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A Day InThe Life
Jack of All


Registered: 03/06/09
Posts: 1,175
Loc: Canada
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Came by some money, Smartest way to invest it?
#18978436 - 10/14/13 08:18 PM (10 years, 4 months ago) |
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Wanted some proper advice on investing some money I inherited. 40K, of which I'm giving my mom 12k and paying off debts which leaves me with 25k. There are some other things I need to buy like a vehicle and maybe mechanics tools (I'm pursuing a career as a power sports tech). I want to try and spend only the money I make at my current job for fun and invest as much of this money as I can into something that will actually pay off in the future.
I'm not exactly sure on what course to take though, bonds? RRSP? Down payment on a home? I was debating putting a down payment on a townhouse or something and maybe having a roommate or two to rent rooms and help pay off the mortgage. At the same time though, I don't exactly like my current job as work isnt steady and I don't plan on keeping it for a very long time and don't want to be stuck into something like that at this point in my life. So until then I'm not sure what to do with it until I'm ready for that sort of investment.
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WhoManBeing
PsychedelicYogi



Registered: 09/01/13
Posts: 3,836
Loc: Oregon
Last seen: 3 days, 6 hours
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Re: Came by some money, Smartest way to invest it? [Re: A Day InThe Life]
#18978582 - 10/14/13 08:43 PM (10 years, 4 months ago) |
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i could really use a loan, and have a good interest rate in return. haha. seriously, though.
getting yourself financial stable and well, see to be the most important for the moment of now, which sounds as you understand and are to be doing such. high five. as for investments... friends would buy gold when a bit to spend. really have no idea, but would have to consult me grandpa.
-------------------- Hip, hip... WhoRAy!!! Eye was thinking the other day... ahh, thinking never done me no good.
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Gilgamesh18
Herbivore Man

Registered: 03/01/12
Posts: 11,671
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Re: Came by some money, Smartest way to invest it? [Re: WhoManBeing]
#18981499 - 10/15/13 02:04 PM (10 years, 4 months ago) |
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Down payment on a rental property use it to build your equity until you own the property while continuing to work. Then once you own it outright get a mortgage on another property become a real estate kingpin.
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Destitute
floss daily

Registered: 11/28/12
Posts: 4,027
Loc: where
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Re: Came by some money, Smartest way to invest it? [Re: A Day InThe Life]
#18982683 - 10/15/13 06:58 PM (10 years, 4 months ago) |
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Well you could always put that money towards a higher education. That's a decent investment. I wouldn't buy a house if you aren't satisfied with your current job.
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PDU
travel kid vs.amerika



Registered: 12/03/02
Posts: 10,675
Loc: beautiful BC
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Re: Came by some money, Smartest way to invest it? [Re: Destitute]
#18985404 - 10/16/13 09:51 AM (10 years, 4 months ago) |
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Personally, I would buy a house (trailer, what have you) and rent it out, while keeping an emergency fund of about $5000 in a higher interest mutual fund from ING (canada,) or some other place where it maintains it's fluidity.
Buy a place, and rent it out, make them sign a lease and play your cards right (running a background check, and using good judgement.) Then you end up with a good tenant, you will have a property accumulating equity and tenants paying your mortgage while you go about living your life as normal. (renting your own place, as you do now.)
However, it is a gamble because you will be responsible for maintenance and issues with the rental suite aswell as things like landscaping. In my case, I would jump at the chance to "manage" these things, if you arn't ready for these responsibilities, then you are probably over your head.
This also depends on your housing market - where I am at, you can't keep a house empty - however, I understand that some rentals sit empty for long periods of time, losing money.
I personally would rather rent a whole house (or what have you) to one person who takes the lease and is responsible for paying the rent. This is far preferred than renting multiple rooms out individually, which increases the chances of someone defaulting considerably.
I am not a landlord, and do not own a home - but could be in the same situation as you sooner than later, and If that happens I will likely invest in either a house with a suite, or a duplex.
-------------------- GO OUTSIDE.
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PDU
travel kid vs.amerika



Registered: 12/03/02
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Re: Came by some money, Smartest way to invest it? [Re: PDU]
#18985423 - 10/16/13 10:00 AM (10 years, 4 months ago) |
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Another option is; precious metals are really low right now, and eventually will turn upwards. Silver has considerable upside. I don't know that much about how it trends, but the arguments that i've read left me with enough faith that I invested a good chunk of money into silver and will wait it out until I get a decent gain.
Next, I will be investing in a mutual fund, and although I am expecting quite modest returns of 3-5% (hopeful), The management fee's are very low, and it's rebalanced quarterly, so it's hands off while I learn and accumulate more. If you reinvest your returns automatically, through the power of compounding your principle will eventually multiply in size. <--- this would be a good option while you learn about investing.
With a principle the size you are talking about, you could benefit a fair bit by learning to invest DIY, rather than through a mutual fund. However, i'd make "learning about investing and eventually doing it DIY" a longer term plan, it's not something to rush into.
-------------------- GO OUTSIDE.
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LunarEclipse
Enlil's Official Story


