What would you do if you had a million dollars?

[sevenofnine]

um, I have been thinking a lot about money lately,

I don't really get the attraction the need for money, I mean I do but don't,
I like material things, the same as anyone, but it wouldn't change who I am, I would still be me.
so what difference does it make, I have most of the material needs of a multi millionaire we all kind of do, I have a nice house, a car, a cabin on a lake a man cave,
if I was a mulit millionaire, it would all be the same just bigger, more expensive, the things I have now, just high end, so what is the fucking attraction.

I have been investing, and listing a lot to warren buffet talk about compound interest, a million bucks is easy, its nothing,
you know those guys are making so much money so fast they can't even spend it fast enough, gates was making 37 million a day,

once you reach a certain point the interest compounding has a life of its own, most of my stocks are eight and nine percent range compounding monthly, im old, in my sixties.

but im preaching to my kids. you don't need the big dam car. put it in a reasonable stock and leave it for a decade or two or three, there in there late twenties, millions of bucks are easy, if your young,
I wish I would have started earlier,
but you know it doesn't matter really. like I said I have everything a millionaire has, not just as much or as big.

I was listening to a couple of suits, talk about some rich dudes they know, there conclusion the richer you are the weirder you are,

my advice be grounded first, have a life. enjoy your self. but be reasonable, spend some invest some, debt, is a killer, credit card debt is hard to get out from under.

credit card debt is compound interest, in a bad way.

 

[87112]

A good down payment on this?
http://search.welcomehomeabq.com/idx/details/homes/b038/887773

 

[Bridge]

Now that feels like a Shawshank Redemption moment!

I'd head for somewhere sunny & warm & relax in the breeze, in a hammock...then look for just the right piece of property!

 

[felixthecat]

If you keep 100% of your stock investment profits plus dividends, how does the bank make any money? Fees they charge to stock investors?

I guess banks make more money from those investing in mutual funds since they're always suggesting this to me when i am requesting GICs.

Good question, there are always some commissions. Banks would try to sell you mutual funds because they can charge a significant commission (MER), say 2% / year, used to be hidden in the fine print. This is more than they make on GICs.
The index ETF I mentioned has a MER too but way smaller (<0.2% / year). If you buy ETF or stocks, there will be commission per trade and maybe for account maintenance, but generally banks won't make much money off you.
There are some low-cost mutual funds around too, just don't expect banks' salespeople to bring them up.

For a good overview of low-commission investment options, check out canadiancouchpotato site.

 

[lenny]

As any other stock-market GIC, it's a sophisticated instrument, designed to rip you off in a less obvious manner.

If I understand the terms, you'd lock your money for 3 years. You get your original investment back if the index is down or flat. If the index is up, you also get 0.35 of the increase. No dividends on top of that, since you don't actually own any stocks.

I'll compare this GIC with the ETF I mentioned (exchange-traded fund based on the same index). The ETF price may go down or up, in any case you also get dividends, estimated 3.2% * 3 years = 9.6%.
Ignoring inflation and taxes, in reality they both would support my point as shown before.

Case 1, the index is down 10% in 3 years.
GIC return is 0% (safe!)
ETF return is -10% price + 9.6% dividends = -0.4%

Case 2, the index is flat.
GIC return is 0% (safe!)
ETF return is 0% price + 9.6% dividends = +9.6%

Case 3, the index is up 10% in 3 years.
GIC return is 0.35 * 10% = +3.5%
ETF return is +10% price + 9.6% dividends = 19.6%

The index can go down way more than 10% in 3 years, in which case you may regret the risky investment. But it might go up more than 10% too. On balance, I don't see stock-market GIC as a good option for anyone.

Maybe the "BMO Blue Chip GIC" is a better option than the other GIC:

https://www.bmo.com/main/personal/i...bmo-progressive-gics/bmo-blue-chip-gic&#rates

Locked in for 5 years, the principal is safe, 1% is guaranteed & profits are 100% of the increase.

Still the item you recommend looks preferable. Only if the market crashed, like in 2008, perhaps, would the GIC do much better.

https://www.bmo.com/home/personal/banking/rates/gic-term-deposits

 

[UhOh]

I would guess many perbers have a million dollars or more in net worth. Many of those who have owned homes for a decade or more will have that much equity in their property. I know plenty of people like that. I have over a million if I add up home equity, rrsp, and trading accounts but I certainly don't feel like I can go live like a king somewhere.
I still have to get out of bed early every morning to work at a job I don't particularly like. I still have a mortgage I need to pay.
At $5 million I might feel I could relax but one million isn't anything to get excited about in lower mainland.
With these grand ideas I'm reading here maybe I'm doing it wrong.

 

[bean1975]

A million bucks -- given this forum? Bang Riley Nixon and/or Jiz Lee. Absolutely. I've been looking for that look -- petite, hairy pussy, buzzed hair -- since forever but I can't find an escort who looks like that anywhere. I have no idea how would you go about booking a porn star for an escapade like that but I am reasonably sure six figures of dollars go far in this world.

 

[Ms Erica Phoenix]

Now that feels like a Shawshank Redemption moment!

Well it could be...you just have to find the right tree, in the right field! ;D

 

[sybian]

Well it could be...you just have to find the right tree, in the right field! ;D

Or an entire forest of them....The mountain country comes in large packages, will build your home ,then heat it.....and have enough room to hang as many hammocks as your heart desires.
Nothing wrong with a cowgirl having a little elbow room.

