Thanks in advance for all the excellent advice I am sure to receive!!! Your time and effort is greatly appreciated!!
I have read for hours upon hours on this forum in the last week and have learned a lot. I also have a keen interest in investing which goes beyond the pursuit of money itself. I have read many financial books for leisure (most of them regarding the psychological aspect of investing).
I have been in and out of real estate since 2005 when i bought my: first fixer-upper (some huge ups and downs but thankfully i have just recovered from the huge loss during the bust a few years ago). I currently have no desire to be in the residential or multi-family real estate market. I am only interested in the commercial real estate market. I dabbled in stocks around 5 years ago and lost a lot of money ouch!! mid to high 5 figures.
I am 27 years old.
Married with 2 children. Wife is stay at home mom with no intentions of rejoining the workforce
1st child will be starting kindergarden this fall.
I have a had a rocky last few years, but lets skip that part and get to the important part...where I am now.
RRSP: zip zero
$1650/month + utilities/bills
No plans on buying a home till i have the the full purchase price in cash and can write a cheque!!
This is the part where i will receive CMF's wrath:
Bought New for ~39,000 in fall of 2010
financed at 0% for 3 yrs. no downpayment
Bought New for ~50,000 in fall of 2011
leased at 0% for 4 years, no downpayment
residual value around $21,000 which i plan to pay in cash when due
payment is ~615/month
Monthly Expenses are pretty heavy as i dont really hold back on the family :0
Ive just signed up for Mint.com and im running around $7000/month spending including everything.
Now to the interesting part...
I have basically been raising a family for the last 5-6 years on no income at all except whatever i could make flipping houses on the side. and have just started making a salary for the last 2 years at around $4/month after tax. (we've been spending more than i make every month)
I will start work this summer and have many job offers. None of these are salaried and i can run as much as i want through a PC of course.
I basically have a 1.1 mil commercial property with no equity in it
which makes 90,000$ net before payments/taxes
My options are staying close to home and making about:
~$300,000/year net to the corp/personal income before taxes
I can make more if I work harder.
I have no idea where to start or what to do.
This all stemmed from being approached by a private banker who offered to arrange plan all my finances and invest my future money for a fee of course!
I have an excellent Accountant who i just started seeing a few months ago and after reading this forum heavily i have a long list of questions for him.
Im also thinking about hiring a hourly fee-based financial planner to do a comprehensive short-medium term financial plan.
Please feel free to advise, critisize and scold!!! but please make it constructive as i am born again as far as finances are concerned!!! and wanna start this all off the right way.
an easy exit would be just working like a dog for a year or two and just paying everything off and holding the commercial property free and clear. but i want to do it the most efficient and effective way and make this a learning experience that will help me develop good habits that will continue for the rest of my life.
Thanks in Advance