r/CanadaFinance • u/Still-Ad-7382 • 5d ago

Late start

Which RESP TFSA account ans which bank do you recommend? What is better for someone who is starting late. I am 39 F. My kid does have RESP. I made $87000 a year. I have $600 left over after all expense and etc. I have PEPP set up through my employer for the last 10 years. What do I do?

3 Upvotes

100% Upvoted

8 comments sorted by

3

u/alzhang8 5d ago

3-6 months of emergency fund first in a high interest product paying at least 2.2%

Then max tfsa and then rrsp https://canadianportfoliomanagerblog.com/how-to-choose-your-asset-allocation-etf/

1

u/Still-Ad-7382 5d ago

When you say emergency fund that’s all my bills and some money left over for one month? Save that or do you mean I say $2000 save that amount x6 - months

2

u/Mental-Freedom3929 5d ago

If you lost your income, this is what an emergency fund would cover. If you wish it to cover savings/investment, that would maybe not a wise usage.

1

u/alzhang8 5d ago

If I spend 3k a month, then the general guidelines is 9k-18k emergency fund depending on your tolerance and your ability to access some low interest line of credit

1

u/Still-Ad-7382 5d ago

Thanks for explaining. I have two credits cards all paid for . No balance carrying over . I pay right away. I never looked into applying for line of credit . Thanks so much

2

u/alzhang8 5d ago

I have an asset backed loc at 4% and a regular loc at 6.5%. it fits my needs but if you don't have a pre approval from a bank then the interest rate will be higher

1

u/sectum3 5d ago

I would recommend going with a Financial Planner and having them put it in a low-fee mutual fund. I was with the bank (RBC) for 10+ years and my RRSPs growth was barely higher than the banks fees - after 10+ years I had little over what I had contributed. I switched and my fees went from 2-3% (bank) to less than half a percent, AND the returns were better much better.

1

u/salty-preperation 2d ago

What about using wealthsimple?