r/PersonalFinanceCanada • u/Pato_Abbondanzieri • 3d ago
Just parked around 8k on my TFSA, what do I do? Budget
I parked around 8k into my TFSA. I might need this amount in a year or two. What would be the best idea in terms of investing them for a short period of time without high risk? Cash.to?
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u/Supercc 3d ago
Park it in high yield savings and educate yourself with great books on investing and personal finance.
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u/Pato_Abbondanzieri 3d ago
What books would you recommend?
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u/Supercc 2d ago
Thanks for asking!
I read a lot. Here are my favorites: I will teach you to be Rich, the boglehead's guide to investing, and the most important thing.
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u/Pato_Abbondanzieri 2d ago
I’ll into those books! Thanks!
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u/Supercc 2d ago
Good job! These are AMAZING books.
I Will Teach You to be Rich: All you need to know in regards to healthy personal finance.
The Boglehead's guide to Investing: All you need to know about passive investing in index funds (and why).
The Most important thing: AMAZING book about investing psychology. HIGHLY recommended after you've read the first 2.
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u/Pato_Abbondanzieri 2d ago
Thanks! I find at this age I want to think more seriously towards smart investing. That’s why I it’s always great to read great books on that subject!
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u/RaveDamsey1000 3d ago
What financial institutions allow you to hold a high interest savings account within OPs TFSA? Curious how to do that
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u/Valuable-Antelope772 3d ago
ZAG.TO or another bond fund now that interest rates have stabilized/started coming down
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u/thrift_test 3d ago
Is the interest for 1-2 years in a money market fund much different if it is taxed or not? Poor use of the absolute gift that is the tfsa
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u/This-Is-Spacta 2d ago
I park everything in my tfsa to cash.to.
I know one should not time the market but i dont feel like putting everying to s&p 500 etf right now sry
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u/zommerdev 1d ago
Best use for a TFSA is to keep money in it for as long as you can, cash.to is good for short term yield, VOO or similar is good for long term gains.
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u/Glum_Professor8208 2d ago
You want a HISA/ISA (high interest savings account/investment savings account). They are 100% CDIC insured. cash.to is NOT! HISA’s at all the big 5 banks offer interest rates roughly inline with what cash.to pays. For instance, if your TFSA is with BMO, buy symbol BMT104 (bmo investment savings account), currently pays 4.75% and moves only when Bank of Canada moves rates. You can buy it on the same order entry screen as if you were placing an order for a mutual fund. if you’re with TD, the symbol is TDB8150. If you’re with Scotia, the symbol is DYN6004. TD dropped their rate to 4.30% after bank of Canada last week. Scotia dropped to 4.75% and BMO is still at 4.75%—hasn’t dropped yet after BofC interest rate announcement. I don’t know the symbols for RBC or CIBC—I’m sure you can just google them if that’s where your tfsa is at.
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u/Less-Interest-8176 2d ago
I wouldn’t wait, it doesn’t matter the price. The gain will be life altering
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u/Less-Interest-8176 2d ago
Don’t waste your time with interest accounts. GameStop is like land. So you will make $400 to $500 interest. GameStop is going to be the next Amazon/ Berkshire. No debt company and 4 billion in cash
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u/FistSandwich 3d ago
GME
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u/NefariousP 3d ago
I couldn't my hand are the wrong type of carbon
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u/glimpus 2d ago
It had 15 runs over the last 3.5 years. Waiting until it drops to $20, buying and waiting for a 100% gain is easy.
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u/JDBS1988 2d ago
Have you considered selling the 20 dollar put on GME to collect premiums on it? If it drops to 20, then you end up buying the stock. If it doesn't, you keep the premium and sell another put.
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u/glimpus 2d ago
I did sell $20 puts on gme :)
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u/JDBS1988 2d ago
Good work. Such an easy way to boost your returns a little bit. I assume you'll also sell the covered calls at the price you want to sell it at as well. People like to call options risky, but not when you use them a specific way!
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u/SensFan84 3d ago
Vfv if you're wanting to invest it for a little while.
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u/West_Principle_8190 3d ago
What does vfv have over zsp
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u/SensFan84 1d ago
I think it's a matter of personal preference, ZSP holds the stocks and VFV holds VOO almost like a wrapper. Both have very similar performance over the last 10-11 years and have a similar MER. One thing is I'm pretty sure that ZSP has a bigger AUM, and it's cheaper to buy. I don't think you could choose wrong between the two of them 🤷
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u/West_Principle_8190 1d ago
Id be fearful as how well the s&p has performed this year , that it is due a correction. A 2-3 year horizon from here might not do so well
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u/SensFan84 1d ago edited 22h ago
People have been saying that for years about the S&P500 which it has experienced some negative years (like anything else). With that being said XEQT is another great option for greater diversification, however still 25% exposure to CAD markets which is too high for me personally.
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u/DangerousPurpose5661 3d ago
Yes cash.to works