Author Topic: Windfall - Canadian Wannabe Mustachian  (Read 1575 times)

Rusty_Stubble

  • 5 O'Clock Shadow
  • *
  • Posts: 2
Windfall - Canadian Wannabe Mustachian
« on: January 11, 2017, 06:54:34 AM »
Hello All,

40 year old apprentice mustachian here who will very shortly be coming into some inheritance money.

It will be enough to clear 23k in debt and have quite a bit  (50k +) extra to invest. I already live a generally frugal lifestyle and well within my means.

My question is this:

Scotia McLoed, the investment firm handling the distribution of the money, has offered to keep some of the money tied into a portfolio as I get up to speed in my financial knowledge. Is this a good idea or should I immediately be placing the money somewhere else (RRSP's, ETF's, etc...)?

Thanks!


Reynolds531

  • Bristles
  • ***
  • Posts: 298
Re: Windfall - Canadian Wannabe Mustachian
« Reply #1 on: January 11, 2017, 07:26:01 AM »
Wow that was generous of them!

Read the blog here plus Canadian couch potato investing. And stay out of car dealerships. You will be fine. Oh and stay out of car dealerships.

Novik

  • Pencil Stache
  • ****
  • Posts: 870
  • Age: 25
  • Location: Ottawa, ON, Canada
Re: Windfall - Canadian Wannabe Mustachian
« Reply #2 on: January 11, 2017, 10:46:53 AM »
Scotia McLeod has offered to keep the money so they can make money off you. And once they invest it, it will cost you, in money and time, to get it anywhere else. (Plus natural human inertia will work against you actually doing that).

If you need time to get up to speed, open a tangerine savings account and park your money there, earning ~2% interest as a new Client with no fees (PM me or anyone for a referral code if you want).

But you could also just get up to speed before you get the money relatively easily. A couple things... RRSP and TFSA are types of accounts to put your money in. ETFs, mutual funds, stocks etc are things to invest your money in (once inside an investment account). I recommend Questrade for cheap and easy DIY investing, and second reading Canada Couch Potato for super simple advice on picking some index funds.

ToTheMoon

  • Pencil Stache
  • ****
  • Posts: 537
  • Location: BC
Re: Windfall - Canadian Wannabe Mustachian
« Reply #3 on: January 11, 2017, 11:00:33 AM »
Scotia McLeod has offered to keep the money so they can make money off you. And once they invest it, it will cost you, in money and time, to get it anywhere else. (Plus natural human inertia will work against you actually doing that).

If you need time to get up to speed, open a tangerine savings account and park your money there, earning ~2% interest as a new Client with no fees (PM me or anyone for a referral code if you want).


I will second the use of Tangerine.  The savings account is a good option, but I would also be looking at putting a significant amount into one of their investment funds, and letting it ride there while you increase your financial knowledge.  They do all the work for you, but at approximately half the cost of the big banks/investment firms.  Here is a little information:   http://canadiancouchpotato.com/2013/09/12/the-one-fund-solution/

Rusty_Stubble

  • 5 O'Clock Shadow
  • *
  • Posts: 2
Re: Windfall - Canadian Wannabe Mustachian
« Reply #4 on: January 12, 2017, 07:43:39 AM »
Ok thanks for the advice. I'll check out the Tangerine portfolio and move forward from there :)