Many Canadians in their 30s, 40s not saving enough for retirement

[mykalberta]

Not applicable for Canada but still good advice

http://www.forbes.com/2009/07/21/ret...artner=seealso

[Sylvanfan]

Originally Posted by simmer2

And there's 100% ROR out there...again though this stuff just isn't taught in the education system, that's the fundamental flaw. I blame it on the Rich not wanting anybody else to know their secrets!! Damn you Thompson family, damn you.

Doing what...buying real estate in Costa Rica, or selling Amway? Some other type of Ponzai scheme?

[Muta]

Originally Posted by KTown

I am still young, I have a house that will be paid off within 5 years, I bought 4 houses 4 years ago that I rent.

How do you just 'buy' 4 houses? It's not like you're going to the convenience store or anything to pick something up, these are houses... investments. I barely qualified for one, let alone four.

[Sylvanfan]

Originally Posted by Muta

How do you just 'buy' 4 houses? It's not like you're going to the convenience store or anything to pick something up, these are houses... investments. I barely qualified for one, let alone four.

Not to mention...I don't know if buying 4 houses with the coming lending rules and current prices would yield the same benefit it did 4 years ago. In fact I'm pretty convinced it wouldn't.

[simmer2]

Originally Posted by Sylvanfan

Doing what...buying real estate in Costa Rica, or selling Amway? Some other type of Ponzai scheme?

If the financing is structured properly, purchasing a business can have a Rate Of Return of 100%, and a lot of times greater than that.

And I agree, with the coming lending rules being put in place by CMHC, I suspect you'll see the ROR drop on real-estate investors. It won't hurt them as much as it will hurt Condo speculators though who buy at the very beginning by placing a small mimimum $$ down and then sell before the condo is even built...and frankly I think that's a good rule to put in place IMO. That type of speculation was creating its own Condo bubble...Calgary is a good example of it 2 years ago.

[Table 5]

Originally Posted by Muta

How do you just 'buy' 4 houses? It's not like you're going to the convenience store or anything to pick something up, these are houses... investments. I barely qualified for one, let alone four.

Dude probably had money to begin with.

[Ozy_Flame]

Originally Posted by 1stLand

I have the same problem. I have 2 degrees (BComm. Marketing and BA Political Science) I am 25 and I have 2 full years of work experience after university. I am struggling to find an entry level job. I have my Real Estate license and would prefer to do that full time, but I am not at the point where I have enough business to do so.

Interesting. I'm 26, I too have a Bachelors of Commerce and BA in Political Science, and I've never had to look for more than 3 weeks for a position. In fact, I recently took a new job, and that was after being offered positions in 2 other companies.

I really think it's all about how you do in the interview, and what kind of experience you have. I have never found it "hard" to get work in Calgary. Although I doubt that's the same mentality for others.

[Table 5]

Originally Posted by fotze

or had the minimum down payment of $5-20k, then the renters pay the mortgage.

What bank would approve that 3rd and 4th (or maybe even second) home though? If all you can afford is the minimum down payment, that sounds like someone who is getting into some serious over-leveraging.

[1stLand]

Originally Posted by fotze

or had the minimum down payment of $5-20k, then the renters pay the mortgage.

Its plausible.
If he bought right before the boom, he could have picked up some nice rental properties for 200+k

He could have had co-signers on each property allowing him to receive mortgage approval and could have put 5-20k down on each property.

I wanted to do this in 2005, but didnt have the capital or co-signer willing to take that chance on a university student

[1stLand]

Originally Posted by Ozy_Flame

Interesting. I'm 26, I too have a Bachelors of Commerce and BA in Political Science, and I've never had to look for more than 3 weeks for a position. In fact, I recently took a new job, and that was after being offered positions in 2 other companies.

I really think it's all about how you do in the interview, and what kind of experience you have. I have never found it "hard" to get work in Calgary. Although I doubt that's the same mentality for others.

what types of jobs have you been applying for?

what are the starting salaries of the positions you declined?

