# What should I do with my money?



## willpower (Feb 18, 2015)

Good evening everyone,

I keep on questioning myself recently as to what I should do with the money I saved. I know that there's many possibility and investment options but would appreciate your input.

Here's a little bit of info about me:
29 y/o single guy with a good stable job which will offer a good pension after 30 years. (I have been with them for 3 years.) 

I own a condo valued at $155000. (My mortgage is now down to $90000 at 3.19%)

I have a new vehicle. (I'll be paying $210 every 2 weeks for the next 4 1/2 years. Interest rate: 0.09%)

I don't have any other debt and pay my credit cards every month.

So far I have been only using Tangerine for all my saving. This is how it looks like:
Regular saving account (Interest 1.05%): $6000
Regular Tax free saving account (Interest 1.05%): $9000
RSP Tangerine Balanced Portfolio: $5000
RSP Tangerine Balanced Income Portfolio: $5000
TFSA Tangerine Balanced Income Portfolio: $9500

I expect to at least have another $10k to invest this year as well.

I really need to do something with the money in my Regular saving account and Regular Tax free saving account as 1.05% interest is ridiculous. Should I do a lump-sum payment on my mortgage? Or find a good place to invest it ? (RSP or TFSA will also be the question. I still have space in both of them.)


I'm willing to have a investment risk of low-medium and my knowledge in investment (especially stocks) is very limited. (That doesn't mean that I wouldn't be willing to learn.) 

Should I get a financial advisor?

Your suggestion/ comments would be very appreciated.


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## carverman (Nov 8, 2010)

willpower said:


> I own a condo valued at $155000. (My mortgage is now down to $90000 at 3.19%)
> 
> I don't have any other debt and pay my credit cards every month.
> 
> ...


If it was me, and I had some lump sum cash, I would be paying off my mortgage first. 

1. The interest on the mortgage you are presently paying is much higher than presently you will get on any savings accounts, IMO.

2. You are paying your mortgage in AFTER TAX DOLLARS and if it is your principle residence, there isn't much tax
relief there.

3. Most interest bearing accounts (Except for the TFSA) are considered taxable income, so in most cases you
have to declare the interest earned in a given year and maybe pay some income tax on that interest, depending
on your Federal and Provincial non refundable tax credits....so that 1.05% they are paying you doesn't even
amount to 1.05% "growth" in the end..because you may have to pay some tax on it.

4. The 3.19% interest you are paying on your mortgage is a fixed amount depending on the mortgage term and you are paying much higher interest on the money mortgaged, compared to what you are earning in savings accounts.

This link gives you the current month to month official inflation rate for the years 2010 to 2014
http://www.rateinflation.com/inflation-rate/canada-inflation-rate

The true rate of inflation is probably much higher....

So in my opinion, while your money is safe with the banks (protected by CDIC), you are losing in the long run
based on inflation if the savings are bringing in less than the official inflation rate and subject to taxation.


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## My Own Advisor (Sep 24, 2012)

Good on you to have your mortgage down to $90k.

By the numbers above and questions, you're just starting out your investing journey. You are young and have lots of time to invest, time is on your side.

I think a great move would be to kill the mortgage for you in this case. This way, you are likely in your early 30s with little to no debt. This will pay massive dividends years down the road; potentially literally. As you kill your mortgage, spend time reading up on investing. 

Going this route, all the cash flow going to the mortgage now can be diverted to investments once debt is gone. Then, you'll build up (potentially), a war chest of dividend paying stocks for passive income, or ride the market returns using indexed ETFs or a combination of both.

I can appreciate it might be tempting to invest (more) now given you could likely, although not guaranteed, make a greater rate of return on your investments vs. mortgage payments but if you kill the mortgage now, read up on investing, in the coming months and years, you'll be ready to really hit the ground running debt-free.

An enviable position for many 30-somethings.


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## Soon Forget (Mar 25, 2014)

willpower said:


> Regular saving account (Interest 1.05%): $6000
> Regular Tax free saving account (Interest 1.05%): $9000
> 
> I'm willing to have a investment risk of low-medium and my knowledge in investment is very limited.
> ...



You should move the $6K in your regular savings account into your TFSA savings account so the interest is at least tax free, and consider that 15K your emergency fund. As long as you've been in Canada since 2009, your total TFSA contribution limit is $36,500 so there's no point in keeping significant cash in a regular savings account until the TFSA is maxed. (Of course keeping in mind any short term withdrawals that will be required since the TFSA has rules for withdrawals and contributions).

