Finances Thread

So…I figured since we’ve all posted together so long I’d start a finances thread. A place to share maybe stock ideas, budget hints or accomplishments, and just general, basic family finance questions or tips. A place to put aside political difference and remember we probably have more in common with each other than we do differences! And something that we never would have talked about 18 years ago when we all were young and broke or broker at least, LOL.

Here’s my first question to you guys: Do any of you use a high-interest savings account?

I want to open a high interest savings account. We have an “emergency savings” that just kinda sits in a regular savings account, and I got to thinking the other day that since its “emergency” I never really use it. It just sits there. But…I don’t want to invest it or put it in a CD or something because if there is an emergency I want quick access and no penalties etc. My thinking is why let that much money sit and not collect interest when I could be making significant interest on it say between a 1.5-2.0 interest rate and a .1 or something that I’m getting now (don’t even know lol)?

So I was just wondering…has anybody had any experience with these, or with online or local options for these accounts?

You should be able to find 3%+ with a 5 figure deposit.

I live in Canada and earn 2.5%. At my age (30) I dump the majority of my $$ in equities. “Savings” means little to me. My money needs to always be working. I keep 6 months of expenses in savings account and that is it. No RRSPs. I may be risk averse when I become older but I don’t see it happening anytime soon.

I am always looking for edges and opportunities in either sports betting or stock market. When it comes to both i do not diversify. I choose a few horses and ride them. Keep it simple with stocks… I just keep my eyes open and ear to the ground. Find out what young people are into and try to be ahead of the curve. Find a company you want to back and go all in. I have had really good success doing this and I am not going to change it up until it fails. I am invested heavily in Snapchat currently with that making up 25% of my portfolio. I will be looking to sell soon as I think it’s almost maxed. I went all in on a MJ company called canopy growth Corp and hit the jackpot. You need to find things that people could potentially become addicted to and push your chips in the middle.

I am looking to make a move back into MJ stocks when the opportunity presents itself. I am not looking for traditional MJ, I am looking for companies that specialize in extract products. They’re very potent, addicting, provide a cleaner high, don’t stink like regular MJ, consumers can’t make this at home like they can with regular MJ… and did I mention addicting? The company hasn’t presented itself yet, but it will and I will be there to capitalize. Another industry boom will be engineered food industry. Also investing in companies that specialize in making paper straws is not a bad idea. I bought a few shares in William Hill ( sports betting company) last week. Another exploding industry and they’re getting major North American contracts.

I’m sure seeing stock market crash would change my tune… but i am young enough that I haven’t experienced it. I have some in precious metals as well, and will continue to add there. Will never invest in real estate in my lifetime other than the roof over my head and a vacation property. Too much work for not enough reward to own income properties IMO. Those are for guys who are handy which I am not.

People try and over complicate investing. Keeping it as simple and lean as possible lowers risk… which is the exact opposite is what is believed to be true. That is if you are sharp enough to find edges. I don’t see the point in investing in a ton of different companies… just like sports bettors who are high volume bettors. If you are making 50 bets a week you have no edge… even if you think you do… just like having a diverse portfolio. Great thread idea.

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I’ll have to search harder, Weas. I just did a cursory search online. I’m a little leery of quick access to online banks. Never had to deal with it. My deposit would be north of 5 figures for sure. I didn’t know you could get a 3% rate, that’s even better. My buddy told me to hit the local small banks and see if they’d cut me a deal.

Good stuff dude. You sound much further along than I was at 30 LOL.

From experience I am a little split on diversification. At your age, I think being aggressive is warranted. I am a little old school and subscribe more to the Jack Bogle/Boglehead approach. I do invest in some individual stocks, but the majority is something its more important not to lose. I lessened my fees because sometimes those fees can cost you more than anything with compounding when the reality is that investing in the SP 500 is lower cost and higher reward than letting somebody manage it. Unless you caught onto a Buffett or something.

Crashes only hurt when you sell during the crash. If you are investing in quality companies, especially big cap SP 500s they are bound to go up again. So the only advice I can give you is hang in there if it happens. (and buy more if you believe in it!)

I’m actually planning on buying an investment property, but I live in Florida. People I know are killing it buying condos and single family homes and Air B&Bing them. A guy I know down here has lived in Florida his whole life and he doesn’t even mess with stocks. He has about 12 properties. He started buy mortgaging, then paying down with rent and making a little as he went. Its almost like a dividend stock that goes up in price. He will earn his retirement solely from that. As you point out, there are downsides with tenants though. Some others I know pay a property management fee. The guy I rented from originally before we bought was from Canada. He worked in Ottawa as a DNR (natural resources) guy. He just hired a property manager and gave them one months rent a year to not deal with it. Its an appreciating market, so I think its working well for him (although I’ve lost touch). I will probably keep it simply and not Air BB.

Ok - does anyone here tithe?

If not, I get it. Your choice as we have free will but please don’t kill this and make it about our individual beliefs. It’s about being smart with what you belief not it’s it’s a correct belief system or not.

If you do, what’s your success story.

I’ve never “needed” and all my needs are met … I’m retired, limited on what I can do, but I budget and live month to month… there are times I come to the two minute warning in things but He always come thru as long as I’m faithful and I do my part in not spending foolishly and give when I can…

Just curious …

Lake Michigan CU 3% 15k min deposit
Heritage Bank 3% 25k min deposit

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There are still some stocks that give up to a 3-4% dividend.

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Great post. You’re 30, you can afford to take a good deal of risk. The older you get the less risk you should really take but you dont necessarily have to diversify. Buffet never believed in it, he survived. I see you aren’t putting into your RRSP, but please tell me your investing as much as you can in the TFSA? It’s like the greatest thing ever. I have 150K in mine thanks to having heavily invested in google and an on and off flirtation with Tesla (bought 10K at 90 a share and sold at 180 lol, at the time it felt awesome). But maxing out your tax free savings account is #1 priority if you’re a Canuck, nothing beats it.
I also agree with you on real estate. Real estate in Canada is not real estate in the US. Landlords have like 0 rights here its super messy. I own a few pieces of business property but thats it.

As far as tips for you guys. This will sound trite but do your homework, being financially sound is one of the most important and rewarding things you can do. If you want simple, level headed guys I suggest Sven Carlin and PPC Ian on youtube. Carlin is a value investor and his picks are never sexy, but are usually winners. Think stocks that you will buy and hold for 20 or thirty years. PPC Ian is a big dividends guy, if you like dividends. The Canadian banks (not all are equal) will give you 6% a year in dividends and can be real stable winners in a portfolio. I personally have like 200K in Gold funds both Canadian and US, and theyve made a shitload of money in the past year, and I believe people will continue to use it as a hedge as the economy continues to spiral. Today I bought Intel, believe it or not, it offers a dividend, and its PE ratio is a 9 which is unreal. Looking for hopefully double digit returns over the next 5-10 years but we will see. I got lots of other tips and ideas but I won’t spam too hard here.