WWBD? come into alot of money....

[88CRX]

[sabad66]

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.

[suntan]

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.

[ExtraSlow]

Weird that people don't all agree . . . . . .

[killramos]

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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.

I’m not sure DRIP is the right word for this

[suntan]

The plan is ME!

Yeah you're right, dunno why I used that word. Early in the morning.

[JustinL]

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And 7 digits means $1M or $7.2M? All that may have difference strats.

If he is conservative, clear all debt from highest to lowest interest, dump as much to fill out RRSP/TFSA room to get into shelter 1st.

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.

[2Legit2Quit]

Move somewhere warm, invest and get into something I have interest/passion in for work.

[flipstah]

Move to Asia; buy A/C; live like a king

[ExtraSlow]

300 square feet in Hong Kong is apparently best.

[Xtrema]

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Now that sounds expensive

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300 square feet in Hong Kong is apparently best.

Good luck getting your money out in a few years when WW3 starts.

[killramos]

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300 square feet in Hong Kong is apparently best.

Utopia. Peak human civilization.

[Xtrema]

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On a serious note, when comparing the option of paying down a mortgage vs a low-risk investment, there's both risk and taxes to consider.
I'll assume you've already filled your RRSP and TFSA so investment gains are fully taxable, that means if you earn 5% on your low risk equities. You'll pay between a minimum of 19%, so that's more like 4%. And it's not risk free, it can go down. Whereas your mortgage may be at 2 or 3 percent, but saving money on that is tax free and risk free. In fact it reduces the risk you pose to yourself, since investments may be tinkered with and withdrawn and eventually frittered away.

Not saying there isn't a small advantage to smart investments ahead of paying down a mortgage, but it's probably VERY SMALL, and there's real risk-based downsides.

Risk Tolernce matters:

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.

[killramos]

I love marth

[Buster]

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.

[killramos]

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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…

[Buster]

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Hey I did bring up the Denali and Super Air Nautique…

i had to google what a super air nautique was.

[Manhattan]

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.

[killramos]

What part of “no estate tax” was complicated?

It’s not income

[nismodrifter]

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You know what I would do if I had a million dollars? I would invest half of it in low risk mutual funds and then take the other half over to my friend Asadulah who works in securities...

Or two chicks at the same time, man.

well done sir.

came into thread wanting to post this.

leaving very very satisfied.