Free Money Management Advice.

[rookiepilot]

It's so sad that the government doesn't care about our financial education. And, yeah, that is justified for them: they need the 9 to 5 workers. Not that it would be a bad thing, but working until you're 70 years old?

People are just incredibly lazy about their own education. Take it from me.

I teach on Twitter every day, as do many others, how to think.

People get pissed I'm not giving guaranteed stock tips.

[DHC-1 Jockey]

You mean I can't just buy a bunch of bitcoin and cannabis stocks and expect to retire in a few years?

Shucks.

Just started reading this thread out of curiosity and this was the third post, from back in 2018. I guess buying some Bitcoin WAS a good idea.

[Blueontop]

Excellent words. I have one question and I am not dissing your advisor.

Is she independently wealthy, not from the advisory, but from her own investing?

That is a question I'd ask of any advisor. Most get offended with that kind of question like it's irrelevant.

I understand completely. And yes, she and her husband are independently wealthy. They're both American financial industry veterans who left the rat-race and run a boutique firm out of Bangkok that specializes in complicated expat situations, which is why I was attracted to them initially, among other reasons. Their minimum portfolio requirement size isn't insane, but it does put them out of reach of the beginning investor.

Anyone looking for an advisor should have a list of questions that should they not be happy with ANY of the answers, should cause them to run, not walk away. The one you mentioned "How does your own portfolio perform, and may I see a history of returns?" is on it, as is "How are you PAID?"

Actually our biggest problem right now is the lack of tax knowledge. I'm realizing more and more a lot of the profits come from the decisions that worked out well for tax implications.

Could not agree more. Making it is only half - or less - of the equation. The other part is how much do you get to KEEP! Taxes and fees will kill even the best returns. Which is why I left Canada and only come back to visit. Not an option for most I know, but I beg for this not to turn into a screed about the virtues of socialist policy, I'm not interested. The point is, tax planning and close watch of costs is very much important for anyone's finances.

I love Zaibatsu's post, I won't quote it in its entirety but he nails it. Most "investors" are really just gamblers who brag about their wins and are strangely silent about their losses. True investing is boring, slow, with a managed amount of risk and not that apparently lucrative in the short-term. And most truly wealthy people - not the ones who APPEAR wealthy - you'll never even know about. Check out the latest edition of "The Millionaire Next Door" if you want to know how most rich - not the outliers you see on tv - got rich.

New to investing and determined to get my financial freedom but lacking in experience. How does one go about the bast way finding a good financial advisor? I feel like googling is looking for a diamond in a pile of mud and don’t really have any good connections. What are the important questions to ask them when you do find one that might work? Thanks for any advice!

[digits_]

New to investing and determined to get my financial freedom but lacking in experience. How does one go about the bast way finding a good financial advisor? I feel like googling is looking for a diamond in a pile of mud and don’t really have any good connections. What are the important questions to ask them when you do find one that might work? Thanks for any advice!

Buy index ETFs, or make regular payments into RRSP programs like wealthsimple or questrade.

Unless you are a milionaire already, I fail to see what value a financial advisor would bring.

Or become a landlord if you are ok with dealing with tenants. Save some money to buy cheap housing once the bubble bursts.

[pelmet]

You mean I can't just buy a bunch of bitcoin and cannabis stocks and expect to retire in a few years?

Shucks.

Bitcoin price on July 3, 2018 was approximately $8,800. Now $51,300.
Canopy Growth stock on July 3, 2018 was $7.80....hit $67 2.5 months later although down to $9.80 today. Still, if you had put your life savings in, you would have been able to retire in a few years.

[pelmet]

1) Work OT. That's a good point, but right now my kids are young and I'm on track financially so why work so hard, giving half my money to the government,

I would like to point out that we have a progressive tax rate in Canada, and I don't believe anyone in aviation is ever going to be paying 'half their money' to the government.

53.5% in Ontario and above 50% in other jurisdictions. It all depends on how much you make in the top bracket.

[Blueontop]

New to investing and determined to get my financial freedom but lacking in experience. How does one go about the bast way finding a good financial advisor? I feel like googling is looking for a diamond in a pile of mud and don’t really have any good connections. What are the important questions to ask them when you do find one that might work? Thanks for any advice!

Buy index ETFs, or make regular payments into RRSP programs like wealthsimple or questrade.

Unless you are a milionaire already, I fail to see what value a financial advisor would bring.

Or become a landlord if you are ok with dealing with tenants. Save some money to buy cheap housing once the bubble bursts.

Currently paying into my employer rrsp match program, have a small investment in some crypto
and a landlord but don’t really know anything about ETFs. I’ll have to look into them

[digits_]

New to investing and determined to get my financial freedom but lacking in experience. How does one go about the bast way finding a good financial advisor? I feel like googling is looking for a diamond in a pile of mud and don’t really have any good connections. What are the important questions to ask them when you do find one that might work? Thanks for any advice!

