Investment advice

[dreaming]

Hi, I've been a lurker on this site and appreciate all the good knowledge.

Can I please get some investment advice? I am interested in index investing but dont know where to start.

Me:
-28 years old
-canadian
-no debt
-150,000 sitting in savings accounts and short term deposits
-80,000 salary before tax
-very low expenses... can save about 40k annual
-for now, living with parents but will move out in the next couple years

Thanks!

 

[Onward]

I strongly suggest you get this book and read it. Twice.

 

[pb4uski]

What are your goals? In other words, what are you saving for?

That will at least partly define what you should invest in.

If some of the $150k is to make a down payment or buy a house, you would want to keep that money in something safe. Ditto if you plan to go back to school or your emergency fund.

Money that is being saved for longer term goals would probably be best in a low cost index fund such as the Canadian equivalent of Vanguard Total Stock or Vanguard Wellington. Since the markets are a bit frothy at this point, you may be best to value average in over time.

 

[photoguy]

Take a look at the Canadian Couch Potato (canadian focused index/etf portfolios). Follows boglehead philosophy.

 

[Bateauxdriver]

You are single? Heck live with the parents till they break your plate.

 

[racy]

Dreamer,

Thought you might enjoy this article by Jack Bogle, the inventor of index mutual funds: Stockhouse-From the man who invented index funds and his KISS principle

Then a website that follows his philosophy: Getting Started - Bogleheads

 

[wingfooted]

You're young - need to be invested in equities and not in cash.

I would recommend opening up an on line discount brokerage account with the $150K. Take 80% of that , divide it into fourths and average into a ETF like SPY or QQQQ over the next six months. Very liquid investment. With the other 20%, look at investing in individual stocks based on your personal research. Always helps when you have some 'skin' in the game.

With the $40K annual savings, have that amount automatically deposited into the brokerage account on a monthly basis. Every month direct those funds to your ETF investments.

With any kind of market karma and regular savings, plus a few raises along the way - you should have a million in investment grade equities before you hit 40.

Good luck.