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Discussion Starter #21 (Edited)
Hi!

I invested everything exept 100k in my non-reg. account.

I'd like to wait 1-2 months before investing it to "diversify my timing" a bit and I like keeping the opportunity of investing another significant amount in case the market drops again.
Also, there's a possibility I may need 20 to 30k of this money later this year.

This 100k is currently sitting in my online brokerage non-reg. account doing nothing.
Would you just let this money like this or would is there a product with no short-term trading penalties and very low stock % that could be useful in this situation?
 

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Cash is usually kept in a brokers HISA (High Interest Savings Account). Each broker has their own. They pay quite low right now, most about 0.25%

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There is a method of investing called "Dollar Cost Averaging". It consists of buying the same amount of something at regular intervals. The same number of dollars, buys more shares when they are cheap and less when they are dear. This way you get a lower average cost. Usually used to buy an equal amount, in dollars, every month over a period of years. Over 4 weeks there isn't likely to be much difference in the kind of security you are talking about. But no, it is not timing the market. It is a recognized method of investing.

In your case probably not worth the bother especially if you are planning to hold for several years through thick and thin.
 

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Discussion Starter #24
Cash is usually kept in a brokers HISA (High Interest Savings Account). Each broker has their own. They pay quite low right now, most about 0.25%

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But wouldn't it be better to buy a Vanguard 100% bond ETF and hold it for a few months instead? The annual expected return would clearly be better no?
Or would there be penalties associated with that?
 

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But wouldn't it be better to buy a Vanguard 100% bond ETF and hold it for a few months instead? The annual expected return would clearly be better no?
No, if interest rates rose during those months, then the share price would drop accordingly and you would lose capital.
There is only one place to hold cash when you want a guarantee on the capital and the liquidity of a day = HISA.

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Discussion Starter #26
No, if interest rates rose during those months, then the share price would drop accordingly and you would lose capital.
There is only one place to hold cash when you want a guarantee on the capital and the liquidity of a day = HISA.

ltr

Thanks - That makes sens.

I don't really want a garantee on the captial however. I can definitely tolerate some risk. It's really just that I didn't want to buy all my equity on the same date.
Also, if I need any of this money it's going to be in 2 months and only 30k of of 100k.

You really think dumping all 100k of this into VAB for example would be a mistake?
 

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Also, if I need any of this money it's going to be in 2 months and only 30k of of 100k.

You really think dumping all 100k of this into VAB for example would be a mistake?
You have to decide the amount of risk you want to take and the amount of liquidity you require. It's that simple. The HISA has the lowest risk to capital with one day liquidity and the lowest return. Each step you take away from that increases the risk.

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I love bond funds, but VAB is not appropriate if you want to wait for a few months. If your time horizon is 2 months, don't use VAB.

VAB and all the other regular bond funds (ZAG, XBB) are meant to be long term holdings with at least 10 year time horizon. These are appropriate for retirement holdings or long term asset allocations, where it will be many years before you need the money.

If you want to wait 2 months, that's appropriate for cash.
 

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I used to use HISAs for "spare cash" - love that term - until interest rates went down to .25%. Then someone on this forum recommended Hubert in Manitoba. They currently offer interest rates in the 2% - 3% range, depending on time period. Google "Hubert rates" for details. For your 2 months that would be $400 rather than just $40.

They are both quick and incredibly nice to deal with, deal only via the internet, use a chat system to answer questions and apologise if they take more than 2 minutes to answer you. Their interest rates start when you make the application not 2-10
days after they get your money. In my case my internet "sign up" procedure didn't work for some reason and I had to do it via snail mail over a long weekend - they still started my interest on the failed internet date. What's not to like?

Go for it.
 

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Hi!

So I have roughly 350k sitting in my online brokerage account.
70k in a TSFA account, 180k in RRSP account and 100k non-reg.

This will be my first time on the market by myself. I've always been in mutual funds suggested to me by my financial institution but with MERs of ~2.5%. I took out my money beucause of those high MERs.

I want to go with XGRO, MAW104 and or MAW105.

My questions are:

Is it a good idea to invest my money 25% at a time each week to reduce the risk of investing everything right before another crash? Or is this trying to time the market and I should just invest everything right now?
If I purchase the funds / ETFs today, will I purchase them at their current price (Sunday) and will the purchase be made on Monday morning at the opening's price?
You dont have to be in the market all the time. It is best just to play when conditions are ripe to play
 
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