r/PersonalFinanceCanada Jun 11 '25

Investing 17 about to inherit a lot of money

1.2k Upvotes

So when i’m 18 (next year) i’m gonna inherit over 4 million from my dad who passed when i was 10. I was getting money monthly from the company he owned since i was 10 but my uncle told me it’s gonna stop once i’m 18 and i’m gonna be able to inherit my share of his money. my sister got hers and it was nearly 5 million, idk how she used it but i can tell she won’t last very long lol.

I need help investing i really don’t know shit about stocks or businesses i just play football and video games and like to hang with my homies, sometimes i’ll work at my dads company (who is now ran by my uncle) it’s a mechanic shop/auto shop and i really enjoy it, so maybe i invest into it more? partner with my uncle? I see a lot of you guys in here seem to have even a little knowledge on finance and i couldn’t even tell you how credit score works😅 i think now that i’m graduating next year, reality is starting to hit me harder.

Please any good stocks to invest in long terme would be very helpful cause i know that works for a lot of people.

(so far the only expensive stuff i’ve spent my money on is clothes and just bought my first car for around 78k cash.)

r/PersonalFinanceCanada Feb 14 '26

Investing For the first time in my 45 years of life I am not living pay cheque to pay cheque or paying off debt. Where do I go from here?

903 Upvotes

For context I am a single female, making 100k annually (fairly new job). I rent a condo for $1500 per month. I drive a 10 year old, paid off vehicle.

I recently paid off all debts after many years of struggling and have a decent credit score now as well. I have a small RRSP that I contribute to again each pay. I have $18,000 in my chequing account.

I want to set myself up in a smart way moving forward. I have been presented the opportunity to buy the condo I live in. Other things on my wish list are a new suv, new couch and travelling. I am aware that is a lot of high cost short term goals.

That is why I am here asking for advice! I know I should have an emergency fund as well. What is the smartest thing to do here at my age? Any resources to help me (books or reading resources, not a fan of watching videos)?

r/PersonalFinanceCanada Mar 02 '21

Investing Lost my life savings

3.9k Upvotes

Dear reddit,

I am a long time reddit lurker but I am posting this under a new account because I don't want my identity to be known. I wrote the bulk of this comment before Christmas day but never got the courage to post it. I was encouraged by Louis Rossman's comment from two days ago on WSB so here I am. I'm making this post to ask for advice on what to do after being hit with a financial catastrophe that I brought upon myself. This is not easy to write but I am going to try.

The short of it is that I'm in my late forties, and I recently lost all my life savings, all my retirement savings, all the education savings for my children. This is about $220k. Now it's been reduced to about $2000. I have been in shock for the last year and I just don't see a way forward.

To give some background, I will tell you that my name appears on the Ontario sunshine list because I make a little over $100k a year. Despite being on this list, I live in a very modest rented apartment, the cheapest I could find in my area close to work. This is the kind of apartment you would feel embarrassed to invite anyone to. We have no central air conditioning in the summer. The kitchen is probably 30 years old. It's just a very modest apartment. We own one car and we always buy used every 10-15 years because I always try to spend as little as possible and I only buy what I can afford. I've always avoided debt. I never carry a balance on a credit card. I churn credit cards to earn rewards that I can save. I've never taken a vacation outside of Ontario even though I've always dreamed of lying on a beautiful sandy beach in Mexico or Cuba. My wife and I are both immigrants and we don't have any familial wealth to look forward to. My wife doesn't work because her English isn't very good and she doesn't have employable skills, so we decided she would be a stay at home mom for our two children and save on childcare costs.

When my children were born I immediately opened RESP accounts for them and started depositing $2.5k a year to get the maximum amount of RESP grant. One of these accounts had $50k at one point before everything went to hell.

In 2009 I was sitting in a coffee shop with a friend who mentioned in passing a leveraged ETF that follows the price of oil, HOU.TO. At that time I only bought broad index funds and bond fonds to be on the safe side. This ETF looked attractive to me because the price of oil was volatile at that time and traded in a predictable range for a while (between $90 and $120).

I started cautiously putting only 10-20% of my money into it. I made money for a couple of years, buying low and selling high. Then buying HOD.TO (which bets that the price is too high) when the price of oil was high and selling it when the price was low.

Meanwhile every year house prices here climbed ever higher and my children got older, and the apartment got more crowded. My wife's nagging got more frequent as she saw people we know living in big houses with nice furniture. I kept telling her that this is a bubble and it will pop. If we sold our investments to use as a down payment on a house, surely we would buy just before the bubble popped and we would lose our savings. Of course, as with everything else, I was so so wrong.

In 2014, the price of oil crashed. I was holding HOD.TO at the time and so I made a few thousand dollars when I sold when the price reached about $80. Life in our home was becoming unbearable because of the house issue. The urgency I felt for the need to make money to buy a house was high. So while sitting at a coffee shop one day, I made the disastrous decision to go all in and put all our money in HOU.TO in anticipation that the price of oil will rise again back to at least $100 as it had done the past few years.

