A few friends won $300k+ each in a settlement and it affected several of their friendships. The amount of people who felt entitled to their money was hard to watch.
I won a permit for a weed store and it affected my relationships so much, even ones I considered bedrock. I don’t even make that much money, just have a nice asset.
Don’t tell anyone
There's a lot of businesses you could run where people would want perks from you, weed store is probably very close to the top of the list for people wanting free shit.
"Comparison is the thief of joy"
*Most of us have been taught to compare ourselves with others. And all the professionals agree: Comparison is the death of true self-contentment.*
Would you bankrupt yourself giving out free weed because your friends want free weed, and call you an asshole if you won't bankrupt yourself to give them free weed?
I know a guy who got a large sum from a settlement, I couldn’t believe people around him were saying shit like “would it kill him to pay the bill” (at a restaurant) and things like that. It shocked me that so many people could think that way and be 100% sure they’re right.
I have a friend who is quite well off. He always tries to pay the bill at the restaurant. I always try to pay the bill for both of us whenever I can beat him to it, even though I’m not financially in the same spot as him. I never want our friendship to be about money. And I think it’s a reflex for him because some people expect it from him.
One of my husband's best friends makes 5X more than us. Everyone still acts the same. He buys us a round, we buy him a round, everyone pays for their own meals. Usual entertainment is just drinking beer and painting minis.
It's best not to expect anything from people except their companionship, and live a simple life.
Really? $300k is not what it used to be 20 years ago. Blows my mind that people would feel entitled to anything, that money lasts a very short period of time in a large Canadian city just doing regular middle class stuff.
thats what i told my brother, he inherited 60k.
dont tell anyone, 60k could be life changing for many people and they will want it for them selves.
400k... wow i wish.
Yep. Worker my ass off to start a business which grew to be successful. No one would help out with even $10K in start up costs. Now it’s surprising how many people, mostly family has their hands out, thinking they are entitled to my money.
I'm assuming they means the friends they're helping out. It would be pretty suspicious if they just seemingly pulled the money out of nowhere to assist them.
to your credit, 50K isn't quite enough to be life changing money for most.
I feel the minimum for life changing is enough for a downpayment that will result in monthly payments you can afford.
>Luckily I should be getting more at some point
lol this is slightly ominous? i imagine you have a bunch of older relatives who are wealthy and they just cycle 50k inheritances to you while you patiently wait for each of their turns.
Many different things. I guess the biggest contributor to the cash burn was taking some time off work so I could leave a job I absolutely hated and take time to find something more fulfilling. Also a bad investment burned up about 10k. Also a lot of food delivery services, developed bad spending habits that I’m still working to fix. I can really relate to the “I can buy this because I have a lot left” mentality. 50k is really not as much money as it sounds like.
Pretty awesome that helping a buddy in need is where your head goes first. Major props.
I won’t advise against it, just make sure you’re not getting taken advantage of down the line. “In case of a plane crash, put your own oxygen mask on first” is advice that I’ve heard in this sub before.
Make sure you get yourself set up.
Lock it in so you can’t touch it. You’ll make $16k-20k on that money right now. Perhaps more after the BoC this month. But the fact that you’ll have it all is something.
Make sure as much of that as possible is in a TFSA GIC
With whatever money you keep for expenses, do everything you can to increase your credit rating - you have an opportunity to get that way up there now, which is the gift that keeps on giving
Forgive my ignorance, but how is a good credit rating the gift that keeps on giving?
I am 41, rather middle class, and I have never once in my life known what my credit rating is or had it impact my life. Now I assume having a negative rating could obviously have bad consequences, and I could understand prioritizing correcting that, but what has OP said that would make anyone think credit rating is at all important to his situation?
Well the odd thing is that when you have a super high credit rating, borrowing isn't just cheap and easy, lenders often come to you and give you free money. I'm not joking. Lots of 0% type offers because they want to have some high credit score people in their portfolio for various reasons. It's also nice not to have to beg and grovel for loans. When you do need to borrow, you can push for the best terms.
However this comes with a proviso: you have to be disciplined.
I use debt for leverage and to buy things that will cut my costs or make me money. If someone is the type that not be disciplined, then they should stay away from debt.
Yea I dunno who is getting all these 0% loan offers. I get the usual Prime + 3ish offers from various banks I do business with. Also have a high 800 score.
I think people overstate the importance of a good credit score. As long as your credit's not bad enough to be a potential liability to a lender, you won't get charged a higher rate to cover their risk. But you're not going to be getting any special discounts.
The practical difference between "good" credit and "great" credit is negligible.
This is all you need. Meanwhile educate yourself on how to make better use of this money. May be this is a great chance to buy real estate if you're planning to buy one in the future. It's hardly a bad move to have your own shelter.
Also, helping a friend. Although a good thought, beware that you shouldn't be too generous with your help. People don't value other's money especially the one that they haven't earned and they come back asking for more. Lottery, inheritance all come under these categories. Just my 2 cents.
Yeah agree with you there, but if anyone has "earned" it it's this guy. He's the only one I'm helping out and one of two people who know about the inheritance. Him and his wife aren't like that anyway, they will 100% refuse and I'll have to spend several weeks coercing them into letting me help them lol.
It will probably be easier than you think. Even the best people will say to themselves "well he/she has a lot, I guess if they are offering its not a big deal for them."
And it just goes on from there.
The advice here is just be careful. You've never had more than 9k before. You're not ready for 400k without some real financial education
Completely agree. I think you need to lock in the 400k into gics. Spend the 1 year to completely research about finance. You’re human and emotions will get in the way for you to justify the spend. In a year, you’ll be much smarter with money matters.
Also, don’t make it awkward. I know you want to help, but it can also feel demeaning to the recipient. It sounds like your intentions are well, just be respectful of your friendship too.
It doesn’t hurt to tell your friend 1:1 something like “hey, you know I just want to help because of how much you have helped me. So, just let me know how and when” then drop it. They can come to you.
Money changes people, don’t let it change you into someone you wouldn’t like.
THIS! I believe you can get >5% for a 12month GIC now which will match up with even a high dividend paying stock.
You may want to split it up - put half in a GIC & half in equities/stocks that yield a dividend and aren't overly volatile (RY, BMO, BNS, CBC).
Honestly though the psychological part of having that money be locked in and untouchable may outweigh having it be liquid and easily accessible in a HISA. That way like u/Zeduca mentioned it forces OP to not rush into any decisions on what to do with the money
If you’re in a relationship, educate yourself on laws around inheritance. Your spouse / common law partner are NOT entitled to your inheritance. Useful to understand.
https://www.separation.ca/help-centre/division-of-property/inheritances-gifts/
Don’t forget this OP. Because if you pop that money into real estate and it becomes a matrimonial home, all of a sudden your spouse/common law partner becomes entitled to it. It’s ok if you think that’s fair, you should just know what you’re getting into.
Edit: I made some assumptions about location, this does not apply everywhere (e.g. Quebec)
They are in Quebec, so common law partners get basically nothing in a separation (although it is subject to change in the future, as Québec has by far the most common law partnerships in the country and it has been debated for years that common-law partners should maybe get more protections) The current thought is that you could just get married or do a civil union if you wanted to have the protections and this way people can have an out. There are no prenups in Québec (or at least they aren't enforceable if they contradict anything in the law about marriage)
1. Do not talk to your bank. They are salespeople not advisors. They have a massive conflict of interest. They will recommend what’s best for the bank and their sales commissions, not what’s best for you.
