@anna_jackson This cash amount pays 4% monthly? Is there a minimum you need to maintain in this account? Can you use this like an everyday savings account?
@sean1240 It pays monthly but 4% is an annual interest rate, so 0.33% per month. No minimum balance. What do you mean “like an everyday savings account”?
@sean1240 Not 100% like a chequing account, there’s no cheques (but that’s coming soon), the card is a prepaid Mastercard so technically not an Interac debit, some people have reported issues with direct deposit and bill payments because different companies don’t recognize it in their system. But it’s most of the way there to being a normal chequing account.
@qoheleth1 GICs are no risk but you have to lock up your money. He doesn’t need it anyways what he going to do with it? Unless he’s starting a business he doesn’t need it. He should save it in a GIC lock it up and pretend he never had it. Get a job to make money that he needs for day to day and keep saving. My advice though would be don’t go to school unless you for sure know you need school to do what ever it is in life you want to do. I’d say first get a job in the field you think you’re interested before going to school. Experiment in the real world before taking on debt in school trust me most of the time it’s a waste of time and money. I’d put that 15k into starting a business. So for example if he likes renovations , go work for a guy for free, learn, see if you like it, start your own business on the side and grow from there. I started doing side jobs for myself at 19. It’s always good to have a skill. If he doesn’t like working with his hands, this info can apply to anything else. Get into sales. Sales is the number one skill you NEED in life. Everyone sells whether it’s selling jobs selling yourself . Don’t rush to school, and use that money for a business, or lock it up no risk in GIC, or dump it all in an ETF (this is what I’d do) that tracks s&p500 but keep in mind that money can be cut in half . He would have to have a 5-10 year mindset with ETFs so look at it like locking it in again . But you can sell out of the stock market fast it’s liquid. But stocks go up and down it’s a long term play and more risk. The no risk is GIC and today they have decent returns that won’t last. Make sure he does it through his TFSA. Read books as well
@resjudicata Yeah. I agree with you. I like the long term game as well and try to tell him the benefits. But different generation man. He doesn’t like the idea of not having full access to it. Which is funny because he wants to buy real estate and rent out. Just different thought processes I guess.
@qoheleth1 That’s what I do as well I have rental properties I’m 32. He can buy something that needs work and add value through the renovation but his 15k isn’t enough to do anything and he most likely doesn’t have a good job so no bank is going to
Finance his deal. It’s still possible through private money but it’s a masssiveeee risk especially since he has no experience and especially since the rates are super high right now. If he wants to do real estate he’s going to want units that cash flow and that has to be multi unit. No single door is cash flowing so he’ll be out money every month out of his pocket. Look at buying a single family and turning it into at least a duplex or better yet a triplex . But he needs 20% down and a good job where the bank would finance him. And then he needs renovation money. He could put down the 5% as a first time buyer but then you have to deal with CMHC and they charge extra 2% on top of the loan so your monthly cost is going to be astronomical. He needs to first focus on a good paying career job business what ever and save a downpayment before buying real estate .
@qoheleth1 His first move is to focus on INCOME. Money coming into his bank . You need money to invest. Everyone’s dream is to cashflow and retire early but kids don’t realize it takes 20 years before you get there. He needs to work hard smart and long for many years to get to those positions. Don’t just give him money either. I have a cousin who’s depressed living in his moms driveway in a trailer . They originally gave him a house, he sold it put it all into stock market, who knows if he lost it, got his dad to co-sign on a duplex for him, he still lives in the trailer depressed doesn’t leave . If you do too much for your kids they will never know how to do it themselves. Let them suffer and learn how hard life is. It’s not easy out here
@qoheleth1 In this economy? Could easily lock some of it in a GIC, most banks are offering like 5% right now, but whatever he does with it he wants it in a TFSA
The new FHSA (First-Time homebuyers acct) is also a good tax-free option, and some FIs are offering good rates for the liquid cash accounts inside an FHSA
@qoheleth1 Ignore the haters who are jealous. As parents, we all strive to be in a position to help our children like this, and can only hope our kids are this responsible with their money.
@fabianshc Exactly, my older son lives at home free. He is working as apprentice and banks 3k month. He invests it all.
I love it, he has a plan and I will help as much as I can.
