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Discussing Investments
#41
(2016-12-30, 01:19 PM)RyeRocks Wrote: Some of my friends have made a lot of money investing in marijuana stocks this year. I think I'm going to join them very soon as I know of a nearby company that is going public in 2017
A good friend ofine is vp at a local company (in Quebec) , and I want to put some into their IPO. I just want to do it through my TFSA and not completely sure how to do that just yet.

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#42
(2017-01-02, 10:40 AM)PaliSENS Wrote: Use your TFSA as an investment account.
Pop the $500 in there and you can invest in stocks and mutual funds lime a regular investment account but don't need to pay tax on the gains.

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Yes, I understand how it works and its likely a good idea to put $50K in it and $50K in to my wife's before anything else. Question is what products to put the money in.
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#43
Even a money market mutual fund would be a good start until you figure it out.

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#44
Buy an Escalade, put the rest into bitcoins
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#45
(2017-01-02, 12:02 PM)Bong13 Wrote: Buy an Escalade, put the rest into bitcoins

Let me run that by TN13 for approval!
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#46
Can an argument be made for putting a whack (6 figures) on the mortgage (which is at 2.2% currently) over putting the money in a TFSA and RRSP combo?

It would feel pretty good to get the mortgage down from $550 to like $400K - we would be able to start putting an actual dent in the principal.
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#47
I'm sorry, but I feel compelled to say something.

Pouzar, you seem like a good guy.

You really do.

But why do you feel the need to use real dollar figures in a thread where people have clearly chosen not to.

You are the only one.

Why do you do that man?

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#48
I felt the numbers, in the case of my previous question, were important to show that that if a lump sum was put on the mortgage, it would make a material difference to the amortization going forward.

I don't know what you mean by "people have clearly chosen not to" and, frankly, I'm not sure why it matter or why you care.
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#49
Pouzar - I think everyone wants to get into investments, seeing the potential returns, but properly researching individual stocks is hugely time consuming. There's nothing wrong with that - if your life allows you that time.

If not, you might just want to look at a basket of index fund ETFs as an alternative to the traditional mutual fund approach. An index ETF (exchange traded fund) is a financial instrument that you purchase through your broker like you would a stock, that mimics an exchange.

So for example, DIA is the stock symbol for an ETF that simply tracks the Dow Jones Industrial average. It's simple, the commission is massively less than an equivalent mutual fund, and it can be easily liquidated without any weird fees like a mutual fund.

You won't get the returns on that sort of investment that the guys who are researching and putting tons of time into individual stocks will. But you'll do better than a mutual fund over the long haul, as you won't be paying commissions and fees. Really, it's a matter of how much time you have to put towards it.

With regards to the mortgage versus investment question - the traditional wisdom would suggest that your mortgage interest is so low, you should invest at a higher rate of return. But I for one have opted to consistently massively overpay my mortgage (2.49%), with an eye to getting out from under it early. I'll be done by mid 2018, which will leave our family with zero debt, at the tender age of 37. Financially, it's not the best strategy, but the flexibility I'll get from being at zero is well worth it. With zero debt, owning a house, having a fully funded pension and my wife's large investments, I'll have unmatched flexibility. So I'm taking the contrarian approach.
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#50
Put your money into Canada Savings Bonds, in 7 yrs you will make hundreds. Make Canada Great Again.
I don't mind getting old, I just don't wanna look old
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#51
(2017-01-02, 12:41 PM)Pouzar Wrote: I felt the numbers, in the case of my previous question, were important to show that that if a lump sum was put on the mortgage, it would make a material difference to the amortization going forward.

I don't know what you mean by "people have clearly chosen not to" and, frankly, I'm not sure why it matter or why you care.
Looks like I got my answer.

I was hoping to be surprised.

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#52
(2017-01-02, 12:46 PM)HockeyHippy Wrote: Pouzar - I think everyone wants to get into investments, seeing the potential returns, but properly researching individual stocks is hugely time consuming. There's nothing wrong with that - if your life allows you that time.

