Hello jalimon
Its actually my Montreal Properties that are a hassle ,:lol:
Cheers
Booker
Let's talk money
- Thread starter B52
- Start date
Hello jalimon
Its actually my Montreal Properties that are a hassle ,:lol:
Cheers
Booker
That is why I was asking actually. I sold all I had in Quebec and will never have property with tenants here in quebec again (well maybe I will buy a duplex/triplex again to move my 2 boys in when there old enough for university). That said, I still regards Montreal as a land of opportunity if you managed to buy low and in a good location. Buying low will mean you will loose some opportunity sometimes...
Since you live in BC it makes sense to invest there. I do not think it would make sense for me to buy in a foreign province and not be there to take care of it.
Cheers,
B52:
Have you interviewed any financial advisors (FAs)? While the posters so far have offered some good advice, interviewing several reputable FAs to discuss your investment goals, i.e., short-term, mid and long term, is worth the time and effort. Second, making sure to have a diversified portfolio helps buffer you against purchasing individual stocks, as well as any other asset classes your interested in, i.e., ETFs, mutual funds, REITs, etc. A reputable FA will also inform you how they get paid for their advice (nothing is free, but you should also inquire upfront). Questions regarding payment should entail whether the FA receives compensation via front end commission fees, deferred sales charges or back end fees, trailer fees, commission as a percentage of assets or regularly scheduled dollar amount, a fee based charge, or salary based.
It's your money and you should always do what is best for you. But taking the time to sit down and speak with a financial professional wouldn't hurt. And if you don't like their advice, you can always try doing it own your own--but it is very time consuming.
Good luck in your endeavor--FYI, not nor never been a financial advisor but have consulted several at certain points in my life.
Taking notes of everything being said here!
It's really interesting reading from all of you sharing your own and personal experience!
for those asking to stick with GIC, I hit the limit of 100k$ that is covered with cdic, so I have to open at a different institution that does not offer that juicy- safe return (2.75%).
i will have to learn more about index funds, and to be honest I used google to look for many terms mentioned here.
I believe it's a time consuming process, no I don't want to get big fast, no one can but escorts I guess, and as one homeless guy seen in the metro downtown says, am too ugly for prostitution
(am kidding I am not that bad!).
but I hate to leave my money sitting in saving accounts with shitty returns.
thanks for sharing your thoughts on this guys, keep em coming!
It's really interesting reading from all of you sharing your own and personal experience!
for those asking to stick with GIC, I hit the limit of 100k$ that is covered with cdic, so I have to open at a different institution that does not offer that juicy- safe return (2.75%).
i will have to learn more about index funds, and to be honest I used google to look for many terms mentioned here.
I believe it's a time consuming process, no I don't want to get big fast, no one can but escorts I guess, and as one homeless guy seen in the metro downtown says, am too ugly for prostitution
(am kidding I am not that bad!).but I hate to leave my money sitting in saving accounts with shitty returns.
thanks for sharing your thoughts on this guys, keep em coming!
B52,
Under US federal law the penalty provisions for premature withdrawals is triggered up until age 59.5. Why they chose that age I don't know but I haven't reached that age. A few years ago I had to withdraw $20,000 as part of a home improvement project in my condo (porcelain tile floors and new carpeting) and I ended up paying around 35% tax on it including the penalty which is 10%. We are allowed to pay an estimated tax on the early withdrawals and then claim the estimate as an offset when we report it as income at the end of the year. I actually have two IRAs, one of which is being actively funded. The IRA I withdrew the funds from was set up as a SEP-IRA and hasn't been funded since the 1990s. I at one time tried to combine the two IRAs but Vanguard would not let me roll one over into the other because one is considered a Roth IRA and the other isn't. These distinctions involve IRS regulations that are beyond the scope of the thread.
I actually think the age of 65 for the RRSP is more appropriate. What is the penalty for premature withdrawal?
Under US federal law the penalty provisions for premature withdrawals is triggered up until age 59.5. Why they chose that age I don't know but I haven't reached that age. A few years ago I had to withdraw $20,000 as part of a home improvement project in my condo (porcelain tile floors and new carpeting) and I ended up paying around 35% tax on it including the penalty which is 10%. We are allowed to pay an estimated tax on the early withdrawals and then claim the estimate as an offset when we report it as income at the end of the year. I actually have two IRAs, one of which is being actively funded. The IRA I withdrew the funds from was set up as a SEP-IRA and hasn't been funded since the 1990s. I at one time tried to combine the two IRAs but Vanguard would not let me roll one over into the other because one is considered a Roth IRA and the other isn't. These distinctions involve IRS regulations that are beyond the scope of the thread.
