Q: Greetings
I currently own 8 shares of Constellation Software with a total cost of $3,877 in my RRIF. I am considering contributing $7,000 to my TFSA for the current year versus leaving the funds as a cash deposit, and I would appreciate your opinion on this decision.
In addition, I hold more than $40,000 in cash and would welcome your perspective on whether it would be prudent to invest a portion of these funds or to continue holding them in a money market account while awaiting further market volatility or unforeseen events.
Rick
I currently own 8 shares of Constellation Software with a total cost of $3,877 in my RRIF. I am considering contributing $7,000 to my TFSA for the current year versus leaving the funds as a cash deposit, and I would appreciate your opinion on this decision.
In addition, I hold more than $40,000 in cash and would welcome your perspective on whether it would be prudent to invest a portion of these funds or to continue holding them in a money market account while awaiting further market volatility or unforeseen events.
Rick
5i Research Answer:
We can't get personal, but we see the TFSA as the best investment account and would prefer to see an investment there rather than cash. BN, CLS, PNG can be considered growth stocks, ranked in preferred order but also in order of risk.
The second question is more personal. We are comfortable with equity markets and history has shown that investing 'now' has always been the right move. But investors need to be able to withstand market volatility. We are comfortable buying, and would also see a consistent buying approach (10% deployed monthly for 10 months) as an easy solution for those concerned about current volatility.