Hey Veeky Forums, i'm 20 years old and about to begin working in a trade in Canada and I just inherited $30,000. Can anyone provide some insight as to what I should do with the money? I'm pretty financially illiterate, i've never had more than $2,000 in my account, but I want to start down the road to financial freedom.
Any advice is appreciated.
A better question should be is how much money I need to make in order to get the girl that you posted
Stick it in a low-cost index fund, over the next 10 months.
Kys for being a leaf
Is there any specific fund you would recommend?
open a forex account and trade
Invest it in some rental real estate
It is far better than any of that overvalued stockmarket BS
Dont listen to
He is giving you normie plebtier financial advice (although its better than getting jewed into actively managed funds).
If you are going to do funds, do discounted income oriented closed end funds. You will be able to secure an income oriented portfolio for better than what the market is offering.
I'm not familiar with Canadian stock market securities but it should be an mutual fund you can add money to without a fee and it should track the S&P/TSX Composite Index.
Whoever you bank with should probably offer a cheap mutual fund that tracks an index.
Avoid actively managed ones. Some mutual index tracking mutual funds are like ~20% managed, so they'll avoid investing in really shitty firms like citibank or whatever. that's fine as long as their expense ratio is low. Like less than 0.1%.
Savings Account: Emergency Fund = 6 x monthly expenses
TFSA: Remainder in low fee Balanced mutual fund (eg. Tangerine Balanced Growth Fund).
Rental real estate I considered but my trade involves working out of town so I do not believe i'll be able to manage a property yet, I'm more looking for the optimal place I can stick the money and then begin adding to it with my wagecuck paychecks.
Discounted income oriented closed end funds sounds more like what I'm looking for. Is there any mote info you an give me on this/a link to where I can read on it? I know absolutely nothing regarding finance but I'm willing to read and learn about it.
Thank you for the advice, I'm with TD Canada Trust and I know they offer mutual funds or whatever, i'll read more into it.
Open up a questrade account and put some money in Canadian dividend stock.
There are good vanguard Canadian ETFs.
Also there are some meme weed stocks you can buy. I bought a bunch of THC and EMH at less than 1 dollar a pop. I think the liberals will push for legalization at the end of their term and those prices will sky rocket.
Just my 2 cents though I don't really know much.
Also to add to this - if you're in it for the long game - death stocks and pharmaceuticals are a good buy.
Population is aging and people are always dying and getting sick.
There's only one publicly traded mortuary/crematory business in Canada. I forget it's name/symbol but they pay monthly dividends and their stock is relatively cheap.
Put it all in a TFSA and invest in broad ETFs with low fees. Don't put it all on Canadian funds because the canadian economy is shit and will continue to be shit.
Yeah do your own research, but like the other user said, you want some money (or money equalivant like a money market account) in an emergency fund. This is for if you suddenly need money and so you don't have to sell all your stock investments at a loss if are bleeding red at the moment like in a bear market or recession.
Also you could consider 20% or so into REITs or individual stock picks. Don't buy physical land like that other guy said unless you plan to live there, REITs are a better alternative. Also the way the Canadian housing market is right now you'd get hosed buying property, but Canuk apartment REITs should be raking in absurd money right now. REITs pay good dividends.
Thank you for the advice, weed stocks i've been interested in, i'll look into them more, maybe i'll end up doing 2/3 into an ETF and 1/3 into stocks
Thank you for the advice, I've never really given an emergency fund much thought but your explanation makes alot of sense.
If you had to choose between REIT's or individual stock picks for someone with absolutely no experience, what would you recommend?
Okay so in Canada REITS fall under entities called Canadian Income Trusts. They also include gas and oil pipeline companies and power utilities. All great, stable dividend paying stocks. If you pick a stock, it should probably be one of these.
They should replace any fund allocation you might put into bonds. Bonds are shitty, basically worthless right now..