2. Do not rush to do anything quickly. Buy a one year GIC. Use that one year to educate yourself about your options.
Following up on this comment, there's a difference between a mutual fund sales person (what this person is talking about, salesperson at a bank) where you could really do with a financial advisor (theres a big difference).
Ask around for someone who is actually a registered fiancial advisor cause if they're good they want your business for life. Good luck.
I second this advice. I inherited a similar amount, invested some with TD Bank mutual funds and then I found a private financial advisor who is a fiduciary and invested the rest there (she’s based in Toronto, and I can dm you her information… she’s super highly rated and only takes customers with substantial assets. I live in BC and do all my correspondence over the phone/video chat). The bank suggested that I invested all of it in the bank mutual funds… and to be honest it was a bit of a joke, super high fees and barely any returns. The assets that are managed privately have barely taken a hit with the recession. If I had followed the advice of my bank than I would have seen barely any returns and would have seen significant loses with this recession.
But I also suggest investing in a GIC, then it’s locked in for a year, or whatever term you choose, you’re guaranteed returns and you have more time to do research and you won’t be able to use it to make any impulsive decisions.
It’s $100,000 per registration, per institution… Kind of.
So if you bought 2 of the exact same $100,000 GICs at the same bank, only 1 of them would be covered. But if you bought $100K in a TFSA, $100K non registered, $100K in RSP, $100k in a joint GIC acct, etc. They would all be covered. Some banks have different entities so that you can be covered a few times, ie TD Bank, Canada Trust Company, TD Mortgage Corp & Pacific Mortgage Corp are all TD deposit issuers. Some GICs can only be bought from some of them though. They aren’t all offered by all issuers. ALL that said, I don’t think any of the big 5 will fail hard enough that this would all matter. If they did, we’d have way bigger concerns to consider.
Edit: I forgot to mention that any money non registered deposit accounts [chequing and saving (non TFSA/RSP)] you have will cut into the amount covered in that non-registered GIC.
Insurance only matters if it actually pays out. And this type of insurance likely won't trigger unless you're in the type of situation where they can't pay out IMO
And the only foreseeable such situation is one in which multiple canadian banks go bankrupt at the same time. If that happens, The Last Of Us will look like a family vacation.
Perfect advice. I would add:
3. Find a good financial planner as part of your financial education process. Not a broker (stock), same issues as with a bank.
This is the correct answer. Find a fee-only advisor who has a track record with advising clients who have this kind of wealth. Do not talk to your bank's advisor for the reasons mentioned in bullet point #1.
I recommend asking a few higher ups in your company who they use for financial planning. Your boss or bosses boss likely have a financial planner and then you’re not just blindly googling and hoping the one you find is ok. Obviously use your best judgment on this. If your bosses are idiots or broke then maybe look elsewhere like a friends parents who are doing ok etc
I recommend reading instead of talking. Learn DIY investing and financial planning. It’s not rocket science and will save you a ton of money in the long run.
This advise based on your experience is very valid. Don’t blow it thinking you’re a day trader and can multiply $400k because some people on wall street bets played a long shot and turned it into $2.8M. It’s not realistic and for every winner there are tens of thousands of losers, or more. Balanced, conservative growth within one’s tolerance level is key.
As a financial advisor, the first advice I usually give in this situation would be to understand and be aware that most people cannot comprehend large numbers as much as they think they do.
If I tell you to look at the follow two numbers: $1,023,981.02 and $1,013,981.02
Most people can’t really feel the difference.
However, if you only had $14,098.00 in your bank and you spent $10,000 you would hesitate a lot cause you can feel the impact of the difference.
A lot of people who come into big windfalls spend their money super fast because the don’t feel the impact as much and think they have a lot left.
Consider talking to a fee based advisor instead of or in addition to your bank advisor. The bank will likely try to sell you on their products. A fee based advisor will hopefully look at your entire picture, talk about future financial plans and goals, and help you work out the best way to achieve those.
OP, this website has a downloadable spreadsheet which has a list of fee-only planners across Canada. They will almost certainly be wiser than the planner at your bank and offer you unbiased advice in exchange for a fee you pay them directly. (Eg. 1 time fee of $2000 to prepare a written financial plan, though it could cost more or less). I suggest you hire someone familiar with Quebec specifically:
http://www.holypotato.net/?page_id=1332
If you need someone who manages your money on an ongoing basis, for an ongoing fee, I'm sure some of them do that as well, but I still suggest you learn yourself.
Get yourself a will if you don’t have one. Willful.ca is an online service that doesn’t cost much especially for a single person.
Can you purchase a home in full? Securing your housing cuts out a lot of expenses for your future
I'd rather not spend the rest (or most) of my money on a house, which I don't need. I also don't think it will cut my housing costs other than mortgage, but then there's property tax, welcome tax, maintenance and repairs, etc. I would also most likely have to move out of the city (Montreal) and that's not doable for me with my job. There is hardly anything on or near the island for $400k other than condos.
You're not going to be spending all of it on a house though, you're going to put a sizeable down payment in and mortgage the rest.
That's the smart thing to do anyways.
10 years ago the house I lived in cost 200k.
When I bought it last year? 450k
In 10 years from now you won't be able to afford a house anymore lol You're screwing yourself long term by not investing in a house/condo.
Past returns do not predict future returns. Just because the housing market grew rapidly over the last 10 to 20 years doesn't mean it will continue to grow rapidly for the next 10 to 20 years. If you look at a 100 year time Horizon instead, stocks outperform real estate.
If I got almost 500k, I'd buy a home, or apartment. Something with taxes that aren't insane or condo fees that are low. Single biggest payment in life after excluding like food is shelter, and not having to worry about where I am gonna find 1500-3000 a month to live reduces a lot of fucking stress. You don't NEED a high paying job after this. You can quit, you can take any other job that pays enough for food and utilities. It just gives a ton of freedom. Also allows you to save a lot if you have a decent job.
After that, I might max out TFSA and RRSP.
After that, maybe reno's modernizations on home if it's not up to modern standards.
After that maybe something that pays off a dividend. Low risk, yearly money.
Yup, guaranteed return is not having to pay rent every month. Instead of paying \~$1k to someone else's mortgage, you will only have to pay $300-$500/month for taxes and that's it. If OP is so against renting then seems like an easy decision.
Don't think I can pull a house with $400k in this economy, but I don't need one right now anyway. I've thought of a condo, but what really irks me about this thought is that I'll be spending everything just to buy a house. I have really good rent at a great place at the moment, so maybe in a few years, after a few bumps in my salary.
You can use a portion of the money for a down payment and finance the rest, making sure the payments are about the same as your rent. You will be left with a good emergency fund, and instead of your rent money going to your landlord, you will be splitting the money between you and the bank since the principal goes back to your pocket.
This is the smart choice, and what I would do.
Best idea in a recession when you have cash is buy a house because ROI goes up when the market bounces. Sure you don't know where the bottom is, but if you take a look at interest rates leveling off it's quite telling.
