Author Topic: Where do I park my $$?  (Read 1003 times)

clue-less

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Where do I park my $$?
« on: November 25, 2012, 11:38:52 AM »
Hello,
I am in need of some advice and I thought this was a good place to start!

I am a teacher living in Toronto, currently renting and saving in hopes of the 20% housing crash everyone is predicting!
I have a modest amount of $$ saved and it is currently earning almost nothing( 1.5%) in my ING direct TFSA.
I have done some research about what I should be investing my money in but have found the whole thing overwhelming and frightening, and when I have asked for assistance at the financial institutions with which I bank, they are most unhelpful.

What in the world should I be doing with my money?  Is it worth paying an advisor, or is it something I should challenge myself with?  Where would I even begin finding an advisor?
I am lost.

Any advice is greatly appreciated.

Thank you,
Andrea

strider3700

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Re: Where do I park my $$?
« Reply #1 on: November 25, 2012, 01:00:26 PM »
how soon are you expecting the crash and needing the money? 

you can move to an ING Tax free GIC for 1 year  at 2%  but the money is locked in for the year.  I'm not sure if that's a promo though,  the 1.5 year and 2 year are both lower and the 3 and 4 year match it.


Kestra

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Re: Where do I park my $$?
« Reply #2 on: November 25, 2012, 02:39:20 PM »
If you might need the money soon or with minimal notice you will have a hard time finding a better rate right now. Do you have more than enough for a down payment or is all your money for down payment/emergency fund? If it's all just down payment for a soonish purchase, you just need something safe. I sure wouldn't bother with an advisor. But it depends how much money you're talking about.
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cdngb

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Re: Where do I park my $$?
« Reply #3 on: November 26, 2012, 01:19:50 PM »
I agree that you need to provide your time frame to get reasonable answers to your question.  Also we need information as to your curent finances as well as if your personal situation.  The type of purchase are you considering is important as different types of housing will react differently in a pull back.

You must maximize your Tax Free Savings Account, TSA.  Today they announced an increase of $500 for 2013 for a total of $5500.  If you have not deposited the maximum do so immediately, and make the 2013 contribution in the first week of January.

What to do with the these funds and the other that you must have for your down payment depends on your time frame as well as how you feel about risk.

Do not forget that you can withdraw funds from your RRSP for a mortgage.

I am not sure that there will be a 20% correction in the Toronto housing market as you hope for.
Consider a purchase of a home where you can add value with updates and/or where you can have rent to help cover your mortgage.

Living close to your school may not be realistic if you are in a high end area so mass transit, TTC access is a consideration.

Supposedly there are over 100 condo projects currently on the go in the GTA, so you may consider purchasing one prior to being built which will save you thousands and give you a couple of years to save more for the 20% downpayment.