What to do...

A

animal-inside

Well-known member
Trusted Member
So with the immenent crash of the USD dollar, what the hell are you guys doing with your cash/savings?

I'm trying to determine how much cash I want to hold vs how much I am going to invest before the crash...

I'm thinking about investing everything and just holding 10,000$. And then invest all our paychecks as they come in to keep my cash at 10,000$ only.


My other worry is where do I hold this 10k.. Are you guys trusting banks to hold your cash at this point?




Lastly, I'm sort of stumped with what to invest my money into. I'm not comfortable with bitcoin or digital currency that's not backed by gold/silver etc.. Would it be a good idea to invest into a digital currency backed by gold/silver? If so which one?


I'm also trying to figure out what stocks would be good to hold when the crash happens... My best stocks right now are oil stocks.. But I'm hesitant to invest in them with what could happen to middle east oil..
 
First of all, our banking system is setup completely different from the US system. In the US, there's been 500+ bank failures since 2000. In Canada, there's been a grand total of 2.... since like 1920! And they were both small banks. It's really a non issue here. So no worry about trusting banks here with your cash.

disclaimer: not financial advice ;)

In your chequing account, always keep enough to cover all your expenses and typical spending for the month.

Always keep an emergency fund in cash (high interest savings account from an online bank gives the best interest %), usually enough to cover all your expenses for 6 months. This is in case you lose a job, have a death in the family and aren't working for a bit, etc...

Beyond that, invest the rest.

As for where and what to invest in, that's an individual decision based on your risk tolerance.
I will say this though.... picking individual stocks is a fools game. Even professional money managers who make a living doing this will underperform their benchmarks something crazy like 95% of the time. So for any retail investor to think they're going to pick some all star stocks and get rich from it is an absolutely absurd idea. Some may get lucky and pick a couple right ones, but over the long run they'd be better off just investing in that benchmark.

I usually recommend asset allocation ETF's. XBAL, XGRO, XEQT or vanguard equivalents of VBAL, VGRO, VEQT. But these definitely have a factor of home bias built in. They're heavily weighted to Canadian and American stocks. If you believe the US dollar may be replaced as the world's reserve currency, you may want to increase your exposure to the global markets a bit. Again, I would recommend an ETF that tracks an index of global companies. In the long run I guarantee it will outperform any individual stock picking you may do.

If you're not comfortable with crypto but want some exposure to it, 5% of your total investable assets into a crypto ETF like BTCX or ETHX and hold them in your TFSA. You buy it just like a stock and don't have to worry about all of the rest.

Also, the "gold standard" where currencies were backed by gold has been gone since the 70s.
 
IronRobi said:
First of all, our banking system is setup completely different from the US system. In the US, there's been 500+ bank failures since 2000. In Canada, there's been a grand total of 2.... since like 1920! And they were both small banks. It's really a non issue here. So no worry about trusting banks here with your cash.

disclaimer: not financial advice ;)

In your chequing account, always keep enough to cover all your expenses and typical spending for the month.

Always keep an emergency fund in cash (high interest savings account from an online bank gives the best interest %), usually enough to cover all your expenses for 6 months. This is in case you lose a job, have a death in the family and aren't working for a bit, etc...

Beyond that, invest the rest.

As for where and what to invest in, that's an individual decision based on your risk tolerance.
I will say this though.... picking individual stocks is a fools game. Even professional money managers who make a living doing this will underperform their benchmarks something crazy like 95% of the time. So for any retail investor to think they're going to pick some all star stocks and get rich from it is an absolutely absurd idea. Some may get lucky and pick a couple right ones, but over the long run they'd be better off just investing in that benchmark.

I usually recommend asset allocation ETF's. XBAL, XGRO, XEQT or vanguard equivalents of VBAL, VGRO, VEQT. But these definitely have a factor of home bias built in. They're heavily weighted to Canadian and American stocks. If you believe the US dollar may be replaced as the world's reserve currency, you may want to increase your exposure to the global markets a bit. Again, I would recommend an ETF that tracks an index of global companies. In the long run I guarantee it will outperform any individual stock picking you may do.

If you're not comfortable with crypto but want some exposure to it, 5% of your total investable assets into a crypto ETF like BTCX or ETHX and hold them in your TFSA. You buy it just like a stock and don't have to worry about all of the rest.

Also, the "gold standard" where currencies were backed by gold has been gone since the 70s.
Click to expand...

I beielve places like China are now going back to precious metal/mineral backed currencies.
 
I'd go with gold man. It's rare non degradable and only becoming more amd more rare. It's gone up something like 20 fold since 2000
 
I keep a cash reserve of 6 months worth of expenses and invest in ETFs and Crypto. I have 10 dividend paying ETFs and 10 large cap Cryptos I DCA in every couple weeks and I won't change my strategy ever. Boom, bust or neither I do the same thing. Whatever you decide to do don't just drop a large sum of money on a single product all at once. Too much downside IMHO.
 