Thank you, I really appreciate all the advice man. I'll read into everything posted ITT more in depth but from what i've taken away from you a rough idea of what i'd do is:
$5,000 Into emergency fund
$15,000 into a mutual fund that i will get set up through my bank
$10,000 into an REIT
Does that sound like a good move?
>check the returns on s&p/tsx for the last year compared to s&p 500 champ.
This
I eventually want to get into trading once i have enough capital and knowledge of the subject. I'm not there yet, just looking for advice on what the best place to stick money and then not having to worry about it is
>death stocks and pharmaceuticals are a good buy.
>Population is aging and people are always dying and getting sick.
People aging and dying is already priced into these stocks. It is only a good idea if you think people are going to be aging and dying at a higher rate than is expected.
With mutual funds a portion of your money goes to the manager of the fund. If you can look away from it for several years, just invest in bonds that are on the less risky side.
Vanguard investment
Monero
Alright i've spent some time reading up on this stuff and i've determined if i'm going to go mutual fund i'd go with the Tangerine Balanced Growth Portfolio. I'd be comfortable with investing the money on my own through TD e-Series to avoid wasting any %. The tangerine portfolio is composed of:
25% FTSE TMX Canada Universe Bond Index
25% S&P/TSX 60 Index
25% S&P 500 Index (In CAD)
25% MSCI EAFE Index (net div.) (In CAD)
Do you think if I just matched these investments exactly except through TD that that would be a good investment? I realize the investment is 75% stocks 25% bonds but personal finance websites all seem to point me at that fund.
>bonds
>0.01% interest
>still get cucked by inflation
no thanks
>A better question should be is how much money I need to make in order to get the girl that you posted
>money
you need to be in a position to give her a high paying slacker job, then you can have her for about a week.
who the fuck keeps their hair in pigtails in the shower?
is that what Spanx looks like or is that just a really tight skirt?
8 billion humans on the earth you dont think theres a single weirdo out there that showers in pig tails?
I'm actually in the same boat as you to an extent.
>Got a 30k lawyer settlement.
What did I do?
>25k is going to be put into Ethereum (sort of cryptocurrency/blockchain platform that acts like a stock if you want to use it for value)
>5k is going to be put in an emergency fund.
I'm also going to school and will need 11k a year for living expenses and plan to take out the max federal loans so I can keep my money in ETH while I study.
Good thing is I can sell of 15k instantly if need be so the fear of losing all my money isn't really that apparent.
>$5,000 Into emergency fund
>$15,000 into a mutual fund that i will get set up through my bank
>$10,000 into an REIT
put atleast 10,000 in your emergency fund first in case you find someone else you want to invest in.
The difference in fees between the Tangerine fund and the TD funds is about 0.5%, which can add up over time. The Tangerine fund automaticially rebalances to the specified asset allocation every quarter so that may account for difference in fees. Go with TD if you don't mind having a little more control of when and how you rebalance.
jesus christ I would rip that dress to shreds
MOAR
Do this.
But first get some books on personal finance, real estate, and real estate tax. Then dive in a small as u can start and learn fast as u can.
This will save most rookie bullshit.
Just do your homework. Don't piss away you 30k.
I keep on clicking on this post to look at the QT
Problem with real estate for me is my trade work is out of town, I don't see myself being able to manage my first rental when I'm not even around.
Canadian economics noob here, been doing research for the last hours, I just want to know if I got all of this right:
-RRSP and TFSA are account types. RRSP allows me to have tax returns on the capital + interest I have in there, but the maximum limit is quite small. TFSA allows tax exemption on the interest gain.
- With both accounts, assuming that I am a pussy who doesn't want to learn the stock market, I could invest the money in it in ETF and still get the tax bonuses
- I should have a mixed account on Questrade, invest all I can in the RRSP account, then in the TFSA, and buy ETFs and maybe a bit of weed money with the money in these accounts and avoid some taxes
Does that make sense?
No, max TFSA before RRSP. TFSA will give you much better returns and gives you better freedom with the money.