Strategies available to the financially secure don't always work for those just scraping by. It all depends on risk tolerance and location. Getting an interest only loan is like playing craps in many areas of the country. The one doing the rolling does not have odds in their favor.
When I made roughly that salary I bought a ~$160k house and was making extra payments and still saving/investing plenty... All you have to do is live frugally, think before buying anything: do I really need it, why, what value does it add, where will I put it, will it still be interesting a year from now.... etc. Live beneath your means and you can swing paying cash for a car, repair, etc...but taking out a loan now and again is good for the credit score.
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I'm sorry these discussions always have the potential to make someone feel bad. Same for me in 1985 when I bought a $125k condo, and soon after had 4 kids (2 came with my wife). Frugal is an understatement but I was lucky in that Boston was one of the hottest real estate markets in the country. Cambridge in particular had an aspect that few appreciate, it was DIY heaven. No need to pay pros, you could pull your own permits and get all the sweat equity for yourself. In essence I worked two jobs but one was all me.
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^ I certainly don't feel bad (I'm pretty close to the quoted median income, but have certain living situation advantages), it's just the reality of the situation.
What's nuts is the disparity between somewhere like here in Portland and most any Midwest city -- a down payment here is half the total cost of an equivalent place elsewhere. Sure there are some very nice lifestyle amenities to the coasts, but this is really not sustainable.
What's nuts is the disparity between somewhere like here in Portland and most any Midwest city -- a down payment here is half the total cost of an equivalent place elsewhere. Sure there are some very nice lifestyle amenities to the coasts, but this is really not sustainable.
Smart. Sometimes professional advice is valuable. Anything requiring more than a year to plan, or a ten foot ladder gets my nod...
Thanks anji.
We are not wealthy but we feel more comfortable now that the bulk of the decisions are made by persons who know their stuff. It's a balanced portfolio that includes about 50% domestic and the rest outside our country. I'm not too happy about the outside stuff but to increase security, we took the advice of the advisor. No one country is a sentry for your future no matter how patriotic you are. Being that today is our 150 anniversary, I speak from experience.
We are not wealthy but we feel more comfortable now that the bulk of the decisions are made by persons who know their stuff. It's a balanced portfolio that includes about 50% domestic and the rest outside our country. I'm not too happy about the outside stuff but to increase security, we took the advice of the advisor. No one country is a sentry for your future no matter how patriotic you are. Being that today is our 150 anniversary, I speak from experience.
Cal, one thing to be said about a Canadian, investing outside of Canada, you do not get any dividend tax credits for non-registered accounts. Most of my foreign investments are inside my RRSP for that reason. BTW, I invest with RBC Dominion Securities.
The investment business in Canada has it all locked up, I can not buy preferred shares on my own, it has to be done through an advisor or some form of brokerage that I know of.
The investment business in Canada has it all locked up, I can not buy preferred shares on my own, it has to be done through an advisor or some form of brokerage that I know of.
That means to me that you are still contributing to your RRSP's, which is good if you have reported income such as T4's, rental etc, to get the tax reduction.
Since I do not work anymore, I do not contribute to my RRSP's anymore and live off dividends that have to be in a non-registered account for me to receive them. Dividends in my RRSP accounts get re-invested inside the RRSP's.
I also have a LIF as well, ( qualify when you are over 55) so I get a small monthly amount deposited into my chequing account. the LIF was from a LIRA, (Locked in company contributed pension).
I will start to draw from my CPP at 60, (earliest) in a few years from now.
I think the rule is that you have to collapse the RRSP at age 70 and convert it to a RIF, but I am a long way away from having to do that.
I found that investing with RBC only offers a limited selection of available investments, usually mutual funds that is why they refereed me to Dominion Securities which allows me to hand pick stocks, MF's etc. The catch is that they will not talk to you unless you have 100K or more invested. Another benefit is that the admin fees for the non-reg accounts are tax deductible.
Nothing wrong with that. Hopefully you do not get any arthritis to prevent you from playing anymore.
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Me too. I am without dependants, soooo...
...once the money's gone, The Mrs. and I will take that one last sleigh ride.
In the meantime, I going to suggest my liver takes out insurance.
So at least it seems one fellow heard of Greenspan.
Did you happen to read his 1966 paper ?
Hehe, in light of the unwarranted yet outstanding stock market performance, "irrational exuberance" need a new definition, I guess.
Hehe, am I'm seen mockery of the almighty FED and it's wonderful Dollar ? I mean credibility and so of these academic central planners like Yellen and Krug man seems to have reached a new all time low while the wonderful free and fairly traded stockmarkets reach new all time highs...
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One thing the numbers say we should save is like 5-10 percent of paycheck when we start
working and invest for retirement will lead to being a millionaire when we retire.
A couple of good investment vehicles: IRAs, 401Ks, 403Bs, etc are the before
tax that we can lower our current tax bracket (maybe) and delay it until we retire.
We do need to take manditory distributions though and those will be taxed.
Penalty for early withdrawal.
The After tax...roth IRA, what could be better once the tax is paid we never pay
tax again, can take the initial investment out penalty free after 5 years, etc.
And can give it to other folks tax free when we depart.
I am wondering what the top paying dividend distribution companies are?
What are some good stocks to look into for the future?
Or top mutual funds?
I've got some of the standards...Apple, Exxon, some in a now closed fund,
and another one.
I don't want to go crazy, I don't have gold, well not much anyway and
a bit of silver...for the just in case. It might be necessary in the future
as inflation hedge or what ever.
When I bought my house, I stayed here, instead of the conventional
wisdom of sell and buy bigger, then do it again and again.
I wouldn't mind trying to find a duplex or 4-plex to buy on time,
thats close and to keep an eye on.
What is the info on the Bitcoin? I thought they got busted for
fraud? What is the coin they are going to make? Is that supposed
to be real gold?
cheers,
working and invest for retirement will lead to being a millionaire when we retire.
A couple of good investment vehicles: IRAs, 401Ks, 403Bs, etc are the before
tax that we can lower our current tax bracket (maybe) and delay it until we retire.
We do need to take manditory distributions though and those will be taxed.
Penalty for early withdrawal.
The After tax...roth IRA, what could be better once the tax is paid we never pay
tax again, can take the initial investment out penalty free after 5 years, etc.
And can give it to other folks tax free when we depart.
I am wondering what the top paying dividend distribution companies are?
What are some good stocks to look into for the future?
Or top mutual funds?
I've got some of the standards...Apple, Exxon, some in a now closed fund,
and another one.
I don't want to go crazy, I don't have gold, well not much anyway and
a bit of silver...for the just in case. It might be necessary in the future
as inflation hedge or what ever.
When I bought my house, I stayed here, instead of the conventional
wisdom of sell and buy bigger, then do it again and again.
I wouldn't mind trying to find a duplex or 4-plex to buy on time,
thats close and to keep an eye on.
What is the info on the Bitcoin? I thought they got busted for
fraud? What is the coin they are going to make? Is that supposed
to be real gold?
cheers,
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