Two chicks at the same time man. Gold.
Two chicks at the same time man. Gold.
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Definitely if it is 7 figures, take it and invest it then withdraw the yearly gains as your "income". Then you can take that income and blow it, invest it, live off it, but whatever you do you still have the capital and that yearly payment. Less chance you put it all on red that way. Most ppl also blow up their first investment account so it hedges your risk and you can start from scratch a few times if need be.
The other good option would be divide it into 2 or 3 top priority categories. For ex, 1/3 blow on stupid shit, 1/3 mortgage, 1/3 investment, 1/3 h+b
Tap, Rack, BANG!
If he is financially illiterate, a trust is the way to go. Another advantage of a trust in his name that the money never reaches the familial accounts and it is not considered a joint asset in a divorce.
This becomes extra super duper important if the kind of lady friend an illiterate moron would keep around hears about any windfall.This quote is hidden because you are ignoring this member. Show Quote
Or any lady friend really.
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
Would he be so kind to buy me a new Honda CRV? I just honestly want a heated steering wheel. Im not asking for much....
I'd pay off the mortgage. The psychological and mental well being of not having a mortgage is huge. Then use the free time and spend with family and friends (& go cruising with TonyTiger in his new SUV).
Buy cars.
This is supposed to be beyond, what’s wrong with y’all.
Lol I'll ask. I'm sure he'll say yes. But I do agree with your statement, the weight if that much debt off your shoulders has got to be huge.This quote is hidden because you are ignoring this member. Show Quote
I was just thinking more long term, is it worth it to just pay off the mortgage with historically low interest rates or put it in somewhere to gain interest until the interest rates go up, then pay it off. I dunno. I guess it'll be a different answer from everyone.
Originally posted by SEANBANERJEE
I have gone above and beyond what I should rightfully have to do to protect my good name
Depends on his specific goal.This quote is hidden because you are ignoring this member. Show Quote
I assume they are still planning to work and have dual income?
If it were me I would personally pay off my mortgage, invest the remaining $1.2 into a low risk investment to ensure a long term income.
Then I would use the money that would have been used on the mortgage and invest that into other renevue sources such as a rental, higher risk stocks etc etc.
Very hypothetical situation, but at the end of the day it's their choice.
“I spent a lot of money on booze, birds, and fast cars. The rest I just squandered.” -George Best
Hire production company, start YouTube channel, record blowing it on dumb shit, profit, repeat
.
Last edited by DustanS; 09-22-2022 at 11:09 AM.
Basically described Danny Duncan on YouTubeThis quote is hidden because you are ignoring this member. Show Quote
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This is the way.
Seriously though, THIS is the way.This quote is hidden because you are ignoring this member. Show Quote
I get the impression that buddy is not financially savvy and as such should pick the lowest hanging fruit. I don't care if the numbers are supposed to work out in favour of investments over mortgage, this guy is not an investment guy. Going 100% debt free will change his outlook on money. After that tell him to focus on self education of some basic personal finance, good old Wealthy Barber, Canadian Couch Potato and Millionaire Next Door type stuff. He's not going to be a high income earner by the sounds of things so setting up his Fortress of Solitude seems to be the most appropriate.
"Masked Bandit is a gateway drug for frugal spending." - Unknown303
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Boosted life tip #329
Girlfriends cost money
Turbos cost money
Both make whining noises
Make the smart choice.
Originally posted by Mibz
Always a fucking awful experience seeing spikers. Extra awful when he laps me.
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.
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That's a very bold assumption for the average Canadian. Especially for someone who "has never had money in his life"This quote is hidden because you are ignoring this member. Show Quote
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I think there is a strong argument to be made that paying off your mortgage is the closest thing the average person can do to investing at the risk free rate, and the fact that it’s after tax “income” makes it pretty compelling as a risk free part of your portfolio.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
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I meant, with part of this seven-figure windfall, before you get to the mortgage vs investment decision-point. Or stated more clearly, Fill up your RRSP and TFSA BEFORE you consider any other investments.This quote is hidden because you are ignoring this member. Show Quote
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Yes, this is what I'm saying.This quote is hidden because you are ignoring this member. Show Quote
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