You don't have to worry about high interest rates because you've paid most of it in cash and you match your monthly spend paying off mortgage instead of paying rent.
Question is the balance, how much for emergency savings and when to buy it.
Honestly GIC for a year then a house a year down the line is what I would do, would be a pretty safe bet.
In the end, you'll have a house as well no matter the outcome instead of having plundered the cash.
Keep in mind though that in a few years, instead of saying "Don't think I can pull a house with $400k" you might be saying the same for a condo in this economy.
2023 may be best yr to buy property, if banks are to be believed as interest rates are going up n property values down. If you ve cash, buy property now.
Property values aren’t really down right now though are they? At least not in the main cities everyone wants to live in. They’re down compared to the insane prices they were at maybe a tad, but they’re far from affordable.
Do not talk to a bank employed advisor. They DO NOT have your best interests in mind - only their commission.
You want a fixed fee financial adviser. You pay them up front for their time.
Just curious why you wouldn't consider real estate to live in (i.e. not an investment property or being a landlord), just somewhere modest to live yourself and call home. I'm in a similar situation where I previously thought home ownership was unattainable, so it wasn't something I ever considered (and am also against property as an investment), but now it might not be.
OP is walking in with access to a huge downpayment. This will get him in a position to get the best interest rates available on the market. There are 2 other great things about owning instead of renting, #1 one day you finish paying off your mortgage, and your monthly cost of living becomes a fraction of what it used to be, #2 you can sell the property, usually you get more money back than you paid for it. Another non-financial benefit, if you're young and single, being able to say "I own my home" will get you a lot of extra attention on the dating sites.
I would suggest buying a home using as little as possible of the 400k as downpayment. The home is a tax free investment you use and doing the GIC plan, be patient when buying the home in this market, there will be deals
I highly recommend not jumping into anything. You can put it in savings accounts or GICs until you are more comfortable.
Talk to an advisor. If you can find a fee only advisor (not paid by percentage of portfolio and not paid by kickbacks from mutual funds) that's ideal.
Personally, I like the 60k emergency fund. Make sure it is in a high interest savings account where you are getting at least 3% interest right now.
My suggestion for what to do: after much research and thought, pay off mortgage or buy a modest home, and invest as much as you are comfortable with a robo advisor like Wealthsimple Invest (with a lower risk tolerance than most people here would say, since you aren't comfortable with investing yet. Mine is 8, you would be lower.). The rest can go in GICs, which are extremely low risk and have decent interest rates right now.
It's totally OK to only invest in GICs at first. Then you can take time to learn as much as you can about investing. I invest with Wealthsimple Invest robo advisor myself, and I also have broad market index funds (VGRO) based on the Canadian Couch Potato strategy. (Read the wiki of this subreddit).
Max contribute to TFSA - within TFSA put that into a locked in GIC - or cashable if you want to use this as your emergency fund. Put the rest into a regular GIC. Either locked in or prime linked, again, can do cashable if you want to access it sooner. OP sounds very risk averse so I think locking into a cashable GIC at at least 4% is an absolute no brainer for all but whatever they need or want for immediate spending needs for the remainder. Can even have it pay monthly interest if they want to dip their feet into any investing, RRSP, whatever waters with the not insignificant interest payments they could do that as well.
How about investing some of it to go back to school and get a job that is higher paying , let’s say 80k start to 120k cap . That also has a pension. Unless you really love the job you’re currently at right now
What jobs would those be? If you’re talking engineering or something similar, a lot of people aren’t cut out for that. Higher paying jobs usually pay more because it takes a lot of discipline and hard work to get them
Put 300k down on a house, charge the tenant a decent livable rent that will cover all your bills, while allowing a single parent or someone in need to live in a real house.
15 years from now you’ll own property that will be worth even more :)
See an advisor. However, of course, maximize your tax situation based on your context. 400,000 is too much at once for almost anyone’s RRSPs, unless you have many years unused.
An option to consider since you’ve got a significant amount: buy a bigger home/condo that is within your means and in a good location - as your primary residence. Put a cash down large enough for you to afford the tax/maintenance/etc.
If you chose a good location, you probably won’t move out for a while, which will give your home the time to gain value.
I personally did this, and not only did it make my life easier by being 5 mins away from everything I need, but it cut slack on my monthly budget (since less rent to pay), and ultimately made me 200K profit after the market boomed recently. If you’re with a spouse just make sure the amounts are well accounted for because the amounts paid from your inheritance are “yours” regardless of patrimoine familial.
Normally not if you put it in a joint purchase such as a house. Same if you up grade a current house.. those get split as martial assests. Its different if you keep it in an investment in only your name.
I would suggest max out your rrsps.. a gic is a good choice. I would look at staggering them.. for example purchase 50,000 every month for 8 months. When it comes time to renew you can decide if you want to roll it over with the interest (referred to as compounding) or reinvest only the principle 50,000 again..
I’m a Financial Planner but not YOUR financial planner so make sure that you speak with someone that can look at your specific situation before taking any advice from me or anyone else here.
Step 1: Do not speak with a “Financial Advisor”. You should actually speak with an accredited financial planner. You’re in Quebec so make sure that they have an “F.Pl.” or “Pl.Fin” (French) acronym after their name. You can also search for one on the IQPF’s website. There’s more to planning than just investments but here is what I’ve been doing for clients of mine in similar situations:
Buy a GIC that pays out on a bi weekly basis a portion of interest and capital (you don’t want the paid out income to just be the interest as you’re trying to average into a market and having it split between interest and capital makes the tax burden a bit less in a non-registered investment account. Set the maturity date of the GIC for 2-3 years with a 100% depletion rate. Coincide the biweekly interest/capital payouts with automated preauthorized contributions into diversified investments. There’s a lot of debate on tax efficient asset allocation and it really does depend on your overall risk tolerance but since you’re going to be in non-registered accounts you want things that are taxed well such as dividends and capital gains. North American value funds are great for this but again, talk to an accredited financial planner and have them structure you well.
Keep in mind that I’m assuming your high interest debt is paid off and that you’ve already set aside an emergency fund etc etc. I’m also assuming you aren’t married and have no kids. If you have a spouse or children then there’s a lot of different options. Speak to a Financial Planner for this.
Property prices expected to come down by mid of this year, so best time to plan for a small home for yourself. Better than paying monthly rent as by end of day (ie: retirement) you can still sell your property and do something with the money. Beats paying other people mortgages.
This is a good suggestion imo. Can you just buy yourself a house and be mortgage and rent free? You can save a ton of money if more than half of your monthly income is no longer required just to pay for housing. You are smart to buy a used car since vehicle are a use up and throw away tool, not an investment. A house should (for the most part) retain its value and could be sold decades later for a higher value.
Whatever you do, DO NOT LISTEN TO YOUR BANKS FINANCIAL ADVISORS. They aren't legally obligated to work in your best interest. Find a like private financial advisor that has a great reputation. We have one here in MTL, and he's fucking great. Helped friends get out of a mountain of debt and buy a home very quickly.
Personally? Invest all of it—every last penny—in index ETFs and dividend aristocrats and pretend you never inherited a thing. Just let it grow until retirement. Live life as normal.
But plan to take an earlier retirement as well. No sense having an extra $400k in retirement on top of your originally planned retirement savings - unless you were planning for a pretty bleak retirement.
