Pay off mortgage as aggressively as possible without penalties (increase payments 20%, 20% lump sum)
Buy a reasonable toy(s) for him and the wife. 75k max. Maybe a modest fun car or a truck/trailer. Gotta enjoy some of the windfall.
Whatever left over, max out rrsp and tfsa for both him and wife. Open up resps for kids and max those out to maximize gov grant. 50,000 in a liquid savings account and the rest in a cash investment account. all the money added to the accounts, allocate half into VGRO, half into VCIP. Set up DRIP on the ones in the registered accounts, no DRIP on the ones in the cash accounts. Use the divis from the cash account as extra supplementary income while the rest grows.
Setup a DRIP that returns 100% dividend income.
Even $100K of dividend income /year is only $8000 in taxes.
Utterly pointless paying off mortgage at that point.
Weird that people don't all agree . . . . . .
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I’m not sure DRIP is the right word for thisThis quote is hidden because you are ignoring this member. Show Quote
Originally posted by Thales of Miletus
If you think I have been trying to present myself as intellectually superior, then you truly are a dimwit.
Originally posted by Toma
fact.This quote is hidden because you are ignoring this member. Show Quote
The plan is ME!
Yeah you're right, dunno why I used that word. Early in the morning.
I agree with all of this. Yes it's suboptimal from a investment and leverage perspective, but it's a nice safe play that has little downside. The left over money I'd put in an investment account with something reasonably safe and try to only touch the dividends etc. that get spit out.This quote is hidden because you are ignoring this member. Show Quote
Move somewhere warm, invest and get into something I have interest/passion in for work.
Move to Asia; buy A/C; live like a king
300 square feet in Hong Kong is apparently best.
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Good luck getting your money out in a few years when WW3 starts.This quote is hidden because you are ignoring this member. Show Quote
Last edited by Xtrema; 05-07-2021 at 09:39 AM.
Utopia. Peak human civilization.This quote is hidden because you are ignoring this member. Show Quote
Originally posted by Thales of Miletus
If you think I have been trying to present myself as intellectually superior, then you truly are a dimwit.
Originally posted by Toma
fact.This quote is hidden because you are ignoring this member. Show Quote
Risk Tolernce matters:This quote is hidden because you are ignoring this member. Show Quote
If you are on 25yr amort, 5 year 2% $300K mortgage. You would owe $84K in interest during those 5 years.
Drop that loan down to $200K. You would own $54K in interest.
So in effect you are getting a risk free/tax free conservative 6% return on that $100K.
But in today's market/climate, that barely keep up with inflation. I'm all about owning your primary home outright and have fuck you money afterwards, until we can write off primary home mortgage interest like my cousins in US.
Last edited by Xtrema; 05-07-2021 at 09:50 AM.
I love marth
Originally posted by Thales of Miletus
If you think I have been trying to present myself as intellectually superior, then you truly are a dimwit.
Originally posted by Toma
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i say spend it all on dumb shit. I get no entertainment value out of other people being responsible.
ffs beyond advice has gotten so lame.
Hey I did bring up the Denali and Super Air Nautique…This quote is hidden because you are ignoring this member. Show Quote
Originally posted by Thales of Miletus
If you think I have been trying to present myself as intellectually superior, then you truly are a dimwit.
Originally posted by Toma
fact.This quote is hidden because you are ignoring this member. Show Quote
i had to google what a super air nautique was.This quote is hidden because you are ignoring this member. Show Quote
Curious how the inheritance was taxed. Not a tax expert by any means but I believe there's no estate tax in Canada however he'd have to report that inheritance as income (deemed disposition) and taxed at his marginal tax rate which could eat up a big chunk at tax time. I'm really fun at parties.
What part of “no estate tax” was complicated?
It’s not income
Originally posted by Thales of Miletus
If you think I have been trying to present myself as intellectually superior, then you truly are a dimwit.
Originally posted by Toma
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well done sir.This quote is hidden because you are ignoring this member. Show Quote
came into thread wanting to post this.
leaving very very satisfied.