Given your low-medium risk tolerance and that you have a good pension, I agree with the advice above that you should pay off the mortgage first. You won't regret it.

Don't get a financial advisor, you don't need one right now.


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## Davis (Nov 11, 2014)

I met with my elderly mother's financial advisor last night. He's a nice guy. He's honest, and I generally think he has her best interests at heart. But when i look at her portfolio, now considerably smaller than mine after many years of decumulation, it looks really complicated to me. About ten or so mutual funds, from reputable companies, but they all seems to be complicated - hedged and structured and what have you. 

I am fortunate that a few years ago a family member introduced me to income investing, and now I have a portfolio of about 15 dividend or other income produced stocks that will fund my upcoming retirement. Some companies you've heard of -- Boston Pizza, A&W, Bell, At&T, some utilities, a few real estate income trusts, and some more exotic things like Chinese banks. But to me it looks simpler. And I know that the 2% or so management fees that the mutual fund companies are charging and sharing with the financial advisor are going into my pocket. 

I won't tell you that it is easy -- you should do a lot of reading before you dive in -- but there are lots of resources available (including "Investing for Dummies" guides). For me, it has been worth it to develop this skill myself so that I can get the 2% extra per year instead of paying someone else to do it. 

If you dno't have the interest, or find that it is too intimidating, then hire and pay a financial advisor. It's like learning basic plumbing or electrical work. If you are comfortable that you can change a tap or a light fixture safely, you can save a lot of money.

If you don't feel comfortable doing it, then it is safer to hire and pay a professional to do it for you.


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## gardner (Feb 13, 2014)

I agree with the advise to chisel away at your mortgage as aggressively as you can.



willpower said:


> Regular saving account (Interest 1.05%): $6000


You should have an emergency fund, and this 6K looks like a reasonable amount for that. I do agree with others that this should be in your TFSA though, if feasible.

I'm not a big believer in buying cars except with cash. It's something I believe in saving for and managing within your means. This is just a psychological thing when the money is free, but I do believe people over-buy when they don't save for the car in advance.


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## 1980z28 (Mar 4, 2010)

IMHO pay any pending Debt That is a positive

You will have more time to invest in the future

Low interest rate environment always pay your debt

In my world,that is what worked for me


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## rsyl (Aug 15, 2014)

Soon Forget said:


> You should move the $6K in your regular savings account into your TFSA savings account so the interest is at least tax free, and consider that 15K your emergency fund.


I agree with moving the funds into your TFSA, not so much for the tax savings (about $10-20 a year) but more for the simplicity of dropping an account and one less tax slip at tax time. I also agree with paying down mortgage, (assumes) $120,000 original mortgage and 15%/year pay-down allowance you could put down about $18,000 a year without penalty, with an extra $10,000 a year you shouldn't have to worry about hitting your limit.

You may want to consider getting a HELOC on the mortgage too, I did that, I don't use it, but if I ever dump too much on the mortgage and need the money back then I could use that in a pinch, it makes the lump sum payments on the mortgage a little less stressful. (Curious on others thoughts on this)

You will probably make more money in the markets, but your pension is already taking care of that to some extent. I would rather have a guaranteed after tax 3% then a probable 5-7%. Once mortgage rates rise (will they ever) you will now be saving a lot more after tax.


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## dBII (Mar 12, 2013)

I'm in agreement that getting rid of debt is your number one priority. I would even go so far as to consider a low interest LOC when your mortgage comes up. I have done that with several house purchases and it has allowed me to pay off house debt and/or car debt in far fewer years. You can use the equity in your house to get as large a LOC as you possibly can and pay out as much of the mortgage and car loan as you can. Then every dime you make goes towards that LOC. Use it like a chequing account and it will fluctuate as your pay goes in and expenses go out. You can still keep putting funds aside for keeping your emergency fund topped up, but as your LOC gets paid down, you will be amazed at how quickly you can chip away at that debt. In doing so, I now have a fully paid off house and three paid-off rental properties. I am 100% debt free and it took me less than 10 years.


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## willpower (Feb 18, 2015)

Guys first of all thank for all of your answers. I must admit that I'm surprisingly impress by the quality of advice and answer provided on this forum.

I have contacted my bank and was told I'm allowed to do a lump-sum payment of $11800 now and another one in October.

