Free Money Management Advice.

[rookiepilot]

Meanwhile, they were paying interest on two cars, motorcycle, personal credit, credit card......A house should be the last thing you pay off.

I'd generally agree with that.

[rookiepilot]

Incidentally, I wasn't trying to be elitist when I mentioned credentialed financial advisors. There are certainly some extremely wealthy people who never obtained formal education. But I find that by and large they're the exception in the fee-for-advice world. My own advisor has several designations like CFA, etc, what those mainly allow her to do is read financial reports and conduct analysis to a depth that most self-taught investors (including myself) aren't capable of. Of course that's only a small part of what she does though, and it's more about having someone who shares your own philosophy on investing and crucially, has proven experience in the field.

She speaks money masterfully. I've just tried to learn enough to be able to understand the gist of what she says!

Excellent words. I have one question and I am not dissing your advisor.

Is she independently wealthy, not from the advisory, but from her own investing?

That is a question I'd ask of any advisor. Most get offended with that kind of question like it's irrelevant.

[up on one]

The best financial advice I have ever been given was to pick up a copy of The Wealthy Barber Returns by David Chilton.


You either spend like a millionaire or you are a millionaire. You can't be both

[rookiepilot]

The best financial advice I have ever been given was to pick up a copy of The Wealthy Barber Returns by David Chilton.


You either spend like a millionaire or you are a millionaire. You can't be both

I see a lot of future GoFundme for those 80,000 truck payments

[Zaibatsu]

Its usually just the basic things that give you financial security. Everyone has their tricks. They like to parade their expertise. And their successes. But rarely do they talk about their losses. Their setbacks.

My father worked an average job with an average salary and pension. My mother didn’t work. We lived in an average house in Calgary. We bought a new vehicle on average of once every four years. All of their other investments were in bonds, GICs, and mutual funds. We took a family vacation every year, with a big one down south about every couple to three years.

They paid off their house and sold it for almost half a million dollars and bought a retirement property in BC for cash. They bought another property in Arizona. They take their new RV down every winter. They have so much money from pension and income investments that they struggle with what to do with it.

It’s been said that Donald Trump would be a richer man today had he simply invested his inheritance in the S&P 500 component companies. Some people like gambling, and some people gain big, but lots lose big as well. Ultimately, as long as your living within your means and saving consistently, there’s little reason why anyone else can not only achieve financial freedom, but still enjoy things along the way.

I lived a lot of lean years in aviation. But I always made sure I left at least $200 a month to put away. Most of the time I target 10-15% to put away. I’m no investing shark. I use an advisor and pay fees. But I’ve seen double digit growth in the last few years with very little effort or risk.

When it came time to buy a vehicle to replace a very old Jetta I’d had since starting flying, I decided to buy new. Interest rates were lower on a new vehicle vs an old one, so cost of borrowing is only a couple thousand dollars if I let it go to full term (it’s a small car, so I won’t) and I plan on keeping it forever so the depreciation doesn’t really matter. Didn’t have to worry about a lemon or spending months trying to find the right car. It made far more sense to keep the cash I had in investment making much more in growth than I’d be paying in interest, plus being able to be easily accessible in an emergency rather than tied up in something that’s losing value daily and that I’ll still need in the end.

I haven’t bought a house because it doesn’t make sense while my career is still moving, so I’m paying less in rent as well as upkeep (nobody ever mentions the property taxes or roof replacement or furnace repairs or mortgage interest or realtor and legal fees when they say how much money they made in real estate, all of which are included in what is often a lower equivalent monthly rental rate) and I can pack up at short notice. I am planning on buying property in the next few years that will include a substantial down payment.

I know quite a few people who are big on “passive income”. To me, it’s the wrong focus at this stage in life, unless I can easily achieve a passive income that can be used for reinvestment or to be a full time business owner or retire. Most passive incomes generate low returns relative to investment, but are consistent and low risk. Many also aren’t passive at all, requiring considerable amounts of time and effort to maintain. For me, a passive income will be for when I’m closer to retirement and want to work less, and when my net worth will support a larger venture capable of generating significant income.

In short. Live within your means, enjoy your life, and don’t worry or obsess about money.

[complexintentions]

Excellent words. I have one question and I am not dissing your advisor.

Is she independently wealthy, not from the advisory, but from her own investing?

That is a question I'd ask of any advisor. Most get offended with that kind of question like it's irrelevant.

I understand completely. And yes, she and her husband are independently wealthy. They're both American financial industry veterans who left the rat-race and run a boutique firm out of Bangkok that specializes in complicated expat situations, which is why I was attracted to them initially, among other reasons. Their minimum portfolio requirement size isn't insane, but it does put them out of reach of the beginning investor.

Anyone looking for an advisor should have a list of questions that should they not be happy with ANY of the answers, should cause them to run, not walk away. The one you mentioned "How does your own portfolio perform, and may I see a history of returns?" is on it, as is "How are you PAID?"

