How should I invest my savings?

**feh** · 12-01-2014, 06:14 AM

If you need help w/ personal finance, click the link in my signature.

If you've got your budget in order and are ready to invest, start here:

http://www.bogleheads.org/wiki/Bogleheads%C2%AE_investing_start-up_kit

**autoxer** · 12-01-2014, 10:28 AM

Your reluctance to ask the bank for advice is good, because they may not have your best interest in mind if they are profiting from selling financial products. High fees can have a dramatic effect over a long period of investing.

Don't invest in anything you don't understand. Take your time reading and learning to understand different products and especially what the risks are. The bogleheads link that feh posted is a good place to start learning about investing.

**snafu** · 12-01-2014, 08:59 PM

Misery, welcome to SA. While I know Vanguard offers Americans a wonderful program, in Canada there are different rules and different issues. 1st is that whenever people in Canada buy an American products, it is instantly subject to American taxes and more complicated Income tax here.

Are you working and eligible for an employer's retirement plan? What is the long term plan for your money [currently $ 29,000.]? The $ 9,000. is being held for living expenses or Emergency Fund or? How many years do you see $ 20,000. being in an investment type? Finally, how much risk can you tolerate?

Have you seen the Canadian stock market drop significantly in the past 3 weeks? The Canadian dollar has shrunk from $ 1.06 USA dollar to .88 cents in the last few months? If you wanted to travel to the USA or buy a product from the USA , it would costs about $ 1.15 for each USD. Why? Because it makes Canadian product cheaper for international buyers. We send most of our natural resources to other countries and they buy more when we lower the value of our currency. It makes more jobs, so the story goes.

The best instrument for savings here at this point of time is a TFSA [Tax Free Savings Account]. You can put any financial product you like in a TFSA and it will grow Tax Free for as long as you wish. The Annual limit per person is $ 5,500. You could contribute $ 5,500 in December for 2014 and again in January for 2015...that's just timing. These accounts are offered...you guessed it via our big banks and Credit Unions...if you prefer.

I've no idea of what you want to do so please feel free to ask questions and let us know your goal

**albertofair34** · 12-12-2014, 02:29 AM

Before you start looking at opening a savings account or investing your money you need to consider whether it could be better used elsewhere.

Saving isn't always the best option and it's possible that using your money in some other way will do more for your finances in the long run.

**97guns** · 12-12-2014, 05:18 AM

my mom did really good investing in 2nd deed loans, a loan you give and it is secured by the borrowers real estate. she was getting 15-18% many years back, i been poking around and see they are paying 10-12% now. pretty tough to find that kind of fixed return on anything else out there.

the key to investing is compounding, keep pressing the investments. when put into perspective your 29K would earn you $2900/year at 10% but what if your 29K turns into 39K the first year by investing more savings, then 49K the second year, 59K the third and so on, by year #3 your seeing $5900 a year.

if you add and invest even 5K per year, by year 7 your looking at over 90K, at year #7 your investment would be $64K and total interest earned would be around $30K, this is all based on my 10% return.

**JoeP** · 12-12-2014, 06:35 AM

You say you have little income. Do you have enough income to cover your basic living expenses? Do you have an emergency fund outside of this $29k set aside for 6 months worth of expenses if you should lose your job?

**jIM_Ohio** · 12-12-2014, 06:56 AM

Originally posted by misery View Post

Hello,

I'm 25 and have approximately $29,000 in savings, no debt, and for the time being, little income.

I'm located in Canada and am wondering what would the best option for investing approximately $20,000 of my funds? Whatever will yield the greatest benefit in the long-term is likely my ideal option.

I know very little about investments and am hesitant to go to my local RBC branch for advice, for I fear they always try to steer me towards helping their own company (and not necessarily the best option for me).

Thank so much!

I would invest 40% stocks and 60% bonds. I would suggest this because
1) you are new to investing, this is conservative
2) you say long term, however at your age you have not lived long enough for a good "long term" definition. You might not have the stomach for something more volatile than 40% stocks.
3) You may need to tap into this money because you have no employment right now, so keeping 60% in bonds is a good move.

**susankelly** · 12-15-2014, 06:45 AM

Make free Paypal receipts

By what method would I be able to make free Paypal receipts?

**ScottRUnderwood** · 12-17-2014, 10:35 PM

There are lots of good options to invest your money to get higher returns in long term like stocks, mutual funds, real estates etc. You can choose any field you are interested in.

**Wisedog** · 12-19-2014, 02:57 AM

Originally posted by misery View Post

Hello,

I'm 25 and have approximately $29,000 in savings, no debt, and for the time being, little income.

I'm located in Canada and am wondering what would the best option for investing approximately $20,000 of my funds? Whatever will yield the greatest benefit in the long-term is likely my ideal option.

I know very little about investments and am hesitant to go to my local RBC branch for advice, for I fear they always try to steer me towards helping their own company (and not necessarily the best option for me).

Thank so much!

What is your investment goal? If you are investing for a house in the next 2-3 years the investment plan is different than if you're investing for retirement 40 years from now

How should I invest my savings?