Investing in this market

[Sunset]

I am wondering what people are doing right now if they have spare cash to invest. If I was 10 years younger I'd maybe be less hesitant -I'm 47 and would like to retire at 60. Due to some aggressive savings over the last few years and an inheritance I have about $275 k to invest. Ideally, I'd average that out and take advantage of dollar-cost averaging over a longer period but given my time horizon I'm not sure how to strategize (also complicating this is inflation and the current market). Additionally, I am likely going to sell an investment property in the next while which will put another sizable bit of cash in hand (not sure how much we'll get but my guess is about 150k after all expenses/ taxes).

We are in okay shape as we head for retirement. We have no mortgage, we have a few rental properties which will be paid off in the next few years (income generating with expenses more than paid for by tenants so no need to pay those down), maxed out RRSPs, TSFAs (with some room - which creates a tax-free investment for some of the cash mentioned above). I can get a moderate pension at 60 from work. What I'm hoping to do with this additional money is to create additional wealth for a more comfortable retirement. Likely we could wait to draw down on most of this until 65 if we needed to.

In any case, I know that no one can time the market or know what is going to happen but curious about how others are investing in these times and what others might do if you had cash sitting idle ready to invest.

OP (Original Poster) - don't know if you are still reading this thread, as it went off the deep end into a pool of oil.

However, You obviously should FILL your TFSA(s) and if you have no other idea buy a short GIC with it, assuming it takes up a tiny bit of your pile of cash. Then consider some broad index type investments as you have many more years until age 80->90 for it to grow. Things like XIU and of course the Canadian version of VTI so you can buy it on the Canadian Market without the expense of dollar conversions on every buy/sell example VUN.

It makes a big difference in which account you hold a Canadian ETF or an American one.
Here is paper on it for some fun bedtime reading:
Since no tax slips are issued for dividends received in a registered account, any foreign withholding taxes incurred in an RRSP, TFSA or RESP are not recoverable

 

[NW-Bound]

(Slightly Tongue in Cheek - but not completely)

Wait. What? Europeans are more enlightened than we give them credit for? Germany is in Europe, right? They committed to solar and wind until they figured out that the sun doesn't always shine and the wind doesn't always blow. Enlightened? I guess they are now since they're adding back coal plants.

So, if I understand: The folks in Portugal are screaming along at 100 km/hr after sunset on the freeway and see they are down to 20% charge. They pull over to charge but the wind quit blowing so now they either wait until it starts blowing or pay an astronomical amount to fast charge for the next 200 km. The system might just work in town, but not so much on the open road. YMMV.

Can't speak for Germany, because I don't know what they think.

But I have been to Portugal, and the highway traffic was very light. This was in 2019, so it was not because of Covid.

Hence, I don't think Portuguese people expect cheap and abundant electricity as a constitutional right. If they cannot afford to drive, they stay home or take the bus. They don't complain.

PS. Or they stick with ICE cars.

 

[NW-Bound]

This made me curious, so some quick googling/back of envelope calcs:
Average EV uses 0.346kWh per mile
Typical charging efficiency: 85%?
Car mileage (USA) per year: 14,263 or 2.5 Trillion
So (0.346kWH / .85) * 2.5 Trillion .40706 * 2.5 Trillion = 1017647058823.529 kWh (1.018 trillion kWh)

In 2021, net electrical generation in the USA was 4.1 trillion

Thus, to power all would require a 25% increase in electrical generation & transmission capacity.

ETA: Corrections welcome, I did this very quickly.

25% increase is quite doable, unless we want it in a couple of years. Over 10 or 20 years, it should not be a problem.

I think the much harder part is to have it from renewable sources. Yes, we can generate a lot of wind and solar power and shut down thermal plants too, if we are willing to suffer blackouts when the sun does not shine and the wind does not blow.

 

[OldShooter]

[So Big Oil has somehow been suppressing electric car technology and now that suppression is ending?]

Dude. Follow the Big oil money. We cannot talk about it in this forum. ...

Oh, I think talking about it would be safe enough if we both wore our tinfoil hats.

 

[purplesky]

Completely agree that transpo is a fascinating subject. Fun as it is, I don't think we'll improve transpo because it's fun. We'll do it because we have to.

I think a safer conclusion than "EVs are taking over" is that rich people (who own Teslas) predominate at Moab since it's pricey to travel there and the rich have the money to do it. Probably more new Mercedes and Lexus there than clapped out Fords or even Toyotas but YMMV.

Moab Utah is not that pricey. All types of people visit Arches and Canyonlands National park. Park passes are not that expensive and plenty of free hiking in Moab. Lodging is reasonable for a 2 or 3 star hotel.

The Tesla model Y is middle-class with car payment. Not just rich people.

Transportation is changing because it's what younger people want to buy now.