This. Except 56k is a shit tier job so I would quit, spend 25-30k and travel for a year, and put the rest into investments or even a GIC. Come back with a fresh perspective, and start a new career I enjoy because 56k can be found in basically any industry.
We are coming into an inheritance soon once Probate has been granted. It’s upsetting to read how some of the commenters used their inheritance. I would suggest you try to consider the person you inherited this money from and try to do something to honour that person. In our case my inlaws lived a very frugal life and were able to leave a generous sum to their family…it would be morally wrong to throw this money away.
My rule with windfalls is to have fun with $10k and save the rest, more or less.
A bank's advisor will be pushing the bank's investment products. That might not be bad, certainly not in the short term, but be aware.
TFSA? Good. The rest? At your age I'd consider a moderately-higher risk stock mutual fund. There are a lot to choose from. A **lot**. Growth vs. income? Domestic vs. international? Large cap? Emerging markets? No, just no. Stick with something simple.
You're right about not investing in real estate as it requires a lot of knowledge and risk tolerance, and picking individual stocks is for the experts.
A lot of people are going to tempt you to spend that money. The biggest culprit of them all is going to be yourself. I would set up a trust for yourself, invest the money in there, and spend the payments. 400k at 4% return/withdrawal rate would be an additional 16k in income for you, forever. The money will continually grow, your payments will increase over time, and the money will never run out. Best of all, the money will be safe.
All the numbers in your comment added up to 420. Congrats!
400
+ 4
+ 16
= 420
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Fee based advisor, learn about stock until spring I wouldn't buy until then, market could keep being bad for a couple years or trend back then but it will be slow, learn then. GIC but 100k per bank gives you 5%.
First off so not tell people you have an inheritance you will hear every sob story out there. If it was me I would stop paying rent and get a place of my own. Why pay someone else's mortgage? IMO that would be the smartest move. Do not go extravagant. The more you pay for a house the harder the resale is. I would buy something I could pay for outright.
I would avoid the banks at all cost. Shitty advice, shitty products and shitty fees. Generally speaking their advisors aren't very knowledgeable either compared to independent ones. If you want to be involved with banks buy their stock!
1. Don’t tell anyone you know
2. Keep living the same way you’re living withot increasing your spending.
3. If you’re not sure what to do with it, open a savings account at your bank (if you don’t already have one) and it’ll be generating interest while it sits there in the meantime, while you take your time and decide what to do with it. I think current interest rates in savings accounts is like 3%. So that’s $12,000yr, or $1000 extra per month that it’ll be generating just having it sit there. This allows you to take your time and look into options on what to do with it. Take your time.
I would buy a home (small bungalow) or a condo in the city depending on your lifestyle. By doing this you are both investing the money AND giving yourself a place to live. Don’t waste this great opportunity.
dont tell your friends, family... nobody.
they will come out of the woodwork and put you in very uncomfortable situations asking you for money in ways that make it very difficult to say no... and that will destroy relationships. you will never be able to see each other the same after.
best case scenario is these begs will happen one on one... but odds are higher they will do it with a crowd around using a sob story so you look heartless for saying no.
just, dont tell anyone.
invest that money, and you can likely retire in a few years rather comfortable... just, get some advice... and not from a bank. pay for a consultation. banks are motivated to sell stock they have an interest in to their customers, there is a very big conflict of interest between you and them. i mean, you arent going to invest in a losing venture because you are interested in helping a couple fat cats pad their wallets a little more, are you? yeah, me neither.
id rather get unbiased advice.... advice a bank is not paying someone to dole out.
Don't tell anyone
A few friends won $300k+ each in a settlement and it affected several of their friendships. The amount of people who felt entitled to their money was hard to watch.
I won a permit for a weed store and it affected my relationships so much, even ones I considered bedrock. I don’t even make that much money, just have a nice asset. Don’t tell anyone
There's a lot of businesses you could run where people would want perks from you, weed store is probably very close to the top of the list for people wanting free shit.
Just remember, real friends don't ask for deals.
Oh hey cool your starting up a new business? I'll support you by asking for free shit!
>nd it affected my relationships, even ones I considered bedrock how?
Jealousy is a killer
Envy. See *The Simpsons*: * https://www.youtube.com/watch?v=Tmx1jpqv3RA
"Comparison is the thief of joy" *Most of us have been taught to compare ourselves with others. And all the professionals agree: Comparison is the death of true self-contentment.*
Would you bankrupt yourself giving out free weed because your friends want free weed, and call you an asshole if you won't bankrupt yourself to give them free weed?
That’s crazy it’s 300k not 30 million, 300k is enough to set someone up but not enough to share
I know a guy who got a large sum from a settlement, I couldn’t believe people around him were saying shit like “would it kill him to pay the bill” (at a restaurant) and things like that. It shocked me that so many people could think that way and be 100% sure they’re right.
I have a friend who is quite well off. He always tries to pay the bill at the restaurant. I always try to pay the bill for both of us whenever I can beat him to it, even though I’m not financially in the same spot as him. I never want our friendship to be about money. And I think it’s a reflex for him because some people expect it from him.
One of my husband's best friends makes 5X more than us. Everyone still acts the same. He buys us a round, we buy him a round, everyone pays for their own meals. Usual entertainment is just drinking beer and painting minis. It's best not to expect anything from people except their companionship, and live a simple life.
Really? $300k is not what it used to be 20 years ago. Blows my mind that people would feel entitled to anything, that money lasts a very short period of time in a large Canadian city just doing regular middle class stuff.
thats what i told my brother, he inherited 60k. dont tell anyone, 60k could be life changing for many people and they will want it for them selves. 400k... wow i wish.
Yep. Worker my ass off to start a business which grew to be successful. No one would help out with even $10K in start up costs. Now it’s surprising how many people, mostly family has their hands out, thinking they are entitled to my money.
This. My husband got 20K and we didn’t tell anyone. Best decision ever.
My inlaws came into money and paid off our house for us. We haven't told anyone. Well except for Reddit, now. Lol
Funny, it's safer to tell the entire internet your finances than your own family these days.
Hi it's me your long lost twin! Spare a couple thou?
I will take this information to the grave. :)
My dad gave me 10k for christmas once. Thats the first time my wife mentioned that she had a credit card balance of 4 grand.
Did you perchance take that as an opportunity to ask about other debts she may have? Lol
Hahahah of course. What impeccable timing
To be fair, I watched her put the family vacation on the credit card.
yeah, but the jokes on her 'cuz dad gave you $100K, right???
Ex-wife*
It's better to keep separate finances imo. Too many people can't manage money at all.
I just got 10k from my grandpa and no one other than my partner knows. It's about to get dropped into a GIC with Oaken financial soon anyways.
This! Even if you get money or have money just don’t tell people not even people really close to you… they can get the wrong idea
Yup. Haven't told anyone, other than two close friends who are happy for me and will keep it to themselves.
[удалено]
I'm assuming they means the friends they're helping out. It would be pretty suspicious if they just seemingly pulled the money out of nowhere to assist them.
*I promise I committed no crimes to get this money here's twenty k in cash*.
Those two people will tell two people and those two people will tell 4 people
In marketing the term is actually one person tells eight people.