Registered: 10/31/04
Posts: 21,407
Loc: Building 7
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Re: Came by some money, Smartest way to invest it? [Re: PDU]
#18987122 - 10/16/13 05:04 PM (10 years, 4 months ago) |
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I'd buy a good low mileage car with 5k, put another 2k into tools, put 8k in a checking account, and buy silver with the other 10k. Bag of Junk quarters 90/10. A few maple leafs, a few eagles.
-------------------- Anxiety is what you make it.
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Gilgamesh18
Herbivore Man

Registered: 03/01/12
Posts: 11,671
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Re: Came by some money, Smartest way to invest it? [Re: LunarEclipse] 1
#18987323 - 10/16/13 05:46 PM (10 years, 4 months ago) |
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Or just buy as much plex as you can afford!
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LunarEclipse
Enlil's Official Story


Registered: 10/31/04
Posts: 21,407
Loc: Building 7
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Re: Came by some money, Smartest way to invest it? [Re: Gilgamesh18]
#18987440 - 10/16/13 06:13 PM (10 years, 4 months ago) |
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Quote:
Gilgamesh18 said: Or just buy as much plex as you can afford! 
OP already said his job isn't that secure. Why do you think someone should borrow money they can't afford to repay? Are you that hooked on real estate? Do you think that it's easy to get a loan nowadays? Great he inherited the money, that means diddly squat to a loan officer. They ONLY care about the percentage of income versus the mortgage. The down payment doesn't mean shit to them other than reducing the monthly payment. Putting more down won't help if you still don't qualify.
-------------------- Anxiety is what you make it.
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nuentoter
conduit



Registered: 09/17/08
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Re: Came by some money, Smartest way to invest it? [Re: LunarEclipse]
#18987499 - 10/16/13 06:27 PM (10 years, 4 months ago) |
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25k hmmm id buy 20k worth of undeveloped land here in maine which should give ya about 20acres around where i am, i'd spend 3k on a halfway decent pickup truck with 4x4, and 2k on concrete for a slab of concrete, start building with your job money and the trees on your land,
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The geometry of us is no chance. We are antennae, we are tuning forks, we are receiver and transmitters of all energy. We are more than we know. - @entheolove "I found I could say things with color and shapes that I couldn't say any other way - things I had no words for" - Georgia O'Keefe I think the word is vagina
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A Day InThe Life
Jack of All


Registered: 03/06/09
Posts: 1,175
Loc: Canada
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Re: Came by some money, Smartest way to invest it? [Re: LunarEclipse] 1
#18987992 - 10/16/13 08:12 PM (10 years, 4 months ago) |
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Quote:
LunarEclipse said:
Quote:
Gilgamesh18 said: Or just buy as much plex as you can afford! 
OP already said his job isn't that secure. Why do you think someone should borrow money they can't afford to repay? Are you that hooked on real estate? Do you think that it's easy to get a loan nowadays? Great he inherited the money, that means diddly squat to a loan officer. They ONLY care about the percentage of income versus the mortgage. The down payment doesn't mean shit to them other than reducing the monthly payment. Putting more down won't help if you still don't qualify.
He's talking about "PLEX" in Eve Online
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A Day InThe Life
Jack of All


Registered: 03/06/09
Posts: 1,175
Loc: Canada
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Re: Came by some money, Smartest way to invest it? [Re: A Day InThe Life]
#18988005 - 10/16/13 08:15 PM (10 years, 4 months ago) |
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I really don't want to get into real estate because I feel it'd be more of a liability to me at this point, I don't want to have to worry so much about my job stability & work.
I've always wanted to buy a plot of land and build a house on it/start with a fancy yurt or something. But I'm not sure if I have enough for what I'd want to accomplish for that yet.
The precious metals seems like a good idea, I have looked at the prices and they are quite low. Why just silver and not gold as well? What about bitcoins too?
Edited by A Day InThe Life (10/16/13 08:45 PM)
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psyconaught
Chemical Connoisseur


Registered: 11/04/10
Posts: 6,100
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Re: Came by some money, Smartest way to invest it? [Re: A Day InThe Life]
#18996456 - 10/18/13 04:59 PM (10 years, 4 months ago) |
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personally i'd go with silver, when i was growing up my family bought me quite a bit of stock throughout the years so I'm selling that and coming into about 6 grand, i plan on investing a few thousand in silver. Bitcoins have the opportunity for huge gains, but huge gains = huge risk. The market has been known to be drastically unstable
-------------------- Think for yourself, question authority
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Brain Melter



Registered: 10/14/13
Posts: 48
Loc: planet earth
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Re: Came by some money, Smartest way to invest it? [Re: psyconaught]
#19049987 - 10/29/13 01:01 AM (10 years, 3 months ago) |
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mutual funds. there are many different types depending on what type of investing style pertains to you
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jvm
I knew the pieces fit!



