Eventually you want to be diversified, but right now, you don't know if you want to put all your money in the market.
So divide your money into 8ths (or whatever, by 8ths right now the US government will insure each $250k in your CDs)
put 1/8 into the market now.
1/8 into a 1 month CD
1/8 into a 2 month CD
1/8 into a 3 month CD
1/8 into a 6 month CD
....
When each CD matures buy more of the market. That way if we haven't hit bottom, yet, you will still be buying on the way down and up.
Unless you are going to spend time studying industries put it all in index funds/etfs.
Your market allocations depend on when you need the money, but I have something like
45% Russell 1000
20% EAFE
12% Russell 2000
10% Morgan Stanley bond index
5% REIT index
5% Nat Resources/Commodities
3% emerging markets
This should be translatable into Canadian assets, just not by me.
http://en.wikipedia.org/wiki/Certificate_of_deposit
http://en.wikipedia.org/wiki/Dollar_cost_averaging
Eventually you want to be diversified, but right now, you don't know if you want to put all your money in the market.
So divide your money into 8ths (or whatever, by 8ths right now the US government will insure each $250k in your CDs)
put 1/8 into the market now.
1/8 into a 1 month CD
1/8 into a 2 month CD
1/8 into a 3 month CD
1/8 into a 6 month CD ....
When each CD matures buy more of the market. That way if we haven't hit bottom, yet, you will still be buying on the way down and up.
Unless you are going to spend time studying industries put it all in index funds/etfs. Your market allocations depend on when you need the money, but I have something like
45% Russell 1000
20% EAFE
12% Russell 2000
10% Morgan Stanley bond index
5% REIT index
5% Nat Resources/Commodities
3% emerging markets
This should be translatable into Canadian assets, just not by me.