 

[copyright1997reloaded]

(Slightly Tongue in Cheek - but not completely)

Wait. What? Europeans are more enlightened than we give them credit for? Germany is in Europe, right? They committed to solar and wind until they figured out that the sun doesn't always shine and the wind doesn't always blow. Enlightened? I guess they are now since they're adding back coal plants.

Germany just posted PPI numbers this morning:
German PPI YoY 33.6%, +1.6% for the month. Energy prices up 87.1% YoY.

"Decommission the nukes" they said, everything will be fine. "We don't need any LNG processing facilities" they said, everything will be fine.

Powerplants paid 241% more YoY for natural gas, and now they are scrambling to get coal fired plants restarted...but need to pass a law before that is allowed.

 

[aja8888]

The Tesla model Y is middle-class with car payment. Not just rich peop
le.
Transportation is changing because it's what younger people want to buy now.

Your post made me think about our family and who bought what cars in the past 10 years.

My Daughter - Mustang GT Premier Edition

Stepson - Jetta 1.4 liter sedan

Stepdaughter 1 - Toyota Rav4 (gasoline only)

Stepdaughter 2 - Jetta TDI wagon (diesel)

Grandson 1 - Chev full size pickup

Grandson 2 - Jetta 2.0 (older one)

Son-in-law - 2022 Hyundai Tuscon

Me - (2 cars) - 2021 Hyundai Tuscon, 2005 Mustang Convertible

Granddaughter (just out of college) - Ford Escape (gasoline)

Daughter's Cousin - 2021 Toyota Rav4 (hybrid)

No electric cars, young folk in this blended family seem to like small SUVs and Jetta's (gas and diesel). All cars except for my 2005 mustang were bought within the last 10 years.

 

[purplesky]

[So Big Oil has somehow been suppressing electric car technology and now that suppression is ending?]Oh, I think talking about it would be safe enough if we both wore our tinfoil hats.

It is all out in the open. Follow the money. Capitalism at its finest.

Why wouldn't Big Oil obstruct and suppress the electric car movement?

The electric car train has left the station so it doesn't matter now anyway.

 

[purplesky]

Your post made me think about our family and who bought what cars in the past 10 years.

My Daughter - Mustang GT Premier Edition

Stepson - Jetta 1.4 liter sedan

Stepdaughter 1 - Toyota Rav4 (gasoline only)

Stepdaughter 2 - Jetta TDI wagon (diesel)

Grandson 1 - Chev full size pickup

Grandson 2 - Jetta 2.0 (older one)

Son-in-law - 2022 Hyundai Tuscon

Me - (2 cars) - 2021 Hyundai Tuscon, 2005 Mustang Convertible

Granddaughter (just out of college) - Ford Escape (gasoline)

Daughter's Cousin - 2021 Toyota Rav4 (hybrid)

No electric cars, young folk in this blended family seem to like small SUVs and Jetta's (gas and diesel). All cars except for my 2005 mustang were bought within the last 10 years.

But the next car they buy will probably be electric because they will have a choice.

Electric cars are just now becoming available.
There is a long wait now but in 3 to 5 years people will have the opportunity to choose gas or electric.

Pickup buyers will choose the electric Chevy Silverado or the Ford F150 Lightning when they become readily available to buy.

Automakers are now designing and building electric cars as I type this.

In 10 years new Gas cars will be gone for purchase and Walmart and Target will be offering electric car charging discounts while you shop.

 

[OldShooter]

It is all out in the open. Follow the money. Capitalism at its finest. ...

This was probably after they suppressed the 100mpg carburetor that ran on water? Kind of amazing; I think you really do believe this stuff.

 

[target2019]

Some threads serve better than others to collect candidates for my category of Incredibly Great Nascient Outstanding Ruling Expert category of posters.

 

[RunningBum]

Some threads serve better than others to collect candidates for my category of Incredibly Great Nascient Outstanding Ruling Expert category of posters.

I see what you did there.

 

[purplesky]

This was probably after they suppressed the 100mpg carburetor that ran on water? Kind of amazing; I think you really do believe this stuff.

Thanks for the info. I did not know that.

 

[aja8888]

In 10 years new Gas cars will be gone for purchase and Walmart and Target will be offering electric car charging discounts while you shop.

There are 280 million cars on the road today in the U.S., and 96% of them are gas and diesel powered (we are not including huge trucks and construction vehicles here). The average life of a car on the road in the U.S. is 12 years so a good many of these, and many replacements, will be around for 2+ decades.

New gasoline stations are being built in my neighborhood as I type this. I don't believe the banks would finance a big construction project like a 24 island fueling station if it was only going to be around a short while.

The odds are that hydrocarbon fueled vehicles will be around for several more decades. I also believe that U.S. auto manufacturers will be making both gas and electric cars for the next 30 years.