If not, you might just want to look at a basket of index fund ETFs as an alternative to the traditional mutual fund approach. An index ETF (exchange traded fund) is a financial instrument that you purchase through your broker like you would a stock, that mimics an exchange.

So for example, DIA is the stock symbol for an ETF that simply tracks the Dow Jones Industrial average. It's simple, the commission is massively less than an equivalent mutual fund, and it can be easily liquidated without any weird fees like a mutual fund.

You won't get the returns on that sort of investment that the guys who are researching and putting tons of time into individual stocks will. But you'll do better than a mutual fund over the long haul, as you won't be paying commissions and fees. Really, it's a matter of how much time you have to put towards it.

With regards to the mortgage versus investment question - the traditional wisdom would suggest that your mortgage interest is so low, you should invest at a higher rate of return. But I for one have opted to consistently massively overpay my mortgage (2.49%), with an eye to getting out from under it early. I'll be done by mid 2018, which will leave our family with zero debt, at the tender age of 37. Financially, it's not the best strategy, but the flexibility I'll get from being at zero is well worth it. With zero debt, owning a house, having a fully funded pension and my wife's large investments, I'll have unmatched flexibility. So I'm taking the contrarian approach.

Very helpful, thank you HH.

Yes, I'm not in the position to "play the stock market" in the traditional sense and buy and sell individual stock - its too time consuming for me currently and, frankly, too volatile at this point.

Yes, I know about ETFs, however, am not currently sure how to start investing in them - for example, I don't currently have a broker, I get cold calls from financial advisers on a weekly basis but, at this point, am not tied to anyone.

Can I invest in ETFs within an RRSP or a TFSA - I would assume that maxing out those vehicles are first and foremost. Can I simply do this online through my bank?

Thank you for your personal experience on the mortgage - I have this desire to put a sizable chunk on the mortgage but have always felt its a bad financial strategy. At the end of the day, it likely is, however, it can provide flexibility in the future and, frankly, having a person (around my age, seemingly with a similar type of lifestyle and financial standing that I respect as it relates to financial advise) that has advised they have made such a decision will help me justify it to myself.
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#53
(2017-01-02, 12:50 PM)BlueMountain Wrote:
(2017-01-02, 12:41 PM)Pouzar Wrote: I felt the numbers, in the case of my previous question, were important to show that that if a lump sum was put on the mortgage, it would make a material difference to the amortization going forward.

I don't know what you mean by "people have clearly chosen not to" and, frankly, I'm not sure why it matter or why you care.
Looks like I got my answer.

I was hoping to be surprised.

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I don't know what that means but I take it you didn't like my answer. Oh well, I wish you did but that's OK.

You don't understand why I provided numbers?

Given that, I'm sure you didn't understand when Widow let us know about his $25K watch purchases or Lumb let us know the value of the bikes he had stolen or the sports car he bought, etc. Many many examples of this type of personal information being provided.

I'm not as private about personal information as many (most) on the boards - that's just me, I guess it rubs some the wrong way.

I've exchanged e-mails with my work signature with quite a few people on the boards over the years - I'm not afraid of people finding out who I "really am" - I'm pretty honest when I post.
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#54
Pouzar - your retail bank should have an investment arm, assuming it's one of the "Big Five". My wife makes her investment through her TD Investment account. Granted, the transaction fees for stocks are higher than with the online brokers that encourage more active investment, but for the fairly nominal number of transactions she makes, the higher fees are offset by the increased convenience of going through her bank.

The guys who are more active might look at a reputable online broker whose per transaction fees are lower though.

For us, flexibility is always important. The idea of being completely debt free by 37 is extremely appealing - even if we decide to go and buy a second home later, we'll still have the main house free and clear.

My own personal situation is really different, which is why I get to fart around with day trading. But that's a dramatically different financial activity, and one which really doesn't make good sense for most. I kinda see your position as closer to my wife's - high earner, not much time, needing decent-to-good performance out of your investments for long term planning.
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#55
(2017-01-02, 09:19 AM)Pouzar Wrote: This thread has brought up a little bit of shame for me as I'm not truly able to participate in it to the level I should be.

