Quote:
Originally Posted by Ken07AOVette
People have to do what works for them. There is no formula.
The only sure way to have money put aside is to control spending and work.
Everything else is a lottery.
When I hit a certain amount in my savings every damn time I went into the bank the tellers were asking about my investments.
'You should set up a meeting with our investment team'
'Have you got your RRSP'S done for this year's?
I go in for a deposit into my account after being at the same bank for 40 years and the recently relocated 30 year old filipino is telling me what I should do with my money. (Dont read into that, half the tellers at my bank are ftw's from the Philippines).
I had phone calls from the bank constantly wanting me to meet with an advisor, and trust me it is not a lot of money. The last time it happened after telling them to never ask me again I called for a manager, and told her to close my personal and corpor6accounts immediately. I was just plain tired of it. She put a note on the computer and they have not asked me since.
People with a million dollars in their account must need a secretary just for the calls from investors.
If you have spare money to gamble with by all means go for it, but remember every investment banker or advisor is paid on commission. They are there to make their company money off your money and give you a little portion back.
Personally I prefer having full access to my money without penalty or permission, if I see something I want I take my cash out. Locking in my money for a year for 1.5% makes no sense at all to me.
It may work for others though.
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I agree everyone should stick to doing what they are comfortable doing first and foremost - NOBODY should be risking anything they can't afford to loose HOWEVER ....
Here are some of my thoughts ......
- Leaving money in the "bank" in a saving account will NEVER allow you to build wealth .......you should, at the very least use your TFSA to invest on low risk mutual that are heavily weighted in bonds (at the very least) instead of collecting simple interest where you are actually "loosing" value over time as any "gains in interest" you think you are making are easily outstripped basic inflation. This is a Fact. It is easy to verify on the intranet so don't take my word for it - it is what it is. Banks don't loose. This is one reason why.
- ALWAYS avoid high interest debt, and live within your means, it always seem so crazy to me who people who worked for me, and made far less money, had bigger homes, fancier cars, more toys compared to me - but at age 39 I had no mortgage and zero debt and haven't looked back once. Having said that, mortgage debt is low interest and many investments return at a higher rate (positive$) compared to the added interest (negative$) - so I have advised my friends and family to carry a mortgage and invest into equities if you are aged 20-40 for sure). This is another topic - but it worked for me, and doing this paid off my mortgage in 7 years for me (that otherwise would have lowered my P&I over that same term).
- INVEST smartly and diversify - personally I have some real estate stuff me and my partners do, some mutual funds, some straight equities, and maintain a little bit of cash. I'd say it's, by percentage 30/30/30 with 10 percent cash in my case. The cash makes me no money, but if my (or one of my kids) roof leaks, furnace goes, car engine blows, I want a vacation, etc...etc.. I can pay for it.
Needless to say - don't get advice on a Forum. Everyone is an expert. I am just offering you my 2 cents, and what I say is nothing but 2 cents and my sincere opinion - but do what you want and be comfortable doing it.