Here's what I'm planning on doing:
I'll take $6000 of my Regular saving account (Interest 1.05%) + $3000 of my Regular Tax free saving account (Interest 1.05%) + $2800 of my 2014 tax return which should come next month and do a lump-sum payment on my mortgage.

My situation will then look like this:
Condo valued at $155000. (Mortgage down to $78200 at 3.19%)

So far I have been only using Tangerine for all my saving. This is how it looks like:
Regular Tax free saving account (Interest 1.05%): $6000
RSP Tangerine Balanced Portfolio: $5000
RSP Tangerine Balanced Income Portfolio: $5000
TFSA Tangerine Balanced Income Portfolio: $9500

I will also look into the other good suggestions provided.

Thanks


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## lonewolf (Jun 12, 2012)

Hi, willpower

I would not put any more money into RRSPs instead use that money to pay mortgage. The bank will tell you differently for they make more the longer it takes to pay off mortgage & fees they make on your investments. After you pay off mortgage then top up TFSA & RRSPs. @ a latter date when contributing to RRSPs might want to check tax table & spread the contribution over a few years instead of all @ once so you avoid making more money in the higher tax brackets.


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## willpower (Feb 18, 2015)

Well good day everyone!

Here's a quick update about my situation... (Maybe Admin will want to move this thread to the "Money Diaries" section. I would appreciate you guys opinion.

Current situation:
31 y/o single guy with a good stable job which will offer a good pension after 30 years. (I have been with them for close to 5 years.) 

I own a condo valued at $155000. (My mortgage is now down to $46500 at 3.19%)

I bought a new vehicle 18 months ago. (I'll be paying $210 every 2 weeks for the next 3 years. Interest rate: 0.09%)

I don't have any other debt and pay my credit cards every month.

This is how my savings look like:
Regular saving account (Promotional Interest until Sept. 30th: 3.25%): $1400
Regular Tax free saving account (Promotional Interest until Sept. 30th: 3.25%): $14150

RSP Tangerine Balanced Portfolio: $4830 (Opened on: 05/12/2013 Interest rate so far: 5.66%)
RSP Tangerine Balanced Income Portfolio: $5150 (Opened on: 12/02/2015 Interest rate so far: 2.04%)
TFSA Tangerine Balanced Income Portfolio: $4560 (Opened on: 23/04/2014 Interest rate so far: 5.97%)
TFSA Tangerine Balanced Income Portfolio: $5350 (Opened on: 12/01/2015 Interest rate so far: 4.56%)

RSP ZAG Bank 2 years GIC: $5000 (Opened on: 19/02/2016 Interest rate: 2.5%)
TFSA ZAG Bank 2 years GIC: $9125 (Opened on: 26/05/2016 Interest rate: 2.5%)

Notes:
I expect to move next year and will sell the condo. (Employer is moving me and I don't know where I will go yet)
I expect to at least have another $10k to invest this year as well.


What should I do...? I like the idea to be diversified.

I'm tempted to start investing in stocks... Should I wait to have more money to invest or could I start with $15000 at the end of September to see how it goes and practice.

Should I continue to focus on the Mortgage like it was suggested 2 years ago. I have been doubling my payment for the past 2 years and could do another lump sum payment of $11000 in October.

Should I just invest in Index funds (tangerine) for now? 

Your ideas and suggestion are more than welcome.

Thanks everyone.


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## mordko (Jan 23, 2016)

Wouldn't invest a cent, given that you are moving next year, potentially to a more expensive property. If possible repay another 10K of your mortgage using TFSA Income funds. If you really have to invest then buy cheap index funds (e.g. e-series) or ETFs (e.g XIC). You don't have enough $s to invest in stocks directly.


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## willpower (Feb 18, 2015)

Thanks Mordko for you reply!

You are right about the move.

One of the thing I wonder is if I should invest in ETF instead of Tangerine Index funds.

As an example... I have about 15500 in my regular saving account and regular TFSA account. In October I could use $11000 and pay a lump sum on the Mortgage. By that time I would probably have another $5K to invest. Let say I place that $5k in my tangerine index funds. This mean that I would have close to $25K in those index funds.

If I understand correctly, with a MER of 1.07 on $25K I would pay an estimate yearly MER fees of $267.50.

If I open an account with Questrade and invest in one or a couple of ETF with a MER of let say 0.15 (XIC is actually 0.06) on $25K I would pay an estimate yearly MER fees of $37.50.
(If I read correctly there's no monthly or yearly maintenance fees or commission for ETF with Questrade).

