REVscene Automotive Forum - View Single Post - You inherit a tidy sum of money. What do you invest in?

lowside67 · 06-27-2021, 09:01 AM

I agree emphatically - you cannot overstate how important time in market is. We only work with high and ultra high net worth clients and given the $ amounts we are typically working with, TFSAs etc are often looked over as "not worth the effort".

However, if your TFSA was at $60k today and you put $6k per year in for 30 years, you'd have over $1,000,000 at retirement if you could do 7%/year for that time. An insignificant amount of today can become a very significant amount of money over time.

If you waited 5 years to start your TFSA and then started with $90k and added $6k/year for 25 years (aka the exact same amount total cash in), you'd have over $200k less.

-Mark

06-27-2021, 09:01 AM	#59
lowside67 Old School RS Join Date: May 2004 Location: Port Moody Posts: 4,641 Thanked 4,157 Times in 1,262 Posts Failed 130 Times in 80 Posts	I agree emphatically - you cannot overstate how important time in market is. We only work with high and ultra high net worth clients and given the $ amounts we are typically working with, TFSAs etc are often looked over as "not worth the effort". However, if your TFSA was at $60k today and you put $6k per year in for 30 years, you'd have over $1,000,000 at retirement if you could do 7%/year for that time. An insignificant amount of today can become a very significant amount of money over time. If you waited 5 years to start your TFSA and then started with $90k and added $6k/year for 25 years (aka the exact same amount total cash in), you'd have over $200k less. -Mark __________________ I'm old now - boring street cars and sweet race cars.