What to do with a small pot of money
Jun 27th 2015, 2:43 pm
#46
Account Closed
Joined: Jan 2006
Posts: 0
Re: What to do with a small pot of money
Personally I'd say it was an amount that would make a big difference to the lives of the person with it.
$25k. We could replace the bathroom so that the mystery cause of water that comes through to the kitchen when two of our four and only two of our four, shower, went away. We could have a snow clearing contract and have something done to prevent (or at least reduce) the ice damn build up in winter.
We could have a big family trip to Europe this year instead of hoping to sell the rental property next year to pay for it.
For others it might just mean an upgrade for something they already have or to replace some money they spent.
For Wayne Rooney it might provide tips for waiting staff for the next year when he eats out.
$25k. We could replace the bathroom so that the mystery cause of water that comes through to the kitchen when two of our four and only two of our four, shower, went away. We could have a snow clearing contract and have something done to prevent (or at least reduce) the ice damn build up in winter.
We could have a big family trip to Europe this year instead of hoping to sell the rental property next year to pay for it.
For others it might just mean an upgrade for something they already have or to replace some money they spent.
For Wayne Rooney it might provide tips for waiting staff for the next year when he eats out.
Jun 28th 2015, 11:21 am
#50
Pictou County Superstar™
Joined: Sep 2007
Location: On top of the Green hill, NS
Posts: 4,219
Re: What to do with a small pot of money
Right, here's a summary about what you're going to do with your small pot of money:
- Buy a double decker
- Equip it with a well-stocked bar and toilet
- Pick us all up
- Take us to Vegas for a few days
- Then take us to our new home in France
Jun 28th 2015, 7:31 pm
#51
Account Closed
Thread Starter
Joined: Jan 2015
Posts: 318
Re: What to do with a small pot of money
Greenhill gets best vote as usual (honorary mentions to el richo and not2old, the only serious contenders of the thread)
Jun 28th 2015, 7:35 pm
#52
Dichotomus tinker
Joined: Aug 2013
Location: Ontario, Canada
Posts: 6,678
Jun 28th 2015, 7:36 pm
#53
Account Closed
Thread Starter
Joined: Jan 2015
Posts: 318
Re: What to do with a small pot of money
Better than 1% elsewhere 
Jun 28th 2015, 7:38 pm
#54
Dichotomus tinker
Joined: Aug 2013
Location: Ontario, Canada
Posts: 6,678
Re: What to do with a small pot of money
yeah did you read the fine print?
Tangerine - 3% APR on New and Existing Savings Deposits : PersonalFinanceCanada
Tangerine is offering a targeted offer to customers with a 3% APR for 180 days. While this is targeted, many have been granted "exceptions" by calling in and speaking to a representative.
I believe that the offer is expected to end by July 1st - so it is best to call in soon to take advantage of this.
Tangerine (24 hours a day, 7 days a week)
Service in English 1-888-826-4374 or 416-756-2424
Service in French 1-844-826-4374
or below from a google search
https://www.tangerine.ca/en/landing-...FY17fgodLg8N4g
Originally Posted by vanity View Post
Tangerine is offering 3% interest at the moment.
scilly - can you refer your advisor?
was this what you are referring too, if so - give them a call & let us know more
Tangerine is offering 3% interest at the moment.
scilly - can you refer your advisor?
was this what you are referring too, if so - give them a call & let us know more
Tangerine is offering a targeted offer to customers with a 3% APR for 180 days. While this is targeted, many have been granted "exceptions" by calling in and speaking to a representative.
I believe that the offer is expected to end by July 1st - so it is best to call in soon to take advantage of this.
Tangerine (24 hours a day, 7 days a week)
Service in English 1-888-826-4374 or 416-756-2424
Service in French 1-844-826-4374
or below from a google search
https://www.tangerine.ca/en/landing-...FY17fgodLg8N4g
Jun 29th 2015, 1:05 pm
#55
Lost in BE Cyberspace
Joined: Nov 2012
Location: bute
Posts: 9,740
Re: What to do with a small pot of money
Novak Djokovic to win at Wimbledon. Currently 5/4
Put the lot on. Don't tell the wife.
