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## Financial Situation and Goals

I (24) recently won $1 million. I have no debt or loans and currently live in a low-cost-of-living area with roommates. I recently graduated and am working a 9-5 job.

## Current Financial Strategy

I understand that this may not be a significant amount for some, but it is a substantial sum for me. Until yesterday, I only had $8,000 in my emergency fund. I live below my means and plan to continue doing so. I have not contributed to TFSA or RRSP accounts in Canada since 2019, but I do have accounts in Wealthsimple, including cash with a 4.5% interest rate.

## Seeking Advice for Long-Term Financial Planning

I am wondering what the best course of action would be to utilize this money for long-term growth while also generating passive income. I plan to invest the passive income into a small venture I have been working on.

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View Reference


  • HelloWorld24575

    Keep living like you never had it. Invest it for 10-15 years and you’ll be laughing. And yeah, don’t tell anyone.

  • RTso

    Lots of good advice here, just wanted to hammer home a point that’s particularly important. You have more savings, but you don’t have more income than before. If you start living differently, you will lose it quickly.

  • ianux22

    With 1 Mil at 24, in 5-10 years you might reach financial freedom if youÔÇÖre smart.

    DonÔÇÖt tell anyone, most of people who win lottery money end up broke because lots of people go to their door for everything.

    Maybe use up to 100k to treat yourself, but invest the remaining 900k and keep accumulating and investing.

  • twotwo4

    Don’t tell anyone and burn this account

  • Compote_Middle

    As others have said, don’t tell anyone about this. It’s still a good chunk of cash.
    First thing, max out all of your accounts, TFSA, RRSP and FHSA. Do your 6 months emergency fund at least.
    Then, put some tiny amount for you to spend, you can enjoy that too. Don’t forget to live, however do it smartly.
    Whenever you’re out of grad school, you’ll have a job, then you can start spending that money you put aside.
    And any remaining amount, try to either do a lot of research to find the best way to use it or, you can talk to a financial advisor (not at a bank), but one that has a one time fee, not commission based.

    Good luck and congrats!

  • nyrangersfan77

    I would start by eradicating the term “passive income” from your vocabulary. It’s used to describe a lot of influencer nonsense. Get used to thinking and talking more directly and more boring. You want your money to earn interest, dividends, and capital gains. These are real concrete things you need to understand and that will clarify your thinking. “Passive income” is a concept that can confuse and obscure as much as (or more than) it can help you to make good decisions.

    Read the investment guide here and keep it SIMPLE SIMPLE SIMPLE. You don’t need to be putting money into “ventures”, you can just use capital markets get access to a well diversified investment portfolio that will serve you well for life.

  • hipfan123

    Hey OP – I thought this was obligatory posting when I someone wins lottery. Congrats and good luck.

  • flightsnotfights

    To be completely honest, I would take 50k and take a year off and travel the world. Tel l people you got an inheritance but you had to use it to travel.

    I would then take the remainder and max out every account you need to. FHSA, TFSA, then RRSP.

    If you want to buy a house you could do that too.

  • Mitchell11674

    Lol at people telling him to not touch it until 55+

    F that. I’m retiring at 35 if I had that money at his age. 10-15 years in the sp500 should be more than enough. Don’t get greedy. Enjoy your freedom

  • hockeyfan1990

    HowÔÇÖd you win?

  • CombatGoose

    Having a million in cash is many peopleÔÇÖs dream. Saying itÔÇÖs not a lot is silly.

  • ainstien

    Max out your FHSA, TFSA. Put 750k in index funds and forget about it for a few years.
    For the rest, spend it on yourself but smartly. What are your current needs that you needed? Do you need a car (not a luxury one but that suffices your needs)? What are your accommodation needs? Did you want to travel?

  • Thinkthunkthanks

    See a fee only financial advisor. And watch your back in your shared living arrangement. IÔÇÖd make up a story about how you have the money to do so, and get your own place to rent or buy a modest place to live. Perhaps get a two bedroom or whatever and bring along a roommate if it is working well and combats loneliness. Allow this to improve your quality of life.

    You can have a decent passive income flow, but it will be fully taxable, be sure that every year dump money into RRSP and TFSA. Make this a must, do not screw with that plan. If you max those and do it without fail, you will have a massive nest egg for retirement or whatever.

    Good luck, you are young, you could either blow this on a series of bad ideas/decisions or be set up. But donÔÇÖt just be a miser, life is too short.

  • Smooth_Is-Fast

    Not sure why no one is telling you to buy a home, thatÔÇÖs the only tax free investment you can do aside from a TFSA.