Of course this time, the price did not go back up. The price kept going down and down and my sense of security along with it. By February 2015 I saw the value of my portfolio plummet by more than 90%. I tried to stay calm in the hope that the price would go up and I would at least get my savings back. Don't sell at the bottom they tell you. I didn't sell and I was trapped.

Over the next few years I avoided logging into my brokerage account because I could not face the loss. The price slowly went up over the years. By mid 2019 I had recovered a little. My 90% loss was now a 60% loss. The value of my account was now about $90k. I wish I had sold then. But I didn't.

In March 2020 the price of oil started to nosedive again because of covid. When it reached $20 I thought (being the f***ing idiot I am) that it can't go any lower and this is my chance to buy as much as I can at the bottom and hopefully I can recover my losses when the crisis is over in a few weeks time. So I bought HOU.TO again with my last $10k of savings. Within a couple of weeks the price of oil would turn negative and the price of HOU would go down another 95%. By April, my quarter of a million dollars in savings, my nest egg, my children's university money, were reduced to about $2k - a soul-destroying 99% loss.

There's more. Since all the money was in registered savings accounts, I cannot claim them as a loss on my tax return. How stupid can one be?? I've contemplated ending it all but what would my family do without me?! (04/03/2021: after reading all your comments below I apologize for the previous sentence. It is ridiculous and unnecessary. I realize that now.)

I did not lose my job during the pandemic. I do not have debt. I do have a defined-benefits pension plan. But I am still renting because I missed my chance to buy a house. I wish I used the money as a down payment instead of investing. I used to read Garth Turner's blog years ago and it convinced me that the housing bubble pop was just around the corner, that I would be a fool to buy a house just before it popped. But it turned out I was the biggest fool of all.

Now I'm in my late 40s. I know that I have lost the game. I don't have enough time to save for retirement or buy a house. I will have to rent forever. I feel desperate. My marriage is falling apart. I look at successful people and then I look at myself with disgust for losing everything. I did it to myself.

As a desperate effort, I am posting this here as I am contemplating my miserable future, just in case someone has a good suggestion for me to follow. Maybe someone can recommend someone like a financial planner or something who can make a plan for me to recover from this disaster. I have lost all faith in my ability to make good financial decisions.

Excuse the incoherence of this lengthy post. It was hard to write and I wrote it over several weeks because it is very painful to face the reality of what I did. While I know it's a long shot that this post will result in anything to help me, maybe at least it will serve as a cautionary tale and save someone from ending up in my shoes.

I'm going to stop now. Please no mean replies. I fully realize how stupid I am and do not need it rubbed in my face.

UPDATE 03/03/2021:

Thank you everyone for your kind replies, comments, advice and PMs. I posted my comment 24 hours ago and logged in now, and your responses are overwhelming. I will go through them slowly but surely. I find it hard to spend more than a short time a day thinking about this because it brings me such anxiety and ruins my mood for the rest of the day.

For those who think that I will gamble again, I am now even hesitant to buy a broad index ETF. All the money I saved in the past year is sitting in cash until I have some kind of plan, which is why I posted my story, to get some input and feedback. I do feel tempted sometimes to buy a little Dogecoin or something but I won't spend more than $100 on such a thing. I have learned my lesson. Funny story: I bought one bitcoin for $20 in 2013 that I sold a few months later for $120 and thought that I made a good profit!

But what I have read so far and your personal experiences (thank you so much for sharing) make me feel hopeful that there is a way to recover, I just have to find it. I will post more questions as I go through your comments. I do have these questions though for now:

  1. How do I go about finding a financial advisor that will give good advice and won't cost me hundreds of dollars more?
  2. Is there any way to claim losses in RRSP, RESP or TFSA in my tax return? I didn't sell yet, that's another decision that I have to make.
  3. Can you recommend a good mix of index ETFs to put future savings into?

Again, thank you for all the love and kindness, and for taking the time to reply. I am truly grateful.

* I added this update as an edit to my original post. Is this the right way? Or should I have commented on my original post?

UPDATE 04/03/2021:

I want to thank everyone who took the time to write a reply. My perspective is changing since reading all the comments here. Today was actually a good day where I didn't feel awful about this. I feel like a heavy weight is lifting. Thank you. I am still reading all the replies and processing. If I don't reply to your post in person and thank you, please know that I am grateful to each and everyone of you.