I'm a partner at Canada's biggest national firms (well, maybe 2nd largest right now), practicing in corporate finance with a specialty in debt finance and syndicated credit transactions - I speak with bank executives and CEOs and CFOs of some of the biggest issuers in the country on a daily basis and have advised lending syndicates on deals worth U.S$4 billion yet my knowledge of the financial markets isn't what it should be and my personal investments lack substance.

I turned 40 a couple of weeks ago and aside from a couple hundred grand of RRSPs (which is largely in the money markets doing nothing) and a very nominal amount of TFSA investment, my wife and I have no material investments.

Between the two of us, we are sitting on an immense amount of cash - shit its half of my draw last year and I do pretty good.   My wife works full time and every penny she makes just sits in her checking account accumulating as our day to day expenses are put on our shared credit card and I take care of everything else.

We carry no debt (except the mortgage) and have access to hundreds of thousands in lines of credit.

I need to start investing for our retirement (I will have no pension) as I want to continue to travel quite a bit during our retirement but I just don't know what to do with the money.  

I have spoken to financial advisers but (a) it bothers me to give them 1.5% to direct my investments and (b) I always question their advise if they are in any way connected to a chartered bank - thinking they will push that institution's products.

Part of me wants to put a hundred grand on our mortgage but with interest rates so low I know that is a poor choice - shit, I'm at prime minus 0.6 I think so I'm paying just over 2%.   I think it actually makes more sense to borrow to invest at these interest rates than to pay of super cheap debt.

A goal of mine is to do something material with a good chunk or our excess cash in the first two quarters of 2017.

I know I should max out our RRSPs and TFSAs before we do anything - I'm sure my RRSP availability is $200K plus at this point and my TFSA will be close to $50K but that's boring.

I want to either (a) put a huge chunk on our mortgage, like 6 figures or (b) by a rental property in Mexico, Hawaii or Scottsdale.

Top up your Tfsa, then look hard at paying down your mortgage...depending upon your mortgage rate.  If I lived in your area, I'd be looking at a few real estate options.  I think you live in fairly modest accommodations.   Perhaps time to use the Alberta real estate downturn to upgrade your primary residence?  You'll take a hit on the price of your property, but since you're upgrading, you should be able to cut a sweet deal on your next place.  Secondarily, I'd look at Banff as an investment opportunity.  I hear they've opened up a new block of space for development...affordable housing...see if you qualify to snap up a new home in Banff.  Thirdly...Vancouver....buy something on the sunny side of Van.
Courage, my word, it didn't come, it doesn't matter.
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#56
Well yeah, you've posted pictures of yourself.

But that isn't what I'm talking about.

Do you have consideration for how that might be perceived by other posters on this board?

How about folks who aren't corporate lawyers, that live in Alberta, who've been eating shit sandwiches since oil crashed?

Some of the older crowd on fixed incomes?

But you feel the need to inform everyone that you are sitting on immense cash? Disclose your mortgage? Throw around 6 figure wads like your the Sultan of Brunei?

You don't see this?

Did I provide investment numbers on my real estate holdings? Did anyone else?

Are you getting the message here at all Pouzar?

I can't believe I'm having to point this out to a 40 year old man.

We've already had this conversation with our 3 year old.

I might be the one pushing it, but I guarantee you that I'm not the only one thinking it.

I've said my bit.

I hope you think about what I've said here.





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#57
(2017-01-02, 01:31 PM)HockeyHippy Wrote: Pouzar - your retail bank should have an investment arm, assuming it's one of the "Big Five". My wife makes her investment through her TD Investment account. Granted, the transaction fees for stocks are higher than with the online brokers that encourage more active investment, but for the fairly nominal number of transactions she makes, the higher fees are offset by the increased convenience of going through her bank.