That's a difference of $230 a year...and If I invest more this amount would only get bigger.

Am I wrong ? or missing something?

Thanks


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## OnlyMyOpinion (Sep 1, 2013)

To summarize, I apologize if I've misinterpreted any of your numbers: 
*Vaue of house: $155,000*
*TSFA: $33,085* Comprised of HISA: $14,150 + ZAG GIC: $9,125 + Tang bal inc: $9,910 ($4,560 + $5,350) - not sure why you reported as two values?
*RRSP: $14,980* Comprised of ZAG GIC: $5,000 + Tang bal income: $5,150 + Tang bal portfolio: $4,830 
*Cash (sav acc): $1,400*
*Vehicle value: $20,000?*
*Total Assets: $224,465*

*Total Debt: $62,880* Comprised of mortgage: $46,500 + Vehicle loan: $16,380

*Net worth: $161,585*

- vehicle value/rem loan is a guess
- not sure why Tang bal inc in TSFA was reported as two values?
- not sure what "interest rate so far" means wth regard to the Tangerine funds (is this the fund performance to date this year)?
- Tangerine bal portfolio is a balanced (60/40?) Cdn equity/bond fund (http://quote.morningstar.ca/quicktakes/Fund/f_ca.aspx?t=F000000S68&region=CAN&culture=en-CA) with a MER of 1.07%
- Tangerine bal income is primarily a Cdn bond fund (http://quote.morningstar.ca/quicktakes/fund/f_ca.aspx?t=F000000S66&region=can&culture=en-CA) with a MER of 1.07% as well.

Comments:
- You have done very well! Especially over 1 year.
- It sounds like you will be getting your home equity back in a year or so if the company transfers you. When/if you move to a new location you will want to consider at that time whether housing prices seem too high and whether renting for a while is prudent.
- it looks like you have some TSFA contribution room you could use? I would favour this over the RRSP in the near term since you say you have a good pension plan. Not saying that topping up the RRSP might not make snes atsome point as well.
- You have some diversity already based on the Tangerine funds you own. I would say you do not need the balanced income fund though since the other fund already has a bond component.
- I would not suggest buying stocks individually at this point. I would suggest considering a Cdn Couch Potato (CCP) etf portfolio (http://canadiancouchpotato.com/) rather than the fairly high MER Tangerine funds though. You might consider starting a CCP with exisitng/new cash, and then sell the Tangerine funds later to put into it as well when you are comfortable doing so.
- I would keep the HISA TSFA "cash" as an emergency fund. Consider though whether you need that much ($14k), is that about 3 months of expenses?
- if selling your house in a year or so is a certainty, I'm not sure whether paying down the mortgage massively between now and then is the best use of your money? Hmmm, have to think more about that.


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## mordko (Jan 23, 2016)

willpower said:


> Thanks Mordko for you reply!
> 
> You are right about the move.
> 
> ...


No, you are not missing anything. That's exactly what I have - a bunch of cheap ETFs with Questrade. There is no maintenance fee if you have enough $s in your account - and you do. You only pay commission when you sell ETFs. 

OMO pointed you to the Couch Potato portfolio; that's a great link.

One point on which I disagree with OMO, is house ownership. You can try to time the house market and rent, but you could be waiting for a looong time until the prices are much, much higher than now. As with stockmarket, timing isn't going to work for you most of the time because on average house prices go up. OK, sometimes we have obvious bubbles, like in Vancouver, that would be an exception. 

So... personally I would just take money out of TFSA mutual funds and use them to pay off the mortgage, then use equity in the condo to buy another property.


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## OnlyMyOpinion (Sep 1, 2013)

I don't necessarily disagree with buying another home. I guess it would depend where, and on the nature of your job - are you likely to be moved again in a couple of years, etc? If you have to swallow realtor selling fees I'd think hard. On the other hand, if the company is picking up selling commission and assoc costs, it could be well worth buying.


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## willpower (Feb 18, 2015)

OnlyMyOpinion said:


> not sure why you reported as two values?


Sorry I reported it as two value as I invested them at different time and to show the interest made since inception.


OnlyMyOpinion said:


> not sure what "interest rate so far" means wth regard to the Tangerine funds (is this the fund performance to date this year)?


Yes that's correct...it my fund performance to this date since inception.