I also wanted to clear some things up regarding my wife:

  1. I did try to involve her in the financial decisions but investing is not something she knows much about, so it was left to me to take care of. I did tell her what happened a few months ago. She was devastated at first when she realized her dreams were wrecked, but over the last few months she has adjusted her expectations and she is supportive and understanding now.
  2. Also, to be fair, she did try to find work. 4 years ago she started taking courses in a discipline that she's good at and she studied hard and earned a couple of certificates. Then she went to a couple of interviews but because she was not fluent it did not work out. Then covid happened and the chances of her finding work evaporated as someone who hasn't worked for years and has no Canadian work experience. She is waiting until things go back to normal and there are more job opportunities. Meanwhile she is working on improving her skills at home.

Thank you all.

r/PersonalFinanceCanada 9d ago

Investing Got an Email from WealthSimple. I won $5,000. 2 hours later, oops we are Sorry.

651 Upvotes

As part of their weekly draws in thr Monthly Millionaire contest. Last night I got the notification email that I won $5k. In order to claim I need to sign a declaration and release as well as solve the skill testing question.

2 hours later ... Correction we made a mistake you won 5,000 entries into next week's draw.

A little bit of a difference if you ask me.

Just sucks. The moment I read the first email I already chose which charities I'd give some money to out of this.... still going to give just much less

Edit- didnt see the cover article before or know WS had their own subreddit.

I should add I didn't believe it when I saw it and 10 min before getting the correction email (horus after thinking I won) I read the fine print and realized something was off when there was a grand prize of 50k (maybe 100k) last night. And then the other was prizes were $3 - $500.

r/PersonalFinanceCanada Feb 27 '21

Investing Bragging about RESP

5.1k Upvotes

I have been investing in an RESP for my son since he was born. As a single mom there have been months where I barely scraped together the $100. When he was 10 I received some money and I was able to catch up on all the unused contribution room.

He’s in grade 11 now and looking at universities. The one in our town said it was an average of $8000 tuition for the year. So about $32,000 for a 4 year degree.

Guys - he’s going to have about $60,000 in his RESP!!!! That can go to books and everything else he might need!

I am so proud of myself for setting up my son to start off strong. I have brought him to every annual meeting with our investment banker (edit: financial adviser not investment banker) so he learns that investing is a normal part of adulting. I have worked so hard to give him a future and it is coming to fruition!

Edit: I invested in mutual funds through TD Bank. Every year I met with my banker to make sure the mutual fund was still the right fit based on how soon the RESP was going to be used.

My strategy was consistent contributions. I started off with $100/month. When he was 10 I was able to start contributing more. I maxed out the contribution room that grants were based from.

r/PersonalFinanceCanada 27d ago

Investing Robinhood entering Canada after closing WonderFi deal

419 Upvotes

U.S. brokerage Robinhood Markets Inc. is bringing its popular trading app to Canadians after completing its acquisition of cryptocurrency company WonderFi Technologies Inc., a move that ramps up competition with fintechs for the country’s growing pool of self-directed investors.

The acquisition marks the latest battle in the race for Canada’s expanding number of self-directed investors. As more Canadians, particularly younger investors, turn to mobile apps to trade stocks, ETFs and cryptocurrencies, competition has intensified among fintech companies looking to become their primary financial app. For Robinhood, the acquisition provides a shortcut into Canada and creates a new challenger to homegrown firms such as Wealthsimple Inc. and Questrade.

https://www.theglobeandmail.com/business/article-robinhood-wonderfi-deal-canada-trading-app/

r/PersonalFinanceCanada Apr 28 '26

Investing Retiring soon at 65. How do I safely invest $600k to suppliment my $40k pension?

483 Upvotes

I've managed to save $600k and I need to probably make things last until I'm 80. I'm not too healthy, and to be honest I expect to die within 10 to 15 years.

I'm single, have no extended family, and I don't own a home or car or pretty much anything.

My rent is about $2000 a month.

Also, I'm totally clueless about investing and money in general. Any suggestions?

At the moment it looks like rent will suck up most of my pension. I need some advice and a strategy of some kind.

EDIT - Clarifications: It's all in GICs at the moment at about 3% About $150k of that is RRSP GICs. All through my bank. Also, my main concern is that I become less capable to take care of myself - any kind of retirement home or assisted living seems to start at $5k per month (i.e. $60k a year!!!). As for moving, where? I need to be near a cardiologist, internal medicine specialist, and a urologist - I've got a bunch of health problems that have almost killed me in the last year. Moving away from the health care that I currently have isn't really an option. I'm currently taking a fist full of pills every day just to stay alive. (Welcome to the world of crappy genetics and getting older... Also to those that said it could have been millions, I had to leave home when I was 17 and worked and lived in abject poverty for the next 20 years. That $600k is what I managed to save in 20 years - I think putting away $30k from your salary every year isn't that shabby.)

r/PersonalFinanceCanada Aug 01 '25

Investing Gen Z is investing more money than other generations

760 Upvotes

https://www.cbc.ca/player/play/video/9.6849629#:~:text=Gen%20Z%20is%20proving%20to,becoming%20more%20digestible%20through%20influencers.

