babych Posted September 23, 2022 Share Posted September 23, 2022 Is now a safe time to invest in Mutual Funds? I'm a newbie investor. Just bought some MFs through my bank (I'm told they are medium-low risk) and will be making small purchases every month to add to it. I've been told that, long term, MF will always perform.. I just can't worry about the day to day fluctuations. I'm looking at this as a 5-10 year investment, maybe more. It's not that I'm risk-averse, necessarily. It's more that I don't know what I'm doing but I'd rather get my money to work instead of sitting in a TSFA. Thoughts? Link to comment Share on other sites More sharing options...
Wolfgang Durst Posted September 23, 2022 Share Posted September 23, 2022 32 minutes ago, babych said: Is now a safe time to invest in Mutual Funds? I'm a newbie investor. Just bought some MFs through my bank (I'm told they are medium-low risk) and will be making small purchases every month to add to it. I've been told that, long term, MF will always perform.. I just can't worry about the day to day fluctuations. I'm looking at this as a 5-10 year investment, maybe more. It's not that I'm risk-averse, necessarily. It's more that I don't know what I'm doing but I'd rather get my money to work instead of sitting in a TSFA. Thoughts? I really think that you'll get what you were told. One of basic principals of investing is amplified in Mutual funds which is the diversification. Mutual Funds invest in stocks, bonds and other securities and are therefore highly diversified. Especially in turbulent times like these a solid and safe investment. Here's what I really like about your investment: 1. diversification. 2. mid- term / long - term perspective 3. you add shares of MF to your account on a monthly basis 4. you put your money to work I am not sure about the performance of MF in the past. Did they show you at least a summary outlining the performance of MF in the past? 1 Link to comment Share on other sites More sharing options...
Chris12345 Posted September 23, 2022 Share Posted September 23, 2022 Yikes, early retirement is slipping! 1 Link to comment Share on other sites More sharing options...
bishopshodan Posted September 23, 2022 Share Posted September 23, 2022 Discount sale! I might be buying a bunch more disappointment soon. Link to comment Share on other sites More sharing options...
I.Am.Ironman Posted September 23, 2022 Share Posted September 23, 2022 We are at June lows. If we make new lows it will be the first time since WWII that 50% of the drawdown was recovered and a new low followed. Pretty unprecedented. Link to comment Share on other sites More sharing options...
Boudrias Posted September 23, 2022 Share Posted September 23, 2022 4 minutes ago, I.Am.Ironman said: We are at June lows. If we make new lows it will be the first time since WWII that 50% of the drawdown was recovered and a new low followed. Pretty unprecedented. I don't put much credence in comparisons to past data. My biggest issue is the financial status of past governments, businesses and consumers. The debt level today is so much higher, across the board. The ability to react will be much more limited, especially if there is a crisis of overall confidence. IMHO politicians have been using debt for decades to try and spend their way to growth. Not going to happen. Does it take a '30's style depression to bring fiscal sanity back into the picture? Link to comment Share on other sites More sharing options...
I.Am.Ironman Posted September 23, 2022 Share Posted September 23, 2022 44 minutes ago, Boudrias said: I don't put much credence in comparisons to past data. My biggest issue is the financial status of past governments, businesses and consumers. The debt level today is so much higher, across the board. The ability to react will be much more limited, especially if there is a crisis of overall confidence. IMHO politicians have been using debt for decades to try and spend their way to growth. Not going to happen. Does it take a '30's style depression to bring fiscal sanity back into the picture? Hopefully not. Tyne national debt is why I don’t think the FED/Powell is going to Paul Volcker this thing. 1 Link to comment Share on other sites More sharing options...
Elias Pettersson Posted September 23, 2022 Share Posted September 23, 2022 Down she goes. Hide the wife and kids... Link to comment Share on other sites More sharing options...
