Hi, Veeky Forums

likme
likme

Hi, Veeky Forums. I currently have 10 000 idle Canadian dollars. Next week, I'm gonna see a RBC financial adviser to see what I can do with the money.

What kind of homework should I do before the appointment? I'm completely new to Veeky Forums related stuff.

All urls found in this thread:
https://www.vanguardcanada.ca/advisors/home.htm
Booteefool
Booteefool

@likme
pls help

farquit
farquit

@likme
so like $20 USD?

askme
askme

@likme
Open a TFSA and buy $VFV

Playboyize
Playboyize

@farquit
Good one, mate. It's about 7826.99 US dollar. I should have bought a better rig back when it was even.

@askme

I will have to look up those in details but can you tell me why Vanguard S&P 500 Index ETF specifically? Is it because it is financial literacy friendly? I won't be using the money in a very long time.

Emberburn
Emberburn

Just don't let anyone know you have it for when Canada makes civilian ownership illegal.

Firespawn
Firespawn

@Emberburn
I would be at the very bottom of a long list of people that need to worry.

RavySnake
RavySnake

The RBC financial advisor is going to give you shitty advice, they're probably going to direct you into buying some RBC product.

@Playboyize
VFV does a good job tracking the market, and give a return you'll have a hard time beating by yourself.

BinaryMan
BinaryMan

@RavySnake
That won't be surprising, they are employed by RBC after all. Does that mean RBC's own investment operation doesn't do well?

Thank you for the advice, I will read a little about the fund and its review, if available. I still have no clue about the first number that I saw on their website.

BunnyJinx
BunnyJinx

@BinaryMan
Does that mean RBC's own investment operation doesn't do well?

I don't know.

But RBC is interested in making money for it's shareholders, not customers. You're better off making money by buying their stock than many of their investment products.

Stupidasole
Stupidasole

@BinaryMan
They're salesmen. They will sell you their own product in order to get commission. Just like any salesman.

Just listen to me and buy $VFV. I'm currently holding 70% $VFV 30% $VCN

whereismyname
whereismyname

@BunnyJinx
That's a good point!

I presume Vanguard is more client focused?

viagrandad
viagrandad

@whereismyname
vanguard is focused on mass herding and skimming , they are the Walmart of fund managers.

Firespawn
Firespawn

@Stupidasole
Thank you. I will take your recommendation into account.

@viagrandad

I'm easily pleased, I have no standard in finance as of yet.

StrangeWizard
StrangeWizard

@likme
What kind of homework should I do before the appointment?

None, don't bother going. Their going to try to sell you their mutual funds.

ETF's exist and their fees are way the fuck less. Go self directed.

whereismyname
whereismyname

@StrangeWizard
Is still have to see one to buy service from another fund, right?

Also, what's the difference between exchange-traded fund and index fund, how's Vanguard?

King_Martha
King_Martha

@likme
OP, don't invest right now, we're do for a massive selloff of risk assets all over the world. Just hold onto your money for another 2 years and that will be the best time in the world to invest. It'll be like buying in in late 2009.

cum2soon
cum2soon

@likme
Put whatever you don't want to lose into an index fund, and put what you are willing to risk into meme stocks or bitcoin

idontknow
idontknow

Looking to invest in an index fund. Should I go fidelity or vanguard?

Emberfire
Emberfire

@King_Martha
Oh shit, links to some articles?

Does that affect the real estate? My family's buying a house soon at Montreal.

Evilember
Evilember

@cum2soon
Cool, will do. I just want something safe and that I can forget about right now.

PurpleCharger
PurpleCharger

@RavySnake
I actually have worked at one of the Big 5 and can confirm this. Legally all they can sell you at the basic branch level are mutual funds (with high fees). Even the RBC brokerage platform have much higher commissions than most. Some online brokers even offer commission free ETF purchases .

farquit
farquit

@PurpleCharger
How do they compete?

Sharpcharm
Sharpcharm

@King_Martha
Do you have a single fact to back that up?

WebTool
WebTool

@PurpleCharger
ETF

Yeah, if the banker offers you a mutual fund or managed money instead of an ETF, walk out.

That said, there are thousands of ETFs so depending on your risk strategy, hopefully he'll figure out something to pick.

RumChicken
RumChicken

@WebTool

I probably won't. I just want to be able to forget about it and feel safe.

Ignoramus
Ignoramus

@RumChicken

The deal about the ETFs is they have like 0.10% expense ratios while managed funds and mutual funds have 2-3% depending. There is no excuse because they do the same thing.