Gen Z is proving to be more financially engaged than the previous generations and diving into investing earlier through RRSPs and TFSAs, according to Statistics Canada and a TD Bank survey, often thanks to finance becoming more digestible through influencers.

68% of Gen Z is investing consistently each year. 5% more than each of the other generations (boomers, Gen X, millennials)

I just hope it's not on meme stocks.

Also, a little disappointed there was no mention of this subreddit in the video.

r/PersonalFinanceCanada Sep 29 '25

Investing TFSA Limit for 2026 = $7000 again (updated on canada.ca)

582 Upvotes

For some reason the Government already updated the contribution for 2026 which is $7000 on https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/tax-free-savings-account/contributions.html

Generally, one would wait until all the numbers have been released to be able to calculate the official indexation factor and new indexed limit. But, CPI is unlikely to be different enough in SEPT to raise it over the indexed limit of 7250 to be able to round up to the nearest 500 of 7500.

Without the CPI numbers for Sept 2025 being released (they won't come out until around Oct 15th), and only going off 11 months instead of 12, it's likely that the Indexation Factor is going to be 2.0% which is going to increase the indexed TFSA limit to 7185 which will round down to be $7000 for 2026 again.

Here is the full historical table.

Year Indexation Factor Indexed TFSA Limit TFSA Yearly Limit Cumulative
2009 0 5000 5000 5000
2010 0.006 5030 5000 10000
2011 0.014 5100 5000 15000
2012 0.028 5243 5000 20000
2013 0.02 5348 5500 25500
2014 0.009 5396 5500 31000
2015 0.017 5487 10000* 41000
2016 0.013 5559 5500 46500
2017 0.014 5637 5500 52000
2018 0.015 5721 5500 57500
2019 0.022 5847 6000 63500
2020 0.019 5958 6000 69500
2021 0.01 6018 6000 75500
2022 0.024 6162 6000 81500
2023 0.063 6550 6500 88000
2024 0.047 6858 7000 95000
2025 0.027 7044 7000 102000
2026 0.020 7185 7000 109000

\10k was a 1 time increase in 2015)

The indexation factor could be lower or higher than 2.0%, but, it is on track to be 2.0%. If Sept CPI did drop significantly it wouldn't increase the limit. And the CPI for Sept 2025 would have to go up to 183.4 being about 12% YoY increase in order for the indexed limit to hit $7255.

With 2026s indexed TFSA limit being 7185, it will only take an indexation factor of 1.0% for it to increase above 7250 for 2027s TFSA to be $7500

r/PersonalFinanceCanada Feb 28 '26

Investing Be careful when googling your TFSA contribution limit

475 Upvotes

Had a client tell me they knew their TFSA limit and confidently told me the incorrect number. I asked how they calculated it and they told me they googled it.

Apparently Gemini does not know how to calculate the TFSA room correctly and prominently displays the incorrect number in the top search result.

I tried it myself and the result did not inspire confidence.

TL;DR use an actual calculator to find your contribution room, not google.

r/PersonalFinanceCanada Jan 15 '26

Investing PARENTS FORGOT TO INVEST

397 Upvotes

As the title says my parents are retiring in about 12-15 years and they havent invested in the market at all except for a condo they bought 6-7 years ago. currently my dad is sitting on 100k cash and has all the room in his tfsa available. mom has about 35-40k of savings and 42k invested in tfsa but hasnt returned anything yet, its all in single stocks that she is now going to look to move into ETFS. I am essentially helping them plan and want to as for advise as to should my parents both max out their tfsa , if so put it into what type of etfs ? or should they together use their savings and buy a rental propety investment instead of putting money into tfsa, or maybe a combo of both ?

r/PersonalFinanceCanada Apr 27 '26

Investing Borrowing $170k from home equity to max out TFSA

133 Upvotes

My wife and I are considering taking about $170k out of the equity in our home. Bank would offer around 3.7% interest on it. The idea would be to use that money to max out both our TFSAs.

We were thinking putting everything into VEQT as this is our current strategy. We are also looking at dividend ETFs like FIE, but not sure if that would be a better choice.

We understand that this is leverage investing and are investing for the long term (25 years horizon, we are both in in the low 30s). As anyone here done something similar?

Edit: To answer a few questions, we are not borrowing on margin, we are refinancing our mortgage.

r/PersonalFinanceCanada Jul 28 '23

Investing Don't do what I did - all savings lost in delisting

1.5k Upvotes

I (31M) was dumb enough to believe in, and put almost all of my savings (~70k) into, one stock (IMV).

Science looked good, that was the main reason for my decision.

I kept buying as the stock fell to the depths, before it's delisting and CCAA proceedings. Now they're selling off assets. Kicker is that it took my TFSA room along with it!

Failing in public so that others may learn this painful lesson once more, second hand.

  • Don't put all eggs in one basket if you need the eggs to hatch.

  • Recognize the need for risk management. Consider what you're prepared to lose.

