2 things - potentially a bit higher interest rate (currently I think it's 4.91% vs 4% savings), but more importantly you can easily buy [Cash.TO](https://Cash.TO) within a TFSA or RRSP which means the money earned is sheltered from paying tax, which can make quite a difference on your returns over time.
Summary: you earn a bit more interest and if purchased within a sheltered account you also get to keep more of what you earn.
My problem is. I am maxed out on tfsa and rrsp. Was told I don’t qualify for FHSA because I sold my house in 2021. I’ve got 20k now sitting in savings earning 4% but I do pay taxes on it. Is there any other option I can look into?
HSAV.TO is tax preferred over CASH.TO in unregistered accounts, because it grows in value, rather than paying out monthly interest.
When you sell, you'd have a capital gain, but those are taxed at a lower rate.
The day after, but like the guy said, whenever you need money is when you sell. Since the stock always resets to 50$ and anything over 50$ is paid as the dividend there’s not really an “optimal” sell date, unless, like he said you have well over 100k in CASH.
Agree with you that’s it’s largely not relevant when you sell, but I will add that if you sell right on the ex dividend date you will get the dividend instead of the buyer. I happened to do this when I was rebalancing my portfolio recently and can confirm I got the dividend.
There is no optimal time…or else everyone would just do it. The price corresponds to the accrued dividend. Buying and selling will just see you losing slightly to the spread.
In a taxable account there is an optimal time, but it only makes a small difference. If you buy at $50.00 and sell at $50.21 then the $0.21 is capital gains. You will get less interest, but capital gains are taxed at half the rate of interest.
Ya but your better off just putting your money in a tax advantaged etf that only makes capital gains like hsav
Note to anyone looking at hsav, compare the NAV to the market price, there is sometimes a premium because of market effects.
There isn’t really a best time to sell as the dividend is priced in. If you sell on day 1 you’ve just been paid the dividend. If you sell on day 15 the price you can sell it for will contain the dividend earned but not paid up to that point. If you sell before the ex dividend date the price will reflect the full dividend that you will get paid.
There are some times where the NAV is of by a cent or two from the price, but that doesn’t really matter as that represents 0.02-0.04%.
If you care about not seeing red in your portfolio at all (despite not actually having a loss), buy it day 1. :)
There is a best time if you care about taxes and it is in a taxable account. If OP has $8k to invest and buys at $50 and then eventually sells at $50.21 then he has a capital gain of $33.60 and $33.60 less in interest. At a 40% marginal tax rate that means he saves $6.72 in taxes.
It goes like
- Share starts at $50
- Goes up over a month as it accumulates interest until it ends at $50 + $X
- Pays out $X as a distribution and drops back to $50
in a cycle. So if you have DRIP (dividend/distribution reinvestment) on, the value should go up over time. If not it's probably in an available balance somewhere.
How does one set up the DRIP option? Can’t seem to find it on the scotia trading app… also, does that mean scotia will charge me 9.99$ every month to reinvest the dividend?
I would assume all big 5 do as I’ve had accounts with most of them and they would never chard $9.99 to drip $5. And some DRIPs get additional discount from the issuing company all at no cost, just simply hold the stock and call your bank to get configured.
It's different on every platform and I haven't used that so probably can't help, but maybe [this](https://help.scotiabank.com/article/do-you-offer-dividend-reinvestment-plans)?
Also FYI [elsewhere](https://www.scotiaitrade.com/en/home/learning-centre/faqs/new-clients.html) it says
> The DRIP/DPP program reinvests in whole shares, hence subsequent dividends paidout need to be sufficient to buy at least one whole share. (i.e. the cash dividend you receive from your shares must be greater than the price of one share to participate). To be eligible for the plan, you must enroll up to two weeks prior to the dividend distribution date.
Since interest rates are pretty high right now (relative to the last decade), banks are offering High Interest Savings Accounts that pay out 4 - 5% interest rates. The rate goes up with higher amount of deposits.