  • Not4U2Understand


  • gohomebrentyourdrunk

    A million *is* a lot.

    The only advice you should take from anybody online is to find a fee-only (emphasis on that) financial advisor and discuss your goals.

  • jimmehhhhhhhh

    Buy a moderate home in cash, maybe something with some other rooms you can rent to people. Max out TFSA in some index funds, do some basic research on what ones to buy. Make sure to dollar-cost average these purchases. DonÔÇÖt worry about the passive income, if you need to fund the small venture then set up an account with some of your winnings and release it every week. Finally, buy something youÔÇÖve always wanted but never had the means to do so. I donÔÇÖt mean a fancy car, but something that would mean a lot to you and improve your happiness/quality of life.

  • ss7admin

    VFV and XEQT. ThatÔÇÖs all you need. Put it and sleep.

  • dealsfreak

    Put it in vfv and xeqt and chill. Collect dividends and you will retire with tons of money by 45.

  • shaktimann13

    Don’t spend 100k on a car.

  • LokiDesigns

    >not an overwhelming amount for the majority of people here

    I can guarantee that a million dollars is a lot of money to the vast majority of people here.

    As far as my advice, if you use an advisor, stay away from percentage based advisors. Flat rate is what you should look for. If you’re putting it all in ETFs, look for funds with a low MER, such as SCHD.

  • NodsInApprovalx3

    Past returns are not future returns blah blah.

    But the S&P500 went up almost 28% in the last year.

    As people have recommended, RRSP, TFSA, and FHSA, but what I’m not seeing emphasized is to avoid just opening these accounts as savings account, and instead open them to invest that money within an ETF based on your risk tolerance.

    You can still get a guaranteed 5.35% interest return in a 1 year GIC with EQ bank if you want to be risk averse.

    1 million at your age is a guaranteed retirement if you’re not dumb about how you manage it. You don’t have to be an investing wiz or anything, just don’t be dumb lol Lot of great advice here.

  • FelixYYZ


    Figure out your goals for the money (ie: trip, downpayment, etc..)

    Short term money: HISA product

    Long term, Invest !InvestingTrigger

    Acocunts: TFSA: !TFSAtrigger and understand your contribution room amount.

    RRSP: your last NOA will have your max contribution amount. And use FHSA before RSP is you plan on buy a place and need to save for downpayment.

  • sektrONE

    DonÔÇÖt spend it, donÔÇÖt tell anyone about it and delete this account.

    Put it in an S&P500 index fund, as you age slowly roll greater percentages into fixed income, and let it grow. DonÔÇÖt use it for passive income today unless you absolutely need to. Just keep living life like it doesnÔÇÖt exist and youÔÇÖll be miles ahead at 50 and can retire early.

  • yyrufreve

    Open an account, buy index funds and ETFs and start investing in starting a business based on what you either *want* to do **or** love to do (unless it will kill that passion) so you can leave your 9 – 5 but keep generating income with what your winnings built

  • Mundane-Bat-7090

    Reddit is not where you should be asking for advice about such large amounts you need a financial advisor

  • s1gFromWpg

    If you won it via lottery, IÔÇÖm afraid itÔÇÖs going to become known. All lottery companies in Canada disclose the winners and only keep it a secret if it somehow puts you in danger of some sort (I believe an undercover police officer once won the jackpot, and that was the only time the winnerÔÇÖs identity was not disclosed)

  • Pristine_Ad2664

    1. Don’t tell anyone
    2. Not even family
    3. Invest it in a diversified ETF
    4. Pretend it’s not there
    Personally I’d take a small amount ($5-10k) and do something fun with it.

    This is an amazing opportunity to play life on easy mode, don’t screw it up!

  • CanadianGamerr

    First off, congratulations! While 1 million might not seem like a lot to some people in this thread, it really is a life-changing amount especially at your age. YouÔÇÖre young and seem to have a good head on your shoulders. You should enjoy some of the money. As per a couple comments; tomorrow isnt promised.

    IÔÇÖm not going to tell you exactly how much to put where without knowing your current means, salary and full financial goals.

    Max out of your registered accounts, TFSA, FHSA, RRSP. ThereÔÇÖs a few ways to invest this money but I would HIGHLY recommend seeing financial planner that has a fee. They will have your best interests at heart vs a free financial planner at bank/credit union. You can go over your short term and long term financial goals, whether that be wealth accumulation, purchasing a property, generating income, etc.

    Bulk up your emergency fund.

    Put some money into the venture youÔÇÖre working on! Its hard to recommend how much without knowing the details. Right now is a great time to gain that experience, network, and grow.

