Need Investment Advice Guys

[Neon_PhoenixParticipant 136]

Hey guys, ok, I need some help with this. I know there are some great money minds here (RoyDal, im looking in your direction) and I have some decisions to make with a smallish windfall coming my way very soon.

I lost a relative last spring and will be picking up 55k CDN as part of their Will. Now, here is my financial situation in a nutshell:

Car Loan – 28k
CC Debt – about 15k

I get by pretty comfortably in an apartment that I rent at the moment, but my dream has always been to own a piece of land. My parents raised me with a large garden in the backyard, and with a keen sense of self-sufficiency. Now, i want that for myself. In my area, within a few hours drive, i can purchase 10-20 decent acres for around what i will be getting. So here is the question, do i:

– Use some/all of the cash to get completely out of debt? No CC and no car pmt puts over 850/mo back in my pocket, not a small sum on a monthly basis. Of course, this leaves me with nothing aside from a clear financial slate.

– Invest in my dream property now, and just work hard over the next few years to eliminate MY debt with MY earned income?

– Invest in other opportunities (not stocks or typical paper investments, mind you), and watch the money grow quickly, and use that in addition to my income, to start paying down my debts even quicker, then continue investing to eventually get to owning property in 3-4 years?

This is a big deal, as it is most likely the biggest $$$ i will just have dumped in my lap in my lifetime, so i could really use some advice.

Neo: "Why do my eyes hurt?" Morpheus: "Because you have never used them before"

[FrostByteParticipant 19005]

Every one here has told me the same thing. It is easier to save than make more. Spend less.

I follow their advice as I freely admit I don’t get how money works much beyond cash and credit.

If you rescue a damsel in distress, all you will get is a distressed damsel.

[chirParticipant]

Take care of the credit card debt. Do the math on the interest rates an you will see they are raping you blind on the charges.
If you invest in property make sure you account for property taxes and mortgage over the year. That’s what most people trip up on. Even if you own the property outright, there are still property taxes.

It is by caffeine alone I set my mind in motion, it is by the beans of Java that thoughts acquire speed, the hands acquire shaking, the shaking becomes a warning; it is by caffeine alone I set my mind in motion.

[TattooDaveParticipant 6952]

My opinion on paying off debt is this. If this is an unsecured debt such as will not encumber your inheritance. This advice may not be suitable for you but it would be an idea that I could give young man. First of all how long is it going to take you to earn 50 c? My first inclination is to say that if you have no credit problems no problems of maybe lawsuits against you you might be doing yourself a great big service by depositing that money in the bank. If you just take that money and pay off your debts you’ll have no money left other than what you earn now.

Find something that is 2 hours away why? Would you really want to live in a place like that. Maybe maybe not but I wouldn’t blow my money on land or paying debt off.

If you did deposit this money in the bank and you simply took a few hundred dollars a week to buy silver coins probably denominated in Looney’s. If you did this over a period of time he would most likely discover that you are buying a lot of silver when it is on sale and not so much when it gets more expensive. If you take your 50000 Canadian and divest into silver a couple of hundred dollars a week you will not only have a great big store of wealth but you also have something that is nearly portable something tangible that you can actually stick in your pocket and used to trade with if the s*** hits the fan or not. This is a great point real estate is totally- non liquid, if you had to sell it in a pinch you would get so much less than what you paid for it. Silver is completely fungible in other words it’s an asset that anyone will accept. Paying off debt is a losing proposition because the dollars that you earn in the future will absolutely be worth less than what you earn in today’s dollars. Real estate is a great investment just ask the mayor of mgtow. However there is a finite return on a very finite amount of dollars. Everybody is going to tell you a different story some will tell you to pay off your debt others will tell you to f*** the debt and invest in property still others will tell you to buy stocks

It just sounds like you want to make a good investment. I was an investment broker for many years the thing that made me the most money without any complications taxes or otherwise was silver. Of course I bought back in the early eighties but even today you can make money within a trading range. Suppose you bought silver at $16 an ounce and it goes up to 32 period even with a commission you have still almost doubled your money gold takes a lot longer to go up in value but of course it takes up a lot less room in your safe. Here’s an idea just Bank the money look at some of the great ideas that come in and do what you feel comfortable with it’s what I always told my clients

I can see their heads have been twisted and fed with worthless foam from the mouth. Bob d

[Freeman_KParticipant 3524]

What i would do would be:
– clear CC debt 15k.
– i would also probably sell car and pay off 28k car debt. Then i would get a decent car for less than 10k.

