17 y/o with 60k in bank account and don’t know what to do

[zomnuhu]

Hello, I am 17 years old in grade 11 from Canada looking to invest my money. I started a business when I was 13 buying & reselling and currently have 60kcad in my bank right now. RBC student banking gives 1.7% interest rate a year, which is where all my money is sitting right now. I don’t need the money anytime soon and I was wondering if there was someplace better I can invest in that is safe and profitable than sitting in my savings.

I have a rough idea of wanting to invest $5000 in a high risk and high return program (stocks maybe?), and 45k in a fixed interest for a 2 years or 5 year program. Let me know if that’s a good idea? Again, that was just a rough idea. As mentioned I can currently with RBC right now, but willing to switch if there are any good programs out there.

I am new to all of this please let me know if you have advice or suggestion on the program I should invest in LMK, thank you

 

[rchnasinghs]

@zomnuhu At your age you should reverse those numbers. A good no load growth mutual fund should return a on average 8-9% a year. At 9% your money doubles every 8 years. That means $50k invested at 18 will be worth $4,200,000 at age 66. That same amount invested at 1.7% will bring you just over $100k. It’s that big of a difference.

 

[zomnuhu]

@rchnasinghs Thank you for your input, do you have any good no load growth mutual fund programs in mind? I’m not similar with this so let me know

 

[rchnasinghs]

@zomnuhu Vanguard has some really good ones. Indexed funds on the S&P 500 or MASDAQ would also be options.

 

[noah76]

@zomnuhu Try posting in personalfinanceCanada!

 

[jared280]

@zomnuhu Wow, really unfortunate you can't just put the money in a TFSA/FHSA yet. Any reason you can't reinvest in your business, maybe hire a friend to help you out? I wouldn't bother with the savings account, just go open a brokerage account (RBC direct investing works since you already have an account) and put most of it into an index fund. Keep maybe 5-10k for individual stocks, though I think you'll find it's pretty boring seeing 10-20% gains on smaller investments of 1-2k.

When you can open up some tax free accounts, start contributing to those ASAP!

 

[zomnuhu]

@jared280 Thanks for the input! I will look into it. Currently heading into grade 12 plus my hockey career doesn’t leave me as much time as I’ve had then I was 13-14 unfortunately.