I have passed on jobs as well, but positions with starting salaries of 35k a year. I am looking for 50k as a starting / base, which is reasonable in my mind.

I got a job right out of university that started at 50k 2 years ago, and was making up to 75k before I was laid off

[Table 5]

Maybe cause I slept on a sleeping bag in an empty room for a good chunk of my early 20's, but anyone who can qualify for a loan for 4 houses, and can pay the down payment for them, qualifies as "having money to begin with".

Then again there are some enterprising kids out there who are totally self-sufficient.

[Regorium]

Originally Posted by Ozy_Flame

Interesting. I'm 26, I too have a Bachelors of Commerce and BA in Political Science, and I've never had to look for more than 3 weeks for a position. In fact, I recently took a new job, and that was after being offered positions in 2 other companies.

I really think it's all about how you do in the interview, and what kind of experience you have. I have never found it "hard" to get work in Calgary. Although I doubt that's the same mentality for others.

*shrug* I'm 23. Had one interview for a new grad engineering position.

Applied to a ton since then but haven't had much response. I'm hearing companies are getting hundreds or thousands of applications for each new grad position. And since I don't know anyone in the O&G industry that can give me a free ride, I know the road is going to be a lot tougher.

I still blame all those senior engineers that didn't save even though they're raking in the cash. And all those intermediate engineers that should've saved in their 5-10 years of working and not be so desperate to apply for junior positions.

[Ozy_Flame]

Originally Posted by 1stLand

what types of jobs have you been applying for?

what are the starting salaries of the positions you declined?

I have passed on jobs as well, but positions with starting salaries of 35k a year. I am looking for 50k as a starting / base, which is reasonable in my mind.

I got a job right out of university that started at 50k 2 years ago, and was making up to 75k before I was laid off

I was offered mid-level office positions, and I ended up taking a consultant position with an IT company. As a rule of thumb for a 26 year old with education and considerable work experience, I wouldn't take anything less than 50k for the type of work that I am looking for / can do, and this new position is offering well beyond that.

Now - be advised that what is more important here is that you find a job you like. I've had a high-paying job which I just didn't enjoy, and the money didn't matter after a while. I would rather take a massive paycut to love what I do on a daily basis. I hope I will get to that point in my career, although I still haven't found it. That, my friend, is far more important.

Having money and a high-paying job is useless if you don't appreciate yourself and enjoy what you do.

[Shazam]

These types of threads always become dick waving contests.

[Slava]

Originally Posted by simmer2

If the financing is structured properly, purchasing a business can have a Rate Of Return of 100%, and a lot of times greater than that.

I have been reading this thread since the beginning, but didn't have a chance to post until now. Some good advice here and there for sure!

Depending on what you are looking to do you don't need financing to buy a business; buy stocks and you are accomplishing the same thing. The 100% returns are there for the taking, but you will have to be patient. Maybe it takes you 5-7 years to double your money...I know thats a paltry 10-14% return, but its also not as risky as the leveraged buyout that can turn that into a larger percentage.

[IliketoPuck]

Money at 7%/year doubles in ten Money at 10%/year doubles in 7

Money not in a savings account and working for you can augment your income quite nicely!

[Ironhorse]

Originally Posted by Regorium

I still blame all those senior engineers that didn't save even though they're raking in the cash. And all those intermediate engineers that should've saved in their 5-10 years of working and not be so desperate to apply for junior positions.

Or those senior engineers who are now still working because they lost half of their retirement savings in the financial crash, and have had to put their retirement on hold.

[Traditional_Ale]

So, assuming I'm in my mid 20's and don't make a tonne of money buy want to get my foot in the door with some kind of investment to start a nest egg.

Say I got, $5000. What should I do with it? BTW, I don't mind taking risks. He who dares, wins.

[IliketoPuck]

Fortune favors the bold, I like it.

You could take out a bet on who wins the smack off on JRIB, 400% return just waiting for you

[IliketoPuck]

I'm no financial advisor, but I would suggest talking to one. They could point you in the right direction with an assessment of the risks you are willing to take in relation to the returns you are looking for.