 

[Warl0ck]

If you're willing to leave the Lower Mainland & go elsewhere $1 million dollars would get you a very nice house. Shit, you can take the Ferry over to Gibson's and get a house for $250,000. There are many cities in Ontario where you can get a relatively decent home for a good price.

I gave up on the rat race & modern society a few years ago. I'd go to school just to learn and find my tranquility on some island and live a simple life. I'd sooner spend my days cooking dinner or reading than I would go shopping.

 

[sybian]

If you're willing to leave the Lower Mainland & go elsewhere $1 million dollars would get you a very nice house. Shit, you can take the Ferry over to Gibson's and get a house for $250,000. There are many cities in Ontario where you can get a relatively decent home for a good price.

I gave up on the rat race & modern society a few years ago. I'd go to school just to learn and find my tranquility on some island and live a simple life. I'd sooner spend my days cooking dinner or reading than I would go shopping.

You could buy a place for 700 to a million that would not only feed and shelter you, but produce enough product to support you....in hay ,cattle or both.
You just have to get used to doing your shopping and banking every two weeks or so.
In my case it's 220 kilometres to get my groceries....round trip.

 

[Warl0ck]

You could buy a place for 700 to a million that would not only feed and shelter you, but produce enough product to support you....in hay ,cattle or both.
You just have to get used to doing your shopping and banking every two weeks or so.
In my case it's 220 kilometres to get my groceries....round trip.

It would be something I'd do. I'd build an off the grid house with solar panels, a Tesla power wall & produce some of my food. I'd still have a house full of technology as I'd probably keep working but on my own terms. No real creature comforts like air conditioning, etc.

I lived that way for nearly a year before. I had electricity but no shower so everyday I had to travel to a public shower. I'd come home from work to quiet, cook my food over a fire & then just sit there. I had one TV station (CBC) which I rarely watched. I mostly sat outside in the evening, played sax or read a book. I stripped my life of all things technical too including computers. It was a great experiment. I'm a hardy soul, don't much need creature comforts.

 

[Equity Market investor]

At $5 million I might feel I could relax but one million isn't anything to get excited about in lower mainland.
With these grand ideas I'm reading here maybe I'm doing it wrong.

Yes, Vancouver wouldn't be the ideal choice. But then again, depends on ones lifestyle. Last part of your statement, maybe you've never thought much about it ( how much you need 2 retire )? Maybe schedule a appointment with a financial advisor and see where you stand ? Just a suggestion.

 

[lenny]

Just saw this article posted on TERB:

"Why bank employees with impressive but misleading titles could cost you big time"

"...Mike Black invested nearly $1 million with the help of an RBC 'vice-president' who he later learned is only licensed as a salesperson — his investment barely kept up with inflation."

http://www.cbc.ca/beta/news/canada/...tive-titles-put-investments-at-risk-1.4044702

 

[UhOh]

There's a high level of incompetence in the Canadian banking sector when it comes to financial advisers. I've met with more than one and they each seemed to be plugging the same generic plan. In no way did I feel they had anything more than the most basic knowledge of economics and finance. I suspect each "expert" I spoke with was a bank teller turned financial adviser.

 

[Warl0ck]

There's a high level of incompetence in the Canadian banking sector when it comes to financial advisers. I've met with more than one and they each seemed to be plugging the same generic plan. In no way did I feel they had anything more than the most basic knowledge of economics and finance. I suspect each "expert" I spoke with was a bank teller turned financial adviser.

Check out exactly what educational credentials they're required to have to "advise" you. If I recall you take the Canadian Investment Funds Course and you're licensing to sell mutual funds. Unless you're a serious investor it probably makes sense to take the course yourself and just handled your own investments.

 

[1nitestan]

Pay off debts. Check out of this cesspool of a city. Move someplace where I can live like a king, ride motorcycles and still travel

 

[SkinnyJohn]

Go on Seeking Arrangements and get my doctor to prescribe Cialis till that million runs out.

 

[felixthecat]

Maybe the "BMO Blue Chip GIC" is a better option than the other GIC:

https://www.bmo.com/main/personal/i...bmo-progressive-gics/bmo-blue-chip-gic&#rates

Locked in for 5 years, the principal is safe, 1% is guaranteed & profits are 100% of the increase.

Not bad at all. This can be the best possible investment if you think the market is a lottery: either goes up 30% in 5 years or goes down 30% with 50-50 chance.
In reality it will be often in between and your return something like 1.5% / year. Still, there's unlimited exposure to upside and guaranteed +1% minimum, I think the bank is making a mistake even offering this. They cover your risk but not taking enough of insurance payments.

For somebody who must preserve the principal, it's a reasonable investment choice.

 

[felixthecat]

I suspect each "expert" I spoke with was a bank teller turned financial adviser.

Of course they are. Why would anybody else try to make a career giving free investment advice, mostly to people who are not even wealthy.

The things that registered advisors tell you are mostly right and relevant, even if advice is generic. Diversification, portfolio allocation choice, regular investments, staying the course - all good.

The biggest problem, at the end they need to make money for themselves. So they push products a bit too risky, with higher commission (like mutual funds), to meet their sales target and get their kickbacks.