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JiggaMan
05-02-2006, 03:41 PM
Is there such a thing?

I'm trying to figure out some places to put my money. I like the stock market but I don't want to put all my eggs in one basket. Does anyone know of any worthwhile savings accounts? ING Direct has the highest intrest rate I can find... a whopping 3% :thumbsdow

Maybe I'm way off base, is compound interest over rated nowaday?

digi355
05-02-2006, 03:44 PM
You’re not going to get anywhere with a savings account. If you want something stable buy bonds. They offer a little better than 3% and are a stable investment. If you want to throw your money into something a little more risky but still considered stable go for I-units on the TSX. Savings accounts will not amount too much more than a few pennies a month.

JiggaMan
05-02-2006, 03:47 PM
Yeah that's what I was kinda thinking...

Sorry, I think I posted this in the wrong forum.:banghead:

digi355
05-02-2006, 03:47 PM
BTW you should post this in the Real Estate, Money and Finances section.

sputnik
05-02-2006, 03:49 PM
You could probably get a GIC for 5 years at about 4.5%.

Seriously though. You are BARELY beating inflation at that rate. So you are better off putting your money into a moderate mutual fund.

Check out the TD Monthly Income Fund. Its quite stable and will do better than any GIC or bank account. Also you only pay capital gains on the intrest instead of income tax on a bank account or GIC.

https://www.tdassetmanagement.com/Content/Products/MutualFunds/Funds/p_FundCard.asp?FID=2100&PID=5&SI=4

Mckenzie
05-02-2006, 09:19 PM
I agree....savings accounts are worthless and bonds are not too much better as you are barely beating inflation.

I would also suggest a low risk mutual fund if you plan on keeping the funds in for longer than 90 days (early redemption fee). If you can tolerate the risk, these would be a great choice for your funds. I've been in all TD mutual funds for about 5 years or so and I've averaged between 8 and 25% a year between about 5 of them.

TD Balanced Growth
TD Dividend Growth
TD Monthly Income
TD Precious Metals

sputnik
05-03-2006, 07:37 AM
Originally posted by Mckenzie
I agree....savings accounts are worthless and bonds are not too much better as you are barely beating inflation.

I would also suggest a low risk mutual fund if you plan on keeping the funds in for longer than 90 days (early redemption fee). If you can tolerate the risk, these would be a great choice for your funds. I've been in all TD mutual funds for about 5 years or so and I've averaged between 8 and 25% a year between about 5 of them.

TD Balanced Growth
TD Dividend Growth
TD Monthly Income
TD Precious Metals

The only low risk mutual fund you have there is the TD Monthly Income. The Balanced and Dividend Growth funds are listed as Moderate risk and the Precious Metals fund is a VERY high risk fund.

Mckenzie
05-03-2006, 11:37 AM
Originally posted by sputnik


The only low risk mutual fund you have there is the TD Monthly Income. The Balanced and Dividend Growth funds are listed as Moderate risk and the Precious Metals fund is a VERY high risk fund.

I was just showing the ones I'm invested in. The energy and precious metals are far from low risk. The dividend growth and balanced growth are very good funds and so far I've made money on all of them with little volatility. I guess you have to make it worht your while if you are going to tie up your money....my .02 anyways

But depending on the level of risk retention, it is up to you. At a young age though you should be looking to invest in higher risk stocks for a better return. A savings account is for someone who is 85 who cannot afford to lose anything.

max_boost
05-03-2006, 04:30 PM
^^^

Nice balance. Almost identical to my setup. How long have you held onto Precious Metals? Did you buy in during the down years? I find with the aggressive growth funds, you have to time your entry into it (i.e buy more during a down year) while Dividend funds, doesn't matter what price point you go in. Aggressive growth funds are PIMP, sure you can lose 50%in one year, but double down and watch it go up 100% the next :D

andres_mt
05-03-2006, 10:47 PM
Originally posted by sputnik
You could probably get a GIC for 5 years at about 4.5%.

Seriously though. You are BARELY beating inflation at that rate. So you are better off putting your money into a moderate mutual fund.

Check out the TD Monthly Income Fund. Its quite stable and will do better than any GIC or bank account. Also you only pay capital gains on the intrest instead of income tax on a bank account or GIC.

https://www.tdassetmanagement.com/Content/Products/MutualFunds/Funds/p_FundCard.asp?FID=2100&PID=5&SI=4

:werd:

Got something similar with RBC and it works great. I'm glad I locked my main GIC's or else i'd be tempted to spend it. :nut:

Mckenzie
05-04-2006, 08:30 AM
Originally posted by max_boost
^^^

Nice balance. Almost identical to my setup. How long have you held onto Precious Metals? Did you buy in during the down years? I find with the aggressive growth funds, you have to time your entry into it (i.e buy more during a down year) while Dividend funds, doesn't matter what price point you go in. Aggressive growth funds are PIMP, sure you can lose 50%in one year, but double down and watch it go up 100% the next :D

Yeah I'm pretty happy with it so far. I bought in just in february and I'm already up about 15% in 4 months. I'm hoping uncertainty about where to invest pushes people into a commodity buying frenzy. The dividend fund seems to be slow and steady lately but its still growing nonetheless.

ShOwOfF
05-05-2006, 02:14 AM
That's pretty well identical to the portfolio that I build for any of my Mutual Fund only clients that have a moderate to high risk tolerance. For TD, the energy fund did ~55% last year, with precious metals not far behind. Dividend growth, if I recall did ~23% last year. Definitely the top 3 TD funds that I select for tolerant growth.

Jiggaman, I would definitely have a look at mutual funds if you are looking for a decent RoR. They are relatively liquidable, and based on your situation you'll likely be able to build a portfolio that suits your objectives given the large family of mutual funds that most institution's carry.