Actually our biggest problem right now is the lack of tax knowledge. I'm realizing more and more a lot of the profits come from the decisions that worked out well for tax implications.

Could not agree more. Making it is only half - or less - of the equation. The other part is how much do you get to KEEP! Taxes and fees will kill even the best returns. Which is why I left Canada and only come back to visit. Not an option for most I know, but I beg for this not to turn into a screed about the virtues of socialist policy, I'm not interested. The point is, tax planning and close watch of costs is very much important for anyone's finances.

I love Zaibatsu's post, I won't quote it in its entirety but he nails it. Most "investors" are really just gamblers who brag about their wins and are strangely silent about their losses. True investing is boring, slow, with a managed amount of risk and not that apparently lucrative in the short-term. And most truly wealthy people - not the ones who APPEAR wealthy - you'll never even know about. Check out the latest edition of "The Millionaire Next Door" if you want to know how most rich - not the outliers you see on tv - got rich.

[rookiepilot]

Most "investors" are really just gamblers who brag about their wins and are strangely silent about their losses. True investing is boring, slow, with a managed amount of risk and not that apparently lucrative in the short-term. And most truly wealthy people - not the ones who APPEAR wealthy - you'll never even know about. Check out the latest edition of "The Millionaire Next Door" if you want to know how most rich - not the outliers you see on tv - got rich.

TRUE TRUE TRUE. X 1000.

The ones who brag on their wins, lifestyle, pictures of toys, whatever, and they are on every social media site, are never the ones you should listen too. 99% are bald faced liars, too.


+++ this tidbit:
The very smartest investors are rarely if ever in the media. They have nothing to sell.

[seniorpumpkin]

This is a conversation that needs to happen more often. As boring a topic as this is to learn, it's importance is so often underestimated.
The basic concepts of financial planning are so straight forward, it's amazing that so few people even know the difference between a TFSA and an RRSP and how to use these tools.
When I finally got to a point in aviation that I had more money than I knew what to do with, the conclusion I eventually came to was that I HAD to educate myself. Nobody will be as motivated to grow your money as you, and as has been mentioned, very few financial "professionals" can be trusted to dispense good advice.
I read a book on how to pick the best stock (Peter Lynch) and I read a book on how picking the best stock is dumb (the Boggleheads). I often read www.greaterfool.ca and I read the news. Between those sources I have come up with my own plan and it's been paying off very well!
I also learned that there's no point in accelerated payments on a mortgage given most interest rates are below 3% when you can invest in a super stable utility company that pays 5% in dividends alone!
I have friends who buy houses as investment properties. Maybe in some markets that makes sense, but I personally don't enjoy replacing toilets, painting walls, or going after delinquent renters for money. I'd rather click buttons on my computer and watch my diversified, balanced portfolio grow by itself.
Don't listen to me though, find out for yourself what kind of financial plan makes sense for you.

[co-joe]

I like the idea of ETFs over Mutual funds (or other funds with huge MERs). It blows me away that an asset management company gets paid regardless of a fund's performance. The MERs they are changing are insane.

Something I've been doing the past year is read all the articles on, and emails from Investopedia. It's a great way top learn terms, and what the advantages of different strategies are. They dumb things down well.

[digits_]

You can't blame the government for everything.

It's our cultural acceptance of debt and credit rating that's the main culprit. Education is just a part of it.

[rookiepilot]

It's so sad that the government doesn't care about our financial education. And, yeah, that is justified for them: they need the 9 to 5 workers. Not that it would be a bad thing, but working until you're 70 years old?

People are just incredibly lazy about their own education. Take it from me.

I teach on Twitter every day, as do many others, how to think.

People get pissed I'm not giving guaranteed stock tips.

[DHC-1 Jockey]

You mean I can't just buy a bunch of bitcoin and cannabis stocks and expect to retire in a few years?

Shucks.

Just started reading this thread out of curiosity and this was the third post, from back in 2018. I guess buying some Bitcoin WAS a good idea.

[Blueontop]

Excellent words. I have one question and I am not dissing your advisor.

Is she independently wealthy, not from the advisory, but from her own investing?

That is a question I'd ask of any advisor. Most get offended with that kind of question like it's irrelevant.

I understand completely. And yes, she and her husband are independently wealthy. They're both American financial industry veterans who left the rat-race and run a boutique firm out of Bangkok that specializes in complicated expat situations, which is why I was attracted to them initially, among other reasons. Their minimum portfolio requirement size isn't insane, but it does put them out of reach of the beginning investor.

Anyone looking for an advisor should have a list of questions that should they not be happy with ANY of the answers, should cause them to run, not walk away. The one you mentioned "How does your own portfolio perform, and may I see a history of returns?" is on it, as is "How are you PAID?"

Actually our biggest problem right now is the lack of tax knowledge. I'm realizing more and more a lot of the profits come from the decisions that worked out well for tax implications.

