retirement
- Thread starter hawkervac
- Start date
Invest it all in dividend earning stocks (or an equivalent mutual fund).
If your only source of income is dividends, approximately the first 40,000 dollars per year is tax free.
If your only source of income is dividends, approximately the first 40,000 dollars per year is tax free.
First thing to do is educate yourself. You need to know what the different types of funds are, and what types of instruments you might own.
I don't know what the rules are in Canada, in the USA one of the things you need to avoid is churn. A broker can generate more money for themselves by having you buy and sell more often than is absolutely necessary. Every trade costs you money, and makes money for the broker. I had a fund for my son's college money that made zero dollars over a five year period (on a 4k investment, so it's not like it broke me or anything) because I gave him permission to trade as he saw fit and he burned up all of my gains in trading fees.
Energy stocks or energy-heavy mutual funds should be a good bet for the next few years, as Dood said. I think any resource based stuff, especially Canadian resources, should be good for you.
For a younger person, at least down here, I would be buying real estate like it was candy. Prices are so depressed that if you can afford to hold it for a while I think it just HAS to make money.
I don't know what the rules are in Canada, in the USA one of the things you need to avoid is churn. A broker can generate more money for themselves by having you buy and sell more often than is absolutely necessary. Every trade costs you money, and makes money for the broker. I had a fund for my son's college money that made zero dollars over a five year period (on a 4k investment, so it's not like it broke me or anything) because I gave him permission to trade as he saw fit and he burned up all of my gains in trading fees.
Energy stocks or energy-heavy mutual funds should be a good bet for the next few years, as Dood said. I think any resource based stuff, especially Canadian resources, should be good for you.
For a younger person, at least down here, I would be buying real estate like it was candy. Prices are so depressed that if you can afford to hold it for a while I think it just HAS to make money.
If the OP has to come to a site like this one and ask for investment advice (where all the "experts" will crawl out of the woodwork) one has to wonder how the hell he ever managed to come up with $400,000. Maybe he has plans to win a small lottery.
What is your timeline? ie when do you want to retire and what is your guesstimate about how long you will live? What standard of living do you envision yourself having throughout your retirement?
All important questions your financial advisor will ask you and it is best to think about it in advance because they will not be able to put you in the right 'vehicle' once they know your tolerance for risk. Very strict laws for FA's these days.
IIRC we are still tied to a magic number of $60K per year or our benefits from CRA are clawed back and our taxes are elevated to the next highest level. You will find this out from your FA.
Given the volatility of the markets these days and the age of the person retiring; you will most likely be steered towards a so called 'safe' investment.
