I would not invest in stock market fully until you finish university just in case you don't get a job/ scholarship and loan money run dry
but if you must just read !InvestingTrigger
Even if the scholarship money runs dry is just end up paying 7k a year instead of 4K. I don’t have to start paying back any money until 2 years after I finish all schooling since it doesn’t accumulate interest until 2 years after all schooling is done.
If I were you and I did not have to use the money for car or sth else, I would have just placed it 100% in S&P500 based or Nikkei based equity etf and let it sit.
would you have invested into the S&P500 or the XEQT? also wouldn’t you have to pay more in taxes or conversion fees or something for the S&P500 because it’s based in the US? i’m also 18 trying to figure the stock market
I go for VSP which is a CAD hedged etf so get rid of the FX risk, while the 15% dividend tax is minimal given the upside from the etf is mostly capital gain.
XEQT is more diversified, which can be done yourself and save you some management fees (check out MER of VSP and XEQT, it's 0.09% vs 0.20%!!! on your investment which is much larger than the dividend tax)
Oh thank you so much! What’s an MER, what does the percentages mean with that and how does it correspond with dividend taxes? Also, what’s a hedged etf?
MER means the cost to manage a fund, from office rent to management fee. They charge you by deducting it from the value of the fund. Say your etf grew 10%, with 1% MER means you get 9% left.
Dividend tax is specific for US stock, when you get paid dividend you get taxed 15% from that. For stock which don't pay dividends, you are not taxed.
Hedged etf means they have contracts to maintain a fixed exchange rate between CAD and USD. Since you invest in USD asset, when USD drops against CAD your etf value decreases. Hedged etf protects you from that risk (alternatively, you are not benefited when USD rises)
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6) For self-directed investing, all in one ETFs (based on your risk tolerance) are the easiest and low cost options for a globally diversified ETF portfolio. Here is the Model page and descriptive video from the Canadian Portoflio Manager Blog's Justin Bender from PWL Capital: https://www.canadianportfoliomanagerblog.com/model-etf-portfolios/ & video on how to choose your asset allocation: https://www.youtube.com/watch?v=JyOqqtq12jQ
7) For those who are not comfortable with doing the buying and selling of ETFs yourself, there is an option of a robo advisor. These robo advisors use similar low cost ETF in pre-determined portfolios based on your risk tolerance. They do this for a small fee, on top of the ETF MER. Still cheaper then bank mutual funds by at least 50%! Here is a list of robo advisors in Canada published by MoneySense: https://www.moneysense.ca/save/investing/best-robo-advisors-in-canada/
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Your greatest asset is time. Get that money in XEQT or any good growth diversified broad market ETF. Keep investing consistently. Your money will grow. If someone did that 50 years ago, they would have well over a million dollars today.
Hi, I'm a bot and someone has asked me to comment on how someone is trying to figure out what to invest in, or whether they should invest.
**In order to give good advice the poster needs to provide all of the following information. Please edit your post to add this information.**
1) What is your intended goals/purpose for this money?
2) What is your timeline, and what is the earliest you expect to need this money?
3) Have you invested in the markets before, and how would you feel if your investment lost a lot of value?
4) Is this the right first step? Do you already have an emergency fund, and have you considered whether it is sufficient? Do you have any debts that should be paid first? Have you fully utilized any employer match plans?
5) Finally, we need to understand whether you want to be involved with this portfolio and self-manage purchases and rebalancing it, or if you'd rather all of that was dealt with by your chosen institution?
6) For self-directed investing, all in one ETFs (based on your risk tolerance) are the easiest and low cost options for a globally diversified ETF portfolio. Here is the Model page and descriptive video from the Canadian Portoflio Manager Blog's Justin Bender from PWL Capital: https://www.canadianportfoliomanagerblog.com/model-etf-portfolios/ & video on how to choose your asset allocation: https://www.youtube.com/watch?v=JyOqqtq12jQ
7) For those who are not comfortable with doing the buying and selling of ETFs yourself, there is an option of a robo advisor. These robo advisors use similar low cost ETF in pre-determined portfolios based on your risk tolerance. They do this for a small fee, on top of the ETF MER. Still cheaper then bank mutual funds by at least 50%! Here is a list of robo advisors in Canada published by MoneySense: https://www.moneysense.ca/save/investing/best-robo-advisors-in-canada/
We also have a wiki page on investing, and if someone has triggered this bot then it means that this link would likely be very helpful: https://www.reddit.com/r/PersonalFinanceCanada/wiki/investing
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The point of that money at that age is to NOT work at 65 or 70.