You are then left with 0 debts, a decent car and money to buy property. Do check in advance about potential taxes.

The choices we make, not the chances we take, determine our destiny

[TuneoutParticipant]

Even after your debts are paid,you would still have 13k
to invest and an extra $850/mo in your pocket as well.

Since there is no Inheritance Tax in Canada,you could take the $13k and invest in low cost Index Funds which track major markets.

Do it through a Tax Free Savings account so the funds are not locked in like with an RRSP.

Keep adding the extra $850/month to your portfolio and sign up for Dividend Reinvestment for your funds.

Once your portfolio is a certain size you can convert a portion to cash tax free then buy the property you want.

Lifes a bitch,but you don't have to marry one!

[BritGHOWParticipant 2566]

You’ve got ~$43k of debt there costing you $850/month to service, add in interest and it’s a fair bet that by the time you finish paying it off it will be more than outstrip your inheritance.

Pay the debt off now and (most important) bank that $850/month (it shouldn’t be missed as you don’t see it now anyway) and you’ll be putting away over $10k plus interest a year, at that rate it should take about 4 years to recoup the outlay then you’ve got your $55K and a decent savings habit to boot.

[MadmanParticipant 772]

pay off all debt then invest in a total market index fund. http://www.mrmoneymustache.com/

[AwakenedParticipant 35201]

Pay off debt ! Why pay all that interest ?

SERIOUSLY consider selling the car and down grading. A car is a money draining expense. Do you really need that expensive of a car ?

SAVE

SAVE

SAVE

You can save more without all that debt, and you will sleep better at night being debt free while ACCUMULATING money monthly.

SAVING is a HABIT.

In a World of Justin Beibers Be a Johnny Cash

[Jan SobieskiParticipant 28791]

Kill that cc as soon as possible.

Love is just alimony waiting to happen. Visit mgtow.com.

[foghornleghornParticipant 3449]

Get the debt out first. Pay off the car and the CC debt. Move to a fixed budget and try to max out 401K. Set aside % to savings and brokerage accounts/IRA account. You can even create a fund for land if you want. Debt like women will kill your hopes and dreams.

[foghornleghornParticipant 3449]

Madman wrote:

pay off all debt then invest in a total market index fund. http://www.mrmoneymustache.com/

Totally agree – index funds are a great way to go because you don’t end up paying the fees that actively traded funds usually have. Remember you are in this for the long haul.

[BeerParticipant 11832]

I’d kill the debt as well if I were you. If you have to have the land right now you can probably get a much lower rate on a mortgage than what your currently paying on your credit card/car debt, and I don’t know the laws in Canada but possible some tax write offs on the mortgage as well? Ideally though get yourself out of debt and free up that 850 a month cash flow, and just bank some money and make some investments for a while. Build up a nest egg for a couple years and you may just find you have enough to pay cash for some land, or are close to having enough that gains on your investments are enough to cover a mortgage on some land without even drawing your principal down.

[Neon_PhoenixParticipant 136]

Thanks for all the replies guys. I think the way forward is becoming pretty clear. Like brother Stealthy said, debt keeps you over a barrel. I could definitely sleep better with no debt, plus the extra cash back in my pocket every month can start to put me in back in the black with some good investments. Ive highlighted some of the suggestions that have been made for investment options, and will be doing some research and will prod you all for more info and opinion on them soon.

Neo: "Why do my eyes hurt?" Morpheus: "Because you have never used them before"

[~BSParticipant 3266]

IMO, in life, most times it’s better not to deal in absolutes.

You should probably make sure you have a 6 month emergency fund in place. If you have that taken care of, then pay down debt. highest interest rate to lowest. if there are any leftovers, invest it.

And most importantly, DO NOT incur further debt. Credit card debt is the devil.

"He didn't marry until now, so he won't ever do it. Think about it, why would a man like him ever marry? It's too late to catch him. " ~some cunt

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