Author Topic: How to invest a windfall (CAN)  (Read 447 times)

Off the Wheel

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How to invest a windfall (CAN)
« on: May 30, 2024, 12:24:14 PM »
My partner is likely to come in to an unexpected windfall (mid 6 figures) and I want to make sure I invest it appropriately.

1) All our tax-sheltered accounts are maxed (self-directed in a private investment platform)
2) RESP is maxed

After maxing out our tax-sheltered accounts for the first time a couple years ago, I opened a TD Easy Trade account and started purchasing TGRO with the monthly excess above and beyond our annual tax sheltered limits. This seemed appropriate with the 'extra' but it feels a bit simplistic for a large lump sum.

We currently have $700K in RRSPs and $250K in TFSAs, which are invested in a Canadian Couch Potato model portfolio - 25% Bonds (ZAG), 25% Canadian ETF (VCE), 25% US ETF (VUN), 25% International ETF (VDU).

The TD Easy Trade account has $90K in TGRO.

Questions:

1) If you were me, would you continue to invest in TGRO or would you look elsewhere?
2) Would you keep the TD Easy Trade account or "upgrade"?
3) Would you dollar cost average, and over what time period? This lump sum would be approximately 5x our annual investments.
4) In this scenario, would you seek out a fee-only financial advisor?

Thank you!

FLBiker

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Re: How to invest a windfall (CAN)
« Reply #1 on: May 30, 2024, 01:27:57 PM »
1) If you were me, would you continue to invest in TGRO or would you look elsewhere?
2) Would you keep the TD Easy Trade account or "upgrade"?
3) Would you dollar cost average, and over what time period? This lump sum would be approximately 5x our annual investments.
4) In this scenario, would you seek out a fee-only financial advisor?

1) We use VGRO, but TGRO seems fine in a quick google (MER is .23).  I did read that TGRO doesn't have emerging markets in it, but that might not be a concern to you.
2) I don't know what you would upgrade to.  I personally like Questrade, but as long as the fees are low I don't see a big reason to change away from TD Easy Trade.
3) Lump sum is better mathematically, but if it takes DCA to make you comfortable that's fine.  I'd say do it as quickly as you're comfortable with, though, because ultimately the goal should be to get it invested as quickly as possible.  There's no "right" interval to DCA, though, because it's an emotional thing (as opposed to a financial one).
4) Unless you have other questions, I wouldn't.  Everything you've outlined here seems very straightforward.  If, however, you need them for a push to get it invested, you could find someone who would tell you that you're on the right track for ~$300 an hour or so.