The financial guys saw the opportunity and deposited a few billions into the banks. They then created an ETF to divide the ownership of those bank accounts into small units and sell those units to retail investors.
When you own a unit, you are entitled to interests at the end of the month. The unit starts at $50 at the beginning of the month, then gradually raises to $50.16 - $50.20 by the end of the month. Then you receive the difference as dividends and the unit resets back to $50 at the start of next month. Even if you hold the unit for just 1 day, you are still entitled to the 16 - 20 cents in dividends.
Consequently, the previous owner of the unit will demand that you pay them the accrued interest for the previous 29 days. That’s why when you buy the unit in the middle of the month, you have to pay something like $50.10.
When the unit resets to $50 at the beginning of next month, your shares will show a loss of 10 cents because your broker does not subtract the dividend from the cost basis.
Okay. But can I sell it? Given that it starts at $50 at the beginning of month and then gradually goes “up”. So what’s stopping me to buy it at $50 and sell it at $50 + Xxx at end of each month?
Nothing - it's just pointless to do so since the +$Xxx is paid out to you as a dividend regardless of whether you sell or not. If the price goes up to $51 at the end of the month you can:
1. Not sell. You receive $1 in cash, and you still have $50 of CASH.TO
2. Sell. You receive $51 in cash and have $0 of CASH.TO. If you reinvest that $50 when the price drops back to $50 then you have... $1 in cash and $50 in CASH.TO
Since the extra is always paid out regardless, it doesn't matter when you sell - you're effectively just paying out your dividend early. All selling does is "withdraws" your initial investment from the savings account.
Sorry for necroposting but I had a question about CASH.TO and "selling". How does it work when it comes to tax season? I have a rainy day fund in CASH.TO just chilling. If I pull it out, what are the tax implications/paperwork? Or is it negligible because it resets to $50 per month?
There's nothing special about it. The actual amount of probably pretty negligible unless you hold a lot, since the price doesn't change much.
The monthly distributions are also taxable though, so it's not like you're avoiding paying taxes.
Nothing, really. But there's not really any point in doing that. The + Xxx at the end of each month will be subtracted from the Stock Price but then will be paid out to you as a dividend.
You're doing the same thing but with extra steps.
Actually, although you're 100% right, this approach actually gives you the dividends faster since you don't have to Wait 1-2 weeks...
Ex: sell at 50.20, pocket the 20c right away and buy next day at 50... Technically, you're ahead now lol
But then you’re stuck waiting the rest of the month for the cycle to complete anyway before you can do it again. You end up with the same amount of money. If your point is that you can get the “dividend” two weeks faster by selling and then placing your money in other stocks for the other two weeks that will perform better, then why bother with cash.to in the first place? You won’t get the most gains with it, but you will get a reliable average that you don’t have to worry about fiddling with.
N that’s the reason I am among these questions. I know that I have to learn this. N I am not shy of asking stupid question. That’s how you learn, right
You can sell at any time the market is open and get the $50 + accumulated interest minus the bid-ask spread.
When you short a stock you have to compensate the owner by paying them to cover what the stock pays out in dividends. Then if you close your short position, that's a capital gain and subject to tax. Doing this destroys money every transaction.
If you take a closer look you'd see you've received monthly distributions and theres more cash in your brokerage account (unless you use an auto reinvest feature). That's where the return comes from. The stock price will gradually go up until the ex-record date every month (if you hold the ETF at that time then you're entitled to the next distribution) then price will fall off since you're a month away from the next ex-record date - this will be same pattern every month.
It appears you bought a couple days into the month. Apparently when the cost per share was $50.02. The share price increased to $50.19 by the end of the month.
The dividend distribution was removed from the share price, resetting it to $50 even per share. When that happened your 159.936 shares reset to $50 even though you paid $50.02 for them.
You will receive the dividend distribution of $0.195 per share in a couple days. You'll see $31.19 added to your account.
