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A retiree wonders if it's time to spend
WATCH and Become an ETF Pro: MoneySense’s ETF Academy SeriesIf you have no debt, then look ahead and see what larger expenses are on the horizon. If you are expecting costs like home or car repairs, then you should set aside this money into a high-interest savings account for when the repairs happen. If you don’t own a home or car, then look to spend the money on something that is meaningful to you. Perhaps a trip? Or maybe you want to save the $10,000 for your future or your heirs.
READ: An investor’s guide to robo-advisors 2018And finally, you should consider investing it. Add it to a Tax-Free Savings Account (TFSA) if you have the contribution room and invest in a longer-term investment that will give you solid investment returns such as a broad-based, low-fee index fund or exchange traded fund (ETF) that contains both equities and fixed income. Vanguard has several you can choose from here: https://www.vanguardcanada.ca/individual/indv/en/product.html or a BlackRock iShare ETF would also be suitable https://www.blackrock.com/ca/individual/en/learning-centre/etf-education/what-is-an-etf?switchLocale=y&siteEntryPassthrough=true. Both sites also have a good description of ETF investing and are a good resource for future investing.
READ: Canada’s grandfather of Couch Potato investing is still sitting easyOf course, it makes perfect sense to do a little of both— buy a little something for yourself that is frivolous as well as put the remainder in a TFSA in a longer-term investment. Whatever you decide, take your time to make the best choice for you.
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