First timer- ETF's- meeting with bank this week!

[DanFo]

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??

[thebomb]

It would be my recommendation to CANCEL the meeting with the bank at this time. This is RRSP season and we've seen a few threads lately where young people are being invited into the lion's den and being sold a "balanced" portfolio of high-MER MFs. This is not the right thing for you to do, based on what you've written. If you want to take control of things and learn, it would be my suggestion that you do so right here in CMF, asking questions, reading threads from other situations similar to yours and other such basics. You won't learn anything by meeting at the bank at this point.

I do like index funds as they have low fees but I like GICs, HISA and cash balance TFSAs as their fees are even lower/non-existent. I'm not saying those are the best options for you but I'm saying you need to step back and take a much bigger picture look at this.

And also to consider your overall financial health. Do you have an emergency fund? Are you good at managing money? Because to me, these are the ways to take control of your money and IMO need to be put in order long before you get serious about investing. In other words, learn to walk before you can run.

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!!!)

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.

[Soils4Peace]

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.

[thebomb]

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!