who don't.....