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How much do you know about financial independence?

Sept. 26, 2016, 8:53 p.m.
Posts: 17869
Joined: Oct. 28, 2003

That's what it took to afford North Van in the early income years and we knew nothing about investing so increased mortgage payments when income went up.

Our thinking was saving on the 3-6% mortgage interest instead of investing in the retirement funds my work pushed on us. Saving cash was never a thought. Cash accounts never got over $1500 average until a couple years ago. I learned about having an emergency fund three years ago.

Literally, 5 years ago I didn't know what S[HTML_REMOVED]P500 means.

Sept. 26, 2016, 9:10 p.m.
Posts: 11419
Joined: June 4, 2008

Literally, 5 years ago I didn't know what S[HTML_REMOVED]P500 means.

And now nine digit money managers come to NBR for guidance.

It's more important for us peons to read books on behavioural psychology than investment strategies. Unless of course you're pulling in 750+.

We should only be allowed to buy stocks if we have insider information.

Sept. 26, 2016, 9:15 p.m.
Posts: 583
Joined: June 6, 2006

We made the mistake of buying two new vehicles ([HTML_REMOVED]$25k each) ten years ago, but we still drive them, with no plans to replace, and also have a 35 year old van that's our secondary residence.

meaning…making a mistake of buying new, or buying two cars in the first place? If you are still driving them, and paid off, isn't that fine?

Sept. 26, 2016, 9:28 p.m.
Posts: 17869
Joined: Oct. 28, 2003

New vs two years old is a big depreciation difference, and we barely drive two or our three cars. I could sell, but at what value?

Sept. 26, 2016, 9:35 p.m.
Posts: 14534
Joined: Nov. 20, 2002

well the problem with Financial independence is now I gotta figure out how to spend the money

Sept. 26, 2016, 10:15 p.m.
Posts: 583
Joined: June 6, 2006

New vs two years old is a big depreciation difference, and we barely drive two or our three cars. I could sell, but at what value?

ya, fair enough, i figured buying new isn't the problem, it is buying too many of them. we drive old cars that were bought semi-old (including vw camper more often on blocks than not) and recently went down to just one and gave the in-laws the 04 forester…saves us the insurance, etc and we'd only get a couple grand max for it, plus it ain't that hard going down to one car, we found at least (now that we are in a big city).

overall though vehicles are a killer to the bank account we've found. especially since renewing insurance in the lower mainland bumped it up a more than a few hundred bucks from the kootenays.

Sept. 27, 2016, 6:53 a.m.
Posts: 17869
Joined: Oct. 28, 2003

So, what was/is your strategy?

Trust fund baby? Billionaire real estate mogul? Day trader/Chipendales dancer by night?

Sept. 27, 2016, 8:10 a.m.
Posts: 809
Joined: Dec. 22, 2002

So, what was/is your strategy?

Trust fund baby? Billionaire real estate mogul? Day trader/Chipendales dancer by night?

Ladder up condo gains 2003-2009. Buy teardown in RT-4 in EastVan and build on it ~$170/sq ft (when the dollar was high). Move from consulting to position w/defined pension. Take some East Van equity to buy fraser valley rental house in 2014, sell in June 2016. Plow proceeds into TFSA's. Convert deadbeat mutual funds with high MER's into REIT and utility ETF's.

Rest has been a range of plays from Magna (sold on Monday for $42.20) to Neo Lithium (sold at $1.91 to some Gold jrs. Strategy now is to up cash fraction to 25% to be ready for some key stocks to go on sale post election or post Dec rate hike.

My takes:

- if I can't beat my mortgage lender's rate in the TFSA's, I'm doing something wrong. So in no hurry to divert funds for the bear's badge of honour.
- If you hold a stock that did better than SPY last Friday, you're in trouble come rate hike time when the opposite happens. Dump it before Yellen really pulls trigger.

NSMBA member.

Sept. 27, 2016, 10:44 a.m.
Posts: 14534
Joined: Nov. 20, 2002

. Move from consulting to position w/defined pension.

Someone who will pay you just for being is huge IME

Sept. 27, 2016, 10:03 p.m.
Posts: 16287
Joined: Nov. 20, 2002

Oh my … this is my wife's cousin. They tried to get us to invest in some of their schemes, but I suspected they were up to some kind of shady shit. The wedding was a pretty good party, though. I even got to sit at the family table.

Securities Commission accuses prominent Vancouver immigration consultant of fraud

And (mock) surprise!! Friends of Christy and BC Lib donors!

Vancouver immigration consultant accused of fraud was a significant donor to B.C. Liberals, records show

When one person suffers from a delusion, it is called insanity.

When many people suffer from a delusion, it is called religion.

Sept. 28, 2016, 10:41 a.m.
Posts: 7707
Joined: Sept. 11, 2003

Literally, 5 years ago I didn't know what S[HTML_REMOVED]P500 means.

Just for context, the "P" stands for "Poor". Don't say I didn't warn you.

Oct. 1, 2016, 7:03 p.m.
Posts: 0
Joined: Sept. 20, 2006

Just doing some light reading:
- TFSA account gives 0.8% annually
- Inflation is slated to average at 1.6% this year

Simply put, my TFSA account just lost 0.8% value and seems like a bit of a dog compared to some sort of diversified investment portfolio with some mutual+index funds and a few individual stock options. Given my younger age it seems prudent to add minimally to my TFSA (why even bother…) and go mostly in on the above.

Comments? Yes I've been following this thread since the beginning.

Oct. 1, 2016, 7:51 p.m.
Posts: 1541
Joined: Aug. 6, 2009

Get set up with a self directed TFSA and you can put pretty much whatever investment you want in it, same for a self-directed RRSP.

Oct. 1, 2016, 10:06 p.m.
Posts: 17869
Joined: Oct. 28, 2003

KP, you can own any investment (high fee mutual fund, low fee index fund or ETF or GIC/bonds) in your TFSA (aka tax free investment account). A "savings" account version that pays 0.8 is good for short term savings cash that you need to spend in the next five years. Any amount above short term spending needs can be invested in a TFSA account, earning interest, dividends or capital gains tax free.

You can also have multiple TFSA accounts, one savings and one investment but that'll get complicated to track contribution limits.

Oct. 1, 2016, 10:09 p.m.
Posts: 17869
Joined: Oct. 28, 2003

http://www.finiki.org/wiki/Tax-Free_Savings_Account

Learn more about your TFSA than the bank wants you to know.

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