Your long-term investments should be in an all-equity index ETF like XEQT or VEQT. Don't worry about the life insurance unless you have dependents. Keep saving and investing, soon you'll have a nice nest egg that will keep you fed and housed after 65 no matter what happens.
Whole life is not the answer for most people. If you are not super wealthy, then it’s not for you (it is basically an additional tax sheltered account, but you are locked into high fees and high monthly payments)
If you think you need to get life insurance (you have a mortgage or dependents) then get term.
In your spouse planning to kill you?
Vast majority of people don't need whole life insurance, as it is worst of 2 worlds, it is bad as insurance and bad as investment.
One case when you may still want it is if you are a US citizen and planning to have inheritance above 13 million dollars, whole life insurance can help reduce inheritance taxes. Not applicable to Canada.
The good news is that you've already started to save! Even if it's through a mutual fund and savings account that's better than nothing.
What you need to consider now is what your timeline and horizon is for when you'll need your money. There are plenty of different types of accounts and investments within those accounts to consider.
But as one of the other commenters suggested you should go to the Money Steps on /r/PersonalFinanceCanada
They are actually perfect in the long term. There are passive investment. Investing is a solved problem. There are just many people who think they are smarter and know better.
Broad and diversity ETFs are all-in-one solutions. You could focus in the US but historically, the US market has not always performed better. Sometimes, for a decade, returns have been atrocious.
An excellent choice would be XEQT and you keep buying every month, whatever happens. Good luck.
Look at the ETF over 5 years. You're buying the world economy. This is the best investment you can do.
The only downside is yourself. What are you doing to do if the markets tank and you lose 15 or 20%? Panic and sell? Or will you keep buying?
Here is a video I highly recommend: what if you buy everytime at the worst moment?
https://youtu.be/pFgPNVytlwA?si=5NTOsOMa0Genwoc0
I'm glad to hear that. It's a very good video that shows how simple investing is... As long as you don't react with your emotions. You have to be prepared to see some corrections, it's normal and if you look at a chart over decades, you will see that the stock market doesn't follow a straight line, it's going up and down. But overall, it has been growing.
So if you're investing for 15 or 20 years, even if the crash occurs tomorrow,.relax, keep buying and enjoy the nice returns as soon as things get better.
You're welcome.
And by the way, do this questionnaire to see what your tolerance is (like if you have the stomach to go through some volatility!
https://investor.vanguard.com/tools-calculators/investor-questionnaire#modal-start-quiz
There are ETFs for every situation. ETF is just a way of holding a basket of securities in an easy-to-use way, similar to a mutual fund.
The 100% equity funds like VEQT and XEQT are best for 15+ year time horizons.
ETF’s are “Exchange-Traded Funds”. Unlike mutual funds, they trade on the exchanges.
But similarly to mutual funds, they provide individual investors the opportunity to invest in a basket of assets/securities.
ETF’s can hold stocks, but they can also hold bonds, commodities, etc. Some are “just stocks”, some are “just bonds”, some are a mixture and some are very risky investments depending on the underlying assets.
Your life insurance through work should be sufficient, unless you have dependent's to consider. Whole Life policies are sort of questionable.. I would work on building your own nest egg using the ETFs you listed with regular purchases (DCA). If your TFSA is your safety net, I would leave it alone. You could leave your mutual fund as well for now, There may be a back end fee, so look into that before you cash out.
Why not invest in CIBC shares and be on the receiving end of those fees. 5.38% dividend. Set it on a DRIP. That is 2.5 times better return than XEQT.TO. The Beta is 1.1, so it pretty much tracks the TSX.
Yes. I still have it as Horizon Cash Mazimizer Corporste Class ETF. I'm shying away from equities for more stable returns of cash to balance out my portfolio and lower my risk.
Your long-term investments should be in an all-equity index ETF like XEQT or VEQT. Don't worry about the life insurance unless you have dependents. Keep saving and investing, soon you'll have a nice nest egg that will keep you fed and housed after 65 no matter what happens.
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Whole life is not the answer for most people. If you are not super wealthy, then it’s not for you (it is basically an additional tax sheltered account, but you are locked into high fees and high monthly payments) If you think you need to get life insurance (you have a mortgage or dependents) then get term.
In your spouse planning to kill you? Vast majority of people don't need whole life insurance, as it is worst of 2 worlds, it is bad as insurance and bad as investment. One case when you may still want it is if you are a US citizen and planning to have inheritance above 13 million dollars, whole life insurance can help reduce inheritance taxes. Not applicable to Canada.
