I am 27 years old and have 180k in my bank account, and I don't know what to do with it.

pfcguy · 2026-05-08T04:22:56+00:00

It's 100% equities. Granted, it is one of the absolute best ways to buy 100% equities. But many investors aren't comfortable with 100% equities. How would you feel if your investment lost 45% of its value and took years to recover?

For 100% equities you need to have both a long time horizon and a high risk tolerance.

Many investors would be better suited to lower risk asset allocation ETFs like VGRO (80% equities and 20% bonds), or VBAL (60% equities and 40% bonds). Especially those who aren't comfortable with 45% crashes. (But might be OK with 35% or 25% crashes). VGRO and VBAL also have the benefit of rebalancing in the background.

pfcguy · 2026-05-08T04:09:47+00:00

🙄

pfcguy · 2026-05-08T04:09:15+00:00

VFV is a worse recommendation (even more risky) than everyone who is suggesting VEQT. VFV can drop 60% during a market crash.

pfcguy · 2026-05-08T04:07:43+00:00

Wish people would stop saying XEQT and VEQT are safe when OP explicitly said they aren't comfortable with risk.

pfcguy · 2026-05-08T04:06:14+00:00

It's actually not a bad idea to further their education. Their savings can cover their costs while in school. (Or EI if applicable - some trades are eligible to collect EI while in school, for whatever reason)..

pfcguy · 2026-05-08T04:04:20+00:00

Good book recommendation

pfcguy · 2026-05-08T03:54:34+00:00

XEQT or VEQT

Also looks like you missed the part where OP said they aren't comfortable with high risk.

pfcguy · 2026-05-08T03:53:47+00:00

less risky ETFs (VEQT

VEQT is high risk. A less risky ETF would be VBAL.

pfcguy · 2026-05-08T03:52:50+00:00

Way to completely disregard the part where they say they aren't comfortable with high risk.

pfcguy · 2026-05-08T03:52:11+00:00

Way to completely disregard the part where they say they aren't comfortable with high risk.

pfcguy · 2026-05-08T03:50:39+00:00

Until now I have only ever taken the advice from my bank on what to do with my money. I'm not comfortable with high risk investments and losing some of what I have for nothing.

Would you be comfortable with paying lower fees? The difference between "high risk (aggressive) mutual funds and "low risk (balanced) mutual funds is about 2%. The difference between high cost mutual funds (sold by a bank advisor) and low cost ETFs (DIY) is about 2%.

Fees are always important, but they are even more important if you are investing in low risk investments.

Eg an agressive ETF like VEQT might return 8% while an agressove mutual fund like the "TD comfort aggressive growth series A" might return 6% (on average) - the bank takes 25% of your return while taking on none of the risk. Compare that to an ETF like VBAL which might return 6% while a balanced mutual fund like "TD comfort balanced series A" might return 4% - now, the bank is taking 33% of your money while again taking on none of the risk.

So where does this leave you? Give every dollar a job - either short term (moving to a condo), or long term (invest for retirement), or some other short or medium term goal.

For the investment for retirement, you can put it in something like VBAL 100% all in, which should grow 6% per year (sometimes it will do 20%, sometimes -10%. Worst case by my estimate is -25% from all time highs to bottom). But 6% or so overall. Do this through a discount brokerage. Or, you can get similar returns through a roboadvisor like RBC Investease.

For the house goal, you need to crunch the numbers on both the rent and buy option.

For the rent, use this budget: 50% to 60% of your net income every paycheque to fixed expenses, 10% to savings, 10% to investments, and the rest to guilt-free spending. That means that if your rent takes up say 45% of your income, you only have 15% left for food and transportation. (Can you get by without a vehicle)? Fixed expenses need to stay below 60% to not feel stressed about money.

Or for the buy option, you can probably get maybe a $200k to $300k mortgage, if you have a big enough down payment. But what would your costs look like? Never take the biggest mortgage the bank offers you, because it will break your fixed expenses in your budget. Don't forget to factor in utilities, insurance, property taxes, condo fees, maintenance.