Registered: 05/08/07
Posts: 2,031
Loc: Cleveland, Ohio
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Re: Came by some money, Smartest way to invest it? [Re: Brain Melter]
#19058280 - 10/30/13 03:25 PM (10 years, 3 months ago) |
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Weird how everyone else is saying silver. I would suggest silver. It's at about $22oz and i think it will go much much higher within 5 years. Although it isn't edible, silver is worth its weight in any country as is gold, but gold is still sitting around $1350oz. Just think about how much gold has risen within the past 30 years. Silver was once $40oz back in the 80s.
I would also suggest large property of land instead of a house. But with land you need to do a lot of research into the geological and topographical part of it.
Do not buy a house unless you can get it cheap as shit with a 10+ acres of land.
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thescientist
Registered: 03/09/02
Posts: 807
Loc: Dade County
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Re: Came by some money, Smartest way to invest it? [Re: jvm]
#19061360 - 10/31/13 01:01 AM (10 years, 3 months ago) |
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Dear OP,
Get a few books on investing.
Books like The Wealthy Barber.
This way you will have a basic foundation on which to move forward.
There really isn't a better avenue than educating yourself.
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Adden

Registered: 06/04/03
Posts: 39,201
Loc:
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Re: Came by some money, Smartest way to invest it? [Re: thescientist]
#19087661 - 11/04/13 10:06 PM (10 years, 3 months ago) |
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Buy some bags of junk silver at spot price. There's no point paying 2-5 above spot for shiny maple leaves or anything. You can if you want, I personally don't see the point. I'd rather have my rolls of merc/barber/roosevelt dimes, jfk 40 and 90% halves, franklins, peace/morgan dollars... In a shit-hits-the-fan situation you can use a merc dime for food or gas or ammo. They're recognizable currency. Canada even held out a bit longer than the US so there are some nice post-1964 silver pieces. Sometimes you can hit tag sales or garage sales or estate sales and get handfuls of foreign coins that are silver. I walked away with a box of coins this summer for $20 and it had over $400 of silver in it. Once you get used to the sound silver-on-silver makes then it's really a no brainer.
It is really nice to have the silver pandas, maple leaves, liberties and all that though. IIRC some IRA's match silver dollar for dollar but you personally never physically hold it and it's more long term.
I'm guessing that a shitty holiday market is going to drive the price up again this winter. I can see it hitting $30 again sometime soon, and that's not wishful thinking since it's all in long term storage.
Holding something the size of a D cell battery and knowing it's worth $300 is great, and if you go for gold then that D cell sized roll is thousands of dollars.
Vehicles, property, precious metals and other assets are great to have. I personally wouldn't mess with stock until you have some cars, land or even a trailer. There's great advice in this thread (and the stickies) but start small and work your way up.
Metals are also a great way to hide money. Pay cash. Idk how canada works but if I need to hide cash from prying eyes I do a few hundred at a time at different locations.
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nuentoter
conduit



Registered: 09/17/08
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Re: Came by some money, Smartest way to invest it? [Re: Adden]
#19088798 - 11/05/13 06:35 AM (10 years, 3 months ago) |
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I still say but undeveloped land out it the woods. if the shit hits the fan scenario comes ppl arent gonna give a fuck about monetary anything, only tangible usable things. metals start to get low on that list except brass shells and lead shot lol.
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The geometry of us is no chance. We are antennae, we are tuning forks, we are receiver and transmitters of all energy. We are more than we know. - @entheolove "I found I could say things with color and shapes that I couldn't say any other way - things I had no words for" - Georgia O'Keefe I think the word is vagina
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Deathcore
Stranger


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Re: Came by some money, Smartest way to invest it? [Re: nuentoter]
#19110742 - 11/09/13 02:54 PM (10 years, 3 months ago) |
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with 25k I'd finish my tattoo sleeves, pay rent up front for half a year, continue to work and save my paychecks while buffing at the gym on my off time... poof.
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