 

[copyright1997reloaded]

Some threads serve better than others to collect candidates for my category of Incredibly Great Nascient Outstanding Ruling Expert category of posters.

Yep, I may have to rescind my statement of never having a poster on that list.

 

[purplesky]

There are 280 million cars on the road today in the U.S., and 96% of them are gas and diesel powered (we are not including huge trucks and construction vehicles here). The average life of a car on the road in the U.S. is 12 years so a good many of these, and many replacements, will be around for 2+ decades.

New gasoline stations are being built in my neighborhood as I type this. I don't believe the banks would finance a big construction project like a 24 island fueling station if it was only going to be around a short while.

The odds are that hydrocarbon fueled vehicles will be around for several more decades. I also believe that U.S. auto manufacturers will be making both gas and electric cars for the next 30 years.

I guess anything is possible.

I just think consumers will choose the BEVs because they are better.

More efficient and better performance and lower maintenance costs.

5 years ago BEVs were a hypothetical. Now with billions worldwide invested in this direction I would think it might happen faster.

I admit I might be wrong though.

 

[aja8888]

I guess anything is possible.

I just think consumers will choose the BEVs because they are better.

More efficient and better performance and lower maintenance costs.

5 years ago BEVs were a hypothetical. Now with billions worldwide invested in this direction I would think it might happen faster.

I admit I might be wrong though.

If I was to buy a new vehicle in the next few years, it would be a hybrid. works for both worlds. A lot of my friends (mostly older types) think the same way.

It's a good transition vehicle for the time being as EVs become mainstream someday.

 

[REWahoo]

If I was to buy a new vehicle in the next few years, it would be a hybrid. works for both worlds. A lot of my friends (mostly older types) think the same way.

It's a good transition vehicle for the time being as EVs become mainstream someday.

Agreed. Bought a hybrid in March. The right car for this “older type”.

 

[purplesky]

If I was to buy a new vehicle in the next few years, it would be a hybrid. works for both worlds. A lot of my friends (mostly older types) think the same way.

It's a good transition vehicle for the time being as EVs become mainstream someday.

Yes the Toyota RAV4 hybrid is a great vehicle.
I was getting my car serviced recently at the Toyota dealer and the RAV4 hybrid would be at the top of my list if I were in the market to buy a new car now.

It will be interesting to see what Toyota does with the next 4forerunner.
The current forerunner generation is still selling great and the fuel economy is terrible but the reliability is amazing.

 

[Koolau]

Can't speak for Germany, because I don't know what they think.

But I have been to Portugal, and the highway traffic was very light. This was in 2019, so it was not because of Covid.

Hence, I don't think Portuguese people expect cheap and abundant electricity as a constitutional right. If they cannot afford to drive, they stay home or take the bus. They don't complain.

PS. Or they stick with ICE cars.

We aren't Portugese.

 

[NW-Bound]

We aren't Portugese.

And that's why we are not as enlightened.

 

[beanctr88]

Crash? I think not. There is still a huge shortage of housing units in the USA. Four million that last time I checked. Prices may get softer and probably may go down somewhat. But crash? I doubt it. Though I do admit if I was a[-] speculator[/-] investor betting on the bigger fool theory to bail me out, I would be sweating.

People often say there is a shortage of housing units in the US. I find this hard to believe. There are millions of second homes that sit vacant most of the year. Go to any major city and drive around and you can find many empty houses. I’d love to see how that number is actually calculated. It must exclude a lot of houses deemed too old or undesirable. Maybe it also excludes houses in areas like the Rust Belt with high unemployment and outward migration.

 

[Koolau]

25% increase is quite doable, unless we want it in a couple of years. Over 10 or 20 years, it should not be a problem.

I think the much harder part is to have it from renewable sources. Yes, we can generate a lot of wind and solar power and shut down thermal plants too, if we are willing to suffer blackouts when the sun does not shine and the wind does not blow.

The Chinese can build a power plant every week. I'm sure we could if it weren't for the 7 to 10 years for environmental assessments and nuisance law suits for each one. When folks click the AC this summer and nothing happens, I think the green agenda will go back to the back burner - though there may be no gas for it.

But I think the real issue is the grid.

 

[Koolau]

Moab Utah is not that pricey. All types of people visit Arches and Canyonlands National park. Park passes are not that expensive and plenty of free hiking in Moab. Lodging is reasonable for a 2 or 3 star hotel.

The Tesla model Y is middle-class with car payment. Not just rich people.

Transportation is changing because it's what younger people want to buy now.

Can't confirm Moab as either pricey or cheap. But GETTING there at $6/gallon is expensive. People who can afford a $60K to 100K Tesla can probably afford the electricity.

 

[Koolau]

Some threads serve better than others to collect candidates for my category of Incredibly Great Nascient Outstanding Ruling Expert category of posters.

I see what you did there.

Yes, very clever, now where's that button!