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Discussion Starter #1
Hi,

I would like to begin building some wealth.

I am having trouble finding a good financial planner.

My focus this year will be 1 buying a rental property and 2 minimizing my tax burden. Should I get an accountant instead of a financial planner?

Any thoughts on how I can reduce my tax burden?


I am single. I have maxed out my rrsp already. I live rent free with my parents. Last year I earned about 90K, this year I will make about 110K. I currently have a networth of 20K.
 

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Discussion Starter #2
to clarify - In the past year I earned 90 K (I started working August 2008 - I just finished school) I earned about 38K in 2008 calandar year (aug- dec).
 

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I would suggest consulting a Financial Advisor (FA) who has experience in working with your complete team of advisors. A good FA will work with your situation looking forward and an accountant will look backward.

If you can find multiple advisors capable of working together you will get the best of both worlds. If you are interviewing either an accountant or FA ask them what experience they have working with other professionals.
 

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I would focus on reading books on investing and finance. A good place to start are books by John Bogle and Peter Lynch. Once you educate yourself you will be far better prepared to meet with a financial planner, real estate agent or any other person who may be able to help you build your fortune.

Disclaimer, I do not use a financial planner.
 

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I have a word of advice about the rental property.

First learn the law and business of it. It doesn't matter if you rent a basement apartment or high end condo the law is the same. I compare renting in Ontario to leasing a car. Once you lease the car you can't tell people what to do in the car. This includes smoking, pets, dents ;) and not making payments.

Second in real estate you make money when you buy. If you buy well then the sky is the limit.

Third don't believe your real estate agent !!!! They get paid only if you buy so if it is a bad investment and they say it is a good one they get paid anyways and you get stuck holding the bag. Check and double check everything before you buy.

My criteria for rental properties

1- Must have positive cash flow
2- Hopefully is in a gentrifying area
3- At least three units so if two are rented it covers the mortgage and expenses
4- Property must be clean and well maintained to attract good tenants

The idea of buying and paying money every month to own rental property is crazy. You are not a registered charity.
 

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I don't think that talking to a financial planner is necessarily a bad idea. They can help you reduce your tax burden from future investments and can help you accumalate wealth of the form of liquid assets.
 

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I would focus on reading books on investing and finance. A good place to start are books by John Bogle and Peter Lynch. Once you educate yourself you will be far better prepared to meet with a financial planner, real estate agent or any other person who may be able to help you build your fortune.

Disclaimer, I do not use a financial planner.
I like this idea. The Wealthy Barber should do a great job giving you a personal finance basis. Then, you will be ready to meet with a financial advisor. It is important to know how your FA is compensated to make sure he gives you unbiased financial advices.

Here's the first post of a series on how to find a good financial advisor:

How to Find a Good Financial Advisor Part1

disclaimer: I am a Certified Financial Planner.
 
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