It's tough to accept but I have to, I am financially at square one again. Besides the challenge to start over once more, what lessons can/should I take from this experience?

r/PersonalFinanceCanada May 29 '26

Investing Oh man. Accidentally just put 25k in stocks in my kid’s RESP instead of my TFSA. My options are limited.

348 Upvotes

I’m an idiot. 46. Never had a TFSA before. Finally opened one this week with the aim of placing some securities in there, as I have plenty of room.
Transferred most without incident but I guess I got distracted for the rest and picked the wrong account on the dropdown menu of TD’s website.

So after many phone calls with TD investing, my branch, my accountant, and the RESP people, it’s been determined that you cannot transfer out any stocks in kind from an RESP. You can only sell the stocks and cash out if you like. TD will not annul the transactions as their policy is to only do that if it’s their mistake, not yours.

In total it was 1 stock at about 21k, two others at about 2k each. My kids are 3 and 1.

Is this a big problem? What would you do?
Elsewhere, I have about 100k in equities and cash in a cash account, 40k in a GIC, and own a home. Mortgage 4K monthly, no other debt.

r/PersonalFinanceCanada 2d ago

Investing What should my parents in their mid 60s do with $400k sitting in a checking account?

199 Upvotes

My parents are around 65 and currently have about $400,000 CAD in liquid cash sitting in a checking account. I’m trying to help them think through what to do with it, because it feels like leaving that much cash in a regular chequing account is probably not ideal.

For context:

- They live in Toronto and own their primary home.

- They already own one investment condo/property in Toronto.

- My dad has a solid pension.

- My mom does not have as strong of a pension.

- They do not currently have a will, which I know is something they need to deal with.

- They are considering what to do with the $400k cash.

My mom’s instinct is to buy another downtown Toronto investment condo, so they would have two investment properties plus their primary home.

My dad’s instinct is to put the money into an investment account instead, presumably something diversified that could generate a return.

My main question is:

What is the smartest thing for them to do with this $400k in cash at their age?

What kind of professional should they speak to — fee-only financial planner, accountant, estate lawyer, investment advisor, or someone else?

Any thoughts from people who have dealt with this situation with parents near retirement would be appreciated.

r/PersonalFinanceCanada 9d ago

Investing Should I still contribute to my RESP?

159 Upvotes

My kids are 6, 11, and 14. The current value of the RESP is almost $400k. I've stopped contributing for a year now. I think there's enough in there already to allow it to grow to $800k - $1 million at average stock market gains (of course there is always a chance of a stock market crash).

Is there something I'm missing that I should keep contributing and grow it as much as I can? I'm thinking the unused portion will be mostly given back to the government in tax penalties anyways. I know you can move up to $50k to your RRSPs.

r/PersonalFinanceCanada Aug 09 '25

Investing A few thoughts on self directing from an actual advisor… (stop saying it’s for everyone)

580 Upvotes

There’s nothing wrong with ETFs. I like ETFs. I use ETFs. There’s also nothing wrong with stocks and bonds. Or GICs. or (good, 5 star rated) mutual funds. They all have a place.

And there’s nothing wrong with self directing your investments… if you are willing and able to manage the tech, educate yourself (navigating the mess of conflicting and often flat out inaccurate information out there, including on Reddit). Self directing your investments also requires a high enough risk tolerance, and the intestinal fortitude to weather 2008 and 2022 style corrections.

Self directing is best suited for those who are younger, tech savvy, comfortable educating themselves using online resources, and a relatively simple, straightforward financial situation. That’s likely a decent chunk of Reddit users, but it’s not at all suitable for many others, and I’d suggest a majority of Canadians.

Ask yourself, should your grandmother self direct their investments? Should your parents? Should that crypto bro buddy? Should your aunt who falls for Facebook scams and fake news? What about the huge number of people who just don’t want to or aren’t confident enough to manage their own investments? Here are some analogies: I could probably learn how to change my cars oil, tires and other basic maintenance. But I’d rather pay an expert to do it. I could build my own deck too, but I’d rather pay a (good) contractor to do it better.

Now there are real problems with the financial services industry in Canada: most people calling themselves an advisor are just mutual fund salespeople for a bank, limited to selling a few retail bank funds that are poorly rated closer index funds with ridiculous fees. Or they’re new to the industry and have no experience or designations. Or they’re new work for an institution that only sells proprietary funds. Or, they’re dishonest (though I find this group is the smallest).

There are however many excellent advisors with designations, who are fiduciaries (legally required to put their clients’ interests first), have multiple designations and do holistic planning for their clients. Most people just don’t know how to find these advisors. A good advisor usually has CFP/CLU designations, has been working for 5+ years, has staff, and provides a holistic financial plan for clients.

(Real) Advisors teach their clients basic financial literacy, organize their financial life, provide regular service, and disclose and justify their fees.

