Hi,
I've chosen to write this topic in order to have an idea about what you would do in my situation. I've read most of the MDJ blog, as well as several other websites, but the more I read about it, the less confidence I have to actually do something. With the current economic crisis, this could easily turn into one-of-a-lifetime opportunity, and staying on the sidelines isn't a valid option.
Here is my background:
I recently turned 22 and am working in downtown Montreal at a job paying me 33k/year. I currently live in a 4 and a half appartment at 630/month and I'm renting a room in it. I'm single and don't have any kids.
Here are my assets: 36000$ in cash rotting in bank accounts, a car worth about 3000$ now. I don't have any RRSP, no TSFA ( Yeah, I really need to get one! ). I just started out a non-registered account at work, a stock offering at 2% matched by the company, which I took. The company doesn't pay dividends and the growth seems limited. In any case, that account has virtually nothing at the moment.
My liabilities are a student loan of 16000$ currently at 3.3% ( not locked ).
My budget averages out on the course of the year at around 400$/month free. It may be higher as I don't take into account tax returns, etc.
My goals in life : I don't have any particular goal at the moment. I would like to retire early, although I don't expect to have any expensive hobby during the course of my life ( although that may change, but knowing myself, it's unlikely ). I currently don't want kids until I'm maybe 27, and by then, I'll see if I want any or not.
I've looked to buy real estate in Montreal ( a condo where I could rent a room, a duplex or whatever ), but by the time I started looking them ( around the same time last year ), prices don't seem to have went down at all. I'm not the handy type of person also. I've looked into Reits, but with the real estate crash ( and from what I've read, the crash is likely not at the bottom yet ), I'm more or less afraid to see Reits with interesting yields ( 5+% ) go bottom-up.
I've looked into dividend stocks, mainly banks. But, with the RE and credit crisis worsening, is it safe to invest in them? I'm not afraid of them going bankrupt, but more like seeing them reduce dividends greatly, bringing the stock prices way down.
I've looked quickly bonds, but they're not really interesting due to very low yields. With the upcoming inflation that is likely coming, RRBs could be an option, but I would need to read more about them.
I've also looked in starting my own business over the Internet ( I have tons of free time at work (2-3 hours a day), but I haven't found anything that could work, most ideas I've had being already realized, and free to the general public.
That's pretty much a good summary of my situation right now. Knowing this, what would you do if you were me?
If you have questions, feel free to ask them, I'll try to answer them quickly enough.
P.S. FT, if you want to use this post for your blog as part of the reader's mail, feel free to do so. I enjoy reading the discussions there
.
I've chosen to write this topic in order to have an idea about what you would do in my situation. I've read most of the MDJ blog, as well as several other websites, but the more I read about it, the less confidence I have to actually do something. With the current economic crisis, this could easily turn into one-of-a-lifetime opportunity, and staying on the sidelines isn't a valid option.
Here is my background:
I recently turned 22 and am working in downtown Montreal at a job paying me 33k/year. I currently live in a 4 and a half appartment at 630/month and I'm renting a room in it. I'm single and don't have any kids.
Here are my assets: 36000$ in cash rotting in bank accounts, a car worth about 3000$ now. I don't have any RRSP, no TSFA ( Yeah, I really need to get one! ). I just started out a non-registered account at work, a stock offering at 2% matched by the company, which I took. The company doesn't pay dividends and the growth seems limited. In any case, that account has virtually nothing at the moment.
My liabilities are a student loan of 16000$ currently at 3.3% ( not locked ).
My budget averages out on the course of the year at around 400$/month free. It may be higher as I don't take into account tax returns, etc.
My goals in life : I don't have any particular goal at the moment. I would like to retire early, although I don't expect to have any expensive hobby during the course of my life ( although that may change, but knowing myself, it's unlikely ). I currently don't want kids until I'm maybe 27, and by then, I'll see if I want any or not.
I've looked to buy real estate in Montreal ( a condo where I could rent a room, a duplex or whatever ), but by the time I started looking them ( around the same time last year ), prices don't seem to have went down at all. I'm not the handy type of person also. I've looked into Reits, but with the real estate crash ( and from what I've read, the crash is likely not at the bottom yet ), I'm more or less afraid to see Reits with interesting yields ( 5+% ) go bottom-up.
I've looked into dividend stocks, mainly banks. But, with the RE and credit crisis worsening, is it safe to invest in them? I'm not afraid of them going bankrupt, but more like seeing them reduce dividends greatly, bringing the stock prices way down.
I've looked quickly bonds, but they're not really interesting due to very low yields. With the upcoming inflation that is likely coming, RRBs could be an option, but I would need to read more about them.
I've also looked in starting my own business over the Internet ( I have tons of free time at work (2-3 hours a day), but I haven't found anything that could work, most ideas I've had being already realized, and free to the general public.
That's pretty much a good summary of my situation right now. Knowing this, what would you do if you were me?
If you have questions, feel free to ask them, I'll try to answer them quickly enough.
P.S. FT, if you want to use this post for your blog as part of the reader's mail, feel free to do so. I enjoy reading the discussions there