Dan: What ETFs are available for parking money that pays a comparable rate to a GIC but has the flexibility to cash out within 24 hours?
Gail Bebee: Claymore has a money market ETF which you could look at. The MER is quite low, so the return should be decent, but the return is not guaranteed like a GIC. I think those high interest savings account funds I mentioned before are a good place to park cash and there should be no trading commissions unlike an ETF. They are CDIC insured.
Vincent Bruzzese: What is the best way to open a RRIF?
Evan: My parents are nearing retirement and other than pensions do not have much of a nest egg. They just received a $100,000 inheritance and are wondering what to do with it to generate some income as well as be accessible should an emergency come up. I'm sure the liquidity requirement will limit options. What should they look into?
Gail Bebee: I wrote an article for GlobeInvestor this week about what to do with your RRSP. I wanted to tell people to look at all the options before deciding on a RRIF as an annuity may be a part of the mix. So, I think paying some money to get the advice of an independent financial planner would be the best first step. As part of the advice, he/she should be able to advise you on the best place for a RRIF based on your personal situation.
Jim: What is a better strategy to buy a Stock that you have been watching and researching? Buy all you want in one shot when the Stock Dips to a price you are comfortable with (one trade fee)? or spreading it over 2-3 trades staggered to try to achieve a better dollar/cost average?
Gail Bebee: I like the idea of doing research and deciding on the price you want to pay for a stock and then buying the stock when it is at your price. But, that's just my thinking. Other people swear by dollar cost averaging into a position. You need to decide what you are comfortable doing.
Claire Neary, Reportonbusiness.com: Thanks for all your time today, Gail. And thanks to our readers for all your questions. Sorry we didn't have time for them all. Before we go, Gail, do you have any final thoughts?
Gail Bebee: Learn the investing basics before plunging into online trading. There is no shortage of information out there. Some online brokers have great educational tools including how-to videos. And don't ever stop learning. Investing like the rest of life is not static.
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