Elias Pettersson Posted September 23, 2022 Share Posted September 23, 2022 2 hours ago, Boudrias said: I don't put much credence in comparisons to past data. My biggest issue is the financial status of past governments, businesses and consumers. The debt level today is so much higher, across the board. The ability to react will be much more limited, especially if there is a crisis of overall confidence. IMHO politicians have been using debt for decades to try and spend their way to growth. Not going to happen. Does it take a '30's style depression to bring fiscal sanity back into the picture? Unfortunately they won't even be able to print their way out of this mess this time around. It's going to get ugly. Recession won't be the right word this time around. They'll have to make up a new word for what's about to come. Link to comment Share on other sites More sharing options...
WeneedLumme Posted September 23, 2022 Share Posted September 23, 2022 4 hours ago, babych said: Is now a safe time to invest in Mutual Funds? I'm a newbie investor. Just bought some MFs through my bank (I'm told they are medium-low risk) and will be making small purchases every month to add to it. I've been told that, long term, MF will always perform.. I just can't worry about the day to day fluctuations. I'm looking at this as a 5-10 year investment, maybe more. It's not that I'm risk-averse, necessarily. It's more that I don't know what I'm doing but I'd rather get my money to work instead of sitting in a TSFA. Thoughts? It's not an either/or situation. You should have as much in your TFSA as possible (up to the current max total contribution of $81.5k of course, assuming you are old enough to qualify for the 81.5k) and put it to work. Use a self-directed TFSA, and invest in equities/mutual funds if you are comfortable doing so. 1 1 Link to comment Share on other sites More sharing options...
Chris12345 Posted September 23, 2022 Share Posted September 23, 2022 4 hours ago, bishopshodan said: Discount sale! I might be buying a bunch more disappointment soon. I think we have a few more cliffs coming...... Link to comment Share on other sites More sharing options...
bishopshodan Posted September 23, 2022 Share Posted September 23, 2022 2 hours ago, Chris12345 said: I think we have a few more cliffs coming...... OK. I'll wait for the blowout sale... Everything must go! Link to comment Share on other sites More sharing options...
Chris12345 Posted September 23, 2022 Share Posted September 23, 2022 33 minutes ago, bishopshodan said: OK. I'll wait for the blowout sale... Everything must go! lol! Well I was wrong at least once. 1 Link to comment Share on other sites More sharing options...
nuckin_futz Posted September 23, 2022 Share Posted September 23, 2022 (edited) Nearly everyone is focussed on equities while they chop around in a range. Albeit the low end of the range. Meanwhile the US dollar is rampaging like a fratboy on bath salts….. Euro vs USD, well below parity at a 20 year low. USD vs Japanese Yen. Yen at a 24 year low. Would have closed worse but the BOJ finally intervened and bought Yen. British Pound vs USD. This is simply a horror show. Pound has blown through the Brexit lows by a mile and is testing the 37 year old lows from 1985. It lost a full 6 cents this week alone. It’s not just running against the Majors. This is USD vs the Turkish Lira. The charts a little out of whack but that’s the correct closing price. 13.5 in February to 18.5 in September. USD vs the Swedish Krona. Krona testing 21 year lows. Even pretend currencies look horrible. Bitcoin looks like it’s about to get clobbered to about 11k(ish) Edited September 23, 2022 by nuckin_futz Link to comment Share on other sites More sharing options...
I.Am.Ironman Posted September 24, 2022 Share Posted September 24, 2022 Money flows to USD in recession recessionary times, FED also tightening. The cdn dollar has been doing decently as well, compared to other currencies ( gbp, eur etc), which is a silver lining. USD and commodities are supposed to be the play. 1 Link to comment Share on other sites More sharing options...
