Quote: (01-07-2015 11:40 PM)DumbfromBirth Wrote:
Look up current rates on eTB's (Treasury Bills). You should be able to get 5% and T-bills are considered pretty much risk free. You could also consider investing the money in a different currency for e.g. US, AUD or YEN if you think the currency will appreciate. But that would be more of a 6-12 month plan and could gain maybe 10points over this time with the right investment.
Generally the higher your return the more risk you need to take and at retirement you want investments with the lowest risk possible. Diversify your investment into different areas and leverage your portfolio on the safer side.
Thanks to the Fed, no T bills yield 5%. The 10 yr just dropped below 2% yesterday.
If you cannot risk taking any losses (even paper ones), I'm afraid you'll have to go with gov't bonds or GICs for piss poor return. Ask yourself this: where would your Freedom 55 plan be if 2015 - 2019 winds up being a repeat of 2005 - 2009 or 1927 - 1931 (or insert your favorite crash here)?