O Canada! > Canadian > Canadian Chat > [Serious] Fell into some money

[Serious] Fell into some money

Get a safety deposit box, and buy a few thousand ounces of silver, wait ten years and profit!

Silver is at a 55:1 ratio to gold, which is cheaaaaaaap. So you can't loose. (maybe)

reply to Keepinitpriv
Well if you want get risky and play the mutual fund markets or stocks.

If you want to be safe as interest rates suck everywhere right now as well as gic's etc.. go with one of the higher interest rates saving acct. at a bank. I know its not much but at least your not locking your money in.

Currently I use Manulife's online only advantage savings which is at 1.65% 75k would give you approx. $80-90 in interest each month.

reply to Keepinitpriv
If you want to play it safe with savings/GIC's... go with a bank in Manitoba.

Achieva currently has savings at 2%, and 5 year GIC at %2.85... that's way better than any big bank will ever offer you.

reply to Keepinitpriv
Of course the bank people are going to offer something that makes them money. In fact, that is all anyone is going to offer you.

You could split it, though it is not that much money, into several things. Max out your RSP for this year and previous years. Whatever is left you could then do your own investing, pick a discount brokerage like e-trade and go do some of your own research. I think retirement planning is the best option for this small amount.

Overall, this is NOT a lot of money. Do not think of it as being much and it will be easier to decide what to do with it. My father in law is a stock broker and he would not consider taking you on, you do not have enough to invest. Most of the experienced good guys are going to be the same.
--
The irony of common sense, it is not that common.
I cannot deny anything I did not say.
A kitten dies every time someone uses "then" and "than" incorrectly.
I mock people who give their children odd spelling of names.

reply to Keepinitpriv
I'm not going to give financial advice nor do I think I'm qualified, but you are absolutely correct about commission-hungry "financial planners." Just as some thoughts, an amount like $80K could all be put into a conservative mixed fund with low management fees, or, if you're willing to ride out the ups and downs of the stock market, an index fund which has almost no management fees at all.

reply to Keepinitpriv
Live life on the edge... buy stock in RIM.

I bought at 8 bucks....

reply to Keepinitpriv

reply to Keepinitpriv
Sorry to hear about your loss

As for the money... spend a little.. save the rest (I think RBC has a bullion fund that is pretty good

»www.bmginc.ca/benefits_of_bmg_funds.html

--
"The hardest thing about any political campaign is how to win without proving that you are unworthy of winning." ~ Adlai E. Stevenson

RRSP, TFSA.

As for the mutual funds:
Regulators eye crackdown on soaring mutual fund fees
»www.theglobeandmail.com/globe-in···6328913/
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Battle.net Tech Support MVP

reply to Keepinitpriv
Myself.....I would buy 400 shares each of Royal Bank, Scotiabank and Bank of Montreal.

They should bring you just over $3000/year in dividends.

You could also drop one of those 3 banks and buy 200 shares of
either TD or CIBC shares hoping they will split soon.

FaxCap

reply to Keepinitpriv
NO pay off your debts, as Ms Lurker put it, see if you can make payments against your mortgage, trust me, you'll be debt free and much happier, then some others here who listen to "financial advisers' are up to their earballs in debt.

All the revolving debt is payed in full, all that's left is household expenses and our average monthly bills for insurance, vehicles, dining and entertainment.

Mortgage is over 150K left in principal, well before this win fall we've been adding $400 to our payments, no plans to stop that anytime soon.

Right now the money is split in a GIC, and both we and my wife have 20k in TFSA'S just so we are minimizing paying any taxes.

reply to elwoodblues

I thought you were going to chime in here to recommend grand larceny as a financial strategy! BTW, is the arrest warrant out yet?

reply to Keepinitpriv
It seems like you're onto them already as to the fact that the "financial planners" you're talking to most likely are just salespeople. Find a fee only financial planner and/or look into DIY index/ETF investing. There's plenty of free information on the web or spend some free days at the library in the finance/investing section. Lots of great books on the subject with varying strategies.

Though as others have mentioned, you can't go wrong with paying off debts. It's basically a guaranteed return.

The route I went: paid off mortgage and went head first DIY.

reply to BigSensFan

reply to Keepinitpriv
Assuming you don't want to dip into the money of other things, split the money into $10k chunks or so. Buy round lots (multiples of 100 shares) of
- a utility company
- a bank common stock
- another bank preferred stock
- consumer non-durables company (most likely US - like Proctor & Gamble - people brush their teeth even in a recession)
- maybe a food company
- maybe a REIT
- some others which have relatively low P/E's, good earnings growth, decent dividend growth

Where possible take advantage of dividend reinvestment plans, if you're not needing the cash dividend.

reply to Keepinitpriv

Up or down, who knows

reply to Keepinitpriv

Real return bonds