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Hello everyone, So I just recently got my CIBC Investors Edge account opened (finally) although at the moment I am still waiting until about January for the reduced trading commissions as 30$ is just too much (cant wait for 7$ trades).

So now my main question is, where could I put most of my money for about 60 - 90 days, then at that point take MOST of it (I dont have to sell off a whole position) and then put it into an ETF.

My question is, what kind of investment vehicle should I use....I assume some sort of mutual fund would be best but I am not sure what kind...most likely a fund that pays monthly dividends so I atleast get a few months of dividends (keep the fund until I can withdraw with no early redemption fee). My main dilema is I just dont know where to park my cash for a while, even if its a smaller amount I leave there and contribute more to later on.

Here are a few of the funds I have looked at:
Canadian Bond Index Fund - I (TDB966)
Monthly Income Fund Series F (RBF602)
Renaissance Canadian Monthly Income Cl F (ATL155) - I like this fund because it is a little bit cheaper therefore I can buy a few more units with this one therefore earning more dividends.

Now I dont know what would be best, but I tried to find funds with the lowest possible MER's and lower minimum investment rates (100$ - 500$). Does anyone else have any other suggestions for me. Also just remember early redemption is NOT too much of an issue as I can leave the money there for a while and wont be in too much of a rush to take it out of the specific mutual fund.

Oh and on a side note, I know I dont have much money to invest and that is why I aim aiming moreso at mutual funds for now so I dont have to wait a year to recover from trading commissions on ETFs. Once the 7$ commission structure comes in it wont take me anytime at all to recover those costs and break even!

Any comments/help is greatly appreciated.
 

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What sort of risk level can you stomach?

I presume you have a TD account since you mentioned TDB966, why not open an e-Series account? If you don't have too much money, be careful about how the commissions will add up even with the $7 trades. Here's a good article on that.

I wouldn't be too worried about MER over 60-90 days... Also a few months of dividends with a low deposit isn't going to mean a whole bunch. You're not going to get any certain advice if you want reasonable returns in a mutual fund over a short period of time. Personally I'd gamble a bit on something like Precious Metals
 

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Watch out for redemption fees. The TD funds I hold have a penalty if withdrawn within 90 days of deposit. It may be the same for other funds.
 

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Well you could try to ride the wave of a precious metals fund, but for the matter of 3 months I personally wouldn't bother. Gold has done exceptionally well but you are taking a risk that when you need the money, the fund will be at a low. Of course, the day after you withdraw, there will be a spike.

To me, investing is a longer term thing, and unless you are talking about $100K or more I would just leave the money alone wherever it sits now. What's your time and fuss worth?
 

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Don't bother. If you are worried about the $22 in commission fees, then why would you worry about a few $'s gained over 60 days.

Put it in some fee-less MMF or just leave it as cash.
 

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Discussion Starter #6
Thanks for the advice guys...

I guess my reasoning was that based on the fact that I dont like seeing my money sit around I wanted to put it in something...I wasnt intending on withdrawing imediately after Jan 1st but if its still a waste of time letting the money sit there for a while I guess I can wait until Jan 1st.

Also if I were to buy FIE at 30$ commision (for the amount I buy) it would take almost a year to recover those commision costs (about 1000$ to be invested in it). That was my theory for waiting is even though 3 more months, recovery of it would be less than 10 months (actually about 2 months with 7$ commision).

EDIT: Oh and forgot to mention I am with CIBC investors edge and I was lead to believe you can buy SOME of TD's mutual funds through other brokers.
 

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You can park cash in a high interest savings account available through many discount brokers:

http://www.canadiancapitalist.com/high-interest-savings-accounts-at-discount-brokers/

My brokerage account is with TDW. I use Renaissance High Interest Savings ATL5000 to park cash. It pays 1.25% currently and there are no fees to buy or sell and no minimum holding periods. CIBC IE might carry some of the savings accounts mentioned in my post (IIRC, Renaissance is a CIBC product). It's worth checking out but first make sure there are *no fees of any kind*.
 

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If you are planning on parking cash at times in the future as well, it might be worth the effort to set up a high-interst account at, say, Ally (2% right now). Once it is initially connected up with a chequing account, you can easily connect it to other accounts, perhaps including your brokerage account. I'm pretty sure someone has connected an external high-interest account to BMO's brokerage; I have a chequing account at TD I can use as a target, so I haven't tried connecting Ally directly with my TDW account.
 

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Man AHL Diversified Funds

What ever you do .. dont invest in these funds
Dividends scheduled to be paid not later than Nov 15/10 remain unpaid.. value has declined substantially in the last 30 days ..... no reason provided for non payment of dividends
 
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