What to do with extra money besides RRSPs!

[stealth]

OK so here is the situation.

At work we have a savings program for RRSPs.

Basically I put in 8% of my base and the company puts in 12%.

Now that maxes out my yearly RRSP contributions.

I have been playing the stock market with my extra money.

Now I need a way to put some money away or else I will end up blowing it on my car or something stupid...

I would like to invest $2000/month. Where should I invest it / hide it?

[ballah]

how long until you need the investment?
what your risk tolerance?
what s your knowledge when it comes to investments?
any other debts? ie:do you have a mortgage?
age? dependents?

getting a better idea of your financial situation will help people recommend solutions for yah. hope this helps.

[Jason Lange]

I will give you a guaranteed 2% on your $2000/mth!!!

[Dumbass17]

fuck me
$2000 to invest after bills?!
must be nice!

[max_boost]

Go see one of those advisers at your local branch. They'll assess your risk profile and give you a range of solutions. To keep it liquid, open up a PC account. 3.75% for the next 3 months.

[stealth]

Originally posted by ballah
how long until you need the investment?
what your risk tolerance?
what s your knowledge when it comes to investments?
any other debts? ie:do you have a mortgage?
age? dependents?

getting a better idea of your financial situation will help people recommend solutions for yah. hope this helps.

Umm maybe 1-2 years before I need the investment. But I have no problem extending the term.

Risk tolerance is medium.

Knowledge I am a rookie.

I have a vehicle loan, and a mortgage. No dependents.

Dumbass17, that is if I save my money, and start learning how to budget better lol. It also helps that I rent out one room in my place!

[stealth]

Originally posted by max_boost
Go see one of those advisers at your local branch. They'll assess your risk profile and give you a range of solutions. To keep it liquid, open up a PC account. 3.75% for the next 3 months.

max_boost is that compounded monthly. Ie. $75 a month.

[FiveFreshFish]

Put some to the mortgage and get it paid off sooner.

[AzNxHyDrA]

Pay your mortgage off Asap haha

[stealth]

But my mortgage is at 4% interest. Can't I find something to invest in that will yield me more than 4%.

Also I would like to have this money accessible for other future properties or investments.

[SteveMo600]

Originally posted by stealth
But my mortgage is at 4% interest. Can't I find something to invest in that will yield me more than 4%.

Also I would like to have this money accessible for other future properties or investments.

It may be 4% but down the road, you're paying a whole lot more than that. Remember, if you pay $100 in mortgage pre-payment, you're saving the 4% plus any future interest that you'd be pay via compounding.

Small pre-payments on your mortgage are a great way to spend extra cash. Don't be housepoor though...aka, spending all your money on your mortgage and end up broke with no money for fun but a paid off house.

[stealth]

But the thing is I am looking at saving the money for future investments/purchases.

If I have it tied into the house I can't access it unless I go with a HLOC.

[E36M3]

If you haven't done so already, put enough into CDs to have at least 3 months of income rolling over in 90 day increments (three increments with one month of gross salary each). After building this "stop gap" measure, I would start investing the $2k a month in long term CDs (whatever is most prudent at the time, perhaps 5 years or more in term).

Although you may feel like CDs don't offer a great return, they are bulletproof and will pay no matter what, and if you keep rolling them over, they will provide you with a solid base to build on.

[max_boost]

Originally posted by stealth
But my mortgage is at 4% interest. Can't I find something to invest in that will yield me more than 4%.

Also I would like to have this money accessible for other future properties or investments.

Yeah that's what I thought too until I'm $25K in the hole from thinking I can get more than 5% LOL

After I maxed out my RRSP's, all my money goes towards the house no questions asked. I'll worry about other investment avenues after my house is taken care of.

Oh yeah, damn it, I almost forgot, I invested with ZorroAMG on his Strathmore Development. Talk to him, seems a hell lot more steady than what's going on on the TSX these days.

[stealth]

Originally posted by E36M3
If you haven't done so already, put enough into CDs to have at least 3 months of income rolling over in 90 day increments (three increments with one month of gross salary each). After building this "stop gap" measure, I would start investing the $2k a month in long term CDs (whatever is most prudent at the time, perhaps 5 years or more in term).

Although you may feel like CDs don't offer a great return, they are bulletproof and will pay no matter what, and if you keep rolling them over, they will provide you with a solid base to build on.

Sorry for a guy who is knew to this, what are CDs?

So you are suggesting I put 3 months worth of income into it.

Then after every 90 days I put 1 month of income into it? Do this 3 times, so it would take 9 months to do this?

max_boost thanks for the info. I will look into Zorro's investment opportunity.

[Canmorite]

A CD is a certificate of deposit. You recieve interest (fixed rate) and it bears a maturity date (hence rolling over comment). You can also get them in any amount so thats a great feature.

They are insured by the FDIC, so yes, bulletproof.

http://www.investopedia.com/terms/c/...eofdeposit.asp

[ExtraSlow]

For me, if it's a choice between CDs and paying down a 4% mortgage, I'd go for the mortgage. it just feels good to own more of your home.

I think ZorroAMGs Strathmore program is longer than two years, but it appears very solid.

If you feel like some risk is appropriate, and you don't want to put in a lot of research time, I'd recommend fundamentally weighted mutual funds, like those offered by wisdomtree and Claymore.

There are lots of options out there.

[lint]

Originally posted by stealth
But the thing is I am looking at saving the money for future investments/purchases.

If I have it tied into the house I can't access it unless I go with a HLOC.

What's wrong with a HELOC? Paying down the mortgage is pretty much a no brainer since it's a GUARANTEED return of 4%, builds your equity and allows you to access the funds via HELOC for investment purposes. With the amount of disposable income that you access to, I would seriously look into getting some professional advice

[ExtraSlow]

I second the idea of getting some professional advice. Just be careful you don't end up getting advice from someone who is more concerned with selling you underperforming investments. Some threads on the subject:
http://forums.beyond.ca/st/232728/se...isor-planner-/

http://forums.beyond.ca/st/144389/ho...est-1k-month-/

[mekeni]

extra 500 / month on mortgage = less amortization