Hi, Veeky Forums

You want safe? Buy I bonds and EE bonds. I bonds are indexed to inflation while EE bonds are guaranteed to double in value after 20 years (works out to 3.5% a year). Both are backed by the full faith and credit of the U.S. government.

EE bonds work well with Roth IRAs, since Roths make it so you don't have to pay taxes when you cash in the bond and EE bonds defer taxes until you cash in the bond.

If you want to buy what everyone else is buying, throw your money into a Vanguard S&P 500 index fund.

Open a brokerage account. Read about the popular ones, differences between them, etc. Pick what works best for you, study up on companies you see as reasonable long-term investments. Learn about Roth IRAs and stuff. Basically just spend time learning about what to do with the money and then pull the trigger, hahaha.

If you decide to take the index fund route go check out vanguardcanada.ca they would probably be your best bet mate

Do your parents a favour and advise them to seek professional advice. Don't listen to the idiots here shilling cryptocurrencies. I decided to check out this board because I'm an accountant by trade, and as far as I can tell pretty much everyone here is either trolling, stupid, or both. You want to mess around with cryptocurrencies with spare cash? That's fine, and you might even make a decent amount of money. Don't bank everything on it though - it's asking for trouble.

Vanguard S&P 500 index fund is something that I've heard a lot. From my very limited understanding, it invests into the 500 biggest american companies and adjusting the amount for each base on their performance. I have no idea about I or EE bonds though, nor Roth IRAs. Can I buy them like an american do?

Okay, I will have to look up a lot of stuff, a lot of things I haven't even heard before.

They are already doing that, but they would like to get some second opinions from me. I think they want me to learn about personal finance and investment which wouldn't hurt.

>they want me to learn about personal finance and investment

You won't learn it here mate.

Could you please tell me where I can learn it?

That's a bit like asking where you can learn about the law. First, some basic principles apply pretty much everywhere, but a lot of the detail varies from place to place. Second, no matter how much you learn a professional will know more and your goal should be to understand them rather than be a substitute for one.

If you want a grasp of the basics, pick broad first year textbooks in accounting and economics, read them, understand them, and you'll be more financially literate than 95% of the population. Then start reading the business section of the newspaper and looking up anything you don't understand. You only really pick up a good sense of this stuff by being constantly immersed in it.

>I'm a certified financial advisor.
>advisor
>not adviser

Almost.

Roth is American, we have RRSPs and TFSAs.
Sign up for My CRA on Revenue Canada's website - it'll have everything there so you know your contribution limits.

TFSAs have a misleading name as they don't have to be savings accounts - they can be GICs, mutual funds, ETFs or individual stocks, pretty much any type of growth account. These are after-tax accounts, so you never get taxed on earnings of any kind, but you can't claim contributions on your tax return.

RRSPs are before-tax accounts that you can claim contributions into on your return, but if you ever take money out you get taxed AND lose the contribution room forever, with two exceptions.

Both have their uses, and if you can, do both.

Its spelled both ways idiot, one is just more old timey than the other

Almost.

One is governed by law and has a fiduciary responsibility to do best for the client (e), the other is a salesman for the bank (o) and does not have to have the client's best interests in mind.
Banks and credit unions are all being exposed for this shit the last few months, the spelling of the word is the technicality that allows use of a loophole because the law explicitly refers to Adviser in the title of it, not Advisor.
Commonality of usage now has no bearing on the law as it was written, and so it gets abused.

>I'm a certified financial advisor.
You're roleplaying on Veeky Forums. Fuck you. There's shitposting and then there's fraud.

And fuck OP for being too stupid not to know it.

That really sounds like some good advice, I will put in whatever time I can to get more of a feel. Seeing that you are an accountant with years of dedicated time studying finance/accounting/economics, how financially literate is your average Veeky Forums user? l I'm totally illiterate.

I see, thank you for the comparison. What does losing contribution room to RRSPs forever mean, is it that you can never put money into it ever again?