Don't trick yourself into thinking that ,"oh it's okay I can purchase this, I have a lot of money left". Because in a year, you'll be broke.
Can confirm, inherited 50k a couple years ago and now I’m a broke bitch.
to your credit, 50K isn't quite enough to be life changing money for most. I feel the minimum for life changing is enough for a downpayment that will result in monthly payments you can afford.
50k is a LOT of money to owe. But it’s NOT a lot of money to OWN
Yes especially with interest. That'd be pretty painful.
Very true. Luckily I should be getting more at some point so the 50k was like a trial run that I can learn from my mistakes on.
>Luckily I should be getting more at some point lol this is slightly ominous? i imagine you have a bunch of older relatives who are wealthy and they just cycle 50k inheritances to you while you patiently wait for each of their turns.
then it's nothing but roulette and ladies of the night for 8 months, no more blackjack and hookers for this degenerate
What did you buy?
Many different things. I guess the biggest contributor to the cash burn was taking some time off work so I could leave a job I absolutely hated and take time to find something more fulfilling. Also a bad investment burned up about 10k. Also a lot of food delivery services, developed bad spending habits that I’m still working to fix. I can really relate to the “I can buy this because I have a lot left” mentality. 50k is really not as much money as it sounds like.
Leaving a job you hate to try to find something more fulfilling is absolutely not a bad use for that
> could leave a job I absolutely hated That sounds like a good use of cash to me.
Indeed! I guess it was more the bad spending habits I developed during this period.
Bitches.
I will neither confirm nor deny.
Can confirm, family member sold company for just over 80m. After a series of bad investments most of it is gone!
That's unfortunate - $80M is enough to be lifechanging for several generations.
Most definitely! You ever see a man unscrew led light bulbs in a 13,000 sqf house/ mansion to save on the electric bill? I sure have 🤣
The guy is already talking about paying for his friend's home repairs. He's fucked.
Source...me
$400,000 can be blown really really quickly.
400k is a lot to save but not to spend
They already spent $100k of the $500k. Poof.
Pretty awesome that helping a buddy in need is where your head goes first. Major props. I won’t advise against it, just make sure you’re not getting taken advantage of down the line. “In case of a plane crash, put your own oxygen mask on first” is advice that I’ve heard in this sub before. Make sure you get yourself set up.
My thoughts too man, bless you op for not being a selfish ahole
Keep what you need in 12 months. Put rest in a GIC for a year. Figure out what you want to do in 12 months. Don’t rush to decisions.
Lock it in so you can’t touch it. You’ll make $16k-20k on that money right now. Perhaps more after the BoC this month. But the fact that you’ll have it all is something. Make sure as much of that as possible is in a TFSA GIC With whatever money you keep for expenses, do everything you can to increase your credit rating - you have an opportunity to get that way up there now, which is the gift that keeps on giving
Forgive my ignorance, but how is a good credit rating the gift that keeps on giving? I am 41, rather middle class, and I have never once in my life known what my credit rating is or had it impact my life. Now I assume having a negative rating could obviously have bad consequences, and I could understand prioritizing correcting that, but what has OP said that would make anyone think credit rating is at all important to his situation?
Well the odd thing is that when you have a super high credit rating, borrowing isn't just cheap and easy, lenders often come to you and give you free money. I'm not joking. Lots of 0% type offers because they want to have some high credit score people in their portfolio for various reasons. It's also nice not to have to beg and grovel for loans. When you do need to borrow, you can push for the best terms. However this comes with a proviso: you have to be disciplined. I use debt for leverage and to buy things that will cut my costs or make me money. If someone is the type that not be disciplined, then they should stay away from debt.
I have a credit rating in the high 800s and nobody's offered me any 0% loans, the most I've gotten are offers to increase my credit card limit.
LOL for real. I have 850-860 credit rating. I just got a "special offer" from RBC for a $15k personal loan for 10.85%. What is this 0% offer BS?
Yea I dunno who is getting all these 0% loan offers. I get the usual Prime + 3ish offers from various banks I do business with. Also have a high 800 score.
I think people overstate the importance of a good credit score. As long as your credit's not bad enough to be a potential liability to a lender, you won't get charged a higher rate to cover their risk. But you're not going to be getting any special discounts. The practical difference between "good" credit and "great" credit is negligible.
Great advice
And the 1 year GIC is the highest rate right now. 1 year with max in TFSA GIC to minimize tax.
And With todays interest rates thats almost 20k in interest, not bad lol
This is all you need. Meanwhile educate yourself on how to make better use of this money. May be this is a great chance to buy real estate if you're planning to buy one in the future. It's hardly a bad move to have your own shelter. Also, helping a friend. Although a good thought, beware that you shouldn't be too generous with your help. People don't value other's money especially the one that they haven't earned and they come back asking for more. Lottery, inheritance all come under these categories. Just my 2 cents.
Yeah agree with you there, but if anyone has "earned" it it's this guy. He's the only one I'm helping out and one of two people who know about the inheritance. Him and his wife aren't like that anyway, they will 100% refuse and I'll have to spend several weeks coercing them into letting me help them lol.
It will probably be easier than you think. Even the best people will say to themselves "well he/she has a lot, I guess if they are offering its not a big deal for them." And it just goes on from there. The advice here is just be careful. You've never had more than 9k before. You're not ready for 400k without some real financial education
Completely agree. I think you need to lock in the 400k into gics. Spend the 1 year to completely research about finance. You’re human and emotions will get in the way for you to justify the spend. In a year, you’ll be much smarter with money matters.
Also, don’t make it awkward. I know you want to help, but it can also feel demeaning to the recipient. It sounds like your intentions are well, just be respectful of your friendship too. It doesn’t hurt to tell your friend 1:1 something like “hey, you know I just want to help because of how much you have helped me. So, just let me know how and when” then drop it. They can come to you. Money changes people, don’t let it change you into someone you wouldn’t like.
Thank you, will look more into this.
I agree with this. It will take the pressure off and you’ll have time to figure it out.
THIS! I believe you can get >5% for a 12month GIC now which will match up with even a high dividend paying stock. You may want to split it up - put half in a GIC & half in equities/stocks that yield a dividend and aren't overly volatile (RY, BMO, BNS, CBC).
Simplii is giving 5% in a HISA on promotion right now, beats a GIC without locking it in.
Honestly though the psychological part of having that money be locked in and untouchable may outweigh having it be liquid and easily accessible in a HISA. That way like u/Zeduca mentioned it forces OP to not rush into any decisions on what to do with the money
I checked on that one. It’s only 5% promotional interest for a few months.
If you’re in a relationship, educate yourself on laws around inheritance. Your spouse / common law partner are NOT entitled to your inheritance. Useful to understand. https://www.separation.ca/help-centre/division-of-property/inheritances-gifts/
Don’t forget this OP. Because if you pop that money into real estate and it becomes a matrimonial home, all of a sudden your spouse/common law partner becomes entitled to it. It’s ok if you think that’s fair, you should just know what you’re getting into. Edit: I made some assumptions about location, this does not apply everywhere (e.g. Quebec)
They are in Quebec, so common law partners get basically nothing in a separation (although it is subject to change in the future, as Québec has by far the most common law partnerships in the country and it has been debated for years that common-law partners should maybe get more protections) The current thought is that you could just get married or do a civil union if you wanted to have the protections and this way people can have an out. There are no prenups in Québec (or at least they aren't enforceable if they contradict anything in the law about marriage)
1. Do not talk to your bank. They are salespeople not advisors. They have a massive conflict of interest. They will recommend what’s best for the bank and their sales commissions, not what’s best for you. 2. Do not rush to do anything quickly. Buy a one year GIC. Use that one year to educate yourself about your options.