Buy index ETFs, or make regular payments into RRSP programs like wealthsimple or questrade.

Unless you are a milionaire already, I fail to see what value a financial advisor would bring.

Or become a landlord if you are ok with dealing with tenants. Save some money to buy cheap housing once the bubble bursts.

Currently paying into my employer rrsp match program and a landlord but don’t really know anything about ETFs. I’ll have to look into them

Pay the minimum you can into the employer rrsp and -if you are in the top tax bracket- pay more rrsp into a personal one. You will often have lower fees that way. If you can handle it, extra properties are likely a good choice as well.

Did you max out your TFSA yet? If you are not in the top tax bracket, and you expect you might be in the future, focus on a TFSA first.


The easiest way is to marry rich though.

[pelmet]

The easiest way is to marry rich though.

Or divorce rich.

[Blueontop]

1) Work OT. That's a good point, but right now my kids are young and I'm on track financially so why work so hard, giving half my money to the government,

I would like to point out that we have a progressive tax rate in Canada, and I don't believe anyone in aviation is ever going to be paying 'half their money' to the government.

53.5% in Ontario and above 50% in other jurisdictions. It all depends on how much you make in the top bracket.

Ya when I get some OT I get taxed at 47%! So I work hard to make a little extra for my family which means more time away from my family and giving up up one of my few precious days off and the government gets basically half, damn criminal IMHO . I get the idea about progressive taxing but I’m not wealthy by any means so that marginal rate should not be so high for us working class getting killed with inflation and stagnated/depressed wages

[Old fella]

During the course of your lifetime, you will be blindsided on a very occasional Thursday afternoon by some unforeseen event, money will be just part of it. Stay Loose!

[DHC-1 Jockey]

I live by this simple rule which has served me and my parents well and is backed up by my best friend who is a partner in a large tax firm:

- If you make less than $80,000 a year, it's best to use a TFSA. Any contributions and growth are withdrawn tax free, so it's like free money in that sense.
- If you make over $80,000 a year, it's best to use an RRSP as that's when you start to get the benefit from the RRSP contributions going towards lowering your annual tax bill.

What do you put in your TFSA or RRSP? If younger than 40, it's best to invest in blue-chip dividend paying stocks. I use a hybrid Dogs of the Dow/Dogs of the TSX and Dividend Aristocrat method. The Dogs method is simply choosing the 10-highest dividend paying stocks on the TSX and buying those. However, some of those may be up-and-comer companies or those who haven't been around for a while and may be a risk. So what I do is choose the top-10 dividend paying stocks on the TSX that are ALSO dividend aristocrats, which by definition have a long track record of of solid dividend growth.

That results in me having only 10 stocks, but are all excellent dividend payers AND are tried and true household names. Think Enbridge, Telus, BCE (Bell), Manulife, etc.

By only having 10 stocks, it's very easy to track and keep straight in my head. I use the Wealthsimple app (Which is free) and contribute the same amount every month. Any dividends I receive I also use to buy more of the same 10 stocks, so that compounding really adds up as well.

In the end, I have a small portfolio of 10 stocks that will have staying power, as a whole bay about 5% per year in dividends alone while continuing to grow in their own right as the stock value increases and I don't pay any taxes, fees or management expenses. On Jan 1 next year, I'll re-examine the dividend aristocrat list, and add or remove any stocks as needed.

This all results in an annual growth of 10-12%, which isn't bad considering it's in a TFSA and all that growth will eventually be withdrawn tax-free.

P.S. I have an 11th stock that is my "gamble for fun" stock. With any leftover money after purchasing my other 10 stocks, I put it towards this 11th stock. It's not well known and I'm hoping that it becomes the next Shopify or Amazon, but it's fun to throw a few extra dollars (literally only a few dollars) a month at it and let my mind have fun at the thought of hitting it big. If it tanks and goes bust, it's no biggie.

[rookiepilot]

I live by this simple rule which has served me and my parents well and is backed up by my best friend who is a partner in a large tax firm:

- If you make less than $80,000 a year, it's best to use a TFSA. Any contributions and growth are withdrawn tax free, so it's like free money in that sense.
- If you make over $80,000 a year, it's best to use an RRSP as that's when you start to get the benefit from the RRSP contributions going towards lowering your annual tax bill.

What do you put in your TFSA or RRSP? If younger than 40, it's best to invest in blue-chip dividend paying stocks. I use a hybrid Dogs of the Dow/Dogs of the TSX and Dividend Aristocrat method. The Dogs method is simply choosing the 10-highest dividend paying stocks on the TSX and buying those. However, some of those may be up-and-comer companies or those who haven't been around for a while and may be a risk. So what I do is choose the top-10 dividend paying stocks on the TSX that are ALSO dividend aristocrats, which by definition have a long track record of of solid dividend growth.

