Is Slowlane Investing Beneficial to the Fastlane?

[TenMillion]

I thought opening up the discussion here would be worthwhile.

Since reading TMF about 15 months ago I've been hustling non stop to learn and take action. Since then I have started two companies that are related to each other.

The reality of these were that I had to expend my resources (time and money) on a daily basis for the entire period to fund growth. I quit any J-O-B's I had to go full time in these ventures.

That being said, I've been living off of credit and savings during the lean start up phase.


However, here in Canada I have an RDSP, RRSP and TFSA set up with contributions made over the last little while. Granted, these are some very slowlane investment vehicles and totally against what TMF preaches....

I do believe these types of investments to be useful. They get you leverage at the bank to apply for business credit cards/lines. They provide a feeling of security in the event of failure you have something to your name. On the flip side they do inspire a feeling of abundance during the chaotic war that entrepreneurship really is.

What are your thoughts, guys? Do you invest in slowlane vehicles alongside your fastlane? What are the pros and cons? Looking forward to a good discussion. Cheers.

 

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[Ninjakid]

Are you suggesting that putting yourself further into credit card debt is more fastlane than saving in a TFSA?

 

[EvanOkanagan]

So what you're doing is borrowing money that costs you 6-20% interest... and contributing to investments that are likely earning 2-5% interest (that's being optimistic)... correct?

Now, I'm no mathematician... but how does this plan make sense?

 

[Duane]

I don't think that those in particular are great investment tools, but it's something for wealth preservation. They probably have a cap on them regarding what you can invest.

I look at it this way: if I'm going to invest in a business, I'm putting my all in it. No safety nets, none of that. That's the only way you'll find success, risking it all. Cause when the going gets tough, you'll drop out and use your fall back money to live off of until you get a job instead of pushing through until you find success. Risking it all forces you to commit fully to that business, you'll be less likely to back out. That little bit of money isn't going to help you in the short term and only in the long term if you throw money into it for 40 years. If you strive through and succeed in your business, you can sell that business and then throw that lump sum into stocks to maintain your wealth and live off that if you'd like. Other than that, why bother with that 'tool'? You can use that money towards your credit cards that's prolly charging you 10% interest whereas that portfolio probably averages 6% (as the guy above me stated). I feel if you have good credit, good history with that bank and your debt to income ratio is solid, you shouldn't have problems getting decent business credit cards. Or, you could put that money towards your business so you don't need a bigger credit limit.

 

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[MJ DeMarco]

slowlane investment vehicles and totally against what TMF preaches....

I'm not against investing or saving. I'm against the fairy tale that these investments will make you a multi-millionaire before you have any time left to enjoy the multi-millions.

 

[AgainstAllOdds]

Under $100k, the return you'll get on investing in yourself/in your business is a lot higher than virtually all investments.

Unless you're at the point where you can live off of investment income, then there's little reason to even consider investing. Think of the time you'll spend on that vs your fastlane path.