Investments - what to do

[momof5boys]

We have some RRSPs in the market and are getting a tad uncertain about it - thinking of pulling them out of the market for now...just curious if there are others here thinking along the same lines.

[blueeyetea]

You mean switch investments? (Cashing them in would cost you tax-wise.)

I have mine in mutual funds, which I'm not all that happy about. I've been thinking of switching them to ETFs to get a better return after reading Count_on_Yourself by Allison Griffith. The only caveat is that I like the automatic withdrawals for the mutual funds which aren't available with the ETF. Not sure how to proceed.

[Gsxrboy]

What is triggering these thoughts?

There will always be dips and rises in the market, without this, no one will be making money. Part of your retirement plan is to continue investing your money into the investment vehicles you have currently. This strategy is called dollar cost averaging, which basically buys more shares when the markets are down and less shares when markets go up. So part of your retirement strategy is to simply continue contributing to your retirement, regardless of what the markets are doing. The last statement is only for people who are contributing monthly to an RRSP through a bank or financial adviser, the reason being is they already did their research on the companies you are buying shares from, the last thing they need is under performing companies freaking everyone out and everyone pulling out their investments.

Did you know that the greatest amount of money made was during the great depression? While everyone was selling at great discounts, the smart people where buying them, once the economy stabilized, they sold what they had at a huge profit.

Dollar Cost Averaging explained
http://www.investopedia.com/terms/d/...#axzz2C8BeDeUE

5 Businesses that made money during a depression
http://www.investopedia.com/slide-sh...#axzz2C8BeDeUE

[momof5boys]

We would be keeping it in an RRSP...just taking about 2/3 of our investments out of the markets and keeping 1/3 in. What is triggering these thoughts? Hubby 5 years from retirement, working at a job that just laid off 10% of their employees and we don't want to be stuck with needing retirement money when the market is waaay down. We stuck it out during the 2008 downturn when our investments were hit hard but they rebounded after a couple of years. We may not have that 'couple of years' time if forced to retire early.

[Gsxrboy]

Thank you for the reply and information on your personal lives. I would suggest speaking with a fee only adviser before pulling out. With a fee only adviser they can create a "roadmap" on what to do before retirement. They can give you a better strategy since they are no longer worried about a commission, you paid a fee up front. Just make sure that you pick someone you are comfortable with, that you understand clearly what the strategy is and simply enjoy speaking with this person. If they don't make you feel comfortable, simply walk away.

Fee only advisers
http://www.moneysense.ca/2012/10/01/...ncial-planner/

If you don't want to pay for this advice, you may speak to someone at the bank as well, they are very knowledgeable and direct you as well. Some advisers regardless if they are fee only or from a bank have a minimum amount that is needed for this advise. Example, to speak to someone at CIBC Wood Gundy who is higher up, you require a balance of $100,000 and up.

https://www.cibc.com/ca/imperial-ser...nd-advice.html

CIBC Wood Gundy
https://www.woodgundy.com/wg/en/home.jsp

Good Luck, I hope you get the advice you are looking for and enjoy a nice retirement.

[blueeyetea]

In my case, I'm dissatisfied with mutual funds because with the fees they pay themselves, the return on my investement is about as much as it would be if I had stuffed the money in my mattress. Frankly, I don't think paying $200 for a fee only personal adviser would be any help in choosing an investment.

[momof5boys]

Glad we took most of the investments out of the market yesterday!!! It's a huge relief - will be putting them into GICs for a while.

[ashedfc]

Glad we took most of the investments out of the market yesterday!!! It's a huge relief - will be putting them into GICs for a while.

If that gives you huge relief & peace of mind, then go for it.

But keep in mind, there are 2 types of returns, nominal return which you see on your statement & real return which is inflation adjusted. Google these two words & learn the difference yourself.
Its your retirement, so you have to get familiar with the basics of financial management (risk, return, etc). An advisor can only guide you to the best of his knowledge, skill & resources.

Note: I personally suggest to allocate a certain % of your assets into Gold or real assets outside the currency (just as a hedge against currency risk, which is bound to happen in the very near future).

Do some of your own research. Google has made it possible for everyone to access quality info at zero cost.

[Gsxrboy]

In my case, I'm dissatisfied with mutual funds because with the fees they pay themselves, the return on my investement is about as much as it would be if I had stuffed the money in my mattress. Frankly, I don't think paying $200 for a fee only personal adviser would be any help in choosing an investment.

I agree completely, I currently have a TFSA investing in Index Funds, and an RRSP doing the same. The fees are 0.5% compared to 2% to 5% from a typical Mutual Fund. If you have RRSP's you can move them to Index Funds without triggering any Taxes. For more information please read : http://www.moneysense.ca/2006/04/05/...-introduction/