That results in me having only 10 stocks, but are all excellent dividend payers AND are tried and true household names. Think Enbridge, Telus, BCE (Bell), Manulife, etc.

By only having 10 stocks, it's very easy to track and keep straight in my head. I use the Wealthsimple app (Which is free) and contribute the same amount every month. Any dividends I receive I also use to buy more of the same 10 stocks, so that compounding really adds up as well.

In the end, I have a small portfolio of 10 stocks that will have staying power, as a whole bay about 5% per year in dividends alone while continuing to grow in their own right as the stock value increases and I don't pay any taxes, fees or management expenses. On Jan 1 next year, I'll re-examine the dividend aristocrat list, and add or remove any stocks as needed.

This all results in an annual growth of 10-12%, which isn't bad considering it's in a TFSA and all that growth will eventually be withdrawn tax-free.

P.S. I have an 11th stock that is my "gamble for fun" stock. With any leftover money after purchasing my other 10 stocks, I put it towards this 11th stock. It's not well known and I'm hoping that it becomes the next Shopify or Amazon, but it's fun to throw a few extra dollars (literally only a few dollars) a month at it and let my mind have fun at the thought of hitting it big. If it tanks and goes bust, it's no biggie.

Enphase.

Not advice…..

[Willirim]

A financial advisor will be more useful to you if you are going to make large bets. Or if you managed to get into an unpleasant story with your finances. The Securities and Exchange Commission never stops its activities, even if this is the first time you hear about such an organization. The funny thing is that even in this case, you are unlikely to get specific advice about the consultant's personality. There is a site with advice on choosing such a person https://www.hg.org/legal-articles/10-ti ... tant-62512. But to get the contacts of a specific specialist, you'll have to spend a lot of time, almost as much as it takes to grow a business, haha.

[cncpc]

No one talks about this stuff. I'll give it a shot, it's kinda my world.

Now, first, this is worth about what you're paying for it. I'm not an advisor in any way, and not looking to be anyone's.
Second, I'm a random internet troll, without a degree, so keep that in context --

With that, here a few words, food for discussion, that might be helpful for young or not so young pilots, that might be helpful during this time of plenty.

If no use to you, just ignore, and good for you for having it figured out. Really.

1. I suggest banking a lot of that dough you're hauling in. Don't buy the 80 K pickup, don't go nuts on a boat, bank it.

Pay down the mortgage, credit cards, whatever. Prepare for the lean times ahead -- which aren't THAT far ahead as you might think today -- if I'm reading things even halfway right. I might be wrong. But even so, the path to financial security is built on the back if eliminating unproductive consumer debt.

2. Buy used.

I love to buy used cars -- 3 years old, barely broken in, that some other dope has turned back in off a lease return. I've done it several times. Half price. Pay cash if you can. Debt is the enemy. Boats, whatever too. Used, used used. Nothing depreciates faster than a boat, from what I'm told.

3. Work like an absolute dog now, and rack up the OT. You make hay when the sun shines. Bank the money. It won't always be like this. Don't invest it until you learn how. Note: Your friendly financial advisor, almost certainly doesn't know how. Trust me on this.

4. Focus on building equity, at the right price, not accumulating consumer things.

Learn some principles of the great investors, read what they write, become a student for your retirement and financial future. Your financial advisor is a salesperson. Doesn't likely have a clue, and cares about as much as I do what happens to you. Likely.

The only one who really cares enough, will be you. So some personal study is required, in my view. Maybe you are one of the few with a great advisor -- you can do nothing but good, still, by educating yourself. Yes, it is possible.
There are many styles. I personally look at what is least popular, and take a good look to see if that creates value.

5. Freedom from debt means personal freedom, and the ability to make quality life choices. Make this a goal.

That's it. Back to England - Columbia

Yep, that is pretty good advice. We live in uncertain times and it may be that a new pickup and $3 will get you a cup of coffee soon.

[rookiepilot]

Thanks. Tried.

i am sorry for the young folks. Its not fair, the position you need to start in these days, the world in the shape its in.

[CantTurfdaMurph]

Sucks to be you guys

I got a defined benefit pension plan.

Hardest part was selling out the junior members at the NHL but what you got take care of #1

Those supp payments for my pension are tied into company revenues and if it means a few concessions, it has to be done

I dont believe in negotiating for the unborn

[Bug_Stomper_01]

You mean I can't just buy a bunch of bitcoin and cannabis stocks and expect to retire in a few years?

Shucks.

DOGECOIN!!!!

[Bug_Stomper_01]

Sucks to be you guys

I got a defined benefit pension plan.

Hardest part was selling out the junior members at the NHL but what you got take care of #1

Those supp payments for my pension are tied into company revenues and if it means a few concessions, it has to be done

I dont believe in negotiating for the unborn

Defined benefit is almost non existent in aviation anymore. Good for you!

[Stratopaused]

Enphase.

Not advice…..

How's that working out for you?