What to do with $10000 in a tax free savings account with a medium term time horizon and basically no risk?
-buy an eight year $5000 Province of Ontario strip bond for $3400 with a yield of 4%.
- buy the TSX 60 index XIU with the remaining $1600. You now have basically risk free market exposure.
- keep $2500 in the Claymore T-Bill account CMR to capture rising interest rates
- keep $2500 in XRB the real return bond ETF to capture rising inflation
http://www.theglobeandmail.com/globe-investor/investment-ideas/a-stash-for-cash-or-investment-vehicle/article1396665/
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