That's pretty accurate ..here are the exact number:
-------------------------------------------------------------------------------------------------
Value of house: $155,000
TSFA: $33,085 Comprised of HISA: $14,150 + ZAG GIC: $9,125 + Tang bal inc: $9,910 
RRSP: $14,980 Comprised of ZAG GIC: $5,000 + Tang bal income: $5,150 + Tang bal portfolio: $4,830 
Cash (sav acc): $1,400
Vehicle value: $25,000 (As per Black book car website)
Total Assets: $229,465

Total Debt: $64103 Comprised of mortgage: $46,500 + Vehicle loan: $17603

*Net worth: $165,362*
--------------------------------------------------------------------------------------



OnlyMyOpinion said:


> - I would not suggest buying stocks individually at this point. I would suggest considering a Cdn Couch Potato (CCP) etf portfolio (http://canadiancouchpotato.com/) rather than the fairly high MER Tangerine funds though. You might consider starting a CCP with exisitng/new cash, and then sell the Tangerine funds later to put into it as well when you are comfortable doing so.


Thanks I was thinking the same thing.



OnlyMyOpinion said:


> I would keep the HISA TSFA "cash" as an emergency fund. Consider though whether you need that much ($14k), is that about 3 months of expenses?


No ..I jut placed it there since tangerine had a 3.25% promotion and I was planning on using it for a lump sum payment. I usually keep between $3k and $5k and it's more than enough. My job is very stable.

Thank for your help!


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## willpower (Feb 18, 2015)

OnlyMyOpinion said:


> I don't necessarily disagree with buying another home. I guess it would depend where, and on the nature of your job - are you likely to be moved again in a couple of years, etc? If you have to swallow realtor selling fees I'd think hard. On the other hand, if the company is picking up selling commission and assoc costs, it could be well worth buying.


Yes company move us every 3 to 5 years and pay for selling commission, moving and assoc costs which make it most of the time worth it to buy. Unless you are somewhere where the market is very bad. I'll wait to see where I go before I make this decision but still have to keep it in mind financially.


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## Spudd (Oct 11, 2011)

Do they also pay mortgage breaking fees for you? If not, then paying down your mortgage as much as possible will be a good investment. Mortgage breaking fees are normally based on the amount left owing on the mortgage, so the lower your mortgage, the lower the fees.


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## willpower (Feb 18, 2015)

Spudd said:


> Do they also pay mortgage breaking fees for you? If not, then paying down your mortgage as much as possible will be a good investment. Mortgage breaking fees are normally based on the amount left owing on the mortgage, so the lower your mortgage, the lower the fees.


Yes they do...(there's a maximum they will pay for). But my mortgage term ends in October next year o with the lump sum payment I should definitively be fine.

Also I forgot to mention that my pension is a defined benefit pension.


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## Market Lost (Jul 27, 2016)

You wouldn't happen to be in the military would you? If you are, just be aware that they no longer pay for you to break your mortgage, you have to port it.


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## CalgaryPotato (Mar 7, 2015)

I guess my question is what are you saving for? Right now your investments seem very conservative, which may make sense if you are saving up for a bigger place, or to have a family at some point. But if this money is for long term goals such as retirement, the defined benefit pension plan is fairly conservative, and you are already in balanced funds, so that is a lot of cash in all of those GICs you hold.

Anyway, whatever you do I want you to understand the different investment types a little better before you make any changes. It always makes me nervous when people start talking about the money earned in a fund holding stocks as "interest". That implies some level of stability whereas even balanced funds could drop 40% tomorrow.


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## carverman (Nov 8, 2010)

Davis said:


> I met with my elderly mother's financial advisor last night. He's a nice guy. He's honest, and I generally think he has her best interests at heart. But when i look at her portfolio,now considerably smaller than mine after many years of decumulation, it looks really complicated to me. About ten or so mutual funds, from reputable companies, but they all seems to be complicated - hedged and structured and what have you.


de-accumulation coupled with lower interest rates and professional management fees...so complicated that you have to retain them and pay their special management fees, is not what I call "effective investment".

In order to control growth of your (or someone elses money) you need to have full control..if you don't have full control..expect surprises along the way...ie: what happened to that amount? why did it shrink? ...etc




> I am fortunate that a few years ago a family member introduced me to income investing, and now I have a portfolio of about 15 dividend or other income produced stocks that will fund my upcoming retirement. Some companies you've heard of -- Boston Pizza, A&W, Bell, At&T, some utilities, a few real estate income trusts, and some more exotic things like Chinese banks. But to me it looks simpler. And I know that the *2% or so management fees that the mutual fund companies are charging and sharing with the financial advisor* are going into my pocket.