Ask the banker about ETFs and see what they are trying to sell. If they are selling managed money (which they might because they earn more fees that way), you might want to buy a book on ETFs and self learn.

haveahappyday
haveahappyday

@Ignoramus
self-learn

I have yet to have success with that. I will look into it. But, for now, is Vanguard a good option? I feel like time's money too.

w8t4u
w8t4u

@WebTool
Have you literally never been in a bank before. As someone above you said branches can only sell mutual funds. They'd laugh OP out of there if he asked for an ETF.

Emberfire
Emberfire

@w8t4u

Yes, but commercial banks in the US are forbidden to sell mutual funds, but anyways.

Since he is Canadian call Vanguard or go to their website.

https://www.vanguardcanada.ca/advisors/home.htm

They basically invented low expense ETFs. Go with them.

CouchChiller
CouchChiller

10 000 is peanuts.. 2 dollars a month in interest is what you will make. Open up a tfsa tax shield and invest i. Stocks.. Learn it and grow it. If its in a tfsa you dont pay any tax at all on gains

PurpleCharger
PurpleCharger

@idontknow
Van

Stupidasole
Stupidasole

@whereismyname
what's the difference between exchange-traded fund and index fund

An ETF is just an exchange traded fund of any flavor. You can get ETF's for indexes, commodities, currencies, really everything. They come in a thousand varieties. Some are leveraged high risk, quick decay shit so make sure you know what you are buying.

An index fund just attempts to track an index and is considered to be a reasonably safe long term investment. If the market crashes, you are going down with it, but average it out over decades and you are very likely to do quite well. The exception being Japan, but there is no gain without some risk.

how's Vanguard?

Fine, their fees are a bit higher than some. I hold a couple of their ETF's along with a few from Ishares. XEI has done very well for me this year.

whereismyname
whereismyname

Canadian weed stocks.

Nojokur
Nojokur

@CouchChiller
Thanks, I know that isn't a lot but I'm only starting out. I actually have 100 000 cad in saving but most of it will go into buying a house for me and my parents.

Dreamworx
Dreamworx

@likme
Don't let brokers trade for you. They charge way too much per trade. You're better off with a Questrade account and your own research. If you're lazy and want to grow money, invest it all in marijuana stocks--thats the only no-brainer play in the market right now aside from gold (I don't recommend gold for beginners because it's volatile and difficult to pick good companies that aren't all hype).

King_Martha
King_Martha

@Dreamworx
invest it all in marijuana stocks

The risk being that the Liberals may decide to simply push off, or ignore their campaign promise, or go the route of liquor in many provinces and monopolize distribution, perhaps even supply. There is nothing saying they have to go free market with it and there are no free rides.

Soft_member
Soft_member

@Stupidasole
I will definitely need to learn more. For now Vanguard index fund would be good. I don't plan on using the money for a while and it sounds like it follows market growth. What happened with Japan?

@whereismyname
@Dreamworx

Is Canadian weed stock serious? Would it rely on government decisions?

5mileys
5mileys

@Soft_member
What happened with Japan?

That's a book unto itself. Short version is they have not done well economically.

idontknow
idontknow

@Soft_member

Japan is stuck in a long term deflationary cycle permanently. Which means their indexes never go up.

I wouldn't invest in weed until you know if the Canadian government wants to monopolize it or privatize it.

Flameblow
Flameblow

@5mileys
Oh boy, I thought they are 3rd place in GDP so they must be doing moderately well. Is their economy still sustaining their lifestyle?

@idontknow
Yeah, I haven't heard much talk about weed lately. That can wait. What do you mean permanently, are they never going to do well again?

WebTool
WebTool

@Flameblow

Well life goes on in Japan. People live better than most Americans.

However, as far as making return on investments, you aren't going to find much in Japan other than say Nintendo or maybe Sony which export a lot.

The reason is it that the Japanese population is negative growing which means there is less consumers over time which deflates the economy.

If you pick export focused companies you can come out ok, but if you index the Japan economy overall they aren't growing.

LuckyDusty
LuckyDusty

@Flameblow
Is their economy still sustaining their lifestyle?

No clue, /int/ might know. From what I've read it seem their fine, there is just less of them due to declining birth rates.

AwesomeTucker
AwesomeTucker

@WebTool
@LuckyDusty

Ah, I feel more reassured. I was picturing them going the way of Argentina. Is declining birth rate/aging population common among developed countries?

JunkTop
JunkTop

@AwesomeTucker
Is declining birth rate/aging population common among developed countries?

Nope, their the first so the world is watching to see how they deal with it. Everyone else just imports people.

Fuzzy_Logic
Fuzzy_Logic

@JunkTop
Everyone else just imports people.

Kind of like Canada.

Disable AdBlock to view this page

Disable AdBlock to view this page