Whats your RRSP Interst rate?
#10
If possible, invest in your RRSP's. Without even considering what you invest the money inside your RRSP in, you are saving tax dollars at your effective tax rate. In Alberta, that is about 39%. Generally speaking, that is the highest return you are going to ever get.
As for your investment vehicle, I would personally want at a minimum, a return that matches inflation. Otherwise your money is not truly growing.
If you are only earning 4%, consider opening a discount brokerage account and purchasing high quality bonds. These will often yield better than 4%. One caution, with interest rates rising, bond prices go down. So you may have a loss on the principal of the bond if you happen to sell it before its maturity. Personally, I invest in equity based mutual funds because they traditionally yield the highest returns. But, not everyone likes the uncertainty of the equity markets.
This topic can get really lengthy so I will just stop now.
Happy investing,
Keenan
As for your investment vehicle, I would personally want at a minimum, a return that matches inflation. Otherwise your money is not truly growing.
If you are only earning 4%, consider opening a discount brokerage account and purchasing high quality bonds. These will often yield better than 4%. One caution, with interest rates rising, bond prices go down. So you may have a loss on the principal of the bond if you happen to sell it before its maturity. Personally, I invest in equity based mutual funds because they traditionally yield the highest returns. But, not everyone likes the uncertainty of the equity markets.
This topic can get really lengthy so I will just stop now.
Happy investing,
Keenan
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