Good for you. You have to have control of your investments, its your money and you will be more sensitive
to the growth or decrease as the case may be. Investment management that do this for a living all the
time get immune to what is happening in each individual account they manage. 



> I won't tell you that it is easy -- you should do a lot of reading before you dive in -- but there are lots of resources available (including "Investing for Dummies" guides). For me, it has been worth it to develop this skill myself so that I can get the 2% extra per year instead of paying someone else to do it.


Probably a good start, whether you are an "investing dummie" or not. Even 2% is better (as long as it is secure and safe, is better than the piddly 0.8% the big banks are paying now, as long as you don't pay it out in management fees..otherwise you need closer to 6.5% to keep ahead of inflation.

The true rate of inflation is much higher than 2.5% per year and if you let it sit in savings,
it "rots"...no real growth and that will hurt you financially in the long run of 5 to 10 years, when everything then will cost a lot more in todays dollars. 

2.5% in 10 years..that's about 25% more that that item will cost you in 2026,never mind property taxes or your personal care if you are confined to a long care home. $2600 to $3800 a month now..imagine how much it will cost you to stay in these homes in 10 years time!


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## canew90 (Jul 13, 2016)

willpower:

Congratulations on taking charge of your finances. You've also received some great advice and seem to have a good handle on things. I'm of a different school, in that I think you should get away from the Tangerine funds and even etf's. Sure you're only paying a small fee, but you are still young and those fees go on forever and increase with the size of your portfolio.

But continue to think Conservatively. Should you decide to begin investing in individual stocks, stick with large, solid, well financed and ones which have paid and grown their dividend over a long period. Begin with one of the six banks, utility, pipeline, communications, railroad, etc. Add to them over time and compare your total return against the funds or etf's. I'd open a broker TFSA for those and reinvest the dividends. Just buy and add to your holdings. Don't sell or take profits and hold for the long term. I also recommend you max out your tfsa each year before putting funds into an rrsp.


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## My Own Advisor (Sep 24, 2012)

"I guess my question is what are you saving for?"

Excellent question.

Ultimately saving or investing, comes down to needs. Once you define your needs, then you're in a much better place to figure out a solution. Your path will be more clear....

@cannew
As you know I agree with this - I focus on income from banks, utilities, pipelines, communications, railroads, etc. to grow my income. Think Monopoly. 

If the OP has short-term goals, keep the money in cash or GICs.
If the OP has long-term goals, i.e., >10 years, invest in the stock market and consider dividend paying stocks.

Good luck!


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## Beaver101 (Nov 14, 2011)

canew90 said:


> willpower:
> 
> Congratulations on taking charge of your finances. You've also received some great advice and seem to have a good handle on things. I'm of a different school, in that I think you should get away from the Tangerine funds and even etf's. Sure you're only paying a small fee, but you are still young and those fees go on forever and increase with the size of your portfolio.
> 
> But continue to think Conservatively. *Should you decide to begin investing in individual stocks, stick with large, solid, well financed and ones which have paid and grown their dividend over a long period. Begin with one of the six banks, utility, pipeline, communications, railroad, etc. Add to them over time and compare your total return against the funds or etf's.* I'd open a broker TFSA for those and reinvest the dividends. Just buy and add to your holdings. Don't sell or take profits and hold for the long term. I also recommend you max out your tfsa each year before putting funds into an rrsp.


 ... maybe I'm being an outlier here but if we (the Conservative types that's) have this same basket(?) of stocks, won't we all be rich at the same time? Or spread ourselves thin sharing the riches? Just a thought ...


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## gibor365 (Apr 1, 2011)

> If it was me, and I had some lump sum cash, I would be paying off my mortgage first.


 exactly what I'd do and actually exact what we did... we paid mortgage in 6 years about 10-11 years ago (had variable rate Prime minus something) and started "games" with MFs and later with stocks/ETFs (all in registered accounts)


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## willpower (Feb 18, 2015)

CalgaryPotato said:


> I guess my question is what are you saving for?


 Well CalgaryPotato, that's a excellent question. The honest answer is I'm not even sure...Right now I don't have a family but yes, I will probably be looking for something a bit bigger when I move. I agree with you that I still have a lot to learn. (As an example, I have been working for close to 5 years for this company and had no idea what my pension program worked). 