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I been put x amount every pay, in etsx60 with a covered Call at over 9.5% dividends.
I also have have another etf in real estate...Global riet Called Bilt at 9% aswell.
My next etf is going to be a s&p500 at 9% dividends.
 
IronRobi said:
First of all, our banking system is setup completely different from the US system. In the US, there's been 500+ bank failures since 2000. In Canada, there's been a grand total of 2.... since like 1920! And they were both small banks. It's really a non issue here. So no worry about trusting banks here with your cash.

disclaimer: not financial advice ;)

In your chequing account, always keep enough to cover all your expenses and typical spending for the month.

Always keep an emergency fund in cash (high interest savings account from an online bank gives the best interest %), usually enough to cover all your expenses for 6 months. This is in case you lose a job, have a death in the family and aren't working for a bit, etc...

Beyond that, invest the rest.

As for where and what to invest in, that's an individual decision based on your risk tolerance.
I will say this though.... picking individual stocks is a fools game. Even professional money managers who make a living doing this will underperform their benchmarks something crazy like 95% of the time. So for any retail investor to think they're going to pick some all star stocks and get rich from it is an absolutely absurd idea. Some may get lucky and pick a couple right ones, but over the long run they'd be better off just investing in that benchmark.

I usually recommend asset allocation ETF's. XBAL, XGRO, XEQT or vanguard equivalents of VBAL, VGRO, VEQT. But these definitely have a factor of home bias built in. They're heavily weighted to Canadian and American stocks. If you believe the US dollar may be replaced as the world's reserve currency, you may want to increase your exposure to the global markets a bit. Again, I would recommend an ETF that tracks an index of global companies. In the long run I guarantee it will outperform any individual stock picking you may do.

If you're not comfortable with crypto but want some exposure to it, 5% of your total investable assets into a crypto ETF like BTCX or ETHX and hold them in your TFSA. You buy it just like a stock and don't have to worry about all of the rest.

Also, the "gold standard" where currencies were backed by gold has been gone since the 70s.
Click to expand...
Pretty much how I did it.

The savings part is in a 4.5% rate account, rest is invested.

Thank god shit has started to grow again that was invested on the market, everything was kinda flat for about a year.

My TFSA is maxed, my rrsp is maxed, the rest I invest thru work, and will use that first as my retirement money and keep pulling a wage, even if the physical business is gone.

I am not worried, way too many big players with lots to lose if things collaspe
 
Funnyman said:
I been put x amount every pay, in etsx60 with a covered Call at over 9.5% dividends.
I also have have another etf in real estate...Global riet Called Bilt at 9% aswell.
My next etf is going to be a s&p500 at 9% dividends.
Click to expand...
What S&P ETF has a 9% div?
 
I randomly stumbled on these this afternoon
Fidelity All-In-One ETFs

I had not seen these before, but first glance they sure look interesting. FBAL, FGRO, FEQT which would likely be similar exposure to the vanguard and irock equivalents, but these offer slight exposure to FBTC as well. So when I said above throw up to 5% into crypto these essentially do just that.
 
Funnyman said:
The one I'm invested, in is by evolve efts.
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ESPX.
This is a covered call ETF which does carry a unique set of risks and higher fees. Also 100% equities obviously. But typically in a bear market or flat market these will outperform non-covered call ETF's. I think this is a great strategy for right now, but when we get back into a bull market I'd be looking to change. Covered call ETF's in a bull market typically underperform.

I may stick a portion of my equities holding into this, I like the 9% yield with monthly distributions.
 
IronRobi said:
ESPX.
This is a covered call ETF which does carry a unique set of risks and higher fees. Also 100% equities obviously. But typically in a bear market or flat market these will outperform non-covered call ETF's. I think this is a great strategy for right now, but when we get back into a bull market I'd be looking to change. Covered call ETF's in a bull market typically underperform.

I may stick a portion of my equities holding into this, I like the 9% yield with monthly distributions.
Click to expand...
I have a bit of ESPX and I like it so far. Evolve doesn't get alot of exposure but I really like the structure of alot of their funds. So far no real track record with these new covered calls but they are similar to bmo funds as they only write 33 or 50% calls. I cant remember exactly. Hopefully they get some more volume.
 
Revisting this thread almost a year later. Imagine sitting on cash and missing out on the 25-30% gains. I dont think anyone expected that. Dont try to time the market. ZEQT is my biggest holding now.
 
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Cheapshot said:
Revisting this thread almost a year later. Imagine sitting on cash and missing out on the 25-30% gains. I dont think anyone expected that. Dont try to time the market. ZEQT is my biggest holding now.
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We had a good gain before Christmas, but before that the market was pretty flat.
 
IronRobi said:
I randomly stumbled on these this afternoon
Fidelity All-In-One ETFs

I had not seen these before, but first glance they sure look interesting. FBAL, FGRO, FEQT which would likely be similar exposure to the vanguard and irock equivalents, but these offer slight exposure to FBTC as well. So when I said above throw up to 5% into crypto these essentially do just that.
Click to expand...
These funds look interesting.
 
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