Author Topic: New Opportunities [UPDATE]  (Read 1118 times)


  • 5 O'Clock Shadow
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New Opportunities [UPDATE]
« on: September 17, 2016, 09:04:37 AM »
It's been a little over a year since moving up here and it's been great! You guys have been a big help.!/msg640797/#msg640797

Since then our debts have decreased:

Mr: Mustache: 
         Line of credit at Prime + 0.5%   $45k
      Student Loan at  Prime + 3.5%     $0
Mrs: Mustache:
         Line of credit at Prime + 1%       $20k

We decided to keep out debts seperate

RRSP:35k (Have room to max)
TFSA: $0
Cash: 18k

I was going to use this cash and invest into my RRSP but since my contract is almost over and my boss says I am doing well, he has offered me some options.

Option 1: Finish my contract
Option 2: Extend my contract for a year or two
Option 3: Become a partner of the business (25% share)

If I choose option 3, I will also be making my salary on top of the business profits.

Some basic information on the business:

Profit last year: 200k (25% will be 50k for my share)
They plan on selling the business in 10 years (probably around the same price or more as I am buying in for)
I will have to work here as long as I have the loan from them (salary on top of dividends)

What should I do with my cash?
Which option would be best? (financially)
How should I negotiate?

I need advice please!  He just suggested this to me now and will give me more information in november.  My girlfriend and I like it here but do not want to spend more then 3 more years in this area as we want to have kids near our family.

Thank you

former player

  • Magnum Stache
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  • Location: Avalon
Re: New Opportunities [UPDATE]
« Reply #1 on: September 17, 2016, 03:08:03 PM »
Congratulations on paying off $75k in debt in just over a year and having accumulated assets of $53k.  At that rate, if you stay until the end of this contract in the spring you should be close to debt free, and if you stay another year after that you should be completely out of debt and with substantial assets.

Your current location is obviously good for your financial health, and you and your girlfriend seem happy there.  I guess the issue about leaving it is: you will be going back to a place which although near family has in the past been ruinous for your financial situation.  If you go back now, or in a year, will you be going back to a situation in which you will be lower income/higher expenses and running up high debts again?  If so, I can't see that making you happy, or being in a good situation to bring up children, even with the proximity of family.

Buying into the business would be a big tie to your current location.  You should expect it to tie you there until it is sold entirely: getting out earlier might be possible but probably not guaranteed.   Obviously you couldn't decide to do it unless the financials are very favourable, which you won't know until you get the further information in November.  Even if they are favourable I would question whether the extra $50k a year is a big enough difference to make the commitment to another 10 years worth it to you, given the amounts you are saving even on your current salary.  That is something only you and your girlfriend can answer.