# 25 Year Old - Where to put my money?



## rofl (Apr 16, 2011)

I make about 65k in my regular job and another 50k or so from my side business which will only last for another 2 years or so. I have no debts and have just been putting my money in my TFSA and savings account. My average monthly spending is about $1500 but I don't have a lot of time and know little about investing. I have around $30,000 sitting in my savings accounts earning 1 or 2 %. What would you recommend I do with my money considering my circumstances. I thought about real estate but I have a very good deal on my rent where if I was to buy the same place, my mortgage would be 40% more monthly.


----------



## My Own Advisor (Sep 24, 2012)

I'd recommend getting that money ($30K) making money. Have you read about TD e-funds?
http://canadiancouchpotato.com/recommended-index-funds/

Congrats on no debt at 25. Well done. 

Have you maxed out your TFSA? I wouldn't be in a rush to buy a home at age 25. There are lots of expenses that come with a home. Take your time on that one.


----------



## Young&Ambitious (Aug 11, 2010)

Put aside some cash money in an account earmarked as an emergency fund. Depending on your situation, responsibilities and lifestyle this would be 2-12 months of living expenses. 

Next max out the TFSA, next the RRSP. E-series or ETFs are a great option for you until you decide to futher your learning. 

Is your side business incorporated? You may want to see an accountant about arranging how and when you take the earnings out and in what form.


----------



## rofl (Apr 16, 2011)

Young&Ambitious said:


> Put aside some cash money in an account earmarked as an emergency fund. Depending on your situation, responsibilities and lifestyle this would be 2-12 months of living expenses.
> 
> Next max out the TFSA, next the RRSP. E-series or ETFs are a great option for you until you decide to futher your learning.
> 
> Is your side business incorporated? You may want to see an accountant about arranging how and when you take the earnings out and in what form.


I've been thinking about incorporating to shelter myself from tax a little bit. I know I need to consult an accountant but I'm wondering if I could simply decide not to pay myself and invest the money instead. What percentage would my business be taxed on the 50%?

As far as invesing, what kind of fee is associated with ETFs?


----------



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

rofl, it is not necessary to quote when replying. Just click the reply button and type freehand. We've already read what you are quoting. Thanks for understanding.

In response to your question, there is no rush to buy any type of RE. Prices have been hyper inflated by govt policy over the past 10 years or so. Better wait on the sidelines for a while until the madness subsides.

There is NO shame in your money "sitting" in a savings account. It is earning 1-2% interest, which is a guarantee, with no equity or market risk. I've invested at the bank and lost a lot of money (plus they got fees from me) so I think the better bet is exactly what you are doing now. Learn to ignore the rhetoric from those with a vested interest.


----------

