It'll be up to you to decide what's better between a low MER fund or an etf..With only 10K your trade commission costs will prob be the decider and a fund could win out. ( I do e-series for my regular contributions into my RSP)
What Royal says is true.... the banks are pushing for investments before the end of the month. I had a msg on my machine Friday after work to call the bank before the end of the month...humm I wonder what that could be for??
Thanks Royal- I have to admit that I am hesitant walking into the bank because they talk to me like an idiot and try to get me roped into what they want- atleast I am cognizant of us, but it is nauseating nonetheless. The 10k is already earmarked for some sort of RRSP. I already made this election at work and the money is on its way to the bank- I need to decide how to allocate it. I cashed out the remaining 9k to pay off the remaining debt that I have- along with some for savings. I will be using the refund for some work to get done on the home. As for your question on the emergency fund- yes I have some cash set aside in a TSFA. As for whether I think I am ok at managing money- I suppose- although I am really hard on myself when it comes to whether I am 'good enough'! I hate to say it, but as the main breadwinner (by a very healthy margin) and as a female (who would like to have kids eventually) I feel like I have no choice but to be good with my money. We have our principal residence which will be paid off by the time I am 40 and we have a solid rental property that we have significant equity in as well and will be paid off when I am 55. Quite frankly...we are frugal. I constantly fight the urge to keep up with the joneses, but they are all in debt up to the wazoo, but drive fancy cars and live in huge mansions....but that's ok, I sleep good at night (sorry- I am veering off track!!!)
Originally Posted by the-royal-mail
So perhaps it might be best to put the money somewhere 'safe' for now?? GIC? Then when I get more informed make a move?
Thanks everyone- I really don't have many people I can talk to about this- as they get an 'oh poor you, dont know what to do with your money' look on their face.
The TD e-series is an appropriate investment for 10k divided, for example, amongst TDB900, TDB902, TDB905 and TDB909.
Another alternative is to go to a low cost broker, and put $5k in each of VCE (MER 0.09%) and VUS (MER 0.15%). Even if you have to pay undiscounted trading fees, the MERs for these two ETFs are miniscule.
So- an update! I put the money into my RRSP in a money market, opened a direct investing account (with RBC), bought two Investing for dummies books....feeling good. Once I'm comfortable enough I will move it from the money maket into the direct investing and start playing Who knows...I might figure out what I am doing soon enough!