The guys who are more active might look at a reputable online broker whose per transaction fees are lower though.

For us, flexibility is always important. The idea of being completely debt free by 37 is extremely appealing - even if we decide to go and buy a second home later, we'll still have the main house free and clear.

My own personal situation is really different, which is why I get to fart around with day trading. But that's a dramatically different financial activity, and one which really doesn't make good sense for most. I kinda see your position as closer to my wife's - high earner, not much time, needing decent-to-good performance out of your investments for long term planning.

Yes, I'm at one of the big 5 Canadian banks.

At the end of the day, it seems like the thing to continue to invest in products offered by my bank until my TFSAs and RRSPs are maxed out - potentially also putting a lump sum down on the mortgage.
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#58
(2017-01-02, 01:32 PM)Arsenal Wrote:
(2017-01-02, 09:19 AM)Pouzar Wrote: This thread has brought up a little bit of shame for me as I'm not truly able to participate in it to the level I should be.

I'm a partner at Canada's biggest national firms (well, maybe 2nd largest right now), practicing in corporate finance with a specialty in debt finance and syndicated credit transactions - I speak with bank executives and CEOs and CFOs of some of the biggest issuers in the country on a daily basis and have advised lending syndicates on deals worth U.S$4 billion yet my knowledge of the financial markets isn't what it should be and my personal investments lack substance.

I turned 40 a couple of weeks ago and aside from a couple hundred grand of RRSPs (which is largely in the money markets doing nothing) and a very nominal amount of TFSA investment, my wife and I have no material investments.

Between the two of us, we are sitting on an immense amount of cash - shit its half of my draw last year and I do pretty good.   My wife works full time and every penny she makes just sits in her checking account accumulating as our day to day expenses are put on our shared credit card and I take care of everything else.

We carry no debt (except the mortgage) and have access to hundreds of thousands in lines of credit.

I need to start investing for our retirement (I will have no pension) as I want to continue to travel quite a bit during our retirement but I just don't know what to do with the money.  

I have spoken to financial advisers but (a) it bothers me to give them 1.5% to direct my investments and (b) I always question their advise if they are in any way connected to a chartered bank - thinking they will push that institution's products.

Part of me wants to put a hundred grand on our mortgage but with interest rates so low I know that is a poor choice - shit, I'm at prime minus 0.6 I think so I'm paying just over 2%.   I think it actually makes more sense to borrow to invest at these interest rates than to pay of super cheap debt.

A goal of mine is to do something material with a good chunk or our excess cash in the first two quarters of 2017.

I know I should max out our RRSPs and TFSAs before we do anything - I'm sure my RRSP availability is $200K plus at this point and my TFSA will be close to $50K but that's boring.

I want to either (a) put a huge chunk on our mortgage, like 6 figures or (b) by a rental property in Mexico, Hawaii or Scottsdale.

Top up your Tfsa, then look hard at paying down your mortgage...depending upon your mortgage rate.  If I lived in your area, I'd be looking at a few real estate options.  I think you live in fairly modest accommodations.   Perhaps time to use the Alberta real estate downturn to upgrade your primary residence?  You'll take a hit on the price of your property, but since you're upgrading, you should be able to cut a sweet deal on your next place.  Secondarily, I'd look at Banff as an investment opportunity.  I hear they've opened up a new block of space for development...affordable housing...see if you qualify to snap up a new home in Banff.  Thirdly...Vancouver....buy something on the sunny side of Van.

Yes, maxing out our TFSAs is likely the most financially sound decision - its just trying to figure out what products to purchase.

Our primary (and only) residence is just fine for us - actually its more house than we really need for just the two of us. We won't be upgrading our primary residence any time soon. A rental home may be in the future but, honestly, I need to use the current income to make some more dependable investments prior to thinking about a rental house in a vacation destination.
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#59
(2017-01-02, 01:48 PM)Pouzar Wrote:
(2017-01-02, 01:32 PM)Arsenal Wrote:
(2017-01-02, 09:19 AM)Pouzar Wrote: This thread has brought up a little bit of shame for me as I'm not truly able to participate in it to the level I should be.