Put the lot on. Don't tell the wife.
Jun 29th 2015, 7:04 pm
#56
Beep
Joined: Jan 2009
Location: Here
Posts: 8,311
Re: What to do with a small pot of money
I don't think investing in property in Vancouver at this time is good idea. I believe it holds more risk
Nope i can't. If anybody tells you they can, run away. Doesn't the original poster already own property they live in?
I believe the USD will be much stronger than the CAD over the coming 2-5 years. I also believe US stocks will outperform Canadian over the next 2-5 years. That said, the original poster should speak with a fee only professional advisor and keep away from Mutual Funds or any Bank related "investments" such as the tangerine one mentioned.
I don't normally but since you're talking only $25k...
I'd make it simple and buy $5k of XUI, an ETF that tracks 60 of the largest and most liquid securities listed on the Toronto stock exchange. Gives exposure to Canada (RBC,TD, Suncor, BCE, Manulife, etc) It gives a 2.7% dividend paid quarterly and is eligible for direct reinvestment.
I'd also be tempted with $5k of IWD, an ETF that tracks Russel 1000 Large/Mid cap stocks giving a 2% dividend paid quarterly. Gives exposure to the US (Wells fargo, Exxon, Berkshire Hathaway, AT&T, etc) Place this in an RRSP to avoid witholding tax.
Another $5k might be VGK, an ETF tracking the FTSE Developed Europe, giving a 3% dividend paid quarterly. It gives exposure to Europe (Nestle, Novartis, HSBC, Glaxo, etc) Place this in an RRSP to avoid witholding tax. Good time to stock up this week i think.
Another $5k might be XRE, an ETF that tracks a chunk of REIT's listed on the TSX, giving a 5% dividend paid monthly and is eligible for direct reinvestment. Bear in mind this dividend is taxed at marginal rate unlike the others which are taxed at 10% so park this in an RRSP or TFSA if possible.
The remaining $5k would sit in cash. Half in CAD and half in USD.
Obviously better to place them all in a TFSA or RRSP if no TFSA room available.
This is all my personal opinion and should not be used as investment advice since i'm a stranger on the internet. As always, any investment can go down as well as up (including property).
An amount that will make me sound like a dick 
$25k doesn't really allow a property investment in Vancouver anyway so it's kind of a pointless discussion we're having.
so you advise someone to do the FX from Canadian to $US, take a risk on that FX to invest in US equities or whatever not knowing where the dollar will go, & take a chance of a portfolio of some [details of which type & percentage in each is needed], when to invest, when to pull out and over 1, 3, 5 years the returens expected even with the FX from $Cdn to $US to invest
I'd make it simple and buy $5k of XUI, an ETF that tracks 60 of the largest and most liquid securities listed on the Toronto stock exchange. Gives exposure to Canada (RBC,TD, Suncor, BCE, Manulife, etc) It gives a 2.7% dividend paid quarterly and is eligible for direct reinvestment.
I'd also be tempted with $5k of IWD, an ETF that tracks Russel 1000 Large/Mid cap stocks giving a 2% dividend paid quarterly. Gives exposure to the US (Wells fargo, Exxon, Berkshire Hathaway, AT&T, etc) Place this in an RRSP to avoid witholding tax.
Another $5k might be VGK, an ETF tracking the FTSE Developed Europe, giving a 3% dividend paid quarterly. It gives exposure to Europe (Nestle, Novartis, HSBC, Glaxo, etc) Place this in an RRSP to avoid witholding tax. Good time to stock up this week i think.
Another $5k might be XRE, an ETF that tracks a chunk of REIT's listed on the TSX, giving a 5% dividend paid monthly and is eligible for direct reinvestment. Bear in mind this dividend is taxed at marginal rate unlike the others which are taxed at 10% so park this in an RRSP or TFSA if possible.
The remaining $5k would sit in cash. Half in CAD and half in USD.
Obviously better to place them all in a TFSA or RRSP if no TFSA room available.
