Friday, January 11, 2013

Invest in what ?

I have almost 10 K$ sitting in my brokerage account. And I will be receiving almost 50 K$ soon. I'm in front of a nice problem : what do I do with that money? How do I invest it? Or do I ?

Dear fellow financial bloggers, I want to hear you out.

  • I can leave the cash there, doing basically nothing -  maybe 1.5 % in an ING Direct account.
  • I can invest passively in those boring ETF's.
  • I can add to some of my positions currently slumping (POW, ABX or even SU).
  • I can invest in a farm land in Saskatchewan!
  • I can buy a new house and rent my condo
  • I can buy a land, a wood forrest, etc. 
  • Or I can keep that money in an emergency fund. And wait till an opportunity comes up.

Remember, the strategy has to fit my financial philosophy. I want to keep my positions under 12. I want to maintain my «bond/fix income» position to at least 20 % of my portfolio value. Basically, I am not going to get carried away with small-caps companies...

I would really like to hear from you! Come on! Yes you. Write to me!

Trivia : guess what pages of my blog have been the most popular. You got it : Portfolio and Dividends and Royalties. You sneaky greedy little monks! ;-) I guess we all like to compare. I am not any different.

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7 comments:

  1. For me long term investing I follow in the foot steps of my fellow (not that I blog anymore) bloggers (my own adviser and dividend ninja)and invest for dividend income. To me a slumping price is good as it means my re-invested dividends go further.

    Currently I hold

    Aberdeen Asia Pacific (FAP)
    Bank of Montreal
    Bank of Nova Scotia
    BCE
    CM
    Bell Aliant
    Enbridge
    Enerplus
    Fortis
    Penngrowth
    RioCan
    TD Bank

    Generally speaking my investment horizons is forever.

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  2. On to your specific question, you may want to take a look at Aberdeen Asia Pacific (FAP).

    It's a closed end MF and I know a lot of bloggers don't like that but its got a DRIP with OCP and has a long term track record (20 plus years I think) They've never increased the dividend but the yield is over 8% so that more than makes up for it.

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  3. Finally I'd highly suggest reading Millionaire Teacher my Andrew Hallam, one of the best most readable investing books out there.

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  4. Thanks Rob! I will check out FAP. I'm not sure, though, if it fits my Investment philosophy. As for the Milionnaire Teacher Book, I heard about it a few times. I might check it out, although I doubt I will find in it things I haven't elsewhere (the Peter Lynch books for instance). But it could be a nice read anyhow. Thanks for droping by! How have you been?

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  5. very quiet over Christmas, slowly getting back into blogging, found my brain on holiday mode to be not in the blogging mode!

    I enjoyed his book but he invests only in ETFs and I prefer individual stocks. FAP is a good "fixed income" hold but they've never increased the dividend, still 8% is nothing to sneeze at.

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  6. Also currently I'm researching ETS via the http://canadianreit.ca/ and his sister site Canadian dividend stock

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  7. I'm still not sure what I will do with my cash flow. For now it's sitting in a saving account not doing much. Will see if opportunities arise. Thanks for the suggestions. I like your Portfolio BTW. Great Dividend payers.

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Thanks a lot for your comment.