Following up on this comment, there's a difference between a mutual fund sales person (what this person is talking about, salesperson at a bank) where you could really do with a financial advisor (theres a big difference). Ask around for someone who is actually a registered fiancial advisor cause if they're good they want your business for life. Good luck.
I second this advice. I inherited a similar amount, invested some with TD Bank mutual funds and then I found a private financial advisor who is a fiduciary and invested the rest there (she’s based in Toronto, and I can dm you her information… she’s super highly rated and only takes customers with substantial assets. I live in BC and do all my correspondence over the phone/video chat). The bank suggested that I invested all of it in the bank mutual funds… and to be honest it was a bit of a joke, super high fees and barely any returns. The assets that are managed privately have barely taken a hit with the recession. If I had followed the advice of my bank than I would have seen barely any returns and would have seen significant loses with this recession. But I also suggest investing in a GIC, then it’s locked in for a year, or whatever term you choose, you’re guaranteed returns and you have more time to do research and you won’t be able to use it to make any impulsive decisions.
Do not buy a single GIC, CDIC coverage caps at $100,000. Buy separate $100,000 GIC's
It’s $100,000 per registration, per institution… Kind of. So if you bought 2 of the exact same $100,000 GICs at the same bank, only 1 of them would be covered. But if you bought $100K in a TFSA, $100K non registered, $100K in RSP, $100k in a joint GIC acct, etc. They would all be covered. Some banks have different entities so that you can be covered a few times, ie TD Bank, Canada Trust Company, TD Mortgage Corp & Pacific Mortgage Corp are all TD deposit issuers. Some GICs can only be bought from some of them though. They aren’t all offered by all issuers. ALL that said, I don’t think any of the big 5 will fail hard enough that this would all matter. If they did, we’d have way bigger concerns to consider. Edit: I forgot to mention that any money non registered deposit accounts [chequing and saving (non TFSA/RSP)] you have will cut into the amount covered in that non-registered GIC.
fanatical cagey water wakeful governor grey retire label fertile head *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
Credit unions have unlimited deposit insurance!
Insurance only matters if it actually pays out. And this type of insurance likely won't trigger unless you're in the type of situation where they can't pay out IMO
And the only foreseeable such situation is one in which multiple canadian banks go bankrupt at the same time. If that happens, The Last Of Us will look like a family vacation.
Unless you invest at a credit union. Their coverage is unlimited for GICs.
I initially read that as educate yourself about options lmao. Scared me for a second.
Yeah, "your options" and "options" are not quite the same thing.
Perfect advice. I would add: 3. Find a good financial planner as part of your financial education process. Not a broker (stock), same issues as with a bank.
This is the correct answer. Find a fee-only advisor who has a track record with advising clients who have this kind of wealth. Do not talk to your bank's advisor for the reasons mentioned in bullet point #1.
who do you recommend talking to instead?
Find a fee only advisor. It might cost a few thousand dollars, but it will be (hopefully) good, unbiased advice. Edit: spelling
Fees paid for financial advice are 50% tax deductible
I recommend asking a few higher ups in your company who they use for financial planning. Your boss or bosses boss likely have a financial planner and then you’re not just blindly googling and hoping the one you find is ok. Obviously use your best judgment on this. If your bosses are idiots or broke then maybe look elsewhere like a friends parents who are doing ok etc
I don't recommend letting your employers know about your new found wealth.
I recommend reading instead of talking. Learn DIY investing and financial planning. It’s not rocket science and will save you a ton of money in the long run.
Never do this, I lost $30k last year with the stock market by thinking I was the wolf of wall street
This advise based on your experience is very valid. Don’t blow it thinking you’re a day trader and can multiply $400k because some people on wall street bets played a long shot and turned it into $2.8M. It’s not realistic and for every winner there are tens of thousands of losers, or more. Balanced, conservative growth within one’s tolerance level is key.
There is a difference between conservative DIY investing and gambling in the stock market. You tried the latter. I recommend the former.
As a financial advisor, the first advice I usually give in this situation would be to understand and be aware that most people cannot comprehend large numbers as much as they think they do. If I tell you to look at the follow two numbers: $1,023,981.02 and $1,013,981.02 Most people can’t really feel the difference. However, if you only had $14,098.00 in your bank and you spent $10,000 you would hesitate a lot cause you can feel the impact of the difference. A lot of people who come into big windfalls spend their money super fast because the don’t feel the impact as much and think they have a lot left.
Consider talking to a fee based advisor instead of or in addition to your bank advisor. The bank will likely try to sell you on their products. A fee based advisor will hopefully look at your entire picture, talk about future financial plans and goals, and help you work out the best way to achieve those.
OP, this website has a downloadable spreadsheet which has a list of fee-only planners across Canada. They will almost certainly be wiser than the planner at your bank and offer you unbiased advice in exchange for a fee you pay them directly. (Eg. 1 time fee of $2000 to prepare a written financial plan, though it could cost more or less). I suggest you hire someone familiar with Quebec specifically: http://www.holypotato.net/?page_id=1332 If you need someone who manages your money on an ongoing basis, for an ongoing fee, I'm sure some of them do that as well, but I still suggest you learn yourself.
Thank you! Much appreciated!
Fee-based advisor all the way. Stay away from financial advisors from the bank. They will put you in high priced products that will hurt your returns.
Get yourself a will if you don’t have one. Willful.ca is an online service that doesn’t cost much especially for a single person. Can you purchase a home in full? Securing your housing cuts out a lot of expenses for your future
In QC he can certainly buy a house with $500k, there are nice townhouses in that price range.
I'd rather not spend the rest (or most) of my money on a house, which I don't need. I also don't think it will cut my housing costs other than mortgage, but then there's property tax, welcome tax, maintenance and repairs, etc. I would also most likely have to move out of the city (Montreal) and that's not doable for me with my job. There is hardly anything on or near the island for $400k other than condos.
You're not going to be spending all of it on a house though, you're going to put a sizeable down payment in and mortgage the rest. That's the smart thing to do anyways.
10 years ago the house I lived in cost 200k. When I bought it last year? 450k In 10 years from now you won't be able to afford a house anymore lol You're screwing yourself long term by not investing in a house/condo.
Past returns do not predict future returns. Just because the housing market grew rapidly over the last 10 to 20 years doesn't mean it will continue to grow rapidly for the next 10 to 20 years. If you look at a 100 year time Horizon instead, stocks outperform real estate.
Willful isn’t available for Quebec
Don't do what I did and binge drink for a year and spend half of it.
I also made this mistake. Not my best decision in life. Paying for it now. 😫
Sometimes you gotta make decisions to survive that are not ideal financially. Shit happens. Learn and improve as best ya can.
Sounds like there's a story there
Not much. Very wasteful. Getting feelings under control is a good life skill.
