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Maybe it's just me but if I had 200k that I wasn't expecting, I'd look at lower my debt first then whatever is left over, invest it. Might not be a popular choice but a choice if you're worried about investing in a 'all time high' market
This is what I would do as well. Pay down the mortgage a bit. Pay off a car loan(assuming the rate is higher than 3%). Pay off credit cards, loc’s, heloc.
 

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Discussion Starter · #24 ·
This is what I would do as well. Pay down the mortgage a bit. Pay off a car loan(assuming the rate is higher than 3%). Pay off credit cards, loc’s, heloc.
I have 0 debt. 0. (I know I posted this twice but I don't know how to respond to multiple quotes at once.

I will check out the couch potato thing. :) Thanks all.
 

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Maybe it's just me but if I had 200k that I wasn't expecting, I'd look at lower my debt first then whatever is left over, invest it. Might not be a popular choice but a choice if you're worried about investing in a 'all time high' market
Paying off debt offers the best after tax risk adjusted return by a lot.

Lets say you have a 2% mortgage, and a 1.25% Oaken financial savings account, assuming a 35% tax rate, your 1.25% is only 0.8125% after tax, so you're losing 1.1875% after tax

And getting rid of debt is 100% secure.
 

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One possible idea is to come up with an asset allocation you will stick to regardless of market conditions. These portfolios are well diversified across different asset classes, not just stocks (I'm assuming that when you speak of "all-time highs" you're talking about stocks).

Research things like "The All Weather Portfolio" or "The Permanent Portfolio." They are designed to work in different economic "seasons." That way, you're not trying to time the markets.
I second this idea, though I am biased because this is exactly what I use myself.

Take a look at RPAR for example, which is one of these diversified funds that uses the All Weather portfolio. Today it was down just 0.1%. It can still fall of course, but it's very different than the stock market so when stocks crash, it doesn't mean RPAR will crash.

My portfolio is almost identical to RPAR and I didn't lose any money today.
 

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I agree with others that working on finding a place to park the cash is very low marginal return on energy expended (the range seems to be 0% to sub-2% in nominal terms). far better to just leave it in a convenient spot and then spend your time thinking about your savings and investments holistically. The questions you are asking in your other thread about Wealth Simple are good. Lots of great suggestions in both threads.
 

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Discussion Starter · #34 ·
I agree with others that working on finding a place to park the cash is very low marginal return on energy expended (the range seems to be 0% to sub-2% in nominal terms). far better to just leave it in a convenient spot and then spend your time thinking about your savings and investments holistically. The questions you are asking in your other thread about Wealth Simple are good. Lots of great suggestions in both threads.
Thank you. :)
 

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My wife is starting to contribute to her TFSA - an unfortunate time to begin compared to a year ago... We're opting to use VCNS, a 40-60 fund, to mitigate the risk.

VCNS did its job quite nicely through yesterday's volatility.
 

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As the saying goes... "the best time to have invested is yesterday. The next best time is today". If the primary purpose of the TFSA is for long term investing (retirement plan), today's market prices won't matter in the overall scheme of things. In my case, the TFSA is a legacy for my heirs. Thus it is fully invested in VEQT and will remain that way until I go out boots first.
 

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We're already way over our target 70/30 asset allocation anyways so needed to add to something less risky, and this money was just sitting in chequing, I didn't feel like cash interest account or GICs would be a great place for TFSA use. So VCNS seemed like a reasonable solution and one stop shop. Also an improvement over the BAL type mutual fund her whole RRSP is in, which I'd like to get ported over to a real discount brokerage at some point and into VBAL or some other good low cost potato-like portfolio.

Baby steps.
 

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I second this idea, though I am biased because this is exactly what I use myself.

Take a look at RPAR for example, which is one of these diversified funds that uses the All Weather portfolio. Today it was down just 0.1%. It can still fall of course, but it's very different than the stock market so when stocks crash, it doesn't mean RPAR will crash.

My portfolio is almost identical to RPAR and I didn't lose any money today.
I have a way more aggressive portfolio, but I'm only down about 2.5%, but I'm up YTD and everything else by a LOT, so I'm good.

Going forward I'm moving more money into the "correct" allocation, but I doubt I'll give up on my active management, it's done quite well. This spring I bought BAM.A, it's really hard to argue with the success I've had picking individual stocks.
 

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Going forward I'm moving more money into the "correct" allocation, but I doubt I'll give up on my active management, it's done quite well. This spring I bought BAM.A, it's really hard to argue with the success I've had picking individual stocks.
Can you share your current asset allocation? How much % in what kind of asset?
 

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Can you share your current asset allocation? How much % in what kind of asset?
Decent emergency/short term funds.

Of long term small amount of fixed income, then about 1/3 banks/utilities/infrastructure, 1/2 tech, and 1/6 in other industries. Lots of my tech overweight is just the astonishing performance of a few tech companies over the last decade.
 
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