# Where would you invest $100,000



## investordude (Dec 14, 2012)

If you had an extra $100,000 to invest where would you invest? Considering your current situation and portfolio.

For me:

1) real estate? Nope - too overvalued (at least in the GTA...elsewhere would be too much work!)
2) Stocks? nope...RRSP, TFSA maxed out...non-margin? too much Canadian exposure would put my portfolio at risk so no.
3) keeping in a savings account earning 1% - nope, too boring.
4) Pay down the mortgage? well not for me... don't own a home... I rent.


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## Edgar (Mar 24, 2014)

Is "All of it on black" considered investing?


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## heyjude (May 16, 2009)

I have some rental properties with mortgage interest at ~4%. While that interest is tax deductible, paying off those mortgages would free up cash flow years ahead of schedule and would be the most predictably safe win for an unexpected windfall. Everyone's situation is different.


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## Mortgage u/w (Feb 6, 2014)

Given your criterias, you choices are very limited.

That being said, maybe consider buying vacant land or lend your money out - find someone who needs a short-term $100k mortgage. The interest rates for private mortgages are usually in the 10%-15% range, terms of 6 to 18 months and all fees for lien registration paid by the debitor.

Other than that, hide it under your matress and hope no one finds it!


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## avrex (Nov 14, 2010)

investordude said:


> 2) Stocks? non-margin? too much Canadian exposure would put my portfolio at risk so no.


But, it doesn't have to be this way. Consider all of your accounts as one-portfolio. For example,

*Registered accounts* (RRSP/TFSA) - Fixed income, International equity
*Non-registered accounts *- Canadian equity


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## investordude (Dec 14, 2012)

avrex said:


> But, it doesn't have to be this way. Consider all of your accounts as one-portfolio. For example,
> 
> *Registered accounts* (RRSP/TFSA) - Fixed income, International equity
> *Non-registered accounts *- Canadian equity


That's how I have it setup. I have no contribution room left in my registered accounts and have a good amount of Canadian equity in my non-registered...100k in a non-registered invested in Canadian equity would throw off my target allocation.


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## HaroldCrump (Jun 10, 2009)

You have basically already written off all your options.
Sounds like a trip to Vegas is on the cards (pardon the pun)


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## Just a Guy (Mar 27, 2012)

Sounds like you want free money for doing nothing...sorry, life doesn't work like that.

Real estate is overpriced...generally. You never know when a deal may come up, but you'll certainly miss one if you never start looking.

Stocks, also high, but there are some deals out there as well...if you're worried about Canadian exposure, buy other markets. You can get your broker to buy and trade on most major markets if you ask...or buy ETFs that hold other markets.

Don't like savings accounts at 1%, look at higher interest accounts, or GICs...or buy a dividend, conservative stock like a Canadian bank (around 4.5% dividend plus capital gains).

You could also become and angel investor, start a business, or a myriad of other things...if you put your mind to finding ideas instead of excuses.

I've always found investing to be work, well paid work, but still work.


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## MoreMiles (Apr 20, 2011)

Just a Guy said:


> Sounds like you want free money for doing nothing...sorry, life doesn't work like that.
> 
> Real estate is overpriced...generally. You never know when a deal may come up, but you'll certainly miss one if you never start looking.
> 
> ...


I am amazed again and again seeing how everyone believes our Canadian banks are conservative and solid.... Every time a newbie wants to invest, someone will yell out "buy Canadian banks"! The fact is, Citibank was also rock solid and one of largest banks in the world, yet its stocks went into gutter in a market crash. People say... oh, those are American banks and it won't happen in Canada! Really? With our real estate prices at sky high levels and massive mortgages taken out at rock-bottom rate, it is guaranteed that our banks will not run into bad debt? You have to remember that our banks also join the capital markets in the world with derivative product trading, so why are they really immune from the rest of the world? Why will they not be affected by a rising interest rate and mortgagee foreclosures?

If you have to depend your retirement on bank stocks, it is not safe enough in my opinion. There is no doubt that our banks are solid but they are not immune from disaster.