For now, I think the best solution for me is to focus on the mortgage and definitively focus on TFSA instead of RRSP (Especially that I learned about withholding tax a couple of weeks ago...).

I don't I have the knowledge right now to invest in stocks, but I do think that I could invest some saving in ETF instead of the Tangerine Portfolio (Mostly because of MER difference). I'll continue to read and learn and stocks will be a future step.

I also think that now that I know that I have a defined benefit pension and that my job is stable, I could take more risk and probably be more aggressive in my choice of ETF.

I'm learning a lot lately...thanks for you guys help!


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## Pluto (Sep 12, 2013)

I'd pay down the car loan before the mortgage. The interest rate is likely comparatively higher. 

Also I'd have a look at the mortgage statement to see how much per payment is interest. The interest is front loaded meaning most of the interested is paid in the first 5-10 years. As time goes by the interest component become less and the principle component gets higher. by the time your principle component gets over 50% of each payment it becomes increasingly less important to pay down the mortgage early.


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## canew90 (Jul 13, 2016)

Beaver101 said:


> ... maybe I'm being an outlier here but if we (the Conservative types that's) have this same basket(?) of stocks, won't we all be rich at the same time? Or spread ourselves thin sharing the riches? Just a thought ...


We've become the minority. Passive Index, total diversification, total market coverage, at a low fee, is what the majority seem to feel will offer the best returns. Look at the rise in the etf market with more coming on board each day. Maybe they are right and I'm (we) are wrong, but I'll stick with owning individual stocks and holding for the rising income.

Besides, the total number of outstanding shares of those quality companies will not change, just who owns them. Why should all those earnings go to the those who hold large number of shares. I'd love to own just 10,000 or 20,000 shares of one bank, one comm, one utility and one pipeline. I wouldn't worry about high risk of owning just 4 companies or the lack of diversification. I'd just collect the dividends and be happy.

I've mentioned this before but my current dividend income is almost 2.5 times my annual expenses and I hold only 19 stocks.


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## My Own Advisor (Sep 24, 2012)

Dividend investing is a small game compared to indexing, I suspect.

That's fine by me. I don't want to own a bunch of gold or precious metal stocks that are part of an index.

I prefer, like cannew, to invest in things you cannot live without. Clean water. Utilities. Pipelines to put gas in your car. Now, I suppose, the internet. Hello Telcos!

These companies pay dividends and dividends is tangible cash I can use as I please to pay my bills and not touch the capital. _If I can even come close to earning half _the dividend income cannew makes from his portfolio I will be overjoyed.


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## ValMiks10 (Aug 25, 2016)

If I were you, I would not try to invest anything unless I am entirely sure. I have always been taught one rule in my life and that’s saving is like earning! If you are uncertain about investment or chance of growth then rather wait for right opportunity. I do think Forex/Stocks can be seriously good, but it comes with risk and you seem not having too much idea of it, so wouldn’t suggest it too much unless you are determined to learn.


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## willpower (Feb 18, 2015)

Alright guys...this is my updated situation:


That's pretty accurate ..here are the exact number:
-------------------------------------------------------------------------------------------------
Value of house: $160,000 (Made some recent update...)
TSFA: $35,175 Comprised of Tang TFSA: $16,240 + ZAG GIC: $9,125 + Tang bla portfolio: $9,810 
RRSP: $15,015 Comprised of ZAG GIC: $5,000 + Tang bal income: $5,090 + Tang bal portfolio: $4,925 
Cash (sav acc): $2,100
Vehicle value: $23,000 (As per Black book car website)
Total Assets: $235,290

Total Debt: $45,160 Comprised of mortgage: $29,400 + Vehicle loan: $15760

Net worth: $190,130
-------------------------------------------------------------------------------------------------

Alright...so it's been confirmed. I moving in a couple of weeks/months which mean I will sell my place. I won't be buying a new place in the next 2 years as housing is provided. This mean I will have to place my money somewhere.

As discussed before, I was planning on using Questrade and invest in a Balanced or Assertive couch potato model porfolios (Vanguard ETF). 

I was planning on taking (before the end of the year) my money out of my TFSA Tangerine portfolios and regular TFSA and moved them into my chequing account. I would then have about $30,000 to move to Questrade.

I would move about another $130,000 once my home is sold.

What do you think about this plan? Should I simply stay with Tangerine? (I feel like their MER is high).

Thanks again!


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