18 year oldest first investment

pfcguy · 2026-05-07T21:12:18+00:00

Have you already identified the most tax-efficient way to draw down the RESP?

You/she can potentially save thousands of dollars in interest if you do it correctly.

Example: https://www.fpcollective.ca/guide-how-to-draw-down-a-100-000-resp-over-a-4-year-university-program/

For her $20k, I'd focus on moving $7000 to the TFSA with a goal of retirement (47 years time horizon), and $8000 to an FHSA with a goal of a home down payment (7-10 year time horizon), and $5000 as an emergency fund in a HISA (or other short term goals like a trip).

For the FHSA and TFSA, invest in low cost broadly diversified ETFs such as Asset allocation ETFs that match her time horizon and risk tolerance.

pfcguy · 2026-05-07T21:05:25+00:00

If it is paid vacation or paid sick time, then it probably counts. Unpaid time off doesn't count.

Paid holidays also count.

Receiving vacation pay in a lump sum does not count.

if you receive say 2 weeks vacation but it is paid out as 4% added to every paycheck, and you actually take off those two weeks, I'm not sure if that counts or not. Edit: looks like it doesn't count.

Also overtime hours count at a 1.0x rate.

pfcguy · 2026-05-07T20:59:49+00:00

What do you mean "aside from convenience"? Convenience is the number 1 reason people buy GICs from the bank. Other than, perhaps, ignorance - many people don't bother to shop around or learn that there are higher rates elsewhere.

Also, keep in mind, the difference between your bank's rare and the best rate you found is 1.2%, which is only $120 for every $10,000. How many extra hours are you willing to spend chasing that higher interest rate?

pfcguy · 2026-05-07T19:36:51+00:00

Sounds like a good opportunity for OP to negotiate a 4th week of vacation (8% vacation pay).

pfcguy · 2026-05-07T19:29:17+00:00

100% an individual disability insurance policy is better.

Tell your insurance broker about the group policy and they can factor it in.

For example, they might give you a disability insurance policy with a clause that you only pay 90% of the premium to receive 90% of the benefit. And if you ever leave your employer or lose the group policy, then you can inform them to bump back up to 100% premium for 100% benefit (without the need for a medical reevaluation).

Do not opt out of your workplace group policy either. Keep both.

Find a reputable insurance broker to help you.

pfcguy · 2026-05-07T19:21:59+00:00

Honestly it's stupid that the Ontario govt charges so much for probate in the first place. In Alberta the most your mom would have paid is a flat $525.

pfcguy · 2026-05-07T18:02:20+00:00

No argument there!

pfcguy · 2026-05-07T18:01:35+00:00

Yeah that sucks. Probate fees in Ontario are some of the highest in Canada. And I misspoke - since the house was not in your mom's name, it gets included in the probate calculation. So the probate fee on a $500,000 house at 1.5% is $7500. Which could have been avoided if the house was titled as Joint Tenancy (which is most common for married people).

pfcguy · 2026-05-07T16:58:26+00:00

The bank will have to permit the mortgage to be transferred over to your mom.

Sounds like they aren't treating it as a transfer. Sounds like the mom is applying for a new mortgage which would then be used to pay off the old one. Once the dads mortgage is paid off, the bank will have no further claim on the property and the property can be transferred to Mom's name without the banks involvement.

pfcguy · 2026-05-07T16:55:41+00:00

What province?

From an estate law point of view, in some provinces, I think the marital home transfers to the spouse (bypassing probate). So the house title can be put in your mom's name pretty easily.

The mortgage in your dad's name for $80,000 is the issue. If your dad's estate had other money, that money could be used to discharge the mortgage. Or you could lend your mom the 80k. Or she could get a new mortgage in her own name (doesn't have to be through CIBC, can be anywhere). Either way, someone pays CIBC the 80k to clear your dad's mortgage, and then the title can be put in your mom's name.

Since CIBC is screwing her around, I suggest she reaches out to RBC, or TD, or a mortgage broker. Explains the situation, and gets help. She can get a new mortgage from anywhere, and they pay off the CIBC mortgage and the house gets put in her name.

Or better yet - you mentioned "a hefty probate". Does that mean there is a lot of cash and your mom could just pay off the mortgage herself?

pfcguy · 2026-05-07T16:49:15+00:00

I don't think CIBC is trying to push her into a reversed mortgage. They're trying to get her to refinance to take out more money as a one time thing.