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## Lephturn (Aug 31, 2009)

MoreMiles said:


> I am amazed again and again seeing how everyone believes our Canadian banks are conservative and solid.... Every time a newbie wants to invest, someone will yell out "buy Canadian banks"! The fact is, Citibank was also rock solid and one of largest banks in the world, yet its stocks went into gutter in a market crash. People say... oh, those are American banks and it won't happen in Canada! Really? With our real estate prices at sky high levels and massive mortgages taken out at rock-bottom rate, it is guaranteed that our banks will not run into bad debt? You have to remember that our banks also join the capital markets in the world with derivative product trading, so why are they really immune from the rest of the world? Why will they not be affected by a rising interest rate and mortgagee foreclosures?
> 
> If you have to depend your retirement on bank stocks, it is not safe enough in my opinion. There is no doubt that our banks are solid but they are not immune from disaster.


While nothing is immune fro disaster and putting too much in any one security is a bad idea, the Canadian banks have been tested. Every financial institution in the world was tested in the 2008-9 financial crisis and our banks came out as some of the most stable on the planet. The Canadian market has never allowed the kind of bad loans the US was writing that triggered that whole mess. Low rates are not a problem, it's people defaulting at higher than planned rates that is problematic and our regulations have been conservative enough to prevent those kinds of abuses.

I do agree that nothing is immune from disaster and that we need to plan for it. I buy insurance on my portfolio to protect against just those sorts of disasters.


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## My Own Advisor (Sep 24, 2012)

Invest in non-registered account and if you're worried about picking the individual stocks, go with an equity indexed product.


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## Cal (Jun 17, 2009)

I would stick with my current plan. No changes.


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## Just a Guy (Mar 27, 2012)

MoreMiles said:


> I am amazed again and again seeing how everyone believes our Canadian banks are conservative and solid.... Every time a newbie wants to invest, someone will yell out "buy Canadian banks"! The fact is, Citibank was also rock solid and one of largest banks in the world, yet its stocks went into gutter in a market crash. People say... oh, those are American banks and it won't happen in Canada! Really? With our real estate prices at sky high levels and massive mortgages taken out at rock-bottom rate, it is guaranteed that our banks will not run into bad debt? You have to remember that our banks also join the capital markets in the world with derivative product trading, so why are they really immune from the rest of the world? Why will they not be affected by a rising interest rate and mortgagee foreclosures?
> 
> If you have to depend your retirement on bank stocks, it is not safe enough in my opinion. There is no doubt that our banks are solid but they are not immune from disaster.


True, they are not immune to disaster, but nothing in the world is. In the financial meltdown, their dividend weren't cut, and their stock price recovered within a year.

As someone with multiple mortgages, I think I'm well aware of how hard it is to pry money from them compared to what happened in the USA. Not to mention that CMHC backs a lot of mortgages...

So, relative to the hot stock du jour like breX, Nortel, sino-Forrest, blackberry...yes, banks are relatively immune.


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## indexxx (Oct 31, 2011)

Physical gold?


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## Retired Peasant (Apr 22, 2013)

MoreMiles said:


> I am amazed again and again seeing how everyone believes our Canadian banks are conservative and solid.... Every time a newbie wants to invest, someone will yell out "buy Canadian banks"! The fact is, Citibank was also rock solid and one of largest banks in the world, yet its stocks went into gutter in a market crash. People say... oh, those are American banks and it won't happen in Canada! Really?


I thought I read that Canadian banks were bailed out - Here it is..
http://www.huffingtonpost.ca/2012/04/30/canada-bank-bailout_n_1466219.html
and
http://www.cbc.ca/news/business/banks-got-114b-from-governments-during-recession-1.1145997


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## PoolAndRapid (Dec 3, 2013)

..


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## OhGreatGuru (May 24, 2009)

BS. The government didn't bail the banks out. They bailed out the economy. The insured mortages held by the banks were never in danger of failing (on any noticeable scale.) Nor were the banks in danger of failing. But because of the US & international financial crisis, the banks could not borrow funds *for new lending purposes*(either business or real estate) in the usual fashion by either borrowing against the security of their mortgages or by re-selling their mortgages to US & international lenders. The people who got "bailed out" were all the businesses that rely on bank loans; all the people who needed mortgages to buy new houses; and the housing construction industry. The alternative was for the banks to tell prospective borrowers " sorry, no money to lend" and watch the economy tank.