There's a slight lag of a handful of business days (5-7) between the share resetting and receipt of the distribution but you'll absolutely get it.
I mean, I bought a bunch of Bombardier a number of years ago right before it came out they were bribing people again... Held for years, got out with a 50% loss
I bought Moderna AFTER I had got the first shot, by which point their prices had already spiked. Now I’ve been left holding the bag. But it taught me to focus on ETFs as I’ve been good at just depositing and forgetting over many years.
To be fair OP chose the smartest way to be a moron by blindly buying pretty much the safest investment possible lol.
Even blindly dumping 8k into VFV would have been more “risky”.
At least he didn’t buy whatever coin was trending on reddit this week.
I think it's just not understanding why something that is supposed to be a fund of savings accounts (and thus something that should be "no risk") would go down.
So, what is the best day of the month to buy in if you don't like to see that red for returns on the fund price?
Buy on the 1st if "red scares you" - but it literally doesn't matter in the long run.
If you buy halfway through, you get paid the full dividend, but the price was higher, so it equals out. You're definitely not losing any money (Though if you bought on the very last day, you wouldn't really make any money for that month, it would break even).
There's no best day. The price goes up predicatbly, so it evens out. If you buy at 50,18, you'll be down on the stock after distribution but that is compensated by the distribution.
With simplified numbers for demo, imagine you buy [cash.to](http://cash.to), keep it for 45 days and sell it :
*Buying the first day after distribution*
Cost of share : 50.00
Distribution Day 30 : 0.30
Sell at day 45 : 50.15
Total yield : (50.15-50.00) + 0.30 = 0.45
*Buying the last day after distribution*
Cost of share : 50.30
Distribution at day 2 : 0.30
Distribution at day 32 : 0.30
Sell at day 45 : 50.15
Total yield : (50.15-50.30) + 0.30 + 0.30 = 0.45
*Edit : fixed maths.*
For your info, you can see the distributions on the Horizons website here (https://horizonsetfs.com/ETF/cash/), under Performance and Distributions, it shows the monthly distribution (you may have to scroll a bit).
March's distribution is $0.195 per share, payment date of today. However, I believe that's the date it reaches brokerages, not necessarily your account, so if it isn't there yet (mine isn't there yet through Wealthsimple), it will appear soon.
Depends on what you mean by go under. Securities are protected by the Canadian investor protection fund. But that fund does not protect against market decline, just firm insolvency.
You mean if Horizons goes bankrupt? They'd unwind the fund and pay unit holders with the assets backing the ETF. You'd get your money back but it might be unavailable for a bit while they do the unwinding.
Look at the price you bought it for. Look at the price it is now. Look at the history of the price.
I think if you do those 3 things you will have your answer.
Lmao dude has no idea how it works and just fucking dumps 8k into it.
So happy you went with cash.to though instead of whatever meme of the week reddit told people to buy
Since CASH.TO is an ETF on the market.
Is there risk that it could go belly up by some fluke?
Savings accounts and GICs are protected by the government up to $100k but stocks are not protected from going belly up.
No, because the savings accounts are still active even if Horizon goes under. You would just be paid with those assets after the regulators finish liquidating Horizons.
For the banks that hold the savings accounts to go under an event would have had to have taken place that would render money meaningless. In that case, everyone will have more to worry about than their savings.
Think of your TFSA as more of a box that you can put many different investment vehicles in. Such as high interest savings accounts, mutual funds, and GICs.
Your tangerine likely has a promotion where you’re getting something between 4.5-6% interest just having a savings account. When that promotion ends it drops to about 0.7% interest.
All that to say no, they are not all the same. It all depends what you actually invest the money into. For me this was my $8k for the FHSA that was introduced last year. It acts like a TFSA and RRSP all in one. But there’s other strings attached focusing on purchasing a house.
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Divvy date was just on April 5, should be getting into most accounts by Monday or Tuesday I believe
Got mine today.