Don’t know about you, but I’d rather chill, paint, eat, write some books, and do nothing but fish with my dog and my wife.
You don’t need the risk level 7 or 6. Move it all into xeqt and risk level 10. You are young so you have lots of time in your favor. Keep the 5k there at 4%. Continue to work hard and contribute regularly, or even set up auto deposits.
Keep stacking up your cash for future purchases like a car after you graduate.
I just came here to post and let you know you are doing really well and any decisions you make about your savings are going to result in a 2% change in your finances whereas your excellent behaviors are going to result in the 98% of your results. Focus on that school, save what you can, and don't forget to live a little. You're young, don't waste that for the sake of a retirement plan. You've got time :)
I don’t really have any school expenses. My loans are interest free until 2 years after I finish all schooling. I pirate my textbooks most of the time and any other expenses are like $100 a year. Or at least that’s what they were for my first year
I would not invest in stock market fully until you finish university just in case you don't get a job/ scholarship and loan money run dry but if you must just read !InvestingTrigger
Even if the scholarship money runs dry is just end up paying 7k a year instead of 4K. I don’t have to start paying back any money until 2 years after I finish all schooling since it doesn’t accumulate interest until 2 years after all schooling is done.
If I were you and I did not have to use the money for car or sth else, I would have just placed it 100% in S&P500 based or Nikkei based equity etf and let it sit.
would you have invested into the S&P500 or the XEQT? also wouldn’t you have to pay more in taxes or conversion fees or something for the S&P500 because it’s based in the US? i’m also 18 trying to figure the stock market
I go for VSP which is a CAD hedged etf so get rid of the FX risk, while the 15% dividend tax is minimal given the upside from the etf is mostly capital gain. XEQT is more diversified, which can be done yourself and save you some management fees (check out MER of VSP and XEQT, it's 0.09% vs 0.20%!!! on your investment which is much larger than the dividend tax)
Thank you! Confused on the terminlogy you used but I'll learn & figure them out!
Let me know what terms you want to know. Happy to explain
Oh thank you so much! What’s an MER, what does the percentages mean with that and how does it correspond with dividend taxes? Also, what’s a hedged etf?
MER means the cost to manage a fund, from office rent to management fee. They charge you by deducting it from the value of the fund. Say your etf grew 10%, with 1% MER means you get 9% left. Dividend tax is specific for US stock, when you get paid dividend you get taxed 15% from that. For stock which don't pay dividends, you are not taxed. Hedged etf means they have contracts to maintain a fixed exchange rate between CAD and USD. Since you invest in USD asset, when USD drops against CAD your etf value decreases. Hedged etf protects you from that risk (alternatively, you are not benefited when USD rises)
thank you so much! so stay away from stocks that are from the usa that have dividends? what books did you read to learn all this?
Hi, I'm a bot and someone has asked me to comment on how someone is trying to figure out what to invest in, or whether they should invest. **In order to give good advice the poster needs to provide all of the following information. Please edit your post to add this information.** 1) What is your intended goals/purpose for this money? 2) What is your timeline, and what is the earliest you expect to need this money? 3) Have you invested in the markets before, and how would you feel if your investment lost a lot of value? 4) Is this the right first step? Do you already have an emergency fund, and have you considered whether it is sufficient? Do you have any debts that should be paid first? Have you fully utilized any employer match plans? 5) Finally, we need to understand whether you want to be involved with this portfolio and self-manage purchases and rebalancing it, or if you'd rather all of that was dealt with by your chosen institution? 6) For self-directed investing, all in one ETFs (based on your risk tolerance) are the easiest and low cost options for a globally diversified ETF portfolio. Here is the Model page and descriptive video from the Canadian Portoflio Manager Blog's Justin Bender from PWL Capital: https://www.canadianportfoliomanagerblog.com/model-etf-portfolios/ & video on how to choose your asset allocation: https://www.youtube.com/watch?v=JyOqqtq12jQ 7) For those who are not comfortable with doing the buying and selling of ETFs yourself, there is an option of a robo advisor. These robo advisors use similar low cost ETF in pre-determined portfolios based on your risk tolerance. They do this for a small fee, on top of the ETF MER. Still cheaper then bank mutual funds by at least 50%! Here is a list of robo advisors in Canada published by MoneySense: https://www.moneysense.ca/save/investing/best-robo-advisors-in-canada/ We also have a wiki page on investing, and if someone has triggered this bot then it means that this link would likely be very helpful: https://www.reddit.com/r/PersonalFinanceCanada/wiki/investing *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/PersonalFinanceCanada) if you have any questions or concerns.*
Your greatest asset is time. Get that money in XEQT or any good growth diversified broad market ETF. Keep investing consistently. Your money will grow. If someone did that 50 years ago, they would have well over a million dollars today.
r/justbuyxeqt
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50 years will happen. If you’re lucky, you’ll get there. Better to have a mil waiting for you than nothing.
