You inherit a tidy sum of money. What do you invest in?
 

You inherit $10,000 - $50,000. Realistically knowing that there is no such thing as a quick buck, you would like to invest in something, whether it be stocks, a business, an app... whatever.

What do you invest in?

Use the money to buy a new apartment. Charge rent the same as the mortgage payment. Just about everything in a new build has a 10 year warranty so as a landlord it’s pretty low risk. Sell after 10 years and bank the appreciation

Not exactly. IIRC it is

2 years finishing
5 years envelope
10 years structural

trip to vegas, all in on black, colour hit double up, if not right back to where you started
you only live life once

There are 0 new apartments that you can buy with $50k down and have the rent cover the mortgage payment, strata fees and property taxes.

-Mark

hookers and blow

party for RS

Research top 3 divident ETFs or dividend stock, park it there through your TFSA if you have room. If not, RRSP.

Outside the GVRD you probably could.

50K isn't a lot of money. Fill up your TFSA, put it into an ETF or two of your choosing.

Dump it here for 3.25% for 6 months if you're still deciding.
https://client.manulifebank.com/edo/...OMO_ID=DSP2019

Unless you have other opportunities, TFSA is a great idea if you're not maxed already.

Interesting thread to come up today.
I just got an email from my money guy and it was interesting. For example, if you put this into a PIMCO managed fund when the fund started in 2012, you would have seen an average of 10.3% return per year. Your $50k investment would have nearly doubled in the last 7 years. That's not bad considering that your best bet on a standard bank account is going to be 2-3%. That said, you would have had to leave that money untouched in the bank for the last 7 years. That is the tough part, especially when you need a few bucks.

So fuck it. Go to Vegas and bet it all on black while banging two chicks at one time.
That's why I love RS.

Or be smart like Civicblues said, and TFSA that cash. At least you'll have some tax savings that won't eat up the principal.

Or if instead of paying your "money guy" to invest in some PIMCO fund, you could have just bought an ETF yourself of the S&P 500 and from January 1 2012 to December 31 2018 you would have realized an average return of 13.27% and your $50k would have been $115.5k. If we included data from Jan 1 2019 to today, it would be up another 17% on top of that.

If you are paying an investment advisor, and that's what he has recommended, you need to PM me and let me make a referral for you (I am not an advisor) - you are not getting your money's worth.

-Mark

I don't think there are any cashflow positive condos in the lower mainland right now are there?

$100k > $500k condo > Mortgage will be around $19xx before taxes, strata, insurance.

https://gyazo.com/3fea8442e623176305d599f54ae09cb9
https://gyazo.com/3fea8442e623176305d599f54ae09cb9

I'd toss it into VTSAX(Total Market ETF) if you don't need the money for 4-5+ years. Despite the possible bear market incoming soon.

Good to see that the OP has no debt. The only thing I can think of doing if I were in that situation is to spend the bulk of it on paying down my mortgage, and keep a sum around as emergency funds. :(

I think in the mid-west USA you can get pretty close. But the maintenance upkeep will be huge. :drunk:

^
Maybe the PIMCO fund has a lower volatility than SPY. Either way, index funds are the way to go for most folks.

In the app/condo scenario, it be a 0 sum cash flow or negative. Rent has to cover your mortgage, maintenance fee, and property tax, hard to get that much. Any gain would be gain in value for apt but when you add in the real estate fee for selling a few years down the road, I don't think it's a good choice ... might have been 5-7 years ago but not now. Do you see the glut of new condos going up everywhere?

Cleanest is the invest in safe stocks, etfs, in your TFSA or RRSP route. $50K nowadays don't go very far.

I hope so given that it has a lower return, but in general if you have a long time horizon and can resist the urge to mess with your stuff, I'd prefer excess return over lower volatility.

-Mark

Unless your mortgage rate is >5%, I'd actually put the money in a TFSA/dividend producing ETFs and have it earn somewhere along the lines of 7% for a few years. Then take that money and put it into your put it towards your mortgage when you renew. Unless it's of course, at an even lower rate.

Agreed - if you have room to either add to your TFSA or your RRSP and your mortgage is in the typical 3-4% range, you are doing yourself a disservice by paying it down when you could instead increase your investments on a tax efficient basis.

If the choice was a 5% mortgage or a taxable investment account, the choice would be more slanted towards repaying debt.

-Mark

If casino and doubling down is an option, you might as well look into private placement investments (app/other businesses/etc).

If the plan is good, most private placements will start initial funding round at $0.10, with plans to IPO. While no one can guarantee how much return you will get, many businesses trying to IPO will have their founding shares locked for three years. This suggests they have an incentive to make the stock price as high as they can in three years.

The most recent one I've invested in is exactly that. Initial buy at $0.10, founding shares locked, they have a market maker, and (no guarantees but) aiming to hit $0.40 by Year 2. I'd say that's a pretty good return. 50K to 150K in two years.

But again, risky play.

I had a conversation with someone about 8 or 9 years ago. It was very brief because it was a random social event that was only an hour long. He was in his mid 30s and retired and now a money 'consultant' for fun. I've lost his contact info since. Anyway, I asked what he did to retire at such a young age. If my memory serves me right, he mentioned it had to do with him capitalizing on people's lack of ability to pay off their credit card debt. He wasn't a debt collector, but I can't remember the exact details of what he did. I asked how much he initially started with, and he said about $10,000. Our conversation was cut short. I emailed him for more info and he replied, but at the time I had a Shaw email account. Shortly after, I changed to Telus, and lost that email forever... oof.

Anyways, I was trying to google ways to 'capitalize on consumer debt' or something to that effect, but having no luck. It seems to always lead back to becoming a debt collector. Anyone have any idea what this guy may have been talking about?

And by the way, thank you all for the valuable information.

Throw it in a a high interest savings account TFSA preferably while you decide what to do with it.

Pay off high interest loans first.

That's all the advice i can offer so far.