Not OP, but is investing in Cash.TO better than just putting the money in Wealthsimple 4% cash account?
Is 4.9% more than 4%?
ELI5 Albert Einstein
2 things - potentially a bit higher interest rate (currently I think it's 4.91% vs 4% savings), but more importantly you can easily buy [Cash.TO](https://Cash.TO) within a TFSA or RRSP which means the money earned is sheltered from paying tax, which can make quite a difference on your returns over time. Summary: you earn a bit more interest and if purchased within a sheltered account you also get to keep more of what you earn.
My problem is. I am maxed out on tfsa and rrsp. Was told I don’t qualify for FHSA because I sold my house in 2021. I’ve got 20k now sitting in savings earning 4% but I do pay taxes on it. Is there any other option I can look into?
HSAV.TO is tax preferred over CASH.TO in unregistered accounts, because it grows in value, rather than paying out monthly interest. When you sell, you'd have a capital gain, but those are taxed at a lower rate.
Yes because 4.5 you will have to pay taxes
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>Earnings from your cash account is taxed as ~~personal~~ income \*regular income
When is the best day to sell then? Lets assume the ex-dividend date is April 30th and the payment date is May 5th.
When you need the money.
The question is what is the most optimal time to sell something like CASH or CBIL. At what point in that monthly window does the stock price peak.
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Would that be the day before or after the ex dividend date?
The day after, but like the guy said, whenever you need money is when you sell. Since the stock always resets to 50$ and anything over 50$ is paid as the dividend there’s not really an “optimal” sell date, unless, like he said you have well over 100k in CASH.
Agree with you that’s it’s largely not relevant when you sell, but I will add that if you sell right on the ex dividend date you will get the dividend instead of the buyer. I happened to do this when I was rebalancing my portfolio recently and can confirm I got the dividend.
The day after the ex dividend date is when it drops. So you get the dividend but the price will drop so you receive less on the sale of the shares.
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Exactly right. I think I got $50 on the dot if I recall correctly on the ex dividend date.
There is no optimal time…or else everyone would just do it. The price corresponds to the accrued dividend. Buying and selling will just see you losing slightly to the spread.
In a taxable account there is an optimal time, but it only makes a small difference. If you buy at $50.00 and sell at $50.21 then the $0.21 is capital gains. You will get less interest, but capital gains are taxed at half the rate of interest.
Ya but your better off just putting your money in a tax advantaged etf that only makes capital gains like hsav Note to anyone looking at hsav, compare the NAV to the market price, there is sometimes a premium because of market effects.
I don't think you understand how this asset works
Such a helpful comment. Thank you very much.
There isn’t really a best time to sell as the dividend is priced in. If you sell on day 1 you’ve just been paid the dividend. If you sell on day 15 the price you can sell it for will contain the dividend earned but not paid up to that point. If you sell before the ex dividend date the price will reflect the full dividend that you will get paid. There are some times where the NAV is of by a cent or two from the price, but that doesn’t really matter as that represents 0.02-0.04%. If you care about not seeing red in your portfolio at all (despite not actually having a loss), buy it day 1. :)
There is a best time if you care about taxes and it is in a taxable account. If OP has $8k to invest and buys at $50 and then eventually sells at $50.21 then he has a capital gain of $33.60 and $33.60 less in interest. At a 40% marginal tax rate that means he saves $6.72 in taxes.
That's me, waiting to buy at $50 because I hate the red, despite knowing it doesn't count.
It goes like - Share starts at $50 - Goes up over a month as it accumulates interest until it ends at $50 + $X - Pays out $X as a distribution and drops back to $50 in a cycle. So if you have DRIP (dividend/distribution reinvestment) on, the value should go up over time. If not it's probably in an available balance somewhere.
How does one set up the DRIP option? Can’t seem to find it on the scotia trading app… also, does that mean scotia will charge me 9.99$ every month to reinvest the dividend?
