Author Topic: Student Investing in Canada  (Read 2018 times)

allisonn

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Student Investing in Canada
« on: August 18, 2015, 05:47:17 PM »
I am going into my third year of university and have 8670 of provincial and federal student loans. I have one year after this one and will not need to take out loans this year and there is a very good chance this will be the same for next year. That being said I inherited 2000 from my grandma's estate that I want to invest in Vanguard VFV or VUN. The thing I want to know is what would be the best investment account to open and with who? I currently have investment accounts at RBC and Tangerine and am considering RBC Direct Investing because I would not be buying the funds often enough that I would worry about the 9.95/trade fee. However I'm looking for some educated feedback because I'm new to MMM

lostamonkey

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Re: Student Investing in Canada
« Reply #1 on: August 18, 2015, 06:37:39 PM »
Are you sure you want to invest the money and not add it to your emergency fund? If you are living alone and paying your own tuition, you should have an emergency fund. If you are living with your parents and they are paying for school you don't really need one. There is no shame in living with your parents and having them pay for school.

If you want to invest, I would recommend that you invest in your TFSA. This way you will not be taxed on dividends and capital gains. You can open a self directed TFSA with RBC direct investing and buy whichever ETFs you want. Just make sure there are no other account charges associated with RBC Direct Investing. If you wanted a cheaper option, you could always use Questrade but if you are more comfortable with a big banks, using RBC is fine.

allisonn

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Re: Student Investing in Canada
« Reply #2 on: August 18, 2015, 06:58:02 PM »
I do pay for school myself but I also lucked into a really great job while I'm in school that gives me about 600/month of extra income which gets split between emergency fund and investing. I also do have a bit of leeway from my parents as an emergency fund if needed although they don't pay for anything else.

I've wondered about Questrade too but I think I am more comfortable with the big bank to begin with. But If it would really be worth it then I'm willing to get a bit more comfortable.

lostamonkey

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Re: Student Investing in Canada
« Reply #3 on: August 18, 2015, 07:06:51 PM »
I do pay for school myself but I also lucked into a really great job while I'm in school that gives me about 600/month of extra income which gets split between emergency fund and investing. I also do have a bit of leeway from my parents as an emergency fund if needed although they don't pay for anything else.

I've wondered about Questrade too but I think I am more comfortable with the big bank to begin with. But If it would really be worth it then I'm willing to get a bit more comfortable.

It's awesome that you found a good job while you are in school. Just open a self directed TFSA with RBC and start investing.

SandyBoxx

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Re: Student Investing in Canada
« Reply #4 on: August 18, 2015, 07:06:58 PM »
If you already bank with Tangerine, you may want to consider opening a TFSA with them, and using the Tangerine Investment Funds to get yourself started.

There is a good link to a page from CCP here:

http://canadiancouchpotato.com/2013/09/12/the-one-fund-solution/

Once you are out of school and ready to start aggressively building funds, then move into the e-series with TD, or move to a brokerage to get access to ETF's (Questrade seems to be the most popular around here.)

Congrats on being aware, and getting started so early!

K-ice

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Re: Student Investing in Canada
« Reply #5 on: August 18, 2015, 07:44:02 PM »
I have an RBC direct investing account & I am building up my Vanguard following this:

http://canadiancouchpotato.com/wp-content/uploads/2015/01/CCP-Model-Portfolios-Vanguard.pdf

Since the fee is 1% on $1000 I would probably put all $2000 into one thing instead of breaking it up.

Once you have saved another $1000 buy another 1 thing to diversify and so on.
You are a little unbalanced at first but if you put aside a few hundred per month within a year you will be balanced.

What to start with?

Depends if you are risky or want stability.

Riskier pick: Pick VXC since it is relatively low right now,
Safer pick: Select VAB since bonds are more stable. (Quick emerg. Fund access)

Put both in a TFSA.

Wishing you the best.