Canadian Money Forum banner

1 - 7 of 7 Posts

·
Registered
Joined
·
7 Posts
Discussion Starter #1
Hello all,

Hope to learn from all of you on CMF.

My situation:

48yrs old
No CC debt or car payments
Mortgage-free ~ 12yrs
Maxed out TFSA with a dumb TD GIC
Very little RRSP...$15K
~ $100K in savings
Access to $50k in non-reg from work DPSP

Just opened Questrade account:
$6K for 2020 TFSA contribution
$5K margin account

With that said, I'd like to take advantage of what's going on around us in the markets, but I don't know where to start.
I like some stocks that might seem of value to me. I also have been reading on ETFs through couchpotato.
I also have for the first time heard of options, and LEAPs. I love the idea, but seems like gambling, but vision sees growth at these times.

Would like to get everyone's two cents.

TIA,
Urbanite
 

·
Registered
Joined
·
944 Posts
Some ideas. For tax reasons there are some adv to having certain assets in certain accounts. Here is a good article. Asset location: Where to hold investments for tax savings
Here is a good award list of some of the best ETFs as well. 2019 FundGrade A+® Awards

So in the margin account, maybe a CDN stock ETF. Right now,many are recommending 'quality' and large stable companies with lower risk and which can best rebound. The TSX is mainly banks and oil companies so from the awards list, CI First Asset Canadian Quality FQC or BMO low vol X ZLD are good, well diversified funds.

Then in the TFSA,look at an INTL and a US ETF from the list and split the $ evenly between the 3.

Overall decide what % you want for fixed income ( GICs & cash) and equity. maybe 40/60. Instead of GICs too , HISA ETFs are popular and very liquid. CSAV CI HISA ETF is good
 

·
Registered
Joined
·
7 Posts
Discussion Starter #3
Some ideas. For tax reasons there are some adv to having certain assets in certain accounts. Here is a good article. Asset location: Where to hold investments for tax savings
Here is a good award list of some of the best ETFs as well. 2019 FundGrade A+® Awards

So in the margin account, maybe a CDN stock ETF. Right now,many are recommending 'quality' and large stable companies with lower risk and which can best rebound. The TSX is mainly banks and oil companies so from the awards list, CI First Asset Canadian Quality FQC or BMO low vol X ZLD are good, well diversified funds.

Then in the TFSA,look at an INTL and a US ETF from the list and split the $ evenly between the 3.

Overall decide what % you want for fixed income ( GICs & cash) and equity. maybe 40/60. Instead of GICs too , HISA ETFs are popular and very liquid. CSAV CI HISA ETF is good
Jimmy.....thanks for replying and for the links. Will read asap.

Yes, on board to have US/Intl in TFSA and CDN in Margin.

Is $10K a decent amount to start. Heart says go with more but brain says that's ample until I learn a little more.
 

·
Registered
Joined
·
944 Posts
Jimmy.....thanks for replying and for the links. Will read asap.

Yes, on board to have US/Intl in TFSA and CDN in Margin.

Is $10K a decent amount to start. Heart says go with more but brain says that's ample until I learn a little more.
Urbanite welcome to the boards too btw. It is a great time to be buying equities w markets that are still down ~ 25% from their peaks but their is a lot of volatility so that sounds prudent.

Maybe put 1/3 in over 3 months or 1/4 over 4 months etc to be safe too. Here is a good site to track the indexes. Major Stock Indices - Investing.com Canada

Everything bottomed out ~ March 23. Over the next while it could fall back to those levels one more time before rebounding ie S& P 500 at ~ 2350 so maybe wait a few more weeks. It is still only ~ 10% above the bottom but today wouldn't be great w the market rising 2%. Or just wait for a day when the market has a big drop (3-5%) to add in.
 

·
Registered
Joined
·
206 Posts
Urbanite you think options & leaps are gambling. Add stocks to the gambling list if you do not use proper money management, have a method that you follow that fits your personality & gives you an edge.

1st you have to decide if you can risk any money on the table. (max I go is 2%)
2nd develop a method that fits your personality that gives you an edge. ( Method should give black & white parameters of when to buy & sell)
3rd follow your method.

A list of some of the players that called the recent down turn for their clients maybe one of the methods they use will fit your personality. Arch Crawford, cycle man Tim wood, Harry Dent, Martin Armstrong, Astro Econ, Elliott wave International, Bob Hoye to name a few. These guys do not get it right every time though maybe one of their methods will fit your personality
 

·
Registered
Joined
·
7 Posts
Discussion Starter #6
Urbanite you think options & leaps are gambling. Add stocks to the gambling list if you do not use proper money management, have a method that you follow that fits your personality & gives you an edge.

1st you have to decide if you can risk any money on the table. (max I go is 2%)
2nd develop a method that fits your personality that gives you an edge. ( Method should give black & white parameters of when to buy & sell)
3rd follow your method.

A list of some of the players that called the recent down turn for their clients maybe one of the methods they use will fit your personality. Arch Crawford, cycle man Tim wood, Harry Dent, Martin Armstrong, Astro Econ, Elliott wave International, Bob Hoye to name a few. These guys do not get it right every time though maybe one of their methods will fit your personality
Lonwolf:

Thanks for the advise and the names.

Establishing a method is key, which I’m in the process of figuring out.

Lots to learn....wish I did this years ago,
 

·
Registered
Joined
·
16,333 Posts
With that said, I'd like to take advantage of what's going on around us in the markets, but I don't know where to start.
I like some stocks that might seem of value to me. I also have been reading on ETFs through couchpotato.
I think the couchpotato approach is very solid. You could use one of their model portfolios.

If you're new to investing, I would caution you against using a very aggressive (high risk) technique. I say this even though stocks have come down in price a bit. The reason is that we truly have no idea where stocks will go. They could fall another 50%, or they could go straight up from here. Nobody knows.

Despite all the noise in the media, stocks are not down significantly at this point. For example XAW, global stocks, are only down 13% from a year ago. That is really just a minor decline in stocks; these aren't "fire sale" prices or anything.

ZSP, which tracks the S&P 500 in CAD, is only down 7% from a year ago. It has barely fallen at all.

The reason for staying a bit conservative is that further losses can be unpleasant and could "turn you off" from investing. This happens with a lot of people during bear markets. They start as enthusiastic investors, but the constant losses wear away at them. Eventually they are not enthused any more and not committed to their techniques. Keep in mind that a bear market could potentially last for 5 to 20 years. That's a very long time!

IMO a new investor who has not yet experienced a bear market should start with a more conservative strategy. You could even just buy VCNS

Avoid options
 
1 - 7 of 7 Posts
Top