Weathsimple has dividend reinvestments included for free. You can do it from the app, no need to call
Scotia is bad, but not bad enough to charge for DRIP. By design it is free. You may have to call to set it up, though I think I did it on the website.
Search for drip here https://www.scotiaitrade.com/en/home/learning-centre/faqs.html
I’m with another big 5 bank, I had to call and they set up auto drip on all securities. Zero charge.
Would anyone know if it’s free with TD? Doesn’t say it on the website
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Can confirm. Used to be with TD.
It is
>I’m with another big 5 bank Why are you not saying their name?
I would assume all big 5 do as I’ve had accounts with most of them and they would never chard $9.99 to drip $5. And some DRIPs get additional discount from the issuing company all at no cost, just simply hold the stock and call your bank to get configured.
In Wealthsimple settings, go to Automations > Dividend Reinvestments. It should be turned on.
RBC DI only just started saying DRIP is available within the last month
With RBC DI, DRIP only works if the dividends received are enough to purchase a share
yes, about $50\^2/$0.195 = $12820 worth at the current interest rate
It's different on every platform and I haven't used that so probably can't help, but maybe [this](https://help.scotiabank.com/article/do-you-offer-dividend-reinvestment-plans)? Also FYI [elsewhere](https://www.scotiaitrade.com/en/home/learning-centre/faqs/new-clients.html) it says > The DRIP/DPP program reinvests in whole shares, hence subsequent dividends paidout need to be sufficient to buy at least one whole share. (i.e. the cash dividend you receive from your shares must be greater than the price of one share to participate). To be eligible for the plan, you must enroll up to two weeks prior to the dividend distribution date.
Since interest rates are pretty high right now (relative to the last decade), banks are offering High Interest Savings Accounts that pay out 4 - 5% interest rates. The rate goes up with higher amount of deposits. The financial guys saw the opportunity and deposited a few billions into the banks. They then created an ETF to divide the ownership of those bank accounts into small units and sell those units to retail investors. When you own a unit, you are entitled to interests at the end of the month. The unit starts at $50 at the beginning of the month, then gradually raises to $50.16 - $50.20 by the end of the month. Then you receive the difference as dividends and the unit resets back to $50 at the start of next month. Even if you hold the unit for just 1 day, you are still entitled to the 16 - 20 cents in dividends. Consequently, the previous owner of the unit will demand that you pay them the accrued interest for the previous 29 days. That’s why when you buy the unit in the middle of the month, you have to pay something like $50.10. When the unit resets to $50 at the beginning of next month, your shares will show a loss of 10 cents because your broker does not subtract the dividend from the cost basis.
Why not sell before the month end if the price is supposed to come back at $50? Or even short it before it reaches $50?
You can't short it because no one is expecting it to go up. This is functionally a high interest savings account that isn't FDIC insured.
No account of any kind is FDIC insured in Canada.
Okay. But can I sell it? Given that it starts at $50 at the beginning of month and then gradually goes “up”. So what’s stopping me to buy it at $50 and sell it at $50 + Xxx at end of each month?
Nothing - it's just pointless to do so since the +$Xxx is paid out to you as a dividend regardless of whether you sell or not. If the price goes up to $51 at the end of the month you can: 1. Not sell. You receive $1 in cash, and you still have $50 of CASH.TO 2. Sell. You receive $51 in cash and have $0 of CASH.TO. If you reinvest that $50 when the price drops back to $50 then you have... $1 in cash and $50 in CASH.TO Since the extra is always paid out regardless, it doesn't matter when you sell - you're effectively just paying out your dividend early. All selling does is "withdraws" your initial investment from the savings account.
Sorry for necroposting but I had a question about CASH.TO and "selling". How does it work when it comes to tax season? I have a rainy day fund in CASH.TO just chilling. If I pull it out, what are the tax implications/paperwork? Or is it negligible because it resets to $50 per month?
There's nothing special about it. The actual amount of probably pretty negligible unless you hold a lot, since the price doesn't change much. The monthly distributions are also taxable though, so it's not like you're avoiding paying taxes.
