google the couch potatoe porfolio
Low fee index fund.Hi
I have 10,000$ sitting in an RRSP account with TD. It has not been invested in anything yet (I put it in in March 09 for tax benefits). I was wondering whats the best investment strategy for it? I have no constraints as of now (I would like to keep it growing long-term). Do you think buying some stocks would be a good idea?
I've got to disagree with you here.$10K is too little to create a diversified stock portfolio.
Don't underestimate the individual's ability to diversify their returns to sub-mediocrity regardless of the amount of money involved.$10K is too ittle to create a diversified stock portfolio.
I was referring to OP's apparent wish to purchase stocks, not mutual funds or ETFs.I've got to disagree with you here.
$2500 - TSX 60
$2500 - S&P 500
$2500 - EAFE
$2500 - Short-term bonds
Very well diversified, fees are extremely low if the OP goes with the TD e-series. Even opening up a brokerage account, there may or may not be any annual account fees (depending on other investments). With ETFs, transaction costs would only be about 1%.
I disagree with sprocket1200 in this case. Dollar cost averaging is a good idea if you are making frequent small contributions, particularly to mutual funds. If you have a lump sum to invest, you should invest it all at once rather than leaving much of your cash idle earning nothing as you dollar-cost-average into a position. Cash that is invested in something at least has the potential to earn market returns, where cash held as cash can only earn you the interest rate your broker is willing to offer (on $10k this is typically 0%).whatever you do, dollar cost average it in...