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WhipMaster
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Young people ....what advice to give them?

Thu Jan 09, 2014 10:46 am

A kid graduates from highschool.
What advice do you give him/her as far as preparing for their financial future and eventual retirement?

Yes, a big, open ended question. :mrgreen:
Hoo~Cudda~Not~Nod~ed????? :-)
 
scoobydoo
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Re: Young people ....what advice to give them?

Thu Jan 09, 2014 11:03 am

and yours? Real estate FTW??? :roll:
 
rofina
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Re: Young people ....what advice to give them?

Thu Jan 09, 2014 12:09 pm

If they have no family constrains, leave Vancouver. Beautiful city to be in if you can afford it, but awful city to get ahead in.

Followed by;

- Don't underestimate the benefits of saving money early.
- Don't spend too much money on education. People skills and experience over education.
- Focus on networking, life is about who you know. The "what" you know will follow.
- Don't get caught up in living a credit fuelled life style.
- Buy a USED car - if you even need one.
- Less is more, don't let the junk you own, own you.

Mandatory reading for anyone, young or not:

http://www.mrmoneymustache.com
 
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jesse1
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Re: Young people ....what advice to give them?

Thu Jan 09, 2014 12:51 pm

1) Keep fees low.
2) Don't time the market.
3) Stay diversified.
4) The future is bright.
5) You, like everyone else, don't know nothin'.
There is no shame in overpaying
 
thirdlittlepig
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Re: Young people ....what advice to give them?

Thu Jan 09, 2014 12:53 pm

From my Dad, sum total of his financial advice: "If you don't have the money for something, don't buy it"

In today's world that still goes. For my own kids: Do what you love to do and you will never work a day in your life.
Find a trade, or degree career. 90% of life is Just Turning Up.
Go to Alberta and get rich, buy a home when you know for sure where you want to live. Which could mean not buying one for a while so you can move to better paying jobs. If you don't spend all your savings, you will never be poor.
 
ttony604
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Re: Young people ....what advice to give them?

Thu Jan 09, 2014 11:10 pm

Put it all in Kitimat...1 year ago =)
 
dot com refugee
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Re: Young people ....what advice to give them?

Fri Jan 10, 2014 9:26 am

Many good points above.

Here are mine:

Buy low sell high.
But don't buy junk just because it looks cheap.
Many trends will last longer than you expect.
But "It's different this time" suggests the end is nigh.
Tax consideration is secondary.
Your network and skills are your most important assets. In that order.
Spend time building them as the game is long and it is worth it.
Be aware of your assumptions. Write them down.
Be careful what ensnares you.
Control begets money. Sometimes. Lack of control never does.
Study history.
Buy low sell high.
 
Waldo
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Re: Young people ....what advice to give them?

Fri Jan 10, 2014 12:27 pm

very rare for anyone to buy real estate without a mortgage.
That said, the sooner you start paying a mortgage the sooner you'll own your home free and clear
 
PatrickGunville
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Re: Young people ....what advice to give them?

Fri Jan 10, 2014 2:32 pm

Buy a house with a basement suite or three, and have your tenant pay your mortgage
Last edited by PatrickGunville on Sun Apr 17, 2016 5:06 pm, edited 1 time in total.
 
Austin
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Re: Young people ....what advice to give them?

Fri Jan 10, 2014 3:47 pm

Constantly look for people that have similar personality/strengths/weaknesses as you do, but are *much much older* (like, retired) and lived the life you want to live - and constantly ask for their advice / emulate what they did.

Advice above is interesting, but money/careers/success/etc ain't everything to everyone.
Redistribute consumption, not income.
 
tedeastside
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Re: Young people ....what advice to give them?

Fri Jan 10, 2014 4:37 pm

BC and especially Vancouver is a career graveyard, if you wan't to be somebody leave asap!!! unless you wan't to work for 1-800-got junk
 
Geyser
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Re: Young people ....what advice to give them?

Sat Jan 11, 2014 1:56 am

very rare for anyone to buy real estate without a mortgage.
True.
That said, the sooner you start paying a mortgage the sooner you'll own your home free and clear
Hmmm. Maybe, maybe not. What if the much anticipated major correction really does happen? If person A buys a house today for $800k he may take a lot longer to pay it off than person B who buys an identical house next door in two years time for $600K.

Here's another scenario: person A buys a house for $800K on a 5 year fixed mortgage. In 5 years it's time to renew but the value has remained stagnant, the interest rate is now 8%, he has lost his job and is facing a distress sale. Meanwhile, person B has been saving for those 5 years and now has a much bigger deposit to put down. The higher interest rate is suppressing market activity but he sees an opportunity by low balling on person A's distress sale.

Buying sooner is no guarantee of being free and clear sooner. Nobody really knows but it looks a lot more risky today than it did a few years ago.
In fond memory of Taipan, a model of modesty, decency, dignity and tolerance. Long may we all prosper from the tremendous legacy of worldly wisdom and specialized real estate knowledge which he left in the "Arguments" thread.
 
Geyser
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Re: Young people ....what advice to give them?

Sat Jan 11, 2014 2:03 am

Buy a house with a basement suite or three, and have your tenant pay your mortgage!
You have been assuring us that a market price collapse is imminent. Do you anticipate that the rents will not only cover the mortgage but also the property taxes, the maintenance, the occasional periods of vacancy and, most importantly, the big drop in value which you have been predicting?

If your answer is "no", how much do you expect the buyer would lose on such an investment (in percentage terms) over the next few years?
In fond memory of Taipan, a model of modesty, decency, dignity and tolerance. Long may we all prosper from the tremendous legacy of worldly wisdom and specialized real estate knowledge which he left in the "Arguments" thread.
 
PatrickGunville
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Re: Young people ....what advice to give them?

Sat Jan 11, 2014 2:45 am

Thanks
Last edited by PatrickGunville on Sun Apr 17, 2016 5:06 pm, edited 1 time in total.
 
thirdlittlepig
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Re: Young people ....what advice to give them?

Sat Jan 11, 2014 7:33 am

The youngsters might not realize that there was about a twenty year stretch where house prices did not change much between 1980 and 2000. So if you thought renting was going to make you much money, a lot of people lost their homes/shirts. That could happen yet, and here in the okanagan there are many places which have lost value in the last few years, probably more than the people were putting into their mortgage. so for those who thought they were priced out, but saved their pennies and rented, they will easily be able to buy a home sooner than they guy who signed up for a mortgage at peak prices. Meanwhile they can make money hand over fist in Alberta, and later buy whatever kind of home they want and still be able to afford kids, without a huge mortgage hanging around their neck. And personally buying a home to have a stranger living in it just doesn't suit my taste. I, and my grown kids, really like the feeling of never oweing any money. They have so many friends who are up to their eyeballs in debt, or can't figure out how to save a few bucks they are living from paycheck to paycheck. If you like that, great.

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