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Where to Park the Little Money that I have?

Discussion in 'Investing/Trading/Cryptocurrency/Altcoins' started by MakeMoreMoves, Feb 23, 2017.

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  1. MakeMoreMoves
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    MakeMoreMoves Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    I am not really putting all 100% of my money in the business because thats way too risky. But the majority of my money is there. So to mitigate the risk somewhat and not be dumb I have some money is a savings account. I look at investing in business as part of my portfolio.

    The only thing I got that doesn't consume my time at all is just a 1% savings account and some blue chip stock dividends. I know this is slowlane, but for the time being it helps offset my living expenses.

    Better options than what I have for the time being?
     
    OldFaithful likes this.
  2. MJ DeMarco
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    MJ DeMarco Raving Lunatic Staff Member Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

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    Vanguard with checkwriting options.
     
  3. Locomote
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    Locomote Bronze Contributor Read Millionaire Fastlane Speedway Pass

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    I'm not sure of your location but in Canada we have the option of a TFSA (Tax Free Savings Account).

    With TFSA your bank invest it for you most likely to get a higher return than 1% usually promising somewhere between 5-8%. I use a mutual funds TFSA to invest in longterm options and only put in what I'm willing to loose. I don't day trade.

    Biggest benefit? All profits are tax free!

    Last year I made an initial investment of $11,000 CAD. Right now it sits at roughly $72,000 thats a 650% return on last year. A lot better than what the bank were offering.

    (According to wikipedia a TFSA is similar to a Roth Individual Retirement Arrangement in United States, although the TFSA has fewer restrictions. In the UK, similar tax advantages have been available in Individual Savings Accounts since 1999. In 2015 South Africa introduced TFSA accounts to encourage the country to save money)
     
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  4. needchaser
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    needchaser Contributor Read Millionaire Fastlane FASTLANE INSIDER

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    Note to self: Move to Canada IMMEDIATELY.
     
  5. Vigilante
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    Vigilante Legendary Contributor Staff Member Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

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    Don't be content. Find a way to at least double it in the remainder of 2017.
     
  6. MJ DeMarco
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    MJ DeMarco Raving Lunatic Staff Member Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

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    And this a government sponsored product?

    You're either lying or you made a typo.

    These types of returns aren't available in any non-speculative asset class much less something sponsored by the government.

    If it was true, why work?

    You'll be a billionaire in just a few short years.
     
  7. G-Man
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    G-Man Legendary Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR

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    It looks like this thing isn't a government product so much as a tax exempt investment account like an IRA.

    I got lucky in my IRA once too..... then got super unlucky the next year. :clench:
     
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  8. Michael Burgess
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    Michael Burgess Bronze Contributor Speedway Pass

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    Yeah, a TFSA - Tax Free Savings Account - is just an investment account that allows you to put almost any investment instrument in it that you want. You can use it to hold stocks, bonds, GIC's, etc.. so the money you have in your account is only as sound as your investment choices (if you choose to self-direct the funds vs. letting your banker invest for you).

    Also, TFSA's have pretty small investment limits.. pretty sure you can only contribute $5.5K / year to your account.

    Anywho, for the OP: If I were you, I'd focus on your first business and make sure it's well funded before you look at other investments. I'd say it's less risky to put your money into a basket you control, and just keep your eyes on it really well. Maybe set aside some cash in your personal and business accounts as an emergency fund / buffer.

    If you still have a lot of cash after that, why not open / buy another business, or get into rental properties?

    Just my thoughts.
     
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  9. Locomote
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    Locomote Bronze Contributor Read Millionaire Fastlane Speedway Pass

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    @MJ DeMarco , I probably could have explained it a little better. Its not government sponsored in the sense that the government themselves don't give you the return on your money, they just don't charge you tax on the earnings.

    It was introduced and came into effect in January 1st 2009 by the Canadian finance minister Jim Flaherty.

    Its for any resident of Canada that is 18 years or older to encourage people to save or invest (the money is not invested in any sort of government bond etc). Any income earned on contributions is not taxed and money can be withdrawn at anytime. It takes 3 days from when a withdrawal request is made to get the money back to your checking account. There is a yearly contribution limit normally $5,500 per year. In 2015 it was $10,000. The contributions are accumulative so from the year your are eligible you can make contributions.

    Example
    • 2015 contribution limit was $10,000
    • 2016 contribution limit was $5,500
    • 2017 contribution limit was $5,500
    If you were eligible from 2015 and wanted to make your max available contribution as of today you could put in a max of $21,000.

    I placed my TFSA money in a speculative asset.

    I researched into a number of industries that I thought would be good for investing. One industry in particular jumped out at me. I narrowed it down to a pharmaceutical company that was waiting on government approval to sell one of its products. It was a penny stock at the time. Once they received their approval the stock jumped and is now worth a couple of dollars.As long as I don't withdraw the money earned in my TFSA account I can keep investing it and each year I can add 5,500 to it. I can sell the stock but keep the money within the TFSA. When you sell stock you you must wait 3 day before the money is back in your TFSA account, this is to try an prevent people from day trading with the account.

    If you want some proof or more insight feel free to PM me. I know I am new here so want to make sure I am not seen as "hyping" things. Thanks.
     
    100k, Kingmaker, jon.a and 3 others like this.
  10. MakeMoreMoves
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    MakeMoreMoves Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    Thanks everyone, will look into these option when I have more time.
     
  11. OldFaithful
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    OldFaithful Silver Contributor Read Millionaire Fastlane Speedway Pass

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    Banks aren't paying squat for interest, as you already know, and it's less than inflation!!! Get your savings out of the bank and put it somewhere useful, like in a mason jar buried in the back yard. Or just take MJ's advice.
     
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  12. 458
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    458 Gold Contributor Read Millionaire Fastlane Speedway Pass

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    If your business isn't compounding at a rate so high that you wouldn't consider putting all your money into it then you should find another business to be in. Only poor people diversify when they're poor, and they usually stay poor. A small amount of diversification is fine after you have a decent amount of assets.
     
  13. MakeMoreMoves
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    MakeMoreMoves Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    You're right, do you mind reviewing my ecommerce website in PM? My business isn't doing well at all.
     
  14. Ecom man
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    Ecom man Platinum Contributor Read Millionaire Fastlane FASTLANE INSIDER Speedway Pass

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    But that's really the point isn't it? Is it really the wisest thing to have all of your eggs in one basket? At what point do you have a "decent amount of assets" so diversification makes sense? Just because a business is currently compounding at a high rate does not mean it will continue to do so in the future. Is it wise to take some of that and rather than reinvest it back into the business put it into other assets?
     
  15. 458
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    458 Gold Contributor Read Millionaire Fastlane Speedway Pass

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    Sure
     
  16. 458
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    458 Gold Contributor Read Millionaire Fastlane Speedway Pass

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    One in the hand, two in the bush.
     
  17. SquatchMan
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    SquatchMan Gold Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    Don't blow it on something you can't afford, but also don't put all of it into something that you can't access.

    My retirement plan is selling my company for 7-8 figures and then parking that money into investments.

    *I still have some money in my Roth IRA*
     
  18. Striver
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    Striver Bronze Contributor Read Millionaire Fastlane

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    Wait, what?!?! So, are you expecting to end up with 468,000 next year?
     
  19. Elif
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    Elif New Contributor

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    Banks aren't paying squat for interest, as you already know, and it's less than inflation!!! Get your savings out of the bank and put it somewhere useful, like in a mason jar buried in the back yard. Or just take MJ's advice
     

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