This is all my personal opinion and should not be used as investment advice since i'm a stranger on the internet. As always, any investment can go down as well as up (including property).
$25k doesn't really allow a property investment in Vancouver anyway so it's kind of a pointless discussion we're having.
Jun 29th 2015, 7:39 pm
#57
Dichotomus tinker
Joined: Aug 2013
Location: Ontario, Canada
Posts: 6,678
Re: What to do with a small pot of money
Something I read somewhere ....
Are 100% mortgages available in Vancouver? you know where you put 5% down & closing the bank gives you the 5% back? Would be good on a property that you could rent part of it out to cover expenses such as utility bills, property tax, maybe even something towards the mortgage
Cash-back mortgages: A deal from your bank that regulators are not keen on | Financial Post
.....Just saying
As for Bristol & JSmith comments below
Personally I'd say it was an amount that would make a big difference to the lives of the person with it.
$25k. We could replace the bathroom so that the mystery cause of water that comes through to the kitchen when two of our four and only two of our four, shower, went away. We could have a snow clearing contract and have something done to prevent (or at least reduce) the ice damn build up in winter.
We could have a big family trip to Europe this year instead of hoping to sell the rental property next year to pay for it.
For others it might just mean an upgrade for something they already have or to replace some money they spent.
For Wayne Rooney it might provide tips for waiting staff for the next year when he eats out.
$25k. We could replace the bathroom so that the mystery cause of water that comes through to the kitchen when two of our four and only two of our four, shower, went away. We could have a snow clearing contract and have something done to prevent (or at least reduce) the ice damn build up in winter.
We could have a big family trip to Europe this year instead of hoping to sell the rental property next year to pay for it.
For others it might just mean an upgrade for something they already have or to replace some money they spent.
For Wayne Rooney it might provide tips for waiting staff for the next year when he eats out.
Last edited by not2old; Jun 29th 2015 at 7:52 pm. Reason: added a comment
Jun 29th 2015, 7:47 pm
#58
Beep
Joined: Jan 2009
Location: Here
Posts: 8,311
Re: What to do with a small pot of money
Are 100% mortgages available in Vancouver? you know where you put 5% down & closing the bank gives you the 5% back? Would be good on a property that you could rent part of it out to cover expenses such as utility bills, property tax, maybe even something towards the mortgage
Jun 29th 2015, 7:58 pm
#59
Dichotomus tinker
Joined: Aug 2013
Location: Ontario, Canada
Posts: 6,678
Re: What to do with a small pot of money
Originally Posted by not2old View Post
Are 100% mortgages available in Vancouver? you know where you put 5% down & closing the bank gives you the 5% back? Would be good on a property that you could rent part of it out to cover expenses such as utility bills, property tax, maybe even something towards the mortgage
Are 100% mortgages available in Vancouver? you know where you put 5% down & closing the bank gives you the 5% back? Would be good on a property that you could rent part of it out to cover expenses such as utility bills, property tax, maybe even something towards the mortgage
or corporations, even publicly listed ones that run a negative balance sheet.
The last income property we had that we didn't live in part of it [sold 9 years ago at a profit] was 100% mortgaged. It cash flowed just over 10%/yr. We had a walk away position because it was 100% leveraged
Just different strokes for different folks....
Jun 29th 2015, 8:10 pm
#60
Beep
Joined: Jan 2009
Location: Here
Posts: 8,311
Re: What to do with a small pot of money
not nearly as frightening as someone with a small business that has a line of credit to pay the bills, workers wages, payables or inventory
or corporations, even publicly listed ones that run a negative balance sheet.
The last income property we had that we didn't live in part of it [sold 9 years ago at a profit] was 100% mortgaged. It cash flowed just over 10%/yr. We had a walk away position because it was 100% leveraged
Just different strokes for different folks....
or corporations, even publicly listed ones that run a negative balance sheet.
The last income property we had that we didn't live in part of it [sold 9 years ago at a profit] was 100% mortgaged. It cash flowed just over 10%/yr. We had a walk away position because it was 100% leveraged
Just different strokes for different folks....
Speechless