Empower Your Investment Journey: How AI Legalese Decoder Can Guide a 36-year-old with 30k to Invest for the First Time
- December 8, 2023
- Posted by: legaleseblogger
- Category: Related News
Speed-Dial AI Lawyer (470) 835 3425 FREE
FREE Legal Document translation
Try Free Now: Legalese tool without registration
Financial Advice for a Growing Family in Need of Investments
My Scenario:
I’m seeking financial advice given my current situation. I’m 36 years old, married, and have two young children. My family and I live in a tiny house on wheels that we built and own outright. Our combined monthly expenses, including childcare, come to around $3000, which is the lowest it’s been in the past ten years. We reside outside of Toronto on a rented farm.
Income and Assets:
Both my spouse and I work as freelance designers and artists, earning approximately $40,000 each per year. We have no outstanding debt, $10,000 in emergency savings, and recently inherited $30,000.
Future Goals:
Our aspiration is to purchase land or a house by the time we reach our 50s, but we understand that this may not be feasible unless we can increase our income. We believe that our earnings potential will rise once both of our children are in daycare.
Investment and Financial Planning:
I excel at saving when I have a specific goal in mind. Therefore, I am seeking investment advice for a 15-year term. Furthermore, I am interested in learning the most effective way to invest the $30,000 that we recently inherited.
How AI Legalese Decoder Can Help:
AI Legalese Decoder can assist in understanding and navigating the complex world of financial advice, investment opportunities, and planning for the future. By utilizing this tool, we can gain valuable insights and recommendations tailored to our specific needs and goals. The AI Legalese Decoder’s ability to decipher complex financial jargon and provide clear, actionable guidance will be invaluable as we seek to make informed decisions and secure our family’s financial future.
Speed-Dial AI Lawyer (470) 835 3425 FREE
FREE Legal Document translation
Try Free Now: Legalese tool without registration
AI Legalese Decoder: Simplifying Legal Jargon
One of the biggest challenges in dealing with legal documents is understanding the language used. Legal professionals often use complex and convoluted language, making it difficult for laypeople to grasp the meaning of the documents. This can make it extremely challenging for individuals to comprehend their rights and obligations, leading to confusion and misunderstandings.
AI Legalese Decoder is a powerful tool that can help individuals decipher legal jargon with ease. By using advanced natural language processing and machine learning algorithms, AI Legalese Decoder can break down complex legal terms and phrases into simple and understandable language. This can help individuals understand the content of legal documents, such as contracts, agreements, and policies, without the need for a law degree.
The AI Legalese Decoder can double the original length and help individuals navigate through complex legal documents by providing clear and concise translations of legal jargon. Additionally, it can provide explanations of legal terms and clauses, ensuring that individuals are fully informed about their rights and obligations. This can be particularly useful for businesses and individuals who may not have access to legal expertise but still need to understand and negotiate contracts and agreements.
Furthermore, AI Legalese Decoder can also assist legal professionals in drafting and reviewing documents, saving time and effort by automating the translation of complex legal language into plain English. This can improve the efficiency and accuracy of legal document creation and review processes, allowing legal professionals to focus on more strategic and value-added tasks.
In conclusion, AI Legalese Decoder is a valuable tool for simplifying legal jargon and making legal documents more accessible to a wider audience. Whether you are an individual trying to understand your rights and obligations or a legal professional looking to streamline document drafting and review processes, AI Legalese Decoder can be the solution to your legal language challenges.
Speed-Dial AI Lawyer (470) 835 3425 FREE
FREE Legal Document translation
****** just grabbed a
You are not behind my friend. You are doing very well. Zero debt, $10k emerg cash, and owned home? Even before this inheritance you are in a position many would dream of in this climate.
>I’m late to the game – I feel it.
In Fred Vettese’s most recent book, *The Rule of 30*, he demonstrates that people without pensions should be able to retire in their mid 60s and maintain their lifestyle – even if they experience a very unlucky combination of inflation, wage inflation and investment returns – if starting sometime in their 30s they earmark 30% of their gross income to rent/ mortgage + daycare expenses + retirement savings. (But recommends that they do an annual assessment starting about 10 years from retirement.)
Vettese’s strategy acknowledges that when you are paying rent, building a down payment, paying off student loans and paying for daycare it can be impossible to put anything away for retirement. He wrote that the retirement specific savings could end up something like:
– Each year of your 30s save 5% of gross income.