I'm a partner at Canada's biggest national firms (well, maybe 2nd largest right now), practicing in corporate finance with a specialty in debt finance and syndicated credit transactions - I speak with bank executives and CEOs and CFOs of some of the biggest issuers in the country on a daily basis and have advised lending syndicates on deals worth U.S$4 billion yet my knowledge of the financial markets isn't what it should be and my personal investments lack substance.

I turned 40 a couple of weeks ago and aside from a couple hundred grand of RRSPs (which is largely in the money markets doing nothing) and a very nominal amount of TFSA investment, my wife and I have no material investments.

Between the two of us, we are sitting on an immense amount of cash - shit its half of my draw last year and I do pretty good.   My wife works full time and every penny she makes just sits in her checking account accumulating as our day to day expenses are put on our shared credit card and I take care of everything else.

We carry no debt (except the mortgage) and have access to hundreds of thousands in lines of credit.

I need to start investing for our retirement (I will have no pension) as I want to continue to travel quite a bit during our retirement but I just don't know what to do with the money.  

I have spoken to financial advisers but (a) it bothers me to give them 1.5% to direct my investments and (b) I always question their advise if they are in any way connected to a chartered bank - thinking they will push that institution's products.

Part of me wants to put a hundred grand on our mortgage but with interest rates so low I know that is a poor choice - shit, I'm at prime minus 0.6 I think so I'm paying just over 2%.   I think it actually makes more sense to borrow to invest at these interest rates than to pay of super cheap debt.

A goal of mine is to do something material with a good chunk or our excess cash in the first two quarters of 2017.

I know I should max out our RRSPs and TFSAs before we do anything - I'm sure my RRSP availability is $200K plus at this point and my TFSA will be close to $50K but that's boring.

I want to either (a) put a huge chunk on our mortgage, like 6 figures or (b) by a rental property in Mexico, Hawaii or Scottsdale.

Top up your Tfsa, then look hard at paying down your mortgage...depending upon your mortgage rate.  If I lived in your area, I'd be looking at a few real estate options.  I think you live in fairly modest accommodations.   Perhaps time to use the Alberta real estate downturn to upgrade your primary residence?  You'll take a hit on the price of your property, but since you're upgrading, you should be able to cut a sweet deal on your next place.  Secondarily, I'd look at Banff as an investment opportunity.  I hear they've opened up a new block of space for development...affordable housing...see if you qualify to snap up a new home in Banff.  Thirdly...Vancouver....buy something on the sunny side of Van.

Yes, maxing out our TFSAs is likely the most financially sound decision - its just trying to figure out what products to purchase.

Our primary (and only) residence is just fine for us - actually its more house than we really need for just the two of us.   We won't be upgrading our primary residence any time soon.  A rental home may be in the future but, honestly, I need to use the current income to make some more dependable investments prior to thinking about a rental house in a vacation destination.

While you take the time to decide on the right Tfsa portfolio mix, why not wheelbarrow some of your cash mountain over to your bank branch and dump it into a Tfsa simple interest bearing account?  Not only are you earning very little interest from your current savings account, you're also paying taxes on the income.
Courage, my word, it didn't come, it doesn't matter.
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#60
P - you can do your TFSA investments through the investment arm, rather than a money market. If you choose, of course.

If I'm going to offer one bit of advice - talk to your spouse about this stuff. A lot. The biggest source of conflict between couples is money, and that conflict isn't solved by having lots of it. Some of my wife and I's biggest conflicts have been about differing approaches to finances, caused entirely by not fully understanding each other's motivations.

A lot of our financial decisions are motivated by our other goals. For example, I really want to have the flexibility to make huge life changes in a few years, which has guided our financial planning. But we needed to have that conversation first - if not, she'd be making different financial plans than me.

It's corny, and it seems like ridiculous "common sense", but this is the think most couples get hung up on.
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