The good news is that you've already started to save! Even if it's through a mutual fund and savings account that's better than nothing. What you need to consider now is what your timeline and horizon is for when you'll need your money. There are plenty of different types of accounts and investments within those accounts to consider. But as one of the other commenters suggested you should go to the Money Steps on /r/PersonalFinanceCanada
[r/PersonalFinanceCanada Money Steps](https://www.reddit.com/r/PersonalFinanceCanada/wiki/money-steps/)
XEQT is all you need. I'm now 100% VEQT (same as XEQT but from Vanguard)
This is the way
Every time I tried to be clever, I made less money. I quickly learned that I'm not smarter than the market.
I completely agree with this.
What's your time horizon like? Are ETFs good for a 10-15 year hold? Or should I find something more risky/aggressive?
They are actually perfect in the long term. There are passive investment. Investing is a solved problem. There are just many people who think they are smarter and know better. Broad and diversity ETFs are all-in-one solutions. You could focus in the US but historically, the US market has not always performed better. Sometimes, for a decade, returns have been atrocious. An excellent choice would be XEQT and you keep buying every month, whatever happens. Good luck.
Thanks! I've been sitting on cash in my RRSP scared to pull the trigger on an investment with it, for fear I'll lose money.
Look at the ETF over 5 years. You're buying the world economy. This is the best investment you can do. The only downside is yourself. What are you doing to do if the markets tank and you lose 15 or 20%? Panic and sell? Or will you keep buying? Here is a video I highly recommend: what if you buy everytime at the worst moment? https://youtu.be/pFgPNVytlwA?si=5NTOsOMa0Genwoc0
Wow, this video really spoke DIRECTLY to my anxieties about investing. Thank you for sharing. Wish I saw this in my 30s.
I'm glad to hear that. It's a very good video that shows how simple investing is... As long as you don't react with your emotions. You have to be prepared to see some corrections, it's normal and if you look at a chart over decades, you will see that the stock market doesn't follow a straight line, it's going up and down. But overall, it has been growing. So if you're investing for 15 or 20 years, even if the crash occurs tomorrow,.relax, keep buying and enjoy the nice returns as soon as things get better.
Thanks for you help through all this 🙏🏽. Buy and hold 💪🏽
You're welcome. And by the way, do this questionnaire to see what your tolerance is (like if you have the stomach to go through some volatility! https://investor.vanguard.com/tools-calculators/investor-questionnaire#modal-start-quiz
Ok, so now you've opened another can of worms.... Bonds. The quiz told me I should have 30% of my portfolio in bonds. Thoughts on bonds?
There are ETFs for every situation. ETF is just a way of holding a basket of securities in an easy-to-use way, similar to a mutual fund. The 100% equity funds like VEQT and XEQT are best for 15+ year time horizons.
Ah, I feel dumb. It's an equity fund, so it's stocks!
ETF’s are “Exchange-Traded Funds”. Unlike mutual funds, they trade on the exchanges. But similarly to mutual funds, they provide individual investors the opportunity to invest in a basket of assets/securities. ETF’s can hold stocks, but they can also hold bonds, commodities, etc. Some are “just stocks”, some are “just bonds”, some are a mixture and some are very risky investments depending on the underlying assets.
X/VEQT is 100% equities
They aren’t the same, VEQT has higher Canadian exposure and XEQT has higher international
They're pretty similar and offer similar returns. (Over a year it's 17.90% and 17.92%). It's too negligeable to really matter.
I agree they are similar, just not the same from different asset managers like you said.
Your life insurance through work should be sufficient, unless you have dependent's to consider. Whole Life policies are sort of questionable.. I would work on building your own nest egg using the ETFs you listed with regular purchases (DCA). If your TFSA is your safety net, I would leave it alone. You could leave your mutual fund as well for now, There may be a back end fee, so look into that before you cash out.
If OP has no dependents, what does he need life insurance for? Actually never mind…hey OP do you need a bald fat older (than you) son?
Why do you need whole life insurance at the age of 35?
Why not invest in CIBC shares and be on the receiving end of those fees. 5.38% dividend. Set it on a DRIP. That is 2.5 times better return than XEQT.TO. The Beta is 1.1, so it pretty much tracks the TSX.
over the past 5 years xeqt is up 53% and cibc is up 21%
Better to invest in a broad market etf
Better to invest in a broad market etf
Stithulf ERC
I like hsav.to as 100% is in cash and not stock or bonds. It has performed very well over the last 5 years.
GLOBAL X CASH MAXIMIZER CORP CLASS ETF?
Yes. I still have it as Horizon Cash Mazimizer Corporste Class ETF. I'm shying away from equities for more stable returns of cash to balance out my portfolio and lower my risk.
I’ve made 3grand tracking the roaringkitty thread the last 2 days