18 year old son with good savings

[qoheleth1]

Hey all. Need some help. My son is 18. Working full time currently and just banking money. He currently has 15k saved. We pay for his car. His only real bills currently are his car insurance (400) and then any gas or spending money he spends. He’s thinking about school this coming sept but what should he be doing with his savings? He just has it in a e savings account right now. He wants basically no risk and I don’t want him to feel like he doesn’t have access to his money so stocks wouldn’t be good for his style? Is high interest e savings the best for someone like this?

 

[maria90]

@qoheleth1 Look at whole life insurance. Typically gains 12-15% apr. and the best part he can borrow against it tax free and his money keeps growing. This is how the rich get richer and trust me it works and totally safe.

 

[jesusismyticket]

@maria90 This is not good advice.

 

[jord]

@qoheleth1 Must be nice having supportive parents paying for everything.

 

[qoheleth1]

@jord Tell me about it.

 

[resjudicata]

@qoheleth1 Keep it up pops. Kids need support past 18 and they have for a looooong time.

 

[michellep12]

@jord I was jealous of my friends who had a free ticket to life, but making it on my own did provide a lot of growth. I definitely would be further ahead had I had help and support.

My kids will be the 'free ticket' kids, but I talk to them often about not squandering the opportunity. Time will tell which was better....!

 

[qoheleth1]

@michellep12 Maybe I’m wrong. But I just feel bad for the Canada they will be growing up in. He’s a hard worker but want him to be able to afford a house hopefully before 30. So just trying to give them any advantage as possible. He just turned 18 but we pay his car. Cell phone and gym memberships. Anything else is on him. Of course he’ll always have a room here and food. He’s low maintenance which to me is a good sign. He literally buys nothing and goes no where’s. Just works and banks.

 

[michellep12]

@qoheleth1 Even that amount of support is tremendous. I've said the same to my children - you always have a room. My parents were salivating at the idea of me turning 18 and moving out. Paid all my own expenses and even helped them with the mortgage from time to time. We all live such different lives....

 

[jord]

@michellep12 I guess I'm just sitting here at 32 struggling to afford everything after going to college and doing everything everyone said. My dad was a drunk and my mon was a drug addict. I'm not jealous, I'm just frustrated. Some people live in large houses that they inherit, others live on a van down by the river that they worked 4 years for. It's a very delicate world and I'm not trying to disparage.

 

[michellep12]

@jord You have lots of time to turn things around. I had nothing to my name at 28. My first child was born, and it stoked a fire in me to be better.

The world is definitely different now. I bought my house in 2018 for almost 400k and thought I'd never pay it off. Having a like-minded partner with aligned goals helped us power the mortgage down quickly, and it will be paid off in 2026. I've read that choosing the right partner will make or break your life. I firmly believe this to be true!

 

[jord]

@michellep12 The right partner... I mean, having someone who believes in you and is good with money is always great. But I'm afraid not many people want to live in a van down by the river.

 

[anna_jackson]

@qoheleth1 My 18+ kids and I have recently discovered the Wealthsimple cash account which gives at minimum 4% interest. It’s an amazing rate for not having to incur risk or lock anything in like a GIC. It’s truly amazing.

 

[qoheleth1]

@anna_jackson Sweet yeah I saw that actually. Great idea. 4% is great. No concerns with wealth simply going under is there?

 

[anna_jackson]

@qoheleth1 This review from Forbes explains everything well, including your question https://www.forbes.com/advisor/ca/banking/wealthsimple-review/

 

[mercmorris28]

@qoheleth1 Not that I know of, I’ve used it for years now for trading and never had issues, they actually keep updating and implementing better and different things to keep up with competition (quest trade)

 

[sharkbait13]

@qoheleth1 If wealthsimple goes under then there are greater problems lol

 

[qoheleth1]

@sharkbait13 What do mean. Massive investment firms go down all the time. I don’t know much about wealth simple. But I don’t think anyone is 100% safe unless your a big bank.

 

[sharkbait13]

@qoheleth1 https://www.wealthsimple.com/en-ca/legal/legal-disclaimers#:~:text=Wealthsimple%20Cash&text=The%20funds%20you%20add%20to,of%20a%20member%20institution's%20failure.

In short, a very safe place to hold your cash. A partner with CDIC. Also a VC of power group: great westlife and Canada life.

 

[qoheleth1]

@sharkbait13 Nice. Awesome thanks.