# Where to invest $15,000



## josh1979 (Aug 4, 2009)

Some background:

- No debt, no mortgage
- max'd out on RRSP and TFSA

I'm looking to start a non-registered investment account with my online broker and would like to invest about $15,000. I'm looking for moderate risk / moderate gain. I'd be investing for two or three years minimum (likely longer term). I'm leaning away from GICs and more toward ETFs.

Any suggestions would be great.


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## moneygardener (Apr 3, 2009)

Your time horizon is too short for any equity exposure. If you want to buy ETFs, I would stick with bond ETFs. If you are sure that your time horizon for the money will be longer than 5 years, I would include equity exposure, but still a moderate amount (10-40%).


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## CanadianCapitalist (Mar 31, 2009)

I'd personally put short-term investments in GICs or Bonds maturing when I need the cash. Even bond funds are risky over short time periods.


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## el oro (Jun 16, 2009)

Gold is still a steal here. Gold bullion/coins for low risk/moderate reward especially for your time frame. And you don't have to worry about taxes!

If you insist on putting money in an unregistered account or don't like gold because it doesn't generate income then buy a large cap gold stock and keep writing covered calls on it every month.


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## yyzvoyageur (Apr 10, 2009)

$1600 Gold by 2011 said:


> Gold is still a steal here.


Isn't gold at an all-time high?


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## el oro (Jun 16, 2009)

yyzvoyageur said:


> Isn't gold at an all-time high?


Nominally, maybe. Gold will continue to rise on the back of the falling USD.


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## CanadianCapitalist (Mar 31, 2009)

$1600 Gold by 2011 said:


> Gold is still a steal here. Gold bullion/coins for low risk/moderate reward especially for your time frame. And you don't have to worry about taxes!
> 
> If you insist on putting money in an unregistered account or don't like gold because it doesn't generate income then buy a large cap gold stock and keep writing covered calls on it every month.


I have to disagree strongly with this suggestion. Money you'll need to access over the short term belongs in the safest possible instruments such as GICs or Government bonds with matching maturities. It doesn't belong in extremely volatile asset classes where you run a significant risk of a capital loss.


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## furgy (Apr 20, 2009)

Moderate risk/gain ?

I'll echo the above opinions and say that gold is not a good investment , unless your stocking up on guns , ammunition and canned goods in your underground bunker.

GIC's and gov. bonds are low risk and low gain.

Well managed REIT's , they will give you a much better return than GIC's or Government bonds and are still very liquid when you need out.

Just do your due dilligence , IMO , REIT prices wont go lower than they have already , you will be paid well to own them and still have a good shot at capital gain.


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## thedividendguy (Jul 31, 2009)

To keep things simple, you could look at ING Direct. 

To be in equities you need to be committed to long term, and if things tank (think 2008) then you may all of a sudden become a very long-term investor!


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## Rickson9 (Apr 9, 2009)

josh1979 said:


> Some background:
> 
> - No debt, no mortgage
> - max'd out on RRSP and TFSA
> ...


You should invest where you have an advantage. If you are knowledgeable in bonds then you invest in bonds. If you are knowledgeable in stocks, then you invest in stocks. If you don't have any advantage then you should invest in a low-fee index or GIC. Since your time horizon is 2-3 years, then I would suggest a GIC.


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## humble_pie (Jun 7, 2009)

but i'd have to disagree, exceptionally, and only in this instance, with the Canadian Capitalist. This subject doesn't say he's investing for the short term; on the contrary he says that he's searching for moderate risk for a minimum two or three year period that could easily morph into "likely longer term." He gives a strong impression that there are no short-term or mid-term dates by which he'll need to withdraw his funds.

a large solid ETF with significant option volume - there are very few in canada - will offer a way to beat the performance of the underlying index by holding units and selling calls against them. The fund doesn't have to be a gold fund, although with 15K to invest, a gold fund could form perhaps 12-15% of the total portfolio.

a newcomer to options trading might begin by selling a high out-of-the-money call to lessen chances of assignment. Although the return will be less, the real return from such a discipline will be the learning experience.


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## sprocket1200 (Aug 21, 2009)

wouldn't this be yet another great case for diversification?

do a little bit of all those.


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