#InvestmentAdvice #ETFs #GradStudent
Hey everyone! 👋 I’m a grad student currently balancing my MSc with plans for an MD or PhD down the line. I’ve got about 40k saved up, but I want to do something smarter with 25k of it instead of letting it sit there losing value. Here are some options I’m considering:
– Invest in ETFs like SPY, VOO, or VTI for long-term growth 📈
– Divide the 25k among these three ETFs within my TFSA 📊
– Consider other investment opportunities that align with my long-term goals 🔍
What do you think? Any suggestions or advice for me? I’d love to hear your thoughts and experiences! Let’s help each other grow our financial knowledge 💸 #FinanceTips #Investing #BuildingWealth
What? ETFs are as “safe” as whatever they hold. Some ETFs are incredibly boring and predictable, others are extremely speculative volatility machines.
Overall, ETFs are an improvement over mutual funds, but you still want to match your investments to your goals, future plans and risk tolerance.
Stock market investments aren’t particularly safe if you need short or medium-term liquidity. Over the long-term, sure. At the upper end of 5-9 years you are maybe getting into that range, but with an uncertain timeframe, you may want something less aggressive (ie, prone to smaller losses in bad years).
Asset allocation ETFs are very popular as they let you select a portfolio that already factors in things like risk tolerance.
Check out the output of the bot that will reply for some tips and questions to help decide where/how to invest (I don’t need the answers, but you should look at the questions and know the answers yourself at least) and some details about investment risk.
!InvestingTrigger
!RiskTrigger
Take the $25K and put it into any prep materials you can or tuition for an MD.
If you get a PhD, you’re going to be making horrible money after all those years of schooling.
I have
15k liquid in a High Interest Saving Account like Wealthsimple’s 4% cash account.
The other 25k you can freeze for 1 year in a **TFSA-GIC** at about 5.10%.
Zero risk.
SPY/VOO/VTI are pretty safe but who knows if/when a correction/crash will occur and how long will it last. If you invest in stocks, be sure you won’t depend on that money to pay for school next years. It’ll probably grow but it could shrink too.
You might really enjoy the Bogglehead approach to investing
Do nothing. Put it in a savings account. Keep your job while you study. Job pays for everything, not your savings. Study well to get a better job or selected for a good PhD program. Keep on increasing your income and keep adding to your already UNTOUCHED savings account.
Once you have about $50-70k in savings, ideally in 5 years or less, get a good finance manager to help you invest some of it. Until then STFU and do what I said.
SPY and VOO follow the same stocks