    Above all, invest in YOURSELF! Pick up some new hobbies, go experience new things, travel to new places, eat good food, and actually live.

    Best of luck to you!

  • Ok-Regret6767

    This may not be the best way to maximize your money…

    But id throw most of it into dividends, aiming to get 4-5% annually as a return. Take the minimum amount to have 20% down, and put that on a property, condo, detached, town whatever you want.

    Get yourself a small property and have your dividend return pay off the mortgage.

    You could probably make more doing other things… But you’ll also have your home constantly paid for without worry.

  • Asleep_Noise_6745

    > I understand that this may be not an overwhelming amount for the majority of people here but it is for me. 

     What a fucking troll post 

    And you say you got a provincial business grant for 100k.


  • GoldFynch

    Alright hereÔÇÖs what you do itÔÇÖs fool-proof: Record some random vocals and hire a top producer to mix and master it, rent a lambo and jump around in front of it for 3 minutes with your friends.

    Put your new song together with your new music video and email it to every music label in Canada.

    Now you have passive income for life and just so happen to be a rap god

  • VibrantDreamer

    1. Congratulations.

    2. You already have a WS account and are seeking advice so you are on the good track, Congratulations again.

    3. Put the money in a mix bags of investments. Start with S&P500 ETF. I’d recommend 60% in $XUU which is what I have to avoid the headache of US<>CAD conversion. And then 30% in $VDY for Canadian Dividends. And 5% in WS Private Credit account and 5% in WS Cash for emergencies etc.

    4. How to invest? First, I assume your tax bracket isn’t too high. So Max out your TFSA (You should have around $33K room). Then max out your RRSP. And the rest will go to non-registered accounts then you will transfer from those to your TFSA/RRSP annually when room is available.

    5. Once you are a little bit more comfortable with having lots of money, start looking at investing in Real Estate. You can buy a multiplex, live in one unit and rent the other units.

  • Burgergold

    With 1M you can hire a fixed rate independant financial advisor

  • aj8j83fo83jo8ja3o8ja

    conversely to the correct advice to invest it and live like you never had it, if you blow it all on frivolous things now, youÔÇÖll hate yourself for the rest of your life. there is only one choice here

  • 20draws10

    IÔÇÖm not sure why people arenÔÇÖt saying this, but go talk to a financial advisor!! DonÔÇÖt listen to strangers on the internet, go get advice from a professional!

  • rock_in_shoe

    max registered accounts, invest in index funds, continue working. I’d personally spend a few years travelling around LCOL countries in South East Asia.

  • Octopus_Sublime

    DonÔÇÖt swim with sharks.

  • zipzoomramblafloon

    buy CASH.TO or VGRO, VGRO if you want it to grow.

    at todays interest rates ends up being like 1200-1600/mo paid every month, but it counts 100% towards your marginal tax rate, and the principal sum doesn’t increase, it also doesn’t decrease.

    VGRO does increase in value, but it could also go down in value, depending on how long you plan to hold, your risk tolerance, and if you can handle losing 10-20% of your princple sum in a year, or over a few years.

    If you don’t plan to touch the money for 20 years, and society lasts that long, dump it into VGRO. Otherwise put it in and your rent is paid. or split it 50/50 and then most of rent is paid per month, and you have some amount of money that should increase in value over the years.

    Don’t buy a fancy car, maintenance on them is awful, same w/ cost of insurance, etc.

    Good luck with your venture, but keep in mind most fail. don’t throw good money after bad.

    I hope you are able to keep the sum of moeny long term and grow it.

    Trust no one.

  • LostKeyFoundIt

    Read some financial books. Also be worried, most lotto winners have a tough go and tip through their earnings fast. 

    The world is your oyster. Make some goals and explore. 

  • AGreenerRoom

    I would pay for a fee for service financial planner to run some scenarios and get a plan together. Maybe Parallel Wealth? They are on YouTube. Also find some respected YouTubers in the FIRE niche.

  • XombieDobby

    If you keep living as per usual and put it in the WS Cash account, you are making $45k a year. That’s a very safe and stable additional income. Congrats!

  • Excellent_Belt3159

    Small rental property in western Canada

  • Arturo90Canada

    Honestly a lot of advice here . You should hire a lawyer , hire an investment advisor for a fee and go from there. Regardless of what people here say, these strategies arent as simple as it looks 

  • Thatcanadianchickk

    Invest into me (just kidding) congratulations ­ƒÑ║­ƒÆö­ƒÿ®

  • MisterSkills

    You could be a hands off real estate investor and get a 8%-12% return. I’d talk to an professional adviser though.