Short term investment

Asset allocation, risk, diversification and rebalancing. Pros/cons of hiring a financial advisor. Seeking advice on your portfolio?
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Acer79
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Short term investment

Post by Acer79 »

Hello,

Where would you put half a million for 6 months to get the best returns? Will need the funds to put back into a new home in about 6 - 8 months.

Thanks!
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AltaRed
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Re: Short term investment

Post by AltaRed »

I wouldn't put that kind of money into any of the online banks (never know where the next HCG lurks). But if you bank at Scotia, they have a Momentum Savings account that pays 2% until end of June and 1.2% thereafter IF you leave the funds alone for at least 90 days, or if you bank at BMO, they have a Savings Builder account that pays 1.2% provided you add a minimum of $200 each month to the account. Other banks may have something similar.

It would only be at one of the big 5 or so that I would put that kind of money for 6-8 months (CDIC insurance be damned)
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kcowan
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Re: Short term investment

Post by kcowan »

I sure would not invest it without having a conversation with the banker!
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Acer79
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Re: Short term investment

Post by Acer79 »

Hey Thanks for the quick reply.

I don't really trust the banker but I think high interest savings account would be the way to go. Just wanted to see if there were other options :thumbsup:

Thanks!
goleafsgo
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Re: Short term investment

Post by goleafsgo »

Don't know if OP is in Ontario but Meridian Credit Union (which I believe is the largest in the province) offer a HISA @ 1.5% (from memory, I think it is an online version...but so what?)
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AltaRed
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Re: Short term investment

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goleafsgo wrote: 16 May 2017 18:45 Don't know if OP is in Ontario but Meridian Credit Union (which I believe is the largest in the province) offer a HISA @ 1.5% (from memory, I think it is an online version...but so what?)
The issue is financial viability of the firm with $500k in one place. Who knows when the hammer drops aka HCG? There are lots of oline bank options but who can one trust with that kind of money?
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Peculiar_Investor
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Re: Short term investment

Post by Peculiar_Investor »

Acer79 wrote: 16 May 2017 17:24 Hello,

Where would you put half a million for 6 months to get the best returns? Will need the funds to put back into a new home in about 6 - 8 months.

Thanks!
For such a short term investment, return of capital is far more important than return on capital. So I won't necessarily be looking at the best return, I'd be making sure the return of capital is absolutely safe and has a rock solid guarantee, such as CDIC coverage.
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Re: Short term investment

Post by goleafsgo »

AltaRed and Peculiar....I agree with both of you. I took a leap of faith and had the same 500K with Meridian a couple of months ago. They mitigate the risk SOMEWHAT by allowing accounts in your name, your spouse's, and a joint......each being eligible for $100K deposit insurance.

I know what both of you are thinking....'well, dummy, that still leaves 200K not covered by insurance'. All I can say is that no one has ever accused me of being very bright.
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AltaRed
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Re: Short term investment

Post by AltaRed »

Every institution I know of has his, hers and theirs options for total of $300k but the OP hasn't said anything about being single, married, or otherwise. That's one problem with scant information.
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