Quote:
Originally Posted by 6793026
From a 'normal' person / couple with steady income, I would say housing is the safest.
IF he/she has extra cash then sure... RRSP? RESP? Pay down mortage? Genuinely want to know what options are available.
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As I pointed out in the previous post, I'd like to think everything as a cashflow. This way, you have a clear vision on the actual cost, whether it's financial or opportunity, on everything.
RRSP/RESP/TFSA are great vehicles to shelter certain portion of your money from the taxmen. But ultimately, how much can you grow them?
One of the best financial lesson I have ever had was "invest, don't speculate".
I don't invest on something because I foresee it's going to increase in price. That's speculation. Instead, I focus on eliminating every possible "wish", or things I can't control in a venture and let the result, which is increase in value, be the ultimate outcome.
In RE, a lot of people speculate. You might get lucky as we've had in the last decade or two, but what do you do when the downturn hits? Just keep on holding and wish the market would eventually turn around? That's not something you have control over. Therefore, that's speculation. What you do have contro over is the rent you charge, the amount of money you put into to make it nice... etc.
And when you see everything as cashflow, it makes very easy to invest in things as you have a lot of control over things.