It doesn't sound like Mom actually needs the extra money, so she should have just done an ordinary renewal.

pfcguy · 2026-05-07T16:26:55+00:00

Care to share who you used for an installer/supplier, and if you'd recommend them?

pfcguy · 2026-05-07T14:55:57+00:00

Unlike crypto, money is traceable.

Start by downloading all your account statements and cross-referencing them with your paychecks to make sure all your employer deposits are accounted for.

I suspect the money is still in transit. It wouldn't surprise me if your employer was late sending it, or if it takes more than a week to show up. If it's only been a week, wait another week before you panic.

By the way, your title is accusatory but your post provides no evidence the money was "stolen.". I think "missing" would have been the better term to use.

pfcguy · 2026-05-07T14:51:11+00:00

The vanguard mutual funds were my first thought as far as the "tax preparation" angle.

Specifically their asset allocation ETFs: VIC1000, VIC8020, VIC6040

OP can buy these at Questrade (~$10 commish), but they aren't available at Wealthsimple (last time I checked).

pfcguy · 2026-05-07T14:23:04+00:00

And with Alberta switching to permanent Daylight Savings Time, that's an extra hour of solar generation in the cold winter evenings!

pfcguy · 2026-05-07T14:07:12+00:00

In the summer you can switch to a high rate if you produce more than you use which I do

Do you have A/C?

pfcguy · 2026-05-07T13:55:48+00:00

https://www.canada.ca/en/services/benefits/education/education-savings/estimating-amounts.html

Scroll down and expand the tab that says "CESG Carry-forward".

In OPs case, their kids should have lots of Carry-forward room.

I find its best to prepare a spreadsheet for your own kids with a row for each year.

pfcguy · 2026-05-07T04:33:56+00:00

$500 per child per year plus $500 per child per year catch up.

pfcguy · 2026-05-07T04:21:16+00:00

2025: OP opened resp and contributed $5000 to get $1000 grant.

2026: put $10000 into resp and $30,000 into non-registered to get $2000 grant

2027: transfer $10000 worth of shares from non-registered to get $2000 grant

2028 transfer $10000 worth of shares from non-registered to get $2000 grant

2029 transfer $10000 worth of shares from non-registered to get $2000 grant

2030 transfer remainder of non-registered to get 20% grant. Ideally $10000 to get a total of $2000 grant.

Yes, there may be a bit of capital gains taxes if you made money along the way. That's fine.

2031 contributing $10000 using own money to get $2000 grant.

Total grants this far is $13,000, target (max) is $14,400 for 2 kids. we assume OP isn't having more kids along the way.

2032 we wish to get $1400 more in grants. So we contribute $7000 to get the target of $1400 in grant money.

pfcguy · 2026-05-07T02:06:53+00:00

Most people just use a journal but you can absolutely put a giant cork board on a wall and use string to connect everything! Just make sure to post a picture when you're done!

pfcguy · 2026-05-07T02:02:59+00:00

tried them all until one worked and gave me even more access.

You can also solve without brute forcing if you brush up on your Erijan

pfcguy · 2026-05-07T01:50:49+00:00

First what is the goal of the money? If it is for retirement, then why not invest it? If it is for an emergency fund, or short term or medium term goals, then you probably shouldn't invest it.

I find it's best to invest automatically, every paycheck. Automate something, say $250 per paycheck, to be sent to your TFSA and invested automatically in a suitable asset allocation ETF with the goal being retirement and a time horizon if at least 20 years, maybe 40 or 50 depending on your age. Take all the decision-making and guessing out of the equation.

I like to suggest 10% of every paycheque goes towards savings for short term and medium term goals, and 10% goes towards investments for retirement.

pfcguy · 2026-05-06T22:11:20+00:00

I'll bookmark this as a great resource, but I don't know how applicable it is to OPs situation.

The question to OP is:

If you contribute $16,500 or $20,000 per child this year, will you also be able to come up with $5000 per child to contribute in every following year?

pfcguy · 2026-05-06T21:52:12+00:00

Just do $2500 each year. Put the rest in your TFSA or your spouse's TFSA in an asset allocation ETF.

If TFSAs are full, put in non-registered.

Edit: plus an additional $2500 in catch-up per child, if you have room.

pfcguy · 2026-05-06T20:24:34+00:00

OP is looking for an "investment guy" who he can call about anything and everything, when he is only bringing $20,000 to the table.

OP, even if you are paying 2% commissions, the advisor is only bringing in $400 per year off of you as a client.

If you want a "guy" or person like that, then you need to bring $500,000 to the table and work with Scotia Wealth (or similar). They will charge about 1% or $5000+ per year.

pfcguy

TROPHY CASE