– Each year of your 40s save 15% of gross income.
– Each year of your 50s save 25% of gross income.
Of course if someone wants to retire before their mid 60s they should amend the rule to save more and/ or save earlier.
Savings that you think you’ll need in less than 5 or 6 years (eg. emergency fund, next vehicle purchase, down payment savings, etc.) could be parked in a good [high interest savings account,]( https://www.highinterestsavings.ca/chart/) or [in some GICs.](https://www.highinterestsavings.ca/gic-rates/) Don’t choose the GIC option unless you are confident that you won’t need the money for the duration of the GIC contract.
If you have reached Step 5 of the [PFC money steps](https://www.reddit.com/r/PersonalFinanceCanada/wiki/money-steps)
and you have some money you are confident you can invest for long term (ideally at least 10 year) goals you could invest in a low cost, risk appropriate, globally diversified, index tracking (i.e. couch potato) portfolio such as those discussed on the following pages.
https://www.reddit.com/r/PersonalFinanceCanada/wiki/investing
https://canadiancouchpotato.com/getting-started/
The simplest couch potato option would be to use a passively managed robo- advisor account (eg. RBC InvestEase, NestWealth, iA WealthAssist). After answering questions about your goals, timeline, knowledge/ experience with investing and your perceived comfort with volatility they will choose and then manage a suitable ETF portfolio for you. You would be able to set up automatic contributions. The total annual management cost would be about $70 per $10,000 invested. This compares to about $200 per $10,000 invested for typical bank mutual funds.
If you’d like to better understand the couch potato options and avoid the costly but normal human reactions to the markets and the media that reports on them, I suggest that you read
*Balance: How to Invest and Spend for Happiness, Health, and Wealth* (Andrew Hallam, 2022).
Avoid /r/wallstreetbets at all costs
When I was in school my finance teacher said the very first thing you need to decide, before you think about investing even a penny, is how averse to risk are you? If you don’t care if you lose all your money, your investing behaviour will be much different than someone who doesn’t want to potentially lose it all. So, do you care if you lose it all, but have the chance to double or even quadruple your money? Would you rather less potential income, but to be certain you don’t lose anything?
I’m doing GICs myself. 5.75% with EQ bank and zero risk.
30k is a neat sum. You can do many things with it, it all depends what you want to do with it later and in how many years you are going to need it.
If you want to invest in your children’s education you could open RESP (Registered Education Savings Plans), if I’m not mistaken the governement match the amount you put in it (Also, just by opening one and not putting money in it I think you can get free money from the governement, that can be invested for the education of your kids. I’d ask a financial adviser about it.). So if you put 2k for each of your kids, I think the governement will put a 2k each too, that’s free money for your kids education. You put it now and later when they get old enough to go to college or university they can use it.
Otherwise I’d use the TFSA (Tax Free Savings Account) for the rest of the money so your interest are free of taxes. When your income becomes bigger it might be worth it to use RRSP.
I would go all in on Canadian Dividend stocks in a Non-Registered account or TFSA if you have the room between you and your spouse. You will pay very little tax on the dividends you earn (if it’s in a Non-Registered acct). Scotia and CIBC stock prices are quite low which means a good yield on their dividends. I think the yield for each is around 6.30% to 7%. Canadian banks are an oligopoly. I’m confident they’ll be around long after you and I are gone.
Wow. Your doing amazing
Risk of investments also includes losing money. It not all sunshine and rainbows.
I would suggest you take advantage of the over 5% GIC rates right now.
ETFs. Index funds. Do some research. Get set up at your bank to trade on the exchange. Pick 3 or 4 at medium risk and go for it, buy ÔÇÿem.
I would give you the following tips:
1. As your money is hard earned, don’t do any sort of risky investment, because money in general is hard to make, you’ll have regret, if you do stupid stuff.
2. You should aim to increase your earnings and savings, as you do. Make sure you do the proper filing and reporting with tax, as if you ever want a mortgage, you need to prove income and such. As freelancers, this becomes much harder if you didn’t do you taxes. Don’t be afraid to pay tax in order to get your credit score and build history with a bank.
3. My opinion is aim to buy a place as soon as possible.
In general, RBC is easiest to give out mortgages, imo and some other chat with various realtors etc. It’s best you choose a bank and build a rapport starting immediately.
If you buy land, bank in general won’t lend more than 50%. Also you gotta build, make sure you know bylaws and be ready for a whole bunch of unforeseen small costs that add up.