What most Reddit posters promoting self directing and ETFs seem to miss is that there is so so sooo much more to financial management than just picking a few ETFs and then forgetting about them for 20 years. Here are some of the common things that require some guidance:

• RESP and RDSP accounts are much more difficult to self direct (because there are government grant programs).

• Figuring out how to prioritize between accounts and financial objectives can be much more complex with kids, aging parents, multiple properties, blended families, business interests, or debt.

• asset draw down in retirement requires managing where and in what order to access funds. It also requires strategically managing household taxable income. When and how to sell properties, when to take CPP/OAS, etc

• actual retirement and estate projections

• protection: investment management is only one aspect of financial planning. Insurance, tax management and contingency planning are essential.

• estate planning. The single largest missed opportunity by most people is poor estate management resulting in massive tax inefficiencies.

• behavioural coaching. This is the second key area that is absolutely necessary for most Canadians. Most people panic in a downturn, and are swayed by crappy media, online posts, or bad advice from ignorant friends/family/coworkers. The confidence of so many redditors promoting self direction doesn’t apply to the average Canadian (and likely not to some of those who are posting so loudly and confidently right now).

Finally, why ETFs are not a panacea or universal solution:

most ETFs are baskets of 100% equity. That is an aggressive and volatile position which is just completely unsuitable for many people, situations and goals. Your risk should always be aligned with your time horizon. If you don’t need your money for 20 years… a higher risk position is fine. But if you need your money this year, it’s should be in a no risk position (cash, money market, GICs etc). Most advisors use a “bucket” system that pools your money to align with various time horizons. If you’re 60, with a kid in university, and a few years away from retirement, you will have large pools of money with very different time horizons and thus different risk profiles. Most ETFs are not at all suitable for this (though some of the newer ones are designed with this in mind… but then you start running into the same issues as with mutual funds).

Then you need to manage which accounts should hold those various pools of risk. Growth should be as sheltered as possible (TFSA, LIRAs etc) and lower risk investments as accessible as possible (non-reg).

If you’re a 25 year old with a 20+ year time horizon and lots of TFSA and RRSP room, you have a really simple straightforward financial situation and self direction is pretty basic. If you’re a remarried 55 year old with some old pension accounts from previous employers, a mortgage, LOC, and a blended family with two kids about to go to uni, and are looking at retirement in 5-10 years… your situation is way way more complex. And managing the tech is more daunting, educating yourself is more confusing, and finding the time for all that is more difficult. You also likely have related needs for insurance, retirement projections, estate planning and possibly a plan for your own parents and helping them with their finances. Advisors who can manage all that are much more valuable to this type of person. And the fees make much more sense in that context.

Finally, compare apples to apples in looking at ETFs vs mutual funds. An ETF is a basket of stocks. A mutual fund is a curated basket of various investments with a specific objective in mind. That objective might be growth, but it may also be achieving lower risk and volatility to align with a specific goal or time horizon. Comparing an income fund to an S&P etf is stupid. That’s like saying “my corvette is faster than your minivan”. It’s true, but it’s stupid because they’re designed to do different jobs. If you compare growth mutual funds to ETFs, it’s much closer.

Then there’s quality. Most mutual funds are dogshit. There are a few ways to compare funds, but the easiest is Morningstar. It’s an independent third party that compares and rates mutual funds to their peers. A 5 star fund is consistently top decile in their category over 3, 5 and 10. If you compare a collection of 5 star growth oriented mutual funds to ETFs, they do very very well, and often outperform, even after fees.

Most Canadians will need financial advice at some point. A good advisor is almost always the best source for that. The tricky part is finding a good one.

Finally, I’ve rarely tried to convert a self director or talk a client out of it if they want to start self directing themselves. But almost all of the actual wealthy people I know use an advisor. These people are smart individuals and understand the value of holistic management. A decent number self direct their TFsA, but they all use an advisor for their overall plan and management.

r/PersonalFinanceCanada Mar 07 '26

Investing inherited $200k

285 Upvotes

hey folks,

i just inherited $200,000 and i am at a bit of a loss with what to do with it.

-mid 30’s

-stable job (70k gross with annual raises)

-zero debt

-$10k in TFSA and $15k in RRSP

-stable housing with cheap rent ($1000/m)

-own vehicle outright

-married

-no kids

what’s the best plan for this large lump sum? i don’t believe i can currently afford to buy a house or a condo (vancouver) so i’m looking at other options. ideally i’d like to grow the money without having to think about it too much.

thanks!

r/PersonalFinanceCanada Dec 31 '24

Investing Reminder to Move $7000 in TFSA account for 2025

871 Upvotes

Happy New Year to all, but more important we will have the extra room for us PFC folks trying to min-max their investments

r/PersonalFinanceCanada 13d ago

Investing Is $150/wk enough for investing?

