SRS Money for the future.

Discussion in 'On Topic' started by Samcanadian, Nov 18, 2005.

  1. Samcanadian

    Samcanadian OT Supporter

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    Hey guys, seeing as this is more of an on-topic site than the regular forum, I figured I'd lay it all out on the line here without risking the barrage of comments from the goons! :wiggle:


    I don't want to risk sounding smug, but I'd just love to hear some ideas you guys might have for my future. I'm 20 years old, and I'm doing pretty decently financially! I just sold a house, and I'm going to be moving back to live with my parents for a while. Rent is going to be minimal, so I'll basically be getting a huge influx of cash that won't be going to bills or payments or ANYTHING. I'm wondering what the ideas of some of the older people on this board are, and how I can maximize my situation right now.

    Cliffs: Debt-free, 20 years old, influx of cash is good, wanting to prepare for the future...needing new and insightful ideas from elders.
     
  2. Darketernal

    Darketernal Watch: Aria The Origination =)

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    Well financially i think you should advice other people, you seem to be pretty good with the cash. Remember however that money is something that just makes you unhappy in a nice place. Be a loving and helping person in the future, its much more worth then any money can buy.
     
  3. Samcanadian

    Samcanadian OT Supporter

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    Thanks for that.

    One of my priorities is that no matter what I do with my life, I need to make sure that my personality/kindness isn't affected by it.

    Sorry if this thread seems a little goofy. I was just sitting at my computer feeling pretty pumped up about my current situation, and needed to vent my emotion somehow.

    It's emo, but I needed to do it! :wiggle:
     
  4. happyrobots

    happyrobots Ü

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    I'm not an elder, so I don't apply. It also depends on how much you have and are willing to 'invest' though, as well as if you want sure money situations, or enjoy the risky stuff (high risk - high reward).

    But you might be better of asking this in the "Wall Street" board, or just take a look in there.
     
  5. Reznik

    Reznik New Member

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    I am by no means anywhere where you are. But i would say... put some of the money away in a retirement fund. Small business is the way to make more money. So you could save up further and design a good businessplan and start!
     
  6. GRocks10

    GRocks10 New Member

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    Though, you're looking for advice from the older age crowd.. I will still put in my input considering everyone says I'm like a 30 year old stuck inside a 20 years old body. So this is a good thing because I am your age. This is what I would do with your "free flow" of cash. Get a $5000 CD with a high interest rate and lock it up for a few years without ofcourse ever touching it.. consider going into the stock market but make sure to really research the companies out for best long term investment or even short.. whatever gets that cash flowing.

    I'm a Promotional Model and all of the events that I work are of big nationwide companies and because of this I usually hear about stock from clients so I get a jist of how everything is doing so this is abit of an advantage for me getting input from others who currently have it.. I would suggest the stock market can be something of value to those who wants to seriously make more money without to much work involved.. just DO your research and there is some advice my dad usto give that was always VERY good.. this is it: use what you wouldn't mind losing.. don't ever risk more than you can afford. So basically, use only what you're WILLING TO LOSE but also willing TO EARN.

    Now, go about your activities.. have fun but not to much fun.. while also making some money in your investments. They can evetually pay off for your future. And when you work, save atleast 20-30% of whatever you make and put it in your savings account and don't even THINK about touching it.

    Also, please remember to never change who you are as a person if and when you become successful at life.. always be YOU and don't let money take you by the nuts. Real Estate is also good and something I am studying to get into.. but I believe you already have experience with this since you sold your house.. nice one btw. :)

    Anyhow, its just THAT easy.. and trust me, you'll thank me if you follow this advice.
     
  7. CastorTroy

    CastorTroy New Member

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    I'm no financial planner or anything, but here's what I would do:

    First, start a retirement account if you don't have one already. I'm not famaliar with Canadas options, but I have a 401(k) at work and put 3% of my gross pay into it, that way it's tax deferred and I never even see that money to start with so I don't miss it, but it's there, accumulating and making interest. Since my 401(k) matures when I'm 59.5 years old, I plan on having enough in there, IRA's and savings to retire at 60 years old. The sooner you start saving, the less you have to put in each month, or the earlier you can quit adding extra money and still come out ahead by retirement.

    Second, if your planning on buying a house or another major purchase in the next few years, stick it into a high yeild CD or share account, depending on what's available to you. Make a little extra cash off letting your money sit while being safe with it.

    Third, if you choose, take some of that influx of cash, and maybe play some higher risk, but potential higher return games with stocks.
     
  8. pashy

    pashy New Member

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    i am a planner.

    put a decent chunk of it into a term deposit account thats earning good interest. shop around for rates, you then can put in amounts which are due to roll over for 3 or 6 months. thats a very conservative move, which isnt bad, but saving money for rainy days at your age is always worthwhile.

    contact a stockbroker. a full service stockbroker, not a discounter. get an advisor you feel comfortable with and ask for a decent blue chip portfolio for a quarter of your money. not necessarily too high yielding, as the idea is to hold onto those stocks for a long time - for the future. ensure they are dividend paying stocks and even better if they offer dividend reinvestment plans. sit on them for ages, and see how you go. give yourself a small amount of money for playing some speculative stocks, which can be fun and it's something you would be more involved in. dont allow your stockbroker to trade discretionary, you want to be advised of every purchase/sale he or she wants to make.

    invest some funds into a managed fund. your stockbroker could advise of a good one.

    this is how i would break it down if i had $100,000 in savings:

    $25,000 - high yielding term desposit
    $50,000 - good blue chip stock portfolio with decent yields and all income producing
    $10,000 - speculative stocks
    $15,000 - managed fund
     

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