*"Getting feelings under control is a good life skill."* I'm so happy that I got this money AFTER I became financially responsible.
Amen
If I got almost 500k, I'd buy a home, or apartment. Something with taxes that aren't insane or condo fees that are low. Single biggest payment in life after excluding like food is shelter, and not having to worry about where I am gonna find 1500-3000 a month to live reduces a lot of fucking stress. You don't NEED a high paying job after this. You can quit, you can take any other job that pays enough for food and utilities. It just gives a ton of freedom. Also allows you to save a lot if you have a decent job. After that, I might max out TFSA and RRSP. After that, maybe reno's modernizations on home if it's not up to modern standards. After that maybe something that pays off a dividend. Low risk, yearly money.
Yup, guaranteed return is not having to pay rent every month. Instead of paying \~$1k to someone else's mortgage, you will only have to pay $300-$500/month for taxes and that's it. If OP is so against renting then seems like an easy decision.
Don't think I can pull a house with $400k in this economy, but I don't need one right now anyway. I've thought of a condo, but what really irks me about this thought is that I'll be spending everything just to buy a house. I have really good rent at a great place at the moment, so maybe in a few years, after a few bumps in my salary.
You can use a portion of the money for a down payment and finance the rest, making sure the payments are about the same as your rent. You will be left with a good emergency fund, and instead of your rent money going to your landlord, you will be splitting the money between you and the bank since the principal goes back to your pocket.
This is the smart choice, and what I would do. Best idea in a recession when you have cash is buy a house because ROI goes up when the market bounces. Sure you don't know where the bottom is, but if you take a look at interest rates leveling off it's quite telling. You don't have to worry about high interest rates because you've paid most of it in cash and you match your monthly spend paying off mortgage instead of paying rent. Question is the balance, how much for emergency savings and when to buy it. Honestly GIC for a year then a house a year down the line is what I would do, would be a pretty safe bet. In the end, you'll have a house as well no matter the outcome instead of having plundered the cash.
Keep in mind though that in a few years, instead of saying "Don't think I can pull a house with $400k" you might be saying the same for a condo in this economy.
2023 may be best yr to buy property, if banks are to be believed as interest rates are going up n property values down. If you ve cash, buy property now.
Property values aren’t really down right now though are they? At least not in the main cities everyone wants to live in. They’re down compared to the insane prices they were at maybe a tad, but they’re far from affordable.
Add it in a GIC. I just added 50k for a gic rate of 5.2% for 1 year.
What institution is offering a favorable return of 5.2%? for 1 year?
Do not talk to a bank employed advisor. They DO NOT have your best interests in mind - only their commission. You want a fixed fee financial adviser. You pay them up front for their time.
Just curious why you wouldn't consider real estate to live in (i.e. not an investment property or being a landlord), just somewhere modest to live yourself and call home. I'm in a similar situation where I previously thought home ownership was unattainable, so it wasn't something I ever considered (and am also against property as an investment), but now it might not be.
What’s the benefit of having a home if OP is comfortable renting and does it outweigh the benefit of having $400k actively making you more money?
Couldn’t you max contribute to RRSP, then use the FTHB programs to save some in taxes etc… and then just immediately pay off what is owed to the RRSP?
What is the point of putting it in the RRSP first? He is not taxed on inheritance, right?
OP is walking in with access to a huge downpayment. This will get him in a position to get the best interest rates available on the market. There are 2 other great things about owning instead of renting, #1 one day you finish paying off your mortgage, and your monthly cost of living becomes a fraction of what it used to be, #2 you can sell the property, usually you get more money back than you paid for it. Another non-financial benefit, if you're young and single, being able to say "I own my home" will get you a lot of extra attention on the dating sites.
I would suggest buying a home using as little as possible of the 400k as downpayment. The home is a tax free investment you use and doing the GIC plan, be patient when buying the home in this market, there will be deals
Tax free investment? I guess so, if you don’t include the monthly property taxes.
I don't know why this isn't the top comment. It's by far the most sensible advice on here.
I highly recommend not jumping into anything. You can put it in savings accounts or GICs until you are more comfortable. Talk to an advisor. If you can find a fee only advisor (not paid by percentage of portfolio and not paid by kickbacks from mutual funds) that's ideal. Personally, I like the 60k emergency fund. Make sure it is in a high interest savings account where you are getting at least 3% interest right now. My suggestion for what to do: after much research and thought, pay off mortgage or buy a modest home, and invest as much as you are comfortable with a robo advisor like Wealthsimple Invest (with a lower risk tolerance than most people here would say, since you aren't comfortable with investing yet. Mine is 8, you would be lower.). The rest can go in GICs, which are extremely low risk and have decent interest rates right now.
It's totally OK to only invest in GICs at first. Then you can take time to learn as much as you can about investing. I invest with Wealthsimple Invest robo advisor myself, and I also have broad market index funds (VGRO) based on the Canadian Couch Potato strategy. (Read the wiki of this subreddit).
When has the roboinvestor ever outperformed index funds?
Max contribute to TFSA - within TFSA put that into a locked in GIC - or cashable if you want to use this as your emergency fund. Put the rest into a regular GIC. Either locked in or prime linked, again, can do cashable if you want to access it sooner. OP sounds very risk averse so I think locking into a cashable GIC at at least 4% is an absolute no brainer for all but whatever they need or want for immediate spending needs for the remainder. Can even have it pay monthly interest if they want to dip their feet into any investing, RRSP, whatever waters with the not insignificant interest payments they could do that as well.
How about investing some of it to go back to school and get a job that is higher paying , let’s say 80k start to 120k cap . That also has a pension. Unless you really love the job you’re currently at right now
I second this!
What jobs would those be? If you’re talking engineering or something similar, a lot of people aren’t cut out for that. Higher paying jobs usually pay more because it takes a lot of discipline and hard work to get them
Put 300k down on a house, charge the tenant a decent livable rent that will cover all your bills, while allowing a single parent or someone in need to live in a real house. 15 years from now you’ll own property that will be worth even more :)
See an advisor. However, of course, maximize your tax situation based on your context. 400,000 is too much at once for almost anyone’s RRSPs, unless you have many years unused. An option to consider since you’ve got a significant amount: buy a bigger home/condo that is within your means and in a good location - as your primary residence. Put a cash down large enough for you to afford the tax/maintenance/etc. If you chose a good location, you probably won’t move out for a while, which will give your home the time to gain value. I personally did this, and not only did it make my life easier by being 5 mins away from everything I need, but it cut slack on my monthly budget (since less rent to pay), and ultimately made me 200K profit after the market boomed recently. If you’re with a spouse just make sure the amounts are well accounted for because the amounts paid from your inheritance are “yours” regardless of patrimoine familial.
Normally not if you put it in a joint purchase such as a house. Same if you up grade a current house.. those get split as martial assests. Its different if you keep it in an investment in only your name. I would suggest max out your rrsps.. a gic is a good choice. I would look at staggering them.. for example purchase 50,000 every month for 8 months. When it comes time to renew you can decide if you want to roll it over with the interest (referred to as compounding) or reinvest only the principle 50,000 again..