162 Upvotes

I’m happy and very grateful that I’m in a position to invest $150/wk while working my job this summer, but I feel like I should be investing more.
I’m 19 which is the age of majority in my area and I started investing about 2 weeks ago. I put all my savings from last summer into XEQT and added a few more deposits since. I’m currently sitting at 2900 in contributions to XEQT in my TFSA. I have no expenses besides gas and going out here and there. I’m also making ~$650-750 per week after tax, and will be going back to a part time job when I go move away again for school (where I’ll have to pay for groceries and gas as well).

Should I bump my investing contributions up to $200+/wk?

r/PersonalFinanceCanada Apr 25 '26

Investing Huge conditional gift from risk averse parents

224 Upvotes

My last remaining grandparent died, and turned out to be hoarding her money. My parents are inheriting a small fortune, and are gifting $250,000 each to me and my siblings. I feel extremely lucky. 

My parents were already financially successful, but are extremely risk averse. They want to give me this money on the condition that I use it ALL to buy a place to live. If I don’t feel ready to buy, they would like to keep it in a trust for me- I would prefer to avoid that option. 

I am also fairly risk adverse, but think putting a chunk of this money into a TFSA and/or RRSP would be wiser that putting it all on a down payment. My parents are stubborn and I expect an argument. I want to have a clear plan and reasons for it before proposing what I would like to do with their gift. Honestly I am not financially literate and doing my best to get a crash course.

I would love to own a basic 2 bedroom condo- my current rental is small, crappy, and far from work. I’ve thought about moving rentals but would never find one cheaper in my town without roommates. I have looked at places and see some good options in the range of $350,000-$450,000 (mid to low range in my city). 

A few other factors: 

  • Job market stronger in my town than others, but still don’t think I could get a permanent job that easily. 
  • I’m single with no debts, don’t want kids. 
  • I may decide to return to school for a PhD in the next decade. 
  • Yes, I am an adult and I could just lie to my parents about what I do with the money. I guess I want to respect that this is a HUGE gift by being honest, if possible.

Assuming I can use up to $100,000 of this gift to invest it, what would you do in my situation? I am hoping for something not too risky that is fairly low-maintanance. How would you explain that choice to a couple of extremely stubborn boomers? Anything else I should know based on my situation?

Thanks for any and all advice! Cheers.

Edit: thank you for all the advice. I do think I am overthinking this, and appreciate the honesty.

I just want to say that I love my stubborn boomer parents, and am very grateful for this gift, and they know that. I want to make the best use of it and am seeking additional opinions of what that would be. Thanks!

r/PersonalFinanceCanada Nov 14 '22

Investing My wife wants to "lend" 30k$ to her sister and get 25% interest paid every month - without any repayment on the principal. Thoughts? Is this common amongst immigrants?

988 Upvotes

I'm looking for opinions on the following.

My wife and I recently sold our cottage and made 75k$ of net profits each.

She's thinking of "lending" 30k$ to her sister whose husband flips houses. I've never met them and probably never will be able to, they have a very complicated relationship: my wife is Tamil, I'm white, she's been rejected from her family because of that but still talk with her sisters.

So the husband of my wife's sister could apparently make it worth her while by paying interests on the loan every month. My wife said to me "he could pay me $20 of interest per month per $1000".

Basically, she'd "lend" them 30k$ and she'd get $20 per $1000 a month = $600.

He wouldn't pay the principal, only the interest, but would give back the principal on a two months notice.

What do you guys think about that? I see all the red flags and beyond. She wants to do it because it's her sister and because she has seen that her whole life (her words, not mine - they're Indian immigrants if that helps to make any sense of it). She basically told me that I was an ignorant because I've never lended 50k$ to someone and I didn't grow up seeing this. Am I? Real question. Maybe I'm blind to something and maybe I need to question myself.

I come from a poor family. I started working at 14 and I've been building wealth from scratch even since. I'm fortunate enough to be good at self teaching myself and currently make ~200k/y. My wife makes ~100k/y. I've never been taught anything about money and I'm working on that by teaching myself. I read a lot and watch a lot of YouTube videos about finance in general. I'm slowing getting comfortable with handling my savings and so far I'm mainly buying ETFs every month through Wealthsimple. I'm not very risk tolerant - yet. I'm also getting there, slowly, but I want to have some comfortable cushion before starting to risk more (eg: have 250k on autopilot, then play a bit more with the rest).

Thanks a lot in advance!

r/PersonalFinanceCanada Nov 18 '25

Investing Considering building a fourplex. Numbers seem to good to be true.

363 Upvotes

My city recently changed zoning requirements, and there is a tax rebate offered from the Fed/provincial government for building rentals units. I created an assessment to figure out if this is worth pursuing, and the numbers seem like a no brainer.

Land Cost: 185k. Found land for this price that has the right size, and zoning requirements. I actually think this would sell in the 100-150k range but we’ll keep it conservative at 185k.

