Β #FinancialAdvice #SavingGoals #GrowingWealth
Hey there! π It sounds like you’re really taking charge of your finances at such a young age – kudos to you! It’s completely normal to feel overwhelmed and unsure about your financial decisions, especially when you’re navigating everything on your own.
Here are a few things to consider and some advice that might help guide you in the right direction:
– Look into diversifying your investments beyond just GICs and a FHSA account. Consider options like low-cost index funds or ETFs that can potentially offer higher returns over the long term.
– It’s great that you’re thinking about homeownership, but make sure you have a solid emergency fund in place before taking on a mortgage.
– Concerning your fear about splitting assets in the event of a breakup, you can always look into a cohabitation agreement or speak with a legal professional to protect your interests.
Remember, it’s essential to have a well-rounded financial plan that aligns with your goals and risk tolerance. Seeking out a financial advisor or mentor could also provide you with valuable guidance through this journey. You’re on the right track by asking for help and being proactive about your financial future. Good luck! ππΈ #FinancialIndependence #InvestingTips
Fhsa is an account type, you can hold GIC/etf/etc in it
!StepsTrigger
There’s no amount that you “should” have at your age. Everyone’s circumstances are different. Regarding your question on being with someone, depending on how long you’re with that person, no they may not get half of what you own from before you met them. Either way, you’ll worry about that when you meet said person. As a side note, you’re still young, remember to also occasionally enjoy some of that money!
Hey!
Lots to unpack here aha
Iβm in my mid 20s in the GVA and Iβve gone through all these thoughts myself not too long ago in my stages of life lol Working in finance helps a but though
You said that you have a 6-12 month time horizon for investing. Why is that? Do you see any immediate expenses coming?
The 3 GICs, which account are they being invested? I hope they are in registered accounts. Whatβs the term and are they cashable. If non-cashable please review what penalties you would have to pay if you redeem early. I personally never recommend my clients non-cashable GICs as they are better suited for short time horizon and high liquidity.
As for implications on homeownership if your relationship were to end (honestly always nice to get that covered and I also had to go over this), here are a few things to consider:
Consider getting legal advice to protect your assets. Specifically prenuptial or cohabitation agreements. They can outline how property is divided if a relationship ends. This ensures that your investment in a home is protected.
The other improvements piece is clear communication with your partner. If you enter a relationship, communicate openly about finances and property ownership. Transparency can prevent misunderstandings and ensure both partners are on the same page. Speaking from personal experience where clients had to learn the hard way :/
I personally recommend to maintain separate finances initially to protect your assets. Joint financial decisions can be made gradually as the relationship progresses and trust is built.
Hope that helps to start!
>I have zero interest in an RRSP. It seems like a scam to me and I donβt see many benefits
As demonstrated on the following page if you invest the tax reduction and tax bracket when you withdraw is the same as it was when you contributed, then an RRSP is just as beneficial as a TFSA.
https://www.planeasy.ca/tfsa-vs-rrsp-pick-the-right-one-and-save-100000/
You have an FHSA account but we have no idea what it is in it so hard to tell.
30k is very good and you should be proud of that. I am about to hit you with the hard truth though.
If you move to the GTA to complete school you will be there for around 2 to 4 years (depending where you are now in your schooling) making next to zero income. That means you will need to work for 2-3 years after graduating to get to a level where a bank will even acknowledge you exist.
So approximately 30 years old before you get a mortgage, then here comes the real kicker, unless you are making 6 figures and have at least a 6 figure deposit saved up you aren’t getting a house in the GTA.
By then (hell even right now) getting a house that isn’t a dump for under 800-1m is impossible.
If you want a house in the GTA, you need some wealthy relatives or a dozen cosigners and people to pay a deposit.
Also, saying RRSP is a scam is insane. Do some research it is probably one of the best things we have as an investment account.
FHSA is a finite account and can be converted to RRSP after 15 years so it is important you understand what an RRSP is and how it works.
The easiest way to be successful is to get out of the GTA; just my. 2 cents.
OP what kind of career are you going into? If you want to buy a house in the GTA its going to be a challenge. I would say if you aren’t going to be making at least 200k a year either like with a spouse or just being single income I don’t think its possible to buy a home unless you have rich parents willing to give you a hefty downpayment.
An RRSP is most certainly not a scam. Itβs one of the few things we have to grow money and give us a tax advantage – contribute during your high income years, withdraw in retirement when your income is lower. It may not be the right time for to contribute, but calling it a scam and not fully understanding it is the wrong way to go.
Have you been accepted into med school yet? Since you mentioned youβre still completing your undergrad.
If you havenβt been accepted yet, I would reach out to current med students to see what their specs are to see if you are competitive. Because a lot of your future direction (and therefore financial advice) would be dependent on whether you end up in med school or not.
You also mention moving to GTA for medical school. If you have nothing strongly tying you down to GTA, from a financial perspective I think you should consider other schools in the country, especially those where either the tuition is lower, or the cost of living is lower. GTA is not going to be comparatively cheap for both tuition or cost of living.
Med school is expensive. Apply to as many grants and scholarships. Try to borrow as much as you can via student loan first, since it offers the lowest interest rates. Next, most banks offer med school specific loans with better rates than typical loans. Donβt be afraid to get into debt for med school.
Once youβre in med school, prioritize studying! Donβt try to work a job or 4 – itβs not worth it to tank your grade, or to burn yourself out. If you do must work, try to find something that is convenient and low(er) effort – like tutoring on campus or virtually.
Relax, you’re doing better than most Canadians your age. Take a deep breath and pat yourself on the back for that. Sorry I don’t have much more to add that others haven’t already said. Good job on your progress so far!
If you are truly serious about your finances and want to head towards financial stability or even financial freedom then you being on here learning what you don’t know is a good start.
Keep learning about different types of investments and understand each vehicle can do and the associated risk.
Allow yourself to make mistakes and learn how to manage those losses. Too many people think that every single move they make is the perfect move when in reality, losses are all part of the game of investing.
Your attitude towards growing your money should always be at the forefront.
Now, the other big thing is that you are 23F with a great mindset about finances. If you are looking for a life partner that shares the same values as you, then you need find someone where you can build each other up. Playing this game of life is better accomplished with a second player in your corner.
YouTube side hustles and see if that is something for you. Read the book Rich Dad Poor Dad just to get some inspiration. Most important, change up your circle of people who are actively trying to change their financial future. Key word is actively, meaning they are working on something everyday.
So many people spend too much time talking about what they going to do while the ones who are working, they keep their head down and push forward. It’s ok to go at it alone but find that support that you will need to lean on later on.
Good luck and we will see you at the top. π€