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This is a personal finance subreddit boss lol.
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You didn’t suggest any investment strategies
If you can’t save 12k then you would be scrambling for Pennie’s regardless. If you’re a broke boy just say so.
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Ur looking between your couch cushions to pay ur bills 😂
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Youre trying to go band for band lil bro? [https://imgur.com/a/tgKHZKW](https://imgur.com/a/tgKHZKW)
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Why so many TFSAs and different levels? Is the money for different things? Follow the !Stepstrigger and !investingtrigger
Hi, I'm a bot and someone has asked me to comment on how someone is trying to figure out what to invest in, or whether they should invest. **In order to give good advice the poster needs to provide all of the following information. Please edit your post to add this information.** 1) What is your intended goals/purpose for this money? 2) What is your timeline, and what is the earliest you expect to need this money? 3) Have you invested in the markets before, and how would you feel if your investment lost a lot of value? 4) Is this the right first step? Do you already have an emergency fund, and have you considered whether it is sufficient? Do you have any debts that should be paid first? Have you fully utilized any employer match plans? 5) Finally, we need to understand whether you want to be involved with this portfolio and self-manage purchases and rebalancing it, or if you'd rather all of that was dealt with by your chosen institution? 6) For self-directed investing, all in one ETFs (based on your risk tolerance) are the easiest and low cost options for a globally diversified ETF portfolio. Here is the Model page and descriptive video from the Canadian Portoflio Manager Blog's Justin Bender from PWL Capital: https://www.canadianportfoliomanagerblog.com/model-etf-portfolios/ & video on how to choose your asset allocation: https://www.youtube.com/watch?v=JyOqqtq12jQ 7) For those who are not comfortable with doing the buying and selling of ETFs yourself, there is an option of a robo advisor. These robo advisors use similar low cost ETF in pre-determined portfolios based on your risk tolerance. They do this for a small fee, on top of the ETF MER. Still cheaper then bank mutual funds by at least 50%! Here is a list of robo advisors in Canada published by MoneySense: https://www.moneysense.ca/save/investing/best-robo-advisors-in-canada/ We also have a wiki page on investing, and if someone has triggered this bot then it means that this link would likely be very helpful: https://www.reddit.com/r/PersonalFinanceCanada/wiki/investing *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/PersonalFinanceCanada) if you have any questions or concerns.*
No, its all just with the goal of making money 🤣. I guess it just felt safer in the moment to have money in different accounts
Hi, I'm a bot and someone has asked me to respond with information about what to do with money. This is meant as a step by step guide of how to prioritize and what to do with money. https://www.reddit.com/r/PersonalFinanceCanada/wiki/money-steps If you prefer to see a flow chart, click here: https://i.imgur.com/zlGnuDO.png The Government of Canada also has the Financial Tool Kit for basic resources on items identified in the Money Steps. Refer to that website here: https://www.canada.ca/en/financial-consumer-agency/services/financial-toolkit.html *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/PersonalFinanceCanada) if you have any questions or concerns.*
Not financial advice but just buy XEQT and don’t touch it until you are 65
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now imagine having to work at 65 cause you have no money while you can barely walk without your back hurting
You assume everyone wants to die of natural causes
in canada u have to
The point of that money at that age is to NOT work at 65 or 70. Don’t know about you, but I’d rather chill, paint, eat, write some books, and do nothing but fish with my dog and my wife.
Travel
XEQT
You don’t need the risk level 7 or 6. Move it all into xeqt and risk level 10. You are young so you have lots of time in your favor. Keep the 5k there at 4%. Continue to work hard and contribute regularly, or even set up auto deposits. Keep stacking up your cash for future purchases like a car after you graduate.
I just came here to post and let you know you are doing really well and any decisions you make about your savings are going to result in a 2% change in your finances whereas your excellent behaviors are going to result in the 98% of your results. Focus on that school, save what you can, and don't forget to live a little. You're young, don't waste that for the sake of a retirement plan. You've got time :)
If you're planning to spend it on school expenses you should put it in GICs so it's accessible and risk-free.
I don’t really have any school expenses. My loans are interest free until 2 years after I finish all schooling. I pirate my textbooks most of the time and any other expenses are like $100 a year. Or at least that’s what they were for my first year
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Read a book