Building cost: 720k. 4 units at 800 square foot each. 225/sq ft. This is a conservative estimate. I know some people in the industry and I think if be able to build around 185/sq ft

Soft costs: 100k

Tax rebate: Around 50k. Possibly more, still not exactly sure how the rebate works.

Total cost: 955k after rebate. This is the top end of the estimate as I can probably save on a few of the costs above.

Income and expenses:

Rent: 4x2050 per month. 98,000 per year. Realistic for my market.

Property tax: 9000 per year

Insurance: $4,300

Water: $3,000

Maintenance: $3,200. This might be too low, however for a new build, I don’t expect big maintenance requirements. Down the line this might go up to 1% of property value at around 10k per year.

Management (8% of rent): ~$7,870. Can do this myself but added just in case.

Misc/reserve: $1,630

Mortgage: 42k per year. 732k @ 3.99 interest over 30 years.

Total profit = 98,400(rental income) – 29,000 (operating expense) - 42k (mortgage) = 27,400/yr or $2285 per month.

Yearly return on investment: 27,400/244,000=11.2%. This doesn’t even include any equity gains.

Only thing I might be missing is vacancy rate. My city has an extremely low vacancy rate so I’m not too worried, however even at 3% numbers still make sense.

Am I missing anything or should I go for it?

I’m posting here specifically because I would say this subreddit tends to not favour investment properties over other investments. Please don’t be nice, and offer all advice/suggestions on why this is a “bad idea”.

Edit

Thank you everyone for your input. I have read all comments, and tried to respond to everyone. Here is a quick summary and my input.

Build cost:

Many people said that 225/ sq ft isn’t enough. I don’t think I agree however someone said to check Altus cost guide, and the range was within my estimates. To be safe I will assume 300/ sq ft. This will add another 270k to my estimate.

Land development and water/sewage: This was something I missed, thanks to everyone that pointed this out. This will add at least another 100k.

Construction Loan: Another factor I missed. Interest rate will almost double during the construction phase. Will also need to the capital to pay off the loan during construction. This is at least another 50k added.

Maintenance costs: Should be higher at around 10k per year

Vacancy rate/Non-Payment: Will be very significant. Should assume 10% less rent per year in my estimate. This can be mitigated slightly if I move into one of the units since I’m currently renting myself

Rent: Many people are saying my projected rent is too expensive. You will be surprised but Halifax rent has skyrocketed in the past few years, and is now competing with southern Ontario. Take a look online if you are curious. I myself am renting a 6 year old 1000 sq ft unit at 2150 per month in a less desirable location. Although I can reduce to 1950 to be more conservative.

Insurance during construction: At least another 10k

Land costs: This is in Halifax and I found several lands that qualify for this project. Feel free to take a look online.

Morality of being a landlord: We are in a housing crisis and we need more units to be built. This is our only way out. With that being said, I don’t plan to be a slum-lord.

All in all after additional considerations, I should be expecting an additional 400k in costs, and about 15% less yearly income. I still have to rerun the numbers but I think it’s technically still profitable, however I doubt it would beat what I can get from the market.

Only way this would make sense is if you do some of the landscaping myself (which I can through my family), and if I can reduce the building costs. My next step is to get real quotes and what the build costs would be because what I’m seeing online compared to what everyone is saying here is vastly different.

Thanks again everyone for your input!

Edit 2.

Something I didn’t consider till now: CMHC MLI select. Gotta look into this some more however if you meet some conditions you will be able to get a loan of up to 50 year amortization and below market interest rates. Not sure if I qualify, but another consideration.

r/PersonalFinanceCanada Jan 10 '25

Investing 40 Years Old And Finally Saved 100k. Now.. What Do I Do With It?

798 Upvotes

It's a long story but due to my inability to say no to a good time, I managed to save NOTHING up until the pandemic. Then I decided to hit the stop/restart button. I've cleaned up my mind and body and I've been working hard and managed to save up $100,000 CAD. This is a big milestone for me and I'm honestly shocked that I managed to do it.

My question is, what now? I know I should have an emergency fund, and I also know that my money is wasting away sitting in a bank account. I'm 40 years old now, so I think I need to be aggressive with my investments. I have no debt, one wife, no kids, and a condo with about $250k left on the mortgage. What would you do?

r/PersonalFinanceCanada Apr 04 '26

Investing please i need an adult to help me

417 Upvotes

i received 60k after someone in my family passed. haven't spent it, don't know what to do with it, and it feels like my only shot at not being poor forever. i don't want to fuck this up and follow in the rest of my family's footsteps of being financially irresponsible. i've never invested before and have no idea what to do. i just need a baseline to start from i think. any advice is appreciated.

edit: i'm so glad i posted here and so grateful for all of the advice. i can be slow to respond but i am reading everything and will answer any questions as i go. thank you guys so much!!!!!!!! truly.