sc800
Active VIP Member
Just have your advisor sell off and put funds into a Canadian money market fund. I'm not telling you to do this but that would be your best option or just into a savings account inside your RSP.
Stocks to watch
- Thread starter broke'n'nuts
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deaner
Active VIP Member
I've been thinking the same thing but keep second guessing myself. Lucked out and got in right near the bottom so am up around 45% on the stuff I invested in this fall (index funds.....s and p, oil and gas). Gut feeling is to cash out, but thinking the way captain retard in Ottawa is spending and printing money, that sitting on cash isn't the best idea
ABMax24
Active VIP Member
That guy would have to sell those mutual funds before the correction, and then hold the money in the RRSP account as cash until the market drops and then buy back in. Assuming there is a correction coming, which a lot of indicators are pointing towards, but no one really knows this for certain.
Now there may be stipulations on that account about when or how fast the mutual funds can be sold. Mine cleared in 2 days, I have had it take up to 3 weeks, so that can factor in as well. If it's an employer managed fund there may also be additional rules about if those mutual funds can be sold before retirement. Mutual funds aren't designed to be traded frequently, and are treated as long term investments, and many funds have rules or even penalties on how frequently they can be traded. Some restrict selling the funds within 30, 60 or even 90 days after purchase, also something to be aware of.
My goal was simple, buy low and sell high. I've now sold high (I think) with the intent of buying into something at a later date at a lower price. At this point I don't intend to purchase more mutual funds, I will move my RRSP to an RRSP account at Qtrade and develop my own portfolio. It's higher risk, but I believe I have a probable chance of higher returns.
In theory the best person to talk to is the advisor on that account. The reality is though many of these advisors also make a commission based on how much money is in the accounts they manage, so it's in the advisors best interest to advise you to keep your money in the mutual funds. I was persuaded 3 different ways not to sell my mutual funds, I can see why many are convinced to keep their money in these funds, so keep this is mind when discussing with an advisor.
But I'm not an expert on the topic by any means, many on this forum are far more knowledgeable than I am, and may have more to add.
ABMax24
Active VIP Member
I've thought about that as well, but with the huge amount of debt Canadians are carrying would the interest rate increases following inflation not cause a huge rise in defaults on debt? And high enough interest rates, and therefore default rates, cause another collapse of the financial sector?
The Bank of Canada aims to set inflation at between 1% and 3%, and it seems they have done a reasonable job at attaining this goal this since 1992. This target also seems to be inline with many other developed nations.
Of course this is assuming complete economic collapse isn't Trudeau's goal. Which could be a very real possibility considering his minority government is propped up by the de facto Communist Party of Canada.
If you are an old guy with a 10 million dollar portfolio, making 8% or 9% in a low risk investment is really Fkn good.
On the flip side if you are a younger guy with less to lose and more time to work with, you definitely want to be more growth focused.
eg. if you are 25 years old you may want about 75% of your portfolio to be growth (higher risk & return type things) and 25% in safer low risk investments.
at 50years old you'd want 50, 50 and at 75 you'd want it the other way 25% growth and 75% low risk.
Everyone's risk tolerance is different, but you'll never have a better time to take a few chances then in your 20's.
ABMax24
Active VIP Member
I definitely fall into the younger group. Mutual funds worked well for me when I started my RRSP at 21, as I really had no clue where else to put the money. I now feel I'm at the point I can do better on my own. Risk is higher, but I'm to some extent in control of that risk. In line with your thinking I'm taking higher risk for a higher chance of higher returns.
jhurkot
Active VIP Member
How can the stock market crash when the money printer is WFO? It certainly didn’t go down when they announced Biden as president elect.
Why would it go down with Biden elected? Reality is, is pandemic will be put behind us in the future, people will return to normal and spending will increase which equals more profit for companies. Analysts are all predicting a really strong bounce this year....
jhurkot
Active VIP Member
Imagine being 50/50 $BTC/$TSLA.
When there is blood in the streets buy real estate..
that’s terrible investment advice. Real estate is not a safe haven....
Gold has traditionally been a safe haven over time and continues to be a safe haven. Look what happened when covid hit the fan...gold skyrocketed
Ok. Well that was Baron Rothschilds advice, not mine.
Apparently there is deals to be had when places are being blown to smithereens...
But you do you trubro...
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S.W.A.T.
Active VIP Member
Agree to disagree.
Would take real estate over gold any day. How much rental income does gold produce?
I like gold too. It wasn't meant to be advice, it is just a statement that has some truth to it.
Hopefully there isnt any civil war, but if there is a dead family in a house it goes for 90% off retail lol
Hopefully there isnt any civil war, but if there is a dead family in a house it goes for 90% off retail lol
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Real estate has a lot more advantages like not being so volatile, in the long term always appreciating, and no chance of going to zero, etc. Other advantage is buying, rent, and sell when market booms. Or if market booms/pay down mortgage you can pull out the money you put in and use it elsewhere to make even more.
It has disavantages too. Like not being very liquid.
Some times takes a long time to sell, especially if you are asking top dollar. And you cant take it with you when you flee the country lol
But I do think real estate can be one of the best investments forsure.
Some times takes a long time to sell, especially if you are asking top dollar. And you cant take it with you when you flee the country lol
But I do think real estate can be one of the best investments forsure.
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I hope you mean less volatile outside Alberta. Only property that has ever been a bad investment is my house in Berta lol. Try and tell everyone who is down 100-150k on their house it was a good investment. I’m just hoping to comes back in the next 10 years. The rest of the country is in a real estate boom and Alberta is dog ****. Guess that’s what happens when the economy is a one trick pony.
teamdirt
Active VIP Member
Warren Buffet says gold is a safe haven. Don't argue with that guy about investing.
https://www.cnbc.com/2020/04/20/cor...n-as-a-safe-haven-investment-in-a-crisis.html
https://www.cnbc.com/2020/04/20/cor...n-as-a-safe-haven-investment-in-a-crisis.html
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