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Discussion Starter #1
What is the best value short term investment with liquidity as priority #1 (Thinking it should be available within 0-3 days on demand), minimal risk as priority #2 and maximum return as priority #3 and where can I find it?

Am I stuck with GICs or is there something better?
 

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Let us know what you may want to buy. If you are buying mutual fund/stocks, you can use money market funds or Dundee HISA while keeping it in your accounts, ready to buy.

If you are using it for something else, ING 2% TFSA or Ally 2% savings accounts are liquid, no fees.
 

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Discussion Starter #5
I am trying to use it to buy stocks (currently being cautious, so I am left with lots of cash that I may want to use quickly if a bargain comes along). I have no debt, mortgage, or anything.

So I can't really expect anything better than 2%? I already have a PC Financial HISA, so I am looking to see if there are any other options.
 

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Unless someone knows better than me, right now, there are no ther options, if you want your cash both liquid and safe, ( up to $100K per institution)

Ally is a good option,,,if you call 2% good...but thats the rub today.

You want to know pain?? Try holding $US !! Right now about the best you can get on $US cash is .20% ...20 lousy basis points!! One fifth of one percent!

I never thought I'd see the day!!..live and learn!

Long gone are the days of 19.5% canada savings bonds!

The question for you is simple...how much risk do I want to take with this cash.

There are other options,,but all involve risk....

Good luck.
 

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Discussion Starter #8
OK, so what if we make risk/reward equal priorities. What is the best value of reward / unit of risk while maintaining liquidity? What are the options?
 

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At 2% taxable interest, I'll be losing buying power after inflation and government takes their share...

What's the next step up in terms of risk/reward? XSB? CLF? CAB? etc.

PS: My TFSA is already max'ed out from my retirement portfolio...
 

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Discussion Starter #11
If I were holding the bonds directly until maturity, I might be more interested, but that would not meet the liquidity requirement.

With bond funds, I am exposed to the not insignificant risk of rising interest rates causing the value of my bond fund to decline.

I don't see good value (return) in a bond ETF for the additional risk I assume.

If that is the best alternative, I will stick with the HISA.
 

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What is the best value short term investment with liquidity as priority #1 (Thinking it should be available within 0-3 days on demand), minimal risk as priority #2 and maximum return as priority #3 and where can I find it?

Am I stuck with GICs or is there something better?
Ally 2%
 

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Agreed..teaser rates are just nonsense

This is a problem we all face today,
Holding cash is actually a financial problem.

Of course the reverse would be much more....eg...having NO cash to worry about

The problem becomes that you want to hold on to the cash you have , and be able to get at it if neccessary, while earning something on it!

There is no answer except for the HISA.....and ALLY is about best today.

Either that or buy 100% equities....including some high yield trusts and junk bonds, and hope the higher yield shields you from the risk of falling prices.
Of course this presents all kinds of risks.

To get at the money you'll have to sell parts of these shares if you need cash!

Bond funds/ETF's are dangerous as mentioned,.....as soon as interest rates rise...your bond , funds, and ETF values will fall.

I own individual bonds.....I was just plain lucky to have bought them a 1-2-3years ago
I have called and talked to several canadian "bond experts", trying to figure out if there is a formula as to when you should sell bonds you hold that have risen in value over the past 2 years, or just hold them to maturity and take the higher yield. If you sell bonds that you bought several years ago, as I did, you will have a nice capital gain...but the problem is that you now have MORE cash that you have to find a place to invest, and you cant get anywhere near that yield now! unless you take more risk with it.

These experts all have different opinions....so you could be as right or wrong as any one of them by flipping a coin.
 

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I love my TFSA. It is now paying 1.25% and this amount increases as interest rates rise. In this day and age, to be able to count on such guaranteed returns without having to use GICs (which pay very similar amounts) and have quick access to my cash.

http://www.rbcroyalbank.com/rates/rsp.html
Except that I don't think the rate budged from 1.25% when the BOC raised rates the last time... the banks are really screwing savers.
 
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