Could not agree more. Making it is only half - or less - of the equation. The other part is how much do you get to KEEP! Taxes and fees will kill even the best returns. Which is why I left Canada and only come back to visit. Not an option for most I know, but I beg for this not to turn into a screed about the virtues of socialist policy, I'm not interested. The point is, tax planning and close watch of costs is very much important for anyone's finances.

I love Zaibatsu's post, I won't quote it in its entirety but he nails it. Most "investors" are really just gamblers who brag about their wins and are strangely silent about their losses. True investing is boring, slow, with a managed amount of risk and not that apparently lucrative in the short-term. And most truly wealthy people - not the ones who APPEAR wealthy - you'll never even know about. Check out the latest edition of "The Millionaire Next Door" if you want to know how most rich - not the outliers you see on tv - got rich.

New to investing and determined to get my financial freedom but lacking in experience. How does one go about the bast way finding a good financial advisor? I feel like googling is looking for a diamond in a pile of mud and don’t really have any good connections. What are the important questions to ask them when you do find one that might work? Thanks for any advice!

[digits_]

New to investing and determined to get my financial freedom but lacking in experience. How does one go about the bast way finding a good financial advisor? I feel like googling is looking for a diamond in a pile of mud and don’t really have any good connections. What are the important questions to ask them when you do find one that might work? Thanks for any advice!

Buy index ETFs, or make regular payments into RRSP programs like wealthsimple or questrade.

Unless you are a milionaire already, I fail to see what value a financial advisor would bring.

Or become a landlord if you are ok with dealing with tenants. Save some money to buy cheap housing once the bubble bursts.

[pelmet]

You mean I can't just buy a bunch of bitcoin and cannabis stocks and expect to retire in a few years?

Shucks.

Bitcoin price on July 3, 2018 was approximately $8,800. Now $51,300.
Canopy Growth stock on July 3, 2018 was $7.80....hit $67 2.5 months later although down to $9.80 today. Still, if you had put your life savings in, you would have been able to retire in a few years.

[pelmet]

1) Work OT. That's a good point, but right now my kids are young and I'm on track financially so why work so hard, giving half my money to the government,

I would like to point out that we have a progressive tax rate in Canada, and I don't believe anyone in aviation is ever going to be paying 'half their money' to the government.

53.5% in Ontario and above 50% in other jurisdictions. It all depends on how much you make in the top bracket.

[Blueontop]

New to investing and determined to get my financial freedom but lacking in experience. How does one go about the bast way finding a good financial advisor? I feel like googling is looking for a diamond in a pile of mud and don’t really have any good connections. What are the important questions to ask them when you do find one that might work? Thanks for any advice!

Buy index ETFs, or make regular payments into RRSP programs like wealthsimple or questrade.

Unless you are a milionaire already, I fail to see what value a financial advisor would bring.

Or become a landlord if you are ok with dealing with tenants. Save some money to buy cheap housing once the bubble bursts.

Currently paying into my employer rrsp match program, have a small investment in some crypto
and a landlord but don’t really know anything about ETFs. I’ll have to look into them

[digits_]

New to investing and determined to get my financial freedom but lacking in experience. How does one go about the bast way finding a good financial advisor? I feel like googling is looking for a diamond in a pile of mud and don’t really have any good connections. What are the important questions to ask them when you do find one that might work? Thanks for any advice!

Buy index ETFs, or make regular payments into RRSP programs like wealthsimple or questrade.

Unless you are a milionaire already, I fail to see what value a financial advisor would bring.

Or become a landlord if you are ok with dealing with tenants. Save some money to buy cheap housing once the bubble bursts.

Currently paying into my employer rrsp match program and a landlord but don’t really know anything about ETFs. I’ll have to look into them

Pay the minimum you can into the employer rrsp and -if you are in the top tax bracket- pay more rrsp into a personal one. You will often have lower fees that way. If you can handle it, extra properties are likely a good choice as well.

Did you max out your TFSA yet? If you are not in the top tax bracket, and you expect you might be in the future, focus on a TFSA first.


The easiest way is to marry rich though.

[pelmet]

The easiest way is to marry rich though.

Or divorce rich.

[Blueontop]

1) Work OT. That's a good point, but right now my kids are young and I'm on track financially so why work so hard, giving half my money to the government,

I would like to point out that we have a progressive tax rate in Canada, and I don't believe anyone in aviation is ever going to be paying 'half their money' to the government.

53.5% in Ontario and above 50% in other jurisdictions. It all depends on how much you make in the top bracket.

Ya when I get some OT I get taxed at 47%! So I work hard to make a little extra for my family which means more time away from my family and giving up up one of my few precious days off and the government gets basically half, damn criminal IMHO . I get the idea about progressive taxing but I’m not wealthy by any means so that marginal rate should not be so high for us working class getting killed with inflation and stagnated/depressed wages