TFSA -where to invest?

[anicas_stash]

Hi,

I have not used my TFSA room this year. In the previous years, I invested in an ING TFSA (1.4% interest currently), an ING self-directed TFSA and a TD mutual fund TFSA that's down almost $1400 in value.

Any suggestions on where I can invest my money this time? I don't have a financial adviser so that's another thing I have to take care of soon. Thanks!

[corezz]

If i recall Peoples Trust is still the highest TFSA in Canada @ 3.0%. That is where i've maxed out my TFSA for years.

[marstec]

Why do you have so many TFSA accounts? Think of a TFSA as a basket and in that basket, you can put all your investments, which include savings accounts, mutual funds, gigs, bonds, stocks...It is a lot easier to manage one TSFA account than to keep track of several. You are only allowed $5K per year total. Some people learned the hard way when the government did audits and accessed penalties for over contributions.

It sounds like you aren't comfortable with mutual funds since they lost the most money. But, check to see what kind of mutual funds they are....do they have high fees? High risk? There are many factors that determine what makes a good mutual fund, don't just trust a stranger to put you in any old one (they may be making themselves rich and not you). Unless you have endless trust in a financial advisor, you should educate yourself on some investment terms so you know what you are buying.

[Gsxrboy]

The question to ask here is what is the reason you are investing in a TFSA. If you are planning to use this money for an emergency or for travel, then keep it were it is. If you are planning to use this money for retirement, then you will need to find something that will return around 6% per year. Something in the neighborhood of 60% stocks, 40% bonds. You may speak with someone at the bank, but because you have such little money, you will speak with someone who has no real training on investments. So do your homework and find out which funds you would like to invest in. I have suggested this book all the time and it may be beneficial to you before heading out and speaking to someone.

Finance for Dummies
http://www.chapters.indigo.ca/books/...es&ikwsec=Home

[kris32]

TFSA GIC may be? They sure don't make a bunch more considering it is locked in and I hate so much money being locked in although i am so considering soon. Wish i heard about this 'peoples trust' bank sooner. Not much use staying with ING now that scotia bank took over i am figuring. At the end of this year it is time to research interest rates since we can't take it out and bring it into another bank!

[anicas_stash]

Thanks for all the suggestions & comments, everyone. I'll look into them & invest the money soon.

[ashedfc]

Invest your TFSA money in Gold.
All over the world, central bankers are printing money. Latest one was on 13th Sept 12, as QE3 from Federal Reserve of $40 billion per month with no definite end date (its an open ended money printing)
This kind of money printing policies devalue currencies.
Hence any investment in any currency might give you some nominal return of 1-2-3 or so %, but since currency will loose its value, you will end up being a loser.
Its more advisable to stay away from all currency as a hedge against currency devaluation.
Invest in Gold, thats the true investment & protection against the reckless policies of money printing.
Gold has already performed 13% year to date & 19% compounded in the last 10years. Gold has been money for over 5000 years & it will continue to be in the future...

When people loose trust in currency, they turn to Gold. Its been so throughout history.. Several currencies have come & gone, Gold is still there & will remain so, this is the reason why even central bankers store Gold in their vault..
Gold is available as a Gold bullion Fund in a TFSA, you don't have to buy & store Gold, the fund will do it on your behalf. Talk to your advisor, & if he/she is unable to recommend then probably he/she is not updated with the changes in the trends of the global economy.

[Brad]

Some gold in your asset allocation, yes. Your entire portfolio in gold, definitely not. Gold has returned significantly less than a diversified stock portfolio over the long term and that will not change going forward.

[ashedfc]

True, the sad part is majority have absolutely no allocation to Gold, & they will get in way too late...

A diversified stock portfolio is good, but in the event of high inflation & hyperinflation (which is now the most probable outcome) only Gold will excel.

Refer to Weimar Republic... history is getting repeated again, only the players are different this time.

[whypaymore]

Where and how can we invest in gold?

[emg]

I have the same question. Where and how can you invest TFSA money into gold. I remember asking a financial advisor about it and he telling me that gold was better used as jellewry :s. so confusing.

[Brad]

There are a number of ways to invest in gold.

You can buy actual physical gold and hoard it in your secret underground bunker. This is done mainly by doomer types who think capitalism is gonna collapse and money will be worthless and only gold will have value.

A much easier thing to do would be to buy a gold fund (like this one), you can put that fund in your TFSA.

Or you can buy shares in gold mining companies.

The Canadian index is already heavy in resources so if you invest in the Canadian index through a mutual fund or ETF or whatever chances are you already have enough exposure to gold.

[ashedfc]

I have the same question. Where and how can you invest TFSA money into gold. I remember asking a financial advisor about it and he telling me that gold was better used as jellewry :s. so confusing.

This shows the ignorance of the advisor, he is so much out of touch with the recent developments in the global economy, & the monetary system.. Its not his/her fault... (over the last 30yrs or so, Gold is out of economic text-books, & a breed of financial advisors are unknown to the monetary value of Gold). Not everybody takes the effort to update on the own..

[ashedfc]

There are a number of ways to invest in gold.

You can buy actual physical gold and hoard it in your secret underground bunker. This is done mainly by doomer types who think capitalism is gonna collapse and money will be worthless and only gold will have value.

A much easier thing to do would be to buy a gold fund (like this one), you can put that fund in your TFSA.

Or you can buy shares in gold mining companies.

The Canadian index is already heavy in resources so if you invest in the Canadian index through a mutual fund or ETF or whatever chances are you already have enough exposure to gold.

with the ishares Gold Etf... you are not getting full protection as they do not have the physical backing of their units, & you are also adding a currency risk since its in USD. (& also you need a self-directed account to trade in such etf's)..

with the gold mining shares, you are not buying gold, you are basically buying the management expertise of a company which is in the mining business.

agreed the canadian TSX has a high representation to resources, that doesn't mean you buy the TSX as a proxy & feel thst you are owning Gold in your portfolio...

In my opinion, one should have some sort of physical Gold representation (the real bullion) in their portfolio.. couple of examples..
1. Sprott Gold bullion Fund.
2. BMG Gold Bullion Fund..
These are in CAD so you don't have to convert your TFSA money into USD to buy these.. Ask your advisor to buy these funds (you can buy as less as $1000).. They store the bullion on your behalf, so you don't have the risk of storage & theft.

We are headed into the path of global currency devaluation (all major currencies are being printed to oblivion in the name of stimulus, Bank of Japan was the latest one to announce a 10trillion Yen printing just last week after US Fed's announcement). Currencies are loosing value due to printing. If one has to preserve the value of your assets, the only way is to get out of currencies, & get neutral, which is possible only by getting into Gold. Gold has been the universal currency of choice & it's doing its job of preserving purchasing power..

[emg]

Thanks so much