# Advice on current financial position



## TheArrow (Jan 13, 2014)

Hi.

I have just started to learn/trade stocks and options over the past year and with the new year beginning, I took out what I had in my TD TFSA account and am now looking to split my money up into different areas.

With 30K, I was thinking of doing this:

Put all 30K into a TFSA --> 10K into TFSA Questrade (To trade), 10K into TD Waterhouse (To invest in e-series) and 10K into People's Trust 3% TFSA

OR

Should I commit more to investing/trading if I have a bigger risk tolerance? (21 years of age)

Anyone advice, suggestions or your thoughts? Thanks!


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## Spudd (Oct 11, 2011)

What are your goals for this money? Do you want to spend it on a house/car in the next few years, or is it purely for retirement?


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## Zoombie (Jan 10, 2012)

If you took the money out in 2014, you may not have the contribution room until 2015 to recommit funds into TFSA's. 
I am not sure what your background is, but I would recommend reading and learning a lot about investing before you get started.


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## TheArrow (Jan 13, 2014)

I am aware of that. That is why I took it out before 2013 ended...

Goals just to save money for at least 5 years, won't be using it


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## Ponderling (Mar 1, 2013)

Life tends to get more complicated as you move into relationships, kids, house, etc.

I was glad I saved and held on to most of the investment savings from my 20's, because for a few years when kids were small mid to late 30's there was nothing to spare to invest when mom was at home and we had just bought our house. During that time all I had was the majic of compoinding modest gains on what I had built in my 20's. 

Stick to good capital gains moves in the TFSA, and once thet is full and you start working to build contribution room, money to RRSP's too.

Making money from investments takes time. I know from looking back at me in my 20's I could never have imaginged beliving that back then, but it is true. 

I have had some periods where making good returns on my invested money was like shooting fish in a barrel.
On the other hand there have been other times where prudent investments sat still for a few years in valuation, and some of the more diversified higher fliers got hammered down, and never got back to near where I bought in.

So think back to nursery rhymes. The turtle and the hare both should have room to live in your portfolio.


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## Jagas (Feb 11, 2013)

Zoombie said:


> If you took the money out in 2014, you may not have the contribution room until 2015 to recommit funds into TFSA's.


This is the first thing that came to mind for me also. If you withdrew the funds in 2013 you are good to go but if you literally did not withdraw until 2014 you will only have room of $5.5K until 2015 rolls around, assuming you have not made any deposits to a TFSA in 2014 yet.

At your age, knowing what I know now and with all the personal preferences that go along with that, I would be inclined to set up a couch potato portfolio using just one brokerage and weighted fairly heavily towards equities. This will depend dramatically on your intended uses for those funds of course, etc, etc, etc.

Good job accumulating $30K by age 22!


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## MasterCard (Aug 2, 2013)

For someone new to investing are you sure you want to play around with $30k?
Or perhaps $30k is play-money for you lol...


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## tygrus (Mar 13, 2012)

Just some advice. The 10,000 for trading will be eaten up by trading fees. To trade, you need 6 figures to make it worth your while. Rest is being eaten up by inflation.

My advice, find a good low cost ETF that gets 5%, put it all in and DRIP and forget it.


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## Zeeshanbmerchant (Jan 4, 2014)

Well most smaller investors will always lose money while trading, from me, its a surefire loss game. 

You should buy property.


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## the-royal-mail (Dec 11, 2009)

^ I disagree with the above. This is a terrible time to buy property, though I'm sure the RE, legal and govt industries would love it if you did that.

I would also caution you to be careful with questrade as they have had problems in the past. Google for problems with them and break out the popcorn.

Personally, I wouldn't split up $30,000 among 3 different banks. If you have money in one place now, try to get the best cashable GIC or HISA rate and leave a portion of it there, moving the rest to a good quality bank brokerage. And take the time to learn about investing before doing too much. CMF is a good place to hang out, lurk, read, see what other people are doing etc. No rush.


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## Oldroe (Sep 18, 2009)

I think 10k or a little bit less is a good training amount.

Get some skin in the game. Do your best on cost but still buy like 3 stocks, etf, even mutauls.

Now get studying and keep studying until you fined out if you like this stuff.

Most here haven't live threw a market correction that's when you really fine out how much you like making easy money.


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## Compounding1 (May 13, 2012)

If you're going with Questrade, you might as well skip TD anyway since Questrade offers free ETF's and you can buy index ETF's from them for free and they'll have lower MER's.


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## Eclectic12 (Oct 20, 2010)

MasterCard said:


> For someone new to investing are you sure you want to play around with $30k?
> Or perhaps $30k is play-money for you lol...


The way I read it ... the $30K is $10K in a HISA (low risk), $10K in eSeries (likely medium risk) and $10K in Questrade (high risk).

It's far better than jumping into picking 100% on one's own.


Cheers


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## Eclectic12 (Oct 20, 2010)

Oldroe said:


> I think 10k or a little bit less is a good training amount.
> 
> Get some skin in the game. Do your best on cost but still buy like 3 stocks, etf, even mutauls.
> 
> Now get studying and keep studying until you fined out if you like this stuff ...


I'd say do as much learning as possible first, use a high quality, blue chip stock to get used to the buy process & interface and if one really wants the large amount of cash available at a moment's notice, see if the brokerage offers a HISA MF as some brokers will consider the same as cash when placing orders.

http://www.canadiancapitalist.com/high-interest-savings-accounts-at-discount-brokers/


Then too, if it is a taxable brokerage account - there's usually three days from the buy until the money is required at settlement. So there might be an option to leave the money in a HISA savings account and then get it over to the brokerage as a cheque in time.


Cheers


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## TheArrow (Jan 13, 2014)

Where do you guys keep the rest of your allocations? If you have maxed your TFSA already and don't use RRSP? Do you just dump it into a high interest savings or GICs? Or open a margin/cash account for more stocks etfs mutual funds?


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## the-royal-mail (Dec 11, 2009)

I use my TFSA and RRSP for investments and keep the remainder in cash HISA. RRSP is not maxed out either, because I don't want the hassle and expense of trying to get the money out of there in case of emergency. HISA holds my tiers 1 and 2 funds.


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## TheArrow (Jan 13, 2014)

the-royal-mail said:


> I use my TFSA and RRSP for investments and keep the remainder in cash HISA. RRSP is not maxed out either, because I don't want the hassle and expense of trying to get the money out of there in case of emergency. HISA holds my tiers 1 and 2 funds.


Regular big five banking?


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## Butters (Apr 20, 2012)

Compounding1 said:


> If you're going with Questrade, you might as well skip TD anyway since Questrade offers free ETF's and you can buy index ETF's from them for free and they'll have lower MER's.


What this guy said

10k safety in TFSA peoples trust
then you can divide whatever at Questrade (free ETFs)

Despite the few birds who like to complain
Questrade is an insanely nice and customer oriented company....


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## TheArrow (Jan 13, 2014)

SheaButters said:


> What this guy said
> 
> 10k safety in TFSA peoples trust
> then you can divide whatever at Questrade (free ETFs)
> ...



To those that split their into different institutions, is it a hassle? I like seeing my money in one place but that prob is the wrong approach...
I'm with TD currently and their HISA only gives 1%, 3% would be much nicer


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## My Own Advisor (Sep 24, 2012)

I'm like Royal....I use my TFSA and RRSP for investments, long-term and/or buy and hold for decades stuff.

The remainder is cash in a savings account, for emergencies. I'm close to maxing out RRSP, but not yet. Probably will be full in 2 years.


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