I don't know much but there are apparently some differences:moneysense.ca/save/investing/financial-advisor-or-adviser/

the article doesn't state that the certified ones have to be called adviser tho, so I don't know.

Hey, I'm taking everything with a grain of salt here.

RRSP contributions have a soft cap of 15% of your yearly income and a hard cap of $26,010 this year. If you make over $173,400 you hit the hard cap.
Each year you get room based on your income. If you don't use it, it carries forward.
If you withdraw from an RRSP you do not get the withdrawn contribution space back, unless you borrowed against it under two programs.

TFSAs have a hard cap of $5500 per year right now, it changes every few years with inflation. Your total room depends on when you turned 18 compared to when the program started.
If you withdraw from a TFSA you regain the contribution room in the next calendar year.

Ah, I see. So essentially if you withdraw, all the unused room to contribution you've accumulated before that point in time becomes unusable. But, you can still put money into it, like starting from zero in term of room.

Thank you user, do you get to pick what kind of investment you have in your RRSP account? I read up a bit on wikipedia, it's essentially anything I've heard of.

No.
Say you have $50,000 of room in an RRSP. You put in $10,000 one year, $5,000 the next two years you have put $20,000 in, and have $30,000 space left.

If you then take out $2500 you now have $17,500 in and $30,000 space left. You can't re-deposit the withdrawn amount - contribution space can be added to but not recovered.

You can pick what you invest your RRSP in. I have some in GICs, individual stocks, and mutual funds.

So, that maximum deposit will be $47,500/50,000 and that $2500 blank cab never be filled again.

Let's say you put in $50,000 and then it grows out of the $50,000 limit, can you withdraw the excess with no penalty?

Got it.

>DigiBytes
>PIVX
don't listen to this scammer, OP

Look into a canadian ETF dividend fund? Set it up so the dividends automatically reinvest for compounding gainz

Avoid real estate in big Canuck cities like the plague.

Does Montreal count into the big city list?

If it does, then I'm afraid it's too late.

Your contribution room will grow each year, so yes you can put more money in.

look into bonds and government backed securities (i don't know how this works in canada). at least in the states the government is good at paying them back.

otherwise index funds are a good bet for basic,not too involved investing.

do not invest in crypto, do not invest in random companies, be conservative with your investments and learn about how this all works

Understood, thank you for answering user.

I'll look that up.

if you had invested in any crypto 3+ months ago you could have made more than you'll make in any traditional investment in 3 years

They're killing off Canada Savings Bonds this November because of how costly the program is and how poor the ROI has become.

I was only asked yesterday. I only have a very vague idea of what a cryptocurrency is at this point still.

Do I have a future going into software engineering and not knowing the first thing when it comes to cryptocurrency? My understanding is that it based on brute-forcing encryption or something which gradually gets harder and requires more computing power.

Go 3x long on BTC and ETH.

If you are looking for passive income you are looking for high dividend stocks /ETFs, bonds, money market funds, CDs,

You are not likely to get a great rate on any of these, but I like REITs and high dividend ETFs. You can also do the Dogs. It is traditionally what people with money do. You could also try to find some type of turnkey business that you don't really have to manage.
Since you have a relatively large amount, you can also try silent partnership or equity interest in LLC. You could buy a royalty or license a patent you own. You can buy someones annuity. There is peer to peer lending like moneytree.
This is a very open ended question.

I'm still reading up on cybercurrency.

Thank you for the advice, I'm saving this thread. Maybe my question is too vague, there are so many options out there. I feel a bit overwhelmed atm.

go for some canadian reits

I'll look into it, I don't even know what REITs stands for at this point.

Invest in my gambling system

I'm more or less in the same boat, have about $200k sitting in the bank and will get another $100k in the near future; not sure what the fuck to do with it all.

There's more bullshit than help here, you need to self-educate yourself on everything investing...mutual funds, index funds, etf's, reits, ira's,annuities, etc etc etc. before you or your parents should do anything. If you do hire someone....hire a fiduciary for a one time consultation.