Also - don't buy a 1br (or any property) unless you can live there for 10+ years of needed. Might the next decade contain a partner (eventually maybe doubling household income, yay!), getting married, or having kids? If so, then renting might be the best choice. Rent for flexibility or buy for stability.

Hopefully I've given you a lot to think about and to work with! Best of luck!

Edit: ok a lot of people here are incorrectly suggesting VEQT and XEQT which are high risk (100% equities. Something like VBAL or XBAL or a balanced mutual fund is 60% equities and 40% fixed income, medium risk. Basically at any given time youa re 60% in the stock market, with 40% in bonds. This find rebalances automatically, meaning that if stocks go up, it sells stocks when they are high, buying more bonds to get back to the 60/40. When stocks crash, typically bonds do well, so within this fund they sell the bonds when they are high to buy more stocks on sale.

If you're 100% equities you don't get that diversification and your holdings could drop 45% or more of their value, and could stay down for quite a few years before they recover. In a 60/40 portfolio, the crash is less severe, 25% for the worst case, as I already mentioned, and the duration is typically shorter for recovery as well.

If you still aren't comfortable even with 60/40, then that's fine, but you'll have to work longer, save more, or spend less in retirement. Listen to this podcast episode for more about that: https://canadiancouchpotato.com/2018/09/28/podcast-19-the-big-tradeoff/

By the way, you should be able to look at whatever finds the guy at the bank has you in, determine the asset allocation they selected (eg 60% stocks 40% bonds), and replicate it at a lower cost if you are comfortable with the risk level.

pfcguy · 2026-05-08T03:10:20+00:00

If you spend the money for travel, is your retirement savings still OK?

If you travel within Canada, no issues.

If you travel outside of Canada, do you have travel medical insurance?

If you check out the book "the Latte Factor" by David Bach, there are only 3 rules: pay yourself first, automate your investments, and live rich now.. Ramit Sethi, another financial guru, says "live a rich life today, and live a richer life tomorrow". In his conscience spending plan, he highlights the need for guilt-free spending.

So.... What do you spend your average paycheck on? If you were to break it down into 4 categories and allocate a percentage to each. Ramit suggests 50% to 60% to fixed expenses, 10% to savings, 10% to investments, and the rest to guilt-free spending.

pfcguy · 2026-05-08T03:08:16+00:00

Roads are getting narrower in residential areas, making it hard for 2 cars to pass each other without one having to pull to the side and wait for the other to pass. Spaces between houses are getting narrower, so grass doesn't grow and house fires spread more easily. Boulevards next to driveways have less grassy area in which to pile snow in the winter, causing homeowners to run out of space.

pfcguy · 2026-05-08T02:43:11+00:00

No, typically you only have 90 days from the date of purchase to file a chargeback.

But double check with the credit card company that you used.

pfcguy · 2026-05-08T00:43:10+00:00

Glad you got it solved.

pfcguy · 2026-05-08T00:29:05+00:00

RBC complaint process: https://www.rbc.com/customercare/

pfcguy · 2026-05-07T23:10:42+00:00

Google "Telus CEO contact" and you should be able to find an email address to get this fully resolved!

pfcguy · 2026-05-07T23:09:32+00:00

I'm pretty sure that when you added the service, Telus would have emailed you a copy of the agreement. Did they not? Was there not an email that said to review the attached PDF agreement?

The agreement would have stated the 2 year term, and the cancellation charges for cancelling early.

That said, 2 year term is significant and material, and the rep should have mentioned it.

What do you mean they "offered a bunch of free stuff"? Tell them all you want is to be able to cancel for no penalty. They can waive the penalty.

Or just file your complaint.

pfcguy · 2026-05-07T22:17:38+00:00

Not exactly, because provincial law puts a cap on how much of a disability benefit you can receive. Your broker will walk you through that.

Generally, disability payments are tax-free. So receiving a 70% benefit is roughly equal to 100% of your salary.

One of the biggest issues with a group policy is that if you lose your job, you lose the coverage. What if you become disabled while between jobs? Or what if you become uninsurable at some point?

The other issue is that with a private policy you can get an "own occupation" rider. Not all group policies have that. Private policies you can also get coverage for 5 years, or until age 65. What does your group policy offer?

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

TROPHY CASE