Investment Stategy - General Thoughts

[leviathan]

Hey guys, I am new to the forum.

Just some background, after University I decided to move overseas to work for a Financial Institution, while net pay was horrible (below CAD 5,000 PA) I decided it was the right opportunity. I recently moved back to Canada, was unemployed for 6 months. I recently landed a job in February 2012. Considering I am starting to save a significant portion of my income I want to make sure I am planning effectively and properly.


My main goal is capital appreciation ( I am 26)
Education:
• Master’s in Finance (expected graduation date June 2013) – Funded by parents
• CFA Level 2 Candidate
Assets:
• ING Savings Account: 3,000 @ 1.35%
• ING TFSA: 16,000 @ 1.4%
• ING GIC: 1,500 @ 2%
• ING TFSA (Mutual Funds) 3,100
• ING/TD Chequing Account: Short term under 1,000
• Questrade TSFA 1,000 –not invested
• Motorbike 6,000
• Property ~$800,000 + plus furniture etc

Income:
• Gross Income (Full time employment): 75,000
• Other income 500-1000 per month
o This is income I obtain by renting out my second bedroom and if I do personal training for clients.
Liabilities: 0
• Schooling – funded by parents
• Mortgage: Currently being serviced by parents (their gift to me)
• Credit Card: Capital One Rewards Card
I will have upcoming liabilities – Motor vehicle insurance (3,000) up front, and additional courses CFA exam etc. Other than that, nothing foreseeable.

Monthly Spend: I spend aprox 1,500 pm.
• Groceries: 500 – I make all meals
• Bills: 200
• Gas and fuel: 50
• Restuarants: 300 – Recently entered into a relationship this cost needs to be reduced
• Cleaning: 100
• Fitness 100
• Transport: 40
• Personal Care: 50
• Laundry 30
• Shopping 100

There are a few extra items that pop up. I do try to keep costs low, shop at no frills, use tech savy, phone bill is paid by company. I dont have cable tv etc.

Any suggestions are welcome.

[Young&Ambitious]

Some quick pointers.

1. Work on getting together a cash emergency fund (see The Royal Mail's 3 tiers of savings for one approach)(I use Ally at 1.8% within TFSA). Having a liquid-able backup (I use my non-reg&TFSA investing account for this).
2. Your parents are very generous. Do something very nice for them and don't forget to show your appreciation on an ongoing basis. You wouldn't be where you are without them.
3. Start having that conversation with your parents about when you will be taking over the mortgage & related expenses and budget accordingly.
4. Save. TFSA & RRSP.

[MoneyGal]

Your employer should be picking up the costs of your courses and exams. If they are not, they may not sufficiently value the CFA designation and this is an early warning system for you about your long-term prospects there.

Do you plan on changing jobs after you are done your Masters of Finance?

[leviathan]

1) The cash emergency fund is my ING Saving account. 1.35-1.8, not sure its worth the effort to open a new account. Plus ING cost free banking compensates me for the loss of i.

2) I do so constantly.

3) Mortgage - Will not be my obligation.

4) Save - TFSA - Maxed - What other options?

Some quick pointers.

1. Work on getting together a cash emergency fund (see The Royal Mail's 3 tiers of savings for one approach)(I use Ally at 1.8% within TFSA). Having a liquid-able backup (I use my non-reg&TFSA investing account for this).
2. Your parents are very generous. Do something very nice for them and don't forget to show your appreciation on an ongoing basis. You wouldn't be where you are without them.
3. Start having that conversation with your parents about when you will be taking over the mortgage & related expenses and budget accordingly.
4. Save. TFSA & RRSP.

[leviathan]

Your employer should be picking up the costs of your courses and exams. If they are not, they may not sufficiently value the CFA designation and this is an early warning system for you about your long-term prospects there.

Do you plan on changing jobs after you are done your Masters of Finance?

The employer is picking ZERO of my courses and exams, and I doubt will compensate me for my additional effort. Despite a recent promotion, I am looking to change jobs, close to year end.

[leviathan]

The employer is picking ZERO of my courses and exams, and I doubt will compensate me for my additional effort. Despite a recent promotion, I am looking to change jobs, close to year end.

Should I be looking to invest in property etc? Or should I just do what most people seem to be doing, and sit on the cash.

[Cpt. Fantastic]

I noticed you have allocated very little to having fun. Even the little bit of fun you have (restaurants) you want to cut back on. You sound like you're very disciplined and not taking the huge gift from your parents for granted. At the same time, how sustainable is that? I think you need to ease up a bit, realize you've received a huge advantage from your parents and ensure you are enjoying life too.

[leviathan]

I noticed you have allocated very little to having fun. Even the little bit of fun you have (restaurants) you want to cut back on. You sound like you're very disciplined and not taking the huge gift from your parents for granted. At the same time, how sustainable is that? I think you need to ease up a bit, realize you've received a huge advantage from your parents and ensure you are enjoying life too.

Thanks, I try and do that too. On one hand, a lot of material out there is we should be saving and avoiding eating out, while on the other its about enjoying life. Its a constant struggle in my head.

[Ethan]

Education:
• Master’s in Finance (expected graduation date June 2013) – Funded by parents
• CFA Level 2 Candidate
Assets:
• ING Savings Account: 3,000 @ 1.35%
• ING TFSA: 16,000 @ 1.4%
• ING GIC: 1,500 @ 2%
• ING TFSA (Mutual Funds) 3,100
• ING/TD Chequing Account: Short term under 1,000
• Questrade TSFA 1,000 –not invested
• Motorbike 6,000
• Property ~$800,000 + plus furniture

CFA level 2 candidate pursuing a masters in finance and your investments are cash and mutual funds. Given your education, I'm surprised you're not trading stocks or options.

[lonewolf]

Hi, Ethan

School might not be the best tool to become a successfull investor ?

I have no idea idea what an CFA level 2 candidate does in school. My experience in school the focus was on learning. When it comes to investing should one focus on learning how to invest or Should one focus on thinking how to invest.

Teachers work for money & perhaps some just do the teaching because they like it but a lot wouldnt bother teaching if they were successfull in letting money work for them.

Leviathan

You seam to really have your head on straight. I have no idea what your parents financial situation is but often they do more for thier kids then parents can afford. If you think your parents have but thier finacial future @ risk by helping you perhaps the right thing to do is pay them back even though they wont want to be paid back. Best of luck in the future.