Russ Posted September 24, 2022 Share Posted September 24, 2022 22 hours ago, babych said: Is now a safe time to invest in Mutual Funds? I'm a newbie investor. Just bought some MFs through my bank (I'm told they are medium-low risk) and will be making small purchases every month to add to it. I've been told that, long term, MF will always perform.. I just can't worry about the day to day fluctuations. I'm looking at this as a 5-10 year investment, maybe more. It's not that I'm risk-averse, necessarily. It's more that I don't know what I'm doing but I'd rather get my money to work instead of sitting in a TSFA. Thoughts? The low risk ones won't net you massive returns but also won't net you massive losses. I have a good portion of my money in MF (or whatever my Financial Advisor buys), they have averaged over the years 6-8% for my parents and me (30+ years for parents), so hasn't beat the S&P (which is usually what people compare to), but this year with S&P being down 23% YTD, my portfolio is only down about 5-8% with them so its a little give and take. I pay higher fees with them and net some lower returns but at the same time they are pretty darn conservative and the drawdowns are much smaller. 1 Link to comment Share on other sites More sharing options...
babych Posted September 24, 2022 Share Posted September 24, 2022 22 hours ago, Wolfgang Durst said: I really think that you'll get what you were told. One of basic principals of investing is amplified in Mutual funds which is the diversification. Mutual Funds invest in stocks, bonds and other securities and are therefore highly diversified. Especially in turbulent times like these a solid and safe investment. Here's what I really like about your investment: 1. diversification. 2. mid- term / long - term perspective 3. you add shares of MF to your account on a monthly basis 4. you put your money to work I am not sure about the performance of MF in the past. Did they show you at least a summary outlining the performance of MF in the past? 18 hours ago, WeneedLumme said: It's not an either/or situation. You should have as much in your TFSA as possible (up to the current max total contribution of $81.5k of course, assuming you are old enough to qualify for the 81.5k) and put it to work. Use a self-directed TFSA, and invest in equities/mutual funds if you are comfortable doing so. 40 minutes ago, Russ said: The low risk ones won't net you massive returns but also won't net you massive losses. I have a good portion of my money in MF (or whatever my Financial Advisor buys), they have averaged over the years 6-8% for my parents and me (30+ years for parents), so hasn't beat the S&P (which is usually what people compare to), but this year with S&P being down 23% YTD, my portfolio is only down about 5-8% with them so its a little give and take. I pay higher fees with them and net some lower returns but at the same time they are pretty darn conservative and the drawdowns are much smaller. Thanks for the replies. Yeah, every month I'm putting money into a TFSA and then from there I will direct some of it into other things like MF. Historically, the MF's have performed well over time, and the idea is that I'll be looking at a 10-15 year window before needing them so I should be good. It's hard being a new investor and seeing your MF drop 1.2% in 2 days, though! Link to comment Share on other sites More sharing options...
Boudrias Posted September 24, 2022 Share Posted September 24, 2022 2 hours ago, babych said: Thanks for the replies. Yeah, every month I'm putting money into a TFSA and then from there I will direct some of it into other things like MF. Historically, the MF's have performed well over time, and the idea is that I'll be looking at a 10-15 year window before needing them so I should be good. It's hard being a new investor and seeing your MF drop 1.2% in 2 days, though! My concern with a MF is the MER associated with it. How much is it? Do MF's outperform a ETF? ETF's have much cheaper MER's. Set up a self directed brokerage account with Qtrade or equivalent. Do some research and buy ETF's that give the diversification you are getting in the MF. It should be cheaper. The added advantage in this type of account is that as your comfort level grows you can buy individual stocks. If I could do things differently I would have focused on dividend stocks much earlier in life. There is so much BS associated with stock markets that causes indecision and exploitation. Link to comment Share on other sites More sharing options...
Chris12345 Posted September 24, 2022 Share Posted September 24, 2022 7 hours ago, I.Am.Ironman said: Money flows to USD in recession recessionary times, FED also tightening. The cdn dollar has been doing decently as well, compared to other currencies ( gbp, eur etc), which is a silver lining. USD and commodities are supposed to be the play. Hawaii will he pricey HAHAHA Link to comment Share on other sites More sharing options...
Boudrias Posted September 24, 2022 Share Posted September 24, 2022 1 minute ago, Chris12345 said: Hawaii will he pricey HAHAHA Airfare is cheaper than last year. We'll see come Feb. Link to comment Share on other sites More sharing options...
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