I actually think the age of 65 for the RRSP is more appropriate. What is the penalty for premature withdrawal?
I'm 27
My plan:
Get 3 properties as soon as possible
3 properties + your own home, you can be self-sustainable
Which properties? Location location location
I got one of the new beautiful properties in the upcoming Atwater area
I got a simple 3.5 for myself, don't need much (kind of a big man cave lol)
Now, all I need to do is keep my 'A' game going. Work hard, save hard.
When I have my 4th property, I can quit my job and just sit back and collect
I am in I.T. in the biggest firm in Canada. So I have a steady income
What helped me the most was identifying all my expenses every paycheck
Food, bills, pocket money, hobby, gas, 420, when I splurge on computer stuff. It's important to stick to that budget. When I need more, I save up, I don't dip into my other expenses, that's cheating because the point of this is to end up ahead of what you calculated
Sorry if this stuff seems obvious to you, I've been bad with money in the past and it took a lot of discipline to do it right, over almost a decade.
Another thing that was important, was to not lend money to friends without strict rules.
My plan:
Get 3 properties as soon as possible
3 properties + your own home, you can be self-sustainable
Which properties? Location location location
I got one of the new beautiful properties in the upcoming Atwater area
I got a simple 3.5 for myself, don't need much (kind of a big man cave lol)
Now, all I need to do is keep my 'A' game going. Work hard, save hard.
When I have my 4th property, I can quit my job and just sit back and collect
I am in I.T. in the biggest firm in Canada. So I have a steady income
What helped me the most was identifying all my expenses every paycheck
Food, bills, pocket money, hobby, gas, 420, when I splurge on computer stuff. It's important to stick to that budget. When I need more, I save up, I don't dip into my other expenses, that's cheating because the point of this is to end up ahead of what you calculated
Sorry if this stuff seems obvious to you, I've been bad with money in the past and it took a lot of discipline to do it right, over almost a decade.
Another thing that was important, was to not lend money to friends without strict rules.
The idea of retirement is going down the drain if you ask me. Do you have any idea how much you need to save to have the equivalent of a fireman who retires after 25 years? It's insane. The math will not add up and our future generation will not be able to sustain all these pension plan of our public servant (policeman, fireman, teacher, nurse, gouverment workers, all very honorable job, dont' get me wrong).
It's good that at 29 you take mathers in your own hand!
I do this for a living, I am an investment professional. At the age of 29 you can afford to take some risks assuming the investments are for a long term. That being said this does not mean speculative investments by any means. The only problem I have with a GIC investment at 2.75% is that you are locked in to this rate for the term you selected. Yes the banks pay a much lower rate but if you look at owning the bank vs buying the GIC from them you would do much better. Scotia has a 4.44% dividend on it's common stock, TD a 3.89% dividend and if you were to add in a couple of other blue chip investments to give you the diversity you should have like say BCE (Bell Canada Enterprises, we all hate them ) but the dividend is currently offering a yield of 4.52%
There are some things to consider, the time you can invest the funds, the longer the better. (If any investment is made for 1 year or less, money market or a GIC is probably best ) The goal, are you saving for something in particular. Are you truly an investor, can you deal with the fluctuations in a market investment ? Is the 100k a one time investment or will additional funds be added. There are some great companies to invest in. Yes there will be fluctuations but a good company will be worth more in 5 years than it is today, the key to finding the good ones is the advisor you deal with. A company needs to be valued to find the intrinsic value and compare it to the current market price, you should always be looking to invest in a company that is currently trading below its intrinsic value and pays a dividend
When investing don't be looking to hit it big, look for income and growth over a long term this will ensure that you are not hit big by losses in your investments.
I love it when I try an indy and she turns out to be just what I wanted and expected. I will return again and again and in my experience the time together gets better and better. Then there is the other side of the coin, I have booked with indy's on many occasions only to be left holding my dick while I get played by the young lady on the other end of the phone. Promised services are not always what was discussed. More often than not the girl in the ad is not the one at the door.
Agencies, you get what you pay for, you book for an hour, you get an hour. Indys, time is more flexible which is why some dude has his dick in his hands waiting. Most reputable agencies will back the services promised, if not provided they will credit you another visit with another girl.
I love the excitement of discovering a gem but find that the assurance of the time and service is more to my liking these days.
Agencies, you get what you pay for, you book for an hour, you get an hour. Indys, time is more flexible which is why some dude has his dick in his hands waiting. Most reputable agencies will back the services promised, if not provided they will credit you another visit with another girl.
