# I think this will be my plan =/



## emperor (Jul 24, 2011)

This is my current situation 

33 yrs old, single

10K in ETF (5yr)
15K in ING 1.5% interest
13K in 2% RRSP (1 yr)
8 K in Us account
2 K in Chequing account
50 K in 1% savings account
20 K in Pension fund

Cash I have access to 88 K
Cash I can't touch 30K

I earn 60 - 120K a yr
I have a pension of 10 - 20K a yr

*Short term plan 1 – 5 yrs*
Purchase a condo or townhouse for 100 - 150K
Rent one or two rooms and cover most the monthly expenses, maybe even make a couple hundred

Get a nearly new car for 20 – 35K (Mine is 10 years old. Need large reliable vehicle for work)

Spend 20 K on creating a graphic novel (Aware this is probably a waste of money)

*Long Term plan 10yrs +*
Purchase a house for 200 – 300K rent my town house or condo

Invest in dividend stocks

*Other things to consider*
I would always like to have access to some funds encase I come up with a good small business idea.

My major concern is houses will drop right after I spend 150 K on a condo.

If you have any comments or suggestions I would be interested in hearing them.


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## cash (Mar 5, 2011)

What city are you going to get a condo for 150k where you will have room for yourself + tenants?


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## emperor (Jul 24, 2011)

Red Deer Alberta

There is 12 town houses 2 rooms + that are under 150 K
There is 20 condos

I still think thats too expensive. Houses jumped 152% is 10-12 years, wages only went up 32% I've been waiting for a correction but it just doesn't seem to be happening.


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## the-royal-mail (Dec 11, 2009)

You've done very well for yourself. It's pretty hard for anybody to find fault with your plan. 

About the only thing I might be a bit careful with is getting yourself trapped to a mortgage on a house you may not be able to sell in the future due to economic cycle. It seems you are doing just fine without home ownership right now and I suspect you work long and hard hours to make your salary. Home ownership is WORK and you seem able to save enough cash right now that you could continue on present course, and if your career later leads you elsewhere, buy at that time.

Are you stable in your current career? What do you do? What sort of living arrangements do you presently have?


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## emperor (Jul 24, 2011)

My job is Tig welder in Fort Mac so it's tied to the price of oil. The less the companies make the less repairs and expansions they do. So my job is fairly secure but not perfect.

When I work it's usually 24 days on 4 days off, 12-13 hrs a day, it's seasonal usually 7-8 months a year. If you some how manage to get a full 12 months in you can make over 200K plus 35K pension but I've only heard a few cases of this. 

I rent a room in a house at Red Deer for 500 dollars.

My insurance is cheap on an old car, 46.00 a month because I only drive 4 days a month. (Bus at work)

Cell phone is old and I'm on a $20.00 plan, 45.00 after fees.

No cable, no internet at home.

When working my 24 days on I get my own camp room which includes food, internet, phone, cable, a gym and free transportation.

During off season I usually camp for a month, I also renew or redo my welding tickets (paid for by company) and go on a holiday for a month.


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## Plugging Along (Jan 3, 2011)

I am all for real estate and home ownership. My main question is does it make sense to be having your own home when you are there only 4 days a month, and for a few months in the winter?

Also, do you see yourself staying in the rigs forever. I know there is a high turnover, and people tend to leave because it is a hard lifestyle.

My general thoughts in real estate drops, is if you are planning to go long term (like 15 - 20 years +), then the drops don't matter. Its pretty hard to time the market. Everyone has a different opinion on what's happening. 

For us, we always plan to buy the real estate and hold. Our plan always includes being able to hold on as long as it takes, and if a really good opportunity comes at the time we're interested in selling, it's a bonus. I would never buy real estate if you ever anticipating 'needing' the money.


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## emperor (Jul 24, 2011)

I'm a little confused

Are you saying I should'nt get any house at all and just rent or are you saying I should get a town house / condo and not bother with a 200-300K house.


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## Plugging Along (Jan 3, 2011)

Sorry, I wasn't clear.

My thoughts are that if you think that you are in your current job as a temporary thing (let's say less than 5 years), then I think you may want to just rent. The reason being, is right now you're hardly ever around, and this is just something until you are doing something different.

If your current career is what you think you'll be doing for a long time, and you think you'll stay in Red Deer and don't need you'll need your money from your resident, then go ahead and buy a place. If it's a house that you really want, and that you can afford (based on the lower incomes during the year), and you'll be there for a long time, then go for it. Who cares about the correction which may or may not happen.


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## the-royal-mail (Dec 11, 2009)

It will be impossible to properly care for your house when you're only off 4 days per month. And you'll be tied to paying taxes on it EVERY day, regardless if you are there or not.

I don't think there are many people spending decades in that type of work and raising families in the area and retiring on the rigs. I would vote against obligating yourself to any type of property at this time. Keep renting. You're saving a boatload of money right now. You've got your whole life to worry about tying yourself down to a property.


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## emperor (Jul 24, 2011)

Well I guess my money diary is pretty lame.

I have money 
I make money
I save money 

=)


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## Plugging Along (Jan 3, 2011)

I have the same diary. Mine is I want to have more money =). 

You could be in a worst position.


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## emperor (Jul 24, 2011)

After reading two investment books (dummy series) browsing this website and taxtips I've come to the realization I have no idea what do to.

I'm trying to find a good way to make money off my money but it's a little difficult. Especially when I collect EI for 3-4 months while I renew my 40+ certificates, if I make money from renting for example I won't get to collect EI for that week, I'm not sure how dividends work with EI.

If anyone has any suggestions on where to put my money to make money hopefully in the short run and not 15 yrs from now let me know.


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## peterk (May 16, 2010)

It certainly doesn't make sense to be buying if you are on 24-4. Heck it barely makes sense to rent... you could probably stay in a hotel for cheaper..
You have to ask yourself if this is going to be permament though. 24-4 is brutal and I imagine you won't be able to keep it up for more than a couple years. Choosing red deer also limits you kinda. What if your shift changes to 7-7 and all of a sudden you find yourself stuck in red deer on your time off? or you're relocated to Calgary? Sure it's the "cheapest" "city" in driving distance from the ft. mac but if your shift changes and you suddenly have time for a life who's to say you'll want to spend it in red deer.

caveat: I speak assuming you are new to the province... if you're a local and know your Alberta and have decided that Red Deer's the place for you, then disregard me obviously.


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## emperor (Jul 24, 2011)

Thought I'd update

10K ETF (RRSP)
26K HISA (TFSA)
28K HISA (RRSP)
89K HISA
15K Gold and Silver
75K Pension

No debt.

No forseen expenses coming up. Everything I own is a year old or less so it all has 3-7 years warranty.

After expenses I bank 40-60K a year

Still hoping to get a house or condo within 3-4 years. Then invest more in the stock market.


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## My Own Advisor (Sep 24, 2012)

I like it emperor.

Mine is a little different:

I currently don't have much money
I work to make money
I like to save money from working
I invest the money I save
My investments make money...
to build money so I don't have to work.


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