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## Eder (Feb 16, 2011)

I'm glad that others have figured out the alleged Canadian bank bailout conspiracy...I have gotten lock jaw over the years explaining to deaf ears


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## Longwinston (Oct 20, 2013)

OhGreatGuru said:


> BS. The government didn't bail the banks out. They bailed out the economy. The insured mortages held by the banks were never in danger of failing (on any noticeable scale.) Nor were the banks in danger of failing. But because of the US & international financial crisis, the banks could not borrow funds *for new lending purposes*(either business or real estate) in the usual fashion by either borrowing against the security of their mortgages or by re-selling their mortgages to US & international lenders. The people who got "bailed out" were all the businesses that rely on bank loans; all the people who needed mortgages to buy new houses; and the housing construction industry. The alternative was for the banks to tell prospective borrowers " sorry, no money to lend" and watch the economy tank.


Exactly. Thank you for saving me the keystrokes.


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## investordude (Dec 14, 2012)

My Own Advisor said:


> Invest in non-registered account and if you're worried about picking the individual stocks, go with an equity indexed product.


nope...Don't want too much Canadian exposure. I could invest in other markets but its not tax efficient. 

Some good points about Canadian banks. I for one think that the Canadian economy will be in serious trouble once the easy access to credit is over. It is the only reason our economy is hanging by a thread... money from gov and banks into construction and real estate is only a band-aid solution. Hence why I'm reducing my exposure to Canadian markets.


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## gibor365 (Apr 1, 2011)

indexxx said:


> Physical gold?


Nah...buy Vodka  40% return guarantee....

btw, ING gives 2.5% on HISA new $$ now ... move all my available cash to ING (after what was left from Russian Standard )


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## Addy (Mar 12, 2010)

gibor said:


> Nah...buy Vodka  40% return guarantee....
> 
> btw, ING gives 2.5% on HISA new $$ now ... move all my available cash to ING (after what was left from Russian Standard )


I just did the same thing, 2.5% is not bad in todays world. PC apparently also offers this and has renewed it several times. Hopefully Tangerine will renew as well in an attempt to brand their new name.


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## gibor365 (Apr 1, 2011)

Addy said:


> I just did the same thing, 2.5% is not bad in todays world. PC apparently also offers this and has renewed it several times. Hopefully Tangerine will renew as well in an attempt to brand their new name.


ING was doing such promotions every year or two....now hopefully Tangerine will do the same.... 
just moved about 100K ours and 50K my moms from Peoples Trust to Tangerine until end of June... than back to Peoples Trust until new Tangerine promotion.....btw, also buying every month-two 1 year GIC in PT, 2.2% for 1 year also not too bad ... at least we beat inflation


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## rikk (May 28, 2012)

investordude said:


> If you had an extra $100,000 to invest where would you invest? Considering your current situation and portfolio.
> 
> For me:
> 
> ...


I've invested that much in myself including time lost while not working ... that was some time ago ... my return on investment, priceless. Convinced my son to do the same, invest in himself, made $90K this year past his first year and he is having an excellent time, return on investment ... priceless. And there's a lot more to it than just the money ...


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## gibor365 (Apr 1, 2011)

_return on investment ... priceless_ return on investment cannot be ....priceless!!! ROC has exact price


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## rikk (May 28, 2012)

gibor said:


> _return on investment ... priceless_ return on investment cannot be ....priceless!!! ROC has exact price


Getting off topic here ... so what price would you put on a challenging, rewarding career that I enjoyed for over 30 years and would not have traded for all the tea in China eaceful:

Okokok ... just suggesting to OP, perhaps consider investing some of that $100K in yourself ... health, education, travel, ... priceless :encouragement:


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## AMABILE (Apr 3, 2009)

I'm transferring $100k to my BMO Investorline acct,
buying a 1yr GIC with Home Trust (third party gic ) paying 1.85% 
and BMO is kicking in a $250.00 bonus.


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## liquidfinance (Jan 28, 2011)

gibor said:


> ING was doing such promotions every year or two....now hopefully Tangerine will do the same....
> just moved about 100K ours and 50K my moms from Peoples Trust to Tangerine until end of June... than back to Peoples Trust until new Tangerine promotion.....btw, also buying every month-two 1 year GIC in PT, 2.2% for 1 year also not too bad ... at least we beat inflation


Oaken are currently paying 3.05% on the 5 year.


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