I love the excitement of discovering a gem but find that the assurance of the time and service is more to my liking these days.
@ doggyluver, the 100k$ is not a one time thing, but it is per institution if am doing GICs.
when I purchase any of the investments you mentioned; what is the best way to do it? Spread the purchase over a a period of time or bang the whole purchase at once?
from reading here so far, I know that I should get rid of my mutual funds as soon as possible, at the lowest loss, and maybe throw my bank advisor under the bus and go back and forth couple of times.
@eb here in Canada we can withdraw from our RRSP accounts, but the tax on that is ridiculously high (depending on your income).
@ chowzilla, I manage my expenses as you said, I have no debt whatsoever, my credit cards are used as debit cards, my monthly expenses are fixed, I use the extra money I make above my expected income/ month to see escorts. (4-5 times or more/month).
it is indeed location location location with real estate ebut where is that! To buy new off the map or go with existing ones?
when I purchase any of the investments you mentioned; what is the best way to do it? Spread the purchase over a a period of time or bang the whole purchase at once?
from reading here so far, I know that I should get rid of my mutual funds as soon as possible, at the lowest loss, and maybe throw my bank advisor under the bus and go back and forth couple of times.
@eb here in Canada we can withdraw from our RRSP accounts, but the tax on that is ridiculously high (depending on your income).
@ chowzilla, I manage my expenses as you said, I have no debt whatsoever, my credit cards are used as debit cards, my monthly expenses are fixed, I use the extra money I make above my expected income/ month to see escorts. (4-5 times or more/month).
it is indeed location location location with real estate ebut where is that! To buy new off the map or go with existing ones?
Hello B52
First of all there is many more elements then location factor that needs to considered real estate ,that is only on of them
I will provide a few more very high on the scale of importance .
As example you are purchasing a 4 plex you look a many of them some are all 3 1/2 others a combo of 2 3 1/2 and 2 4 1/2 or 4 4 1/2 or 2 2 1/2 one 6 1/2 one 4 1/2 and so forth
The quality of tenants varies on the type of size of the dwelling also ,not only quantity of rooms but square footage .
You must be able to budget for inside improvement ,new kitchens are always a hit followed by bathrooms and flooring .
Examine the value of the property with comparables in sales, price and revenues and ratio of revenues .
Those are a few examples, but the list is way longer then just location ,witch is actually a pitch of real estate agent that where never owners of plex
Cheers
Booker
If you are looking to invest in the stock market and know your timeline, the time to invest is when the funds are available. Yes, one shot. This will keep costs, (commissions) to a minimum and if the investment is in a sound company ie: BCE you can be fairly safe in suggesting that the share price will be higher 5 years down the road, add to this the fact that based on today's price you will pick up an annual dividend of 4.5% If you have maxed your RRSP's and will not need to make a withdrawal (tax will kill you on the way out) the next thing to do is maximize your contribution to a TFSA since all of your gains (dividends + Capital growth ) will also be tax free.
Not sure I fully agree Booker. The agent will actually try to convince you that the location is good, even if it's a shit hole location. Beware...
In a way you are right, but for me all other factor that will impact my decision to buy will come after the location factor. When you buy with an idea of resell, you need to first make sure you are in a location where it's easy to resell.
Exactly
Location ,Location,Location is a real estate agent pitch ,to try and convince either the location is great or not
A sales pitch definition
Cheers
Booker
Hello Tonyw
Contrary to that assumption ,many areas are bad in greater Montreal .
I have owned many properties in many ares over a long period of time in greater Montreal ,the rate varies alot between St-Michel area Ville - Marie or Rosemont etc........
Cheers
Booker
That's why I said "you get what you pay for"
It could be bad for some, but good for others. I had good revenue on the "bad" property.
Hello Tonyw
I have a question ,so your presumption is whatever area of Montreal ,you get what you pay for ?
You are difficult to follow here tonyw ,since you have possible contradiction in your post .
Is there any area excluded from this ?If not do you always get what you pay for ?
Or you admit that a inexperience real estate investor might overpay his purchase ,not getting what he or she paid for ?
Cheers
Booker
Real estate is a lot more interesting in the States if you know what you're doing. Arizona, Nevada, Florida mainly.
When it comes to mutual funds a lot of your return is eaten away by fees which is why you're not seeing the profits... I personally stick to index funds. Statistically nobody beats the market. Better to mirror the market itself since it performs better than 95% of actively managed funds.
When it comes to mutual funds a lot of your return is eaten away by fees which is why you're not seeing the profits... I personally stick to index funds. Statistically nobody beats the market. Better to mirror the market itself since it performs better than 95% of actively managed funds.
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