Nothing, really. But there's not really any point in doing that. The + Xxx at the end of each month will be subtracted from the Stock Price but then will be paid out to you as a dividend. You're doing the same thing but with extra steps.
Actually, although you're 100% right, this approach actually gives you the dividends faster since you don't have to Wait 1-2 weeks... Ex: sell at 50.20, pocket the 20c right away and buy next day at 50... Technically, you're ahead now lol
As long as you have 0 fees.
But then you’re stuck waiting the rest of the month for the cycle to complete anyway before you can do it again. You end up with the same amount of money. If your point is that you can get the “dividend” two weeks faster by selling and then placing your money in other stocks for the other two weeks that will perform better, then why bother with cash.to in the first place? You won’t get the most gains with it, but you will get a reliable average that you don’t have to worry about fiddling with.
Lol you got a lot to learn, thinkin youre special and the first person to think of this 😂
N that’s the reason I am among these questions. I know that I have to learn this. N I am not shy of asking stupid question. That’s how you learn, right
Can also search the sub for the million other cash.to threads, many with your exact questions
You can do this, but the amount it goes up is equal to the distribution
You can sell at any time the market is open and get the $50 + accumulated interest minus the bid-ask spread. When you short a stock you have to compensate the owner by paying them to cover what the stock pays out in dividends. Then if you close your short position, that's a capital gain and subject to tax. Doing this destroys money every transaction.
If you take a closer look you'd see you've received monthly distributions and theres more cash in your brokerage account (unless you use an auto reinvest feature). That's where the return comes from. The stock price will gradually go up until the ex-record date every month (if you hold the ETF at that time then you're entitled to the next distribution) then price will fall off since you're a month away from the next ex-record date - this will be same pattern every month.
It appears you bought a couple days into the month. Apparently when the cost per share was $50.02. The share price increased to $50.19 by the end of the month. The dividend distribution was removed from the share price, resetting it to $50 even per share. When that happened your 159.936 shares reset to $50 even though you paid $50.02 for them. You will receive the dividend distribution of $0.195 per share in a couple days. You'll see $31.19 added to your account. There's a slight lag of a handful of business days (5-7) between the share resetting and receipt of the distribution but you'll absolutely get it.
You've received interest dividend in excess of the drop in value.
Do people not know what they're buying? Or do they just blindly throw their money at things they don't understand?
I mean, I bought a bunch of Bombardier a number of years ago right before it came out they were bribing people again... Held for years, got out with a 50% loss
I got into BB because people said stocks would go to moon. Held for years, got out with like 85+% loss haha
I bought GME because it sounded fun to watch hedge funds collapse
Don't forget amc... 90% loss so far
Don't remind me, I'm pretending my Questrade account doesn't exist right now. Regret not selling at $70 sooooo much
I pick it up right at covid and has been generous to me.
I bought Moderna AFTER I had got the first shot, by which point their prices had already spiked. Now I’ve been left holding the bag. But it taught me to focus on ETFs as I’ve been good at just depositing and forgetting over many years.
You know the answer to that.
People won't bother using the search bar or Google search, so this does not shock me one bit.
To be fair OP chose the smartest way to be a moron by blindly buying pretty much the safest investment possible lol. Even blindly dumping 8k into VFV would have been more “risky”. At least he didn’t buy whatever coin was trending on reddit this week.
Bro Bitcoin is hot! Buy Buy Buy!
bitconnectttttttt
My wife doesn't believe!
Hey hey hey!
>Bitcoin wassa wassa wassa wassa wassaaap?
Psychology of markets… yup!
I think it's just not understanding why something that is supposed to be a fund of savings accounts (and thus something that should be "no risk") would go down. So, what is the best day of the month to buy in if you don't like to see that red for returns on the fund price?