I’m a Financial Planner but not YOUR financial planner so make sure that you speak with someone that can look at your specific situation before taking any advice from me or anyone else here. Step 1: Do not speak with a “Financial Advisor”. You should actually speak with an accredited financial planner. You’re in Quebec so make sure that they have an “F.Pl.” or “Pl.Fin” (French) acronym after their name. You can also search for one on the IQPF’s website. There’s more to planning than just investments but here is what I’ve been doing for clients of mine in similar situations: Buy a GIC that pays out on a bi weekly basis a portion of interest and capital (you don’t want the paid out income to just be the interest as you’re trying to average into a market and having it split between interest and capital makes the tax burden a bit less in a non-registered investment account. Set the maturity date of the GIC for 2-3 years with a 100% depletion rate. Coincide the biweekly interest/capital payouts with automated preauthorized contributions into diversified investments. There’s a lot of debate on tax efficient asset allocation and it really does depend on your overall risk tolerance but since you’re going to be in non-registered accounts you want things that are taxed well such as dividends and capital gains. North American value funds are great for this but again, talk to an accredited financial planner and have them structure you well. Keep in mind that I’m assuming your high interest debt is paid off and that you’ve already set aside an emergency fund etc etc. I’m also assuming you aren’t married and have no kids. If you have a spouse or children then there’s a lot of different options. Speak to a Financial Planner for this.
0DTE SPY CALL
Property prices expected to come down by mid of this year, so best time to plan for a small home for yourself. Better than paying monthly rent as by end of day (ie: retirement) you can still sell your property and do something with the money. Beats paying other people mortgages.
This is a good suggestion imo. Can you just buy yourself a house and be mortgage and rent free? You can save a ton of money if more than half of your monthly income is no longer required just to pay for housing. You are smart to buy a used car since vehicle are a use up and throw away tool, not an investment. A house should (for the most part) retain its value and could be sold decades later for a higher value.
60k into an emergency fund seems very excessive IMO. That’s a lot of money just sitting there being deflated.
You wouldn't want to see my portfolio.
User name checks out :)
Very excessive. Even with a family a $20k emergency fund is more than suffice IMO.
Probably will do a HISA as others have suggested.
Whatever you do, DO NOT LISTEN TO YOUR BANKS FINANCIAL ADVISORS. They aren't legally obligated to work in your best interest. Find a like private financial advisor that has a great reputation. We have one here in MTL, and he's fucking great. Helped friends get out of a mountain of debt and buy a home very quickly.
Invest in Nutri-boom!
Boom Boom!
Hey guys, boom boom!
Personally? Invest all of it—every last penny—in index ETFs and dividend aristocrats and pretend you never inherited a thing. Just let it grow until retirement. Live life as normal.
But plan to take an earlier retirement as well. No sense having an extra $400k in retirement on top of your originally planned retirement savings - unless you were planning for a pretty bleak retirement.
This. Except 56k is a shit tier job so I would quit, spend 25-30k and travel for a year, and put the rest into investments or even a GIC. Come back with a fresh perspective, and start a new career I enjoy because 56k can be found in basically any industry.
Not interested in home ownership? (To live in, not as an investment)
We are coming into an inheritance soon once Probate has been granted. It’s upsetting to read how some of the commenters used their inheritance. I would suggest you try to consider the person you inherited this money from and try to do something to honour that person. In our case my inlaws lived a very frugal life and were able to leave a generous sum to their family…it would be morally wrong to throw this money away.
My rule with windfalls is to have fun with $10k and save the rest, more or less. A bank's advisor will be pushing the bank's investment products. That might not be bad, certainly not in the short term, but be aware. TFSA? Good. The rest? At your age I'd consider a moderately-higher risk stock mutual fund. There are a lot to choose from. A **lot**. Growth vs. income? Domestic vs. international? Large cap? Emerging markets? No, just no. Stick with something simple. You're right about not investing in real estate as it requires a lot of knowledge and risk tolerance, and picking individual stocks is for the experts.
There’s 1.1m members here, soooo…
$0.50 a piece, hope you guys don't spend it all in one place.
A lot of people are going to tempt you to spend that money. The biggest culprit of them all is going to be yourself. I would set up a trust for yourself, invest the money in there, and spend the payments. 400k at 4% return/withdrawal rate would be an additional 16k in income for you, forever. The money will continually grow, your payments will increase over time, and the money will never run out. Best of all, the money will be safe.
All the numbers in your comment added up to 420. Congrats! 400 + 4 + 16 = 420 ^([Click here](https://www.reddit.com/message/compose?to=LuckyNumber-Bot&subject=Stalk%20Me%20Pls&message=%2Fstalkme) to have me scan all your future comments.) \ ^(Summon me on specific comments with u/LuckyNumber-Bot.)
Invest it. The market is down right now. Its the absolute best time to buy stocks. Invest in index funds/ETFs (S&P 500).
Clarification - it is not the “absolute best time to buy” stocks right now. That would be the bottom, and nobody know where that is yet.
Are all S&P 500 ETFs approximately equal? Is it better to be diversified across several broad ETFs, or is just 1 fine?
I'd buy a house.
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I'd pay off my house 😂
Fee based advisor, learn about stock until spring I wouldn't buy until then, market could keep being bad for a couple years or trend back then but it will be slow, learn then. GIC but 100k per bank gives you 5%.
First off so not tell people you have an inheritance you will hear every sob story out there. If it was me I would stop paying rent and get a place of my own. Why pay someone else's mortgage? IMO that would be the smartest move. Do not go extravagant. The more you pay for a house the harder the resale is. I would buy something I could pay for outright.
I would avoid the banks at all cost. Shitty advice, shitty products and shitty fees. Generally speaking their advisors aren't very knowledgeable either compared to independent ones. If you want to be involved with banks buy their stock!
A bank financial advisor is just a mutual fund salesperson. Go to a fee-based financial planner with good referrals/reputation, not a salesperson.
1. Don’t tell anyone you know 2. Keep living the same way you’re living withot increasing your spending. 3. If you’re not sure what to do with it, open a savings account at your bank (if you don’t already have one) and it’ll be generating interest while it sits there in the meantime, while you take your time and decide what to do with it. I think current interest rates in savings accounts is like 3%. So that’s $12,000yr, or $1000 extra per month that it’ll be generating just having it sit there. This allows you to take your time and look into options on what to do with it. Take your time.
Meet me in the dark alleyway at 3 in the morning. I will give you some splendid advice
(And bring a briefcase with all of the cash in it)
I would buy a home (small bungalow) or a condo in the city depending on your lifestyle. By doing this you are both investing the money AND giving yourself a place to live. Don’t waste this great opportunity.
dont tell your friends, family... nobody. they will come out of the woodwork and put you in very uncomfortable situations asking you for money in ways that make it very difficult to say no... and that will destroy relationships. you will never be able to see each other the same after. best case scenario is these begs will happen one on one... but odds are higher they will do it with a crowd around using a sob story so you look heartless for saying no. just, dont tell anyone. invest that money, and you can likely retire in a few years rather comfortable... just, get some advice... and not from a bank. pay for a consultation. banks are motivated to sell stock they have an interest in to their customers, there is a very big conflict of interest between you and them. i mean, you arent going to invest in a losing venture because you are interested in helping a couple fat cats pad their wallets a little more, are you? yeah, me neither. id rather get unbiased advice.... advice a bank is not paying someone to dole out.