Okay, I need help... Who should I talk to about investing for retirement?!

[Ember]

(Keep in mind that I'm in Canada.) I am now debt free, have an emergency fund, a bit of short term savings, and have $50,000 sitting in my checking account. That is from my mum's life insurance and I have no idea what to do with it. Who do I talk to? The banks? An investment specialist? A financial planner? I'm not even sure where to begin...

 

[SlightlyGoofy]

Ember, it sounds as if you are on the right track. Congratulations on your financial savvy and my sincerest sympathies on the loss of your mother.

Might I ask how old you are as that makes a big difference in what you might do with your money?

I am guessing that the financial system in Canada is not a whole lot different from the US and interest rates are very low. I would think it more important to protect the principal if you are older. If you are younger you can afford more risk and the stock market has proven, over time, to be one of the best investments.

I like a no load fund like Vanguard for long term savings. If you are very young that $50K can grow into millions (how many of them depends on how quickly the economy rebounds) before you retire. The earlier you start to save the more each dollar will be worth in the future. Mutual funds invest in a wide variety of stocks so that you are better protected from the ups and downs of such.

Being debt free is a truly liberating thing. You will have far more freedom to do things that you truly want to do rather than having to do things just to pay the bills.

I did all of our finances and always joke that while I may not have gotten the very most income I did not charge myself nor did I steal from myself. I do my own taxes too on the theory that if I made a mistake I am more likely to know where I went wrong and if I pay someone else I have to pay them and then pay the penalty if they err. Our finances are simple though. Your mileage may vary.

I am sure that you will get many more replies and probably with better advice but I did not want to see your post with no answers.


May you continue as you are and I know that you will be able to afford many Disney trips through the years and possibly retire there one day.

Slightly Goofy

 

[disneysteve]

Investing is truly not rocket science. A little education can go a long way and this is definitely something that you can handle quite nicely without paying a bank, investment specialist or financial planner 1% or more of your assets to do it for you.

The best place I know of to get very good free advice is the investment forum at savingadvice.com. There are quite a few of us there who regularly break down people's situations, teach them about their options and point them in the right direction to get started and build a portfolio. Lots of friendly and helpful people there. In fact, a lot of them are also DISboard members, like myself. Come on over, register and start a thread with your details. You'll get all kinds of useful advice.

 

[Ember]

Ember, it sounds as if you are on the right track. Congratulations on your financial savvy and my sincerest sympathies on the loss of your mother.

Thanks. I've worked hard over the last three years (since graduating) to pay off the student debt. The insurance paid for the once in a lifetime trip we took my mum on last August, and the rest I don't know what to with!

Might I ask how old you are as that makes a big difference in what you might do with your money?

I'll be turning 30 in July.

I am guessing that the financial system in Canada is not a whole lot different from the US and interest rates are very low. I would think it more important to protect the principal if you are older. If you are younger you can afford more risk and the stock market has proven, over time, to be one of the best investments.

I like a no load fund like Vanguard for long term savings. If you are very young that $50K can grow into millions (how many of them depends on how quickly the economy rebounds) before you retire. The earlier you start to save the more each dollar will be worth in the future. Mutual funds invest in a wide variety of stocks so that you are better protected from the ups and downs of such.

Being debt free is a truly liberating thing. You will have far more freedom to do things that you truly want to do rather than having to do things just to pay the bills.

I did all of our finances and always joke that while I may not have gotten the very most income I did not charge myself nor did I steal from myself. I do my own taxes too on the theory that if I made a mistake I am more likely to know where I went wrong and if I pay someone else I have to pay them and then pay the penalty if they err. Our finances are simple though. Your mileage may vary.

I am sure that you will get many more replies and probably with better advice but I did not want to see your post with no answers.


May you continue as you are and I know that you will be able to afford many Disney trips through the years and possibly retire there one day.

Slightly Goofy

This is really helpful, thank you!

 

[ClarabelleCowFan]

OP - so very sorry for your loss.

Investing is truly not rocket science. A little education can go a long way and this is definitely something that you can handle quite nicely without paying a bank, investment specialist or financial planner 1% or more of your assets to do it for you.

The best place I know of to get very good free advice is the investment forum at savingadvice.com. There are quite a few of us there who regularly break down people's situations, teach them about their options and point them in the right direction to get started and build a portfolio. Lots of friendly and helpful people there. In fact, a lot of them are also DISboard members, like myself. Come on over, register and start a thread with your details. You'll get all kinds of useful advice.

Thanks for this. DH and I have been discussing this very topic lately and have been researching online. Headed there now!

 

[disneysteve]

Thanks for this. DH and I have been discussing this very topic lately and have been researching online. Headed there now!

You'll find me as disneysteve there, too.

 

[Ember]

Investing is truly not rocket science. A little education can go a long way and this is definitely something that you can handle quite nicely without paying a bank, investment specialist or financial planner 1% or more of your assets to do it for you.

The best place I know of to get very good free advice is the investment forum at savingadvice.com. There are quite a few of us there who regularly break down people's situations, teach them about their options and point them in the right direction to get started and build a portfolio. Lots of friendly and helpful people there. In fact, a lot of them are also DISboard members, like myself. Come on over, register and start a thread with your details. You'll get all kinds of useful advice.

Thanks! I'm off to register now!

 

[SlightlyGoofy]

Ember, what a wonderful start you have in life.

Only 30 and you are debt free, even student loans!

You were wise enough to spend money on a trip with your mum that you will treasure for a lifetime. As Suze Orman says, "People first".

You are already looking forward to planning for retirement!

I like Dave Ramsey (but you have already done most of what he advocates), Suze Orman (except for when she is being cute she gives very good advice) as well as Clark Howard. They all give good every day advice and for free.

There are many on line calculators that will help you to made decisions and it is so satisfying to see what that measly $5K will be worth in the decades to come IF you can contain your urge to splurge.

Just remember slow and steady wins the race, especially these days.

Slightly Goofy