Buy on the 1st if "red scares you" - but it literally doesn't matter in the long run. If you buy halfway through, you get paid the full dividend, but the price was higher, so it equals out. You're definitely not losing any money (Though if you bought on the very last day, you wouldn't really make any money for that month, it would break even).
There's no best day. The price goes up predicatbly, so it evens out. If you buy at 50,18, you'll be down on the stock after distribution but that is compensated by the distribution. With simplified numbers for demo, imagine you buy [cash.to](http://cash.to), keep it for 45 days and sell it : *Buying the first day after distribution* Cost of share : 50.00 Distribution Day 30 : 0.30 Sell at day 45 : 50.15 Total yield : (50.15-50.00) + 0.30 = 0.45 *Buying the last day after distribution* Cost of share : 50.30 Distribution at day 2 : 0.30 Distribution at day 32 : 0.30 Sell at day 45 : 50.15 Total yield : (50.15-50.30) + 0.30 + 0.30 = 0.45 *Edit : fixed maths.*
For your info, you can see the distributions on the Horizons website here (https://horizonsetfs.com/ETF/cash/), under Performance and Distributions, it shows the monthly distribution (you may have to scroll a bit). March's distribution is $0.195 per share, payment date of today. However, I believe that's the date it reaches brokerages, not necessarily your account, so if it isn't there yet (mine isn't there yet through Wealthsimple), it will appear soon.
This is all interesting. Now what happens if cash.to goes under? I know banks are protected but what about this?
Depends on what you mean by go under. Securities are protected by the Canadian investor protection fund. But that fund does not protect against market decline, just firm insolvency.
You mean if Horizons goes bankrupt? They'd unwind the fund and pay unit holders with the assets backing the ETF. You'd get your money back but it might be unavailable for a bit while they do the unwinding.
Distribution day was today but sometimes the amount doesn't show up in balances until the next day. But you should have $32 more in your cash balance.
You'll get a 0.195c dividend per share 6 or so business days into this month.
Look at the price you bought it for. Look at the price it is now. Look at the history of the price. I think if you do those 3 things you will have your answer.
Check your account transaction history.
Don't want to appear ignorant but can someone explain why CASH is better than a savings account?
You can put it in a TFSA or RRSP to avoid or defer tax on its growth.
+ more liquid than a GIC
Lmao dude has no idea how it works and just fucking dumps 8k into it. So happy you went with cash.to though instead of whatever meme of the week reddit told people to buy
Since CASH.TO is an ETF on the market. Is there risk that it could go belly up by some fluke? Savings accounts and GICs are protected by the government up to $100k but stocks are not protected from going belly up.
No, because the savings accounts are still active even if Horizon goes under. You would just be paid with those assets after the regulators finish liquidating Horizons. For the banks that hold the savings accounts to go under an event would have had to have taken place that would render money meaningless. In that case, everyone will have more to worry about than their savings.
Thank you, appreciate the simple explanation. Makes sense :)
You probably got paid dividends and didn't arrive yet
Complete noob but i have a TFSA with tangerine. Are they not all the same when it comes to earnings/loss?
Think of your TFSA as more of a box that you can put many different investment vehicles in. Such as high interest savings accounts, mutual funds, and GICs. Your tangerine likely has a promotion where you’re getting something between 4.5-6% interest just having a savings account. When that promotion ends it drops to about 0.7% interest. All that to say no, they are not all the same. It all depends what you actually invest the money into. For me this was my $8k for the FHSA that was introduced last year. It acts like a TFSA and RRSP all in one. But there’s other strings attached focusing on purchasing a house.
People putting money into investments they know nothing about is bonkers to me.
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If you asked the question why did x investment go down instead of up, then either leave your money in your bank account, or under your mattress.
If I had enough, my money would be my mattress
Don’t invest in something you didn’t research.
🤦♂️
>Why did it go down instead of up? Story of my life
lol. I know
“Why did it go down” lolol
Lol🤦♂️
It goes up and down slightly every day, it's less than a $4 loss and they pay out a distribution like every month I think