Important: Prices in real estate in general will outgrow your low interest yields (5%), especially cheaper property which will probably increase more than 5% so its imperative you increase your income and savings, and aim to get a place soon, not when you turn 50. If you think you are going to do a cash purchase when you are 50, I strongly suggest DONT. Inflation will 95% push up prices and when you hit 40s.
Don’t buy a place out of your price range, high mortgage will really hurt with the first 1/2 of the term, as a lot will go to interest, instead buy a house you can manage safely.
Since your first purchase is a primary residence, no rental income. 80k combined minus 3k/mo = 44k savings per year? Or lets say 35k. Safely, you probably can aim for a house ~350k and pay off not in 20 years, but maybe in 8-10 or even faster, but you’ll need 20% deposit, and rapport for mortgage loan. Also, life with two kids, lots of unforeseen costs will pop up. Drop your annual savings for housing fund to 30k. Have 5k yearly extra money fund.
If you tiny home on wheels can be rented out, don’t be surprised if the bank doesn’t accept this in calculations because it isn’t a fixed home, and they will reject in mortgage calculations, however you may get extra passive income to make ‘double’ payments.
Therefore, it’s imperative, if you want a fixed home, to start saving to at least 80 – 100k ASAP, build rapport with bank and do your taxes. Get a home soon, maybe when interest drops in 1 or 2 years, this should be a firm goal.
Banks care about your cash on hand and your income. If you don’t meet the criteria, it’s sadness, if you do meet the criteria, everything is smooth. Don’t let reality hit you hard at the time you want to do a purchase. Talk to bank early.
Do not listen to many people that say owning a house is a bad idea, I have seen it all, and those not owning a house are imo worse shape financially no matter how you cut the cake. In general, these people don’t know how to invest whatsoever and don’t understand intelligent investment. There are exceptions, ie: those who sold and just sit on a wad of money, but have enough to cahs purchase another place.
Also, when buying, always try to remember investment, not only home, meaning strategic town/city/location. If you can turn anything into a potential rental, you will get great passive income.
I started ‘life’ at age 38, from $0 as I fucked around and found out with finances, as I lived worked and partied abroad after graduation at 22 up to 38. I came back to canada, luckily found a job, did some extremely risky stock investments borrowing to buy (DONT DO THIS UNLESS YOU ARE WILLING TO SUFFER NEGATIVE CONSEQUENCES), that ended up paying off and had 150k saved within 2 years. Got a mortgage, and bought a condo. Rushed the payments hard and paid off in 4 years. I just bought a second property, a house in Calgary, which closed 2 weeks ago. Both are now rentals pulling in a total of 4k/month.
I plan to pay this one off hard, in 4 years, with rainy day money. The house was 390,000k.
!InvestingTrigger
I would put it into a GIC account, the rates a pretty good right now. If you want to buy some stocks with it and take a bit of a risk I would stick to safe stocks that give you a good dividend (morning star income stocks) are a good start. Hope this helps.
[removed]
Buying land? C’mon man, snap into reality. That isn’t practical anymore if you live in a habitable area of Canada and are not a billionaire. You missed the boat on that. Just put as much as you can into S&P 500 and forget it until retirement. Forget about buying land.
Realistically, I don’t think homeownership is in the cards close to Toronto on an 80k household income.
You guys have a house fully paid off. What is the reason you want to buy another one by age 50?
Robinhood leaps
At first, I thought you meant tiny home as modest home. But you’re referring to those tiny mobile homes. It must be an interesting challenge to live in there with 2 kids.
I’d suggest you invest maybe 1K of that money to talk to a real estate lawyer about your plan for buying your friends farm. I’m not an expert but it sounds odd.
The part about you buying 50% of the farm for only the taxes owing. And the taxes being 400K. Wouldn’t the value of the land be multiple millions of dollars if the taxes are 400K. Why would they sell it to you for only 400K?
I’d just go with gics as the rates are super high. I’m normally high risk yolo type but even I’m buying gics.
Put all money in tqqq. You will be half way to a million in 10 years.
Open resp for your kids. Add the limit for their age. Buy a gic with 1/3. Buy vgro in a Tfsa with the rest except Save $200 for a meal at the keg. Sorry for your loss.
Park it in VFV and donÔÇÖt touch it for 20 years
Index funds , or some bonds / blue chip companies