View Poll Results: SO HOW MUCH DO YOU BRING IN PRE-TAX?
over 100k
43
64.18%
75-99k
6
8.96%
50-74k
8
11.94%
25-49k
4
5.97%
UNDER 24k
6
8.96%
Voters: 67. You may not vote on this poll
household gross pre-tax annual income
Dec 8th 2013, 5:02 pm
#31
Dichotomus tinker
Joined: Aug 2013
Location: Ontario, Canada
Posts: 6,678
Re: household gross pre-tax annual income
I am 66 & just won (imaginary) $1,000,000 on the lottery - what should I do with this money
a) invest it in a guaranteed investment grossing at a rate equal to inflation?
b) do nothing & stick it under the mattress so to speak in a non interest zero growth vehicle?
I decided on 'b' .... why did I do that
a) invest it in a guaranteed investment grossing at a rate equal to inflation?
b) do nothing & stick it under the mattress so to speak in a non interest zero growth vehicle?
I decided on 'b' .... why did I do that
Dec 8th 2013, 5:20 pm
#32
BE Forum Addict
Thread Starter
Joined: Aug 2006
Posts: 3,124
Re: household gross pre-tax annual income
I would disagree. It depends on whether it is good debt or bad debt. Personal, a mortgage the the cheapest source of financing one can get. Pay a mortgage and invest max into RRSP, take the tax rebate and use that to pay down debt.
For business, so long as the return exceeds the cost, it is good debt. Make money with other peoples money, why use your own? When making a surplus and no plans to expand, then begin to pay down debt or diversify investment elsewhere to protect what you have.
My kids started an RRSP young, took advantage of compounding and spreading out the timeline risk of any investment. The longer one has an investment, the easier it is to ride out any blips. One can also afford to be more aggressive with investment strategies. The older we start the more conservative we need to be and the lower the returns.
For business, so long as the return exceeds the cost, it is good debt. Make money with other peoples money, why use your own? When making a surplus and no plans to expand, then begin to pay down debt or diversify investment elsewhere to protect what you have.
My kids started an RRSP young, took advantage of compounding and spreading out the timeline risk of any investment. The longer one has an investment, the easier it is to ride out any blips. One can also afford to be more aggressive with investment strategies. The older we start the more conservative we need to be and the lower the returns.
please see my response post number 21
Dec 8th 2013, 5:29 pm
#34
BE Forum Addict
Thread Starter
Joined: Aug 2006
Posts: 3,124
Re: household gross pre-tax annual income
Why, I use credit cards all the time, get rebates, points for stuff I don't need, purchase protection insurance, low FX rates, convenience. I use debit maybe once or twice a year if there is no alternative.
Everyone's perception is different. I know of people who figure they can afford something if they can make the monthly repayments (mortgage excluded). They are fooling themselves if that source of income could dry up. Debt and credit is useful when used wisely. Unfortunately plenty do not know how to use credit to their advantage.
Everyone's perception is different. I know of people who figure they can afford something if they can make the monthly repayments (mortgage excluded). They are fooling themselves if that source of income could dry up. Debt and credit is useful when used wisely. Unfortunately plenty do not know how to use credit to their advantage.
Ever noticed how impossible it becomes to be debt free if one simply pays the minimum monthly amount on the credit card?
Dec 8th 2013, 5:31 pm
#35
BE Forum Addict
Joined: Apr 2005
Location: Saskatoon, Saskatchewan
Posts: 4,104
Re: household gross pre-tax annual income
Bingo. Get the CEO job, borrow lots of money, spend it for a short-term income boost, take your fat bonus and stock options, and move on to ruin another company before the cost of the debt destroys this one.
Dec 8th 2013, 5:32 pm
#36
BE Forum Addict
Thread Starter
Joined: Aug 2006
Posts: 3,124
Re: household gross pre-tax annual income
I am 66 & just won (imaginary) $1,000,000 on the lottery - what should I do with this money
a) invest it in a guaranteed investment grossing at a rate equal to inflation?
b) do nothing & stick it under the mattress so to speak in a non interest zero growth vehicle?
I decided on 'b' .... why did I do that
a) invest it in a guaranteed investment grossing at a rate equal to inflation?
b) do nothing & stick it under the mattress so to speak in a non interest zero growth vehicle?
I decided on 'b' .... why did I do that
Dec 8th 2013, 6:02 pm
#37
Dichotomus tinker
Joined: Aug 2013
Location: Ontario, Canada
Posts: 6,678
Re: household gross pre-tax annual income
simple & on the basis no good debt (LOL) or bad debt - being empty nesters, just you alone or the two of you living life till the sun goes down or your lights go out, so it all boils down to how much money do you need per month to live as you want to live - excluding rent/mortgage or property taxes (factor those in as need be).
Of course the $1,000,000 that I just won at my age stashed under the mattress burning $1000/wk ($52k/yr) of that money i'd last ~20 years.
Have not taken into account other income from wherever - in our case its CPP & OAS.
Of course we could stick part of the cool million in an TFSA invested in a GIC - but that wouldn't produce a lot of income right now
Or borrow a million against the million ... fools paradise, however if one was lucky they'd have twice as much as they started with, probably less after the taxman cometh
Of course the $1,000,000 that I just won at my age stashed under the mattress burning $1000/wk ($52k/yr) of that money i'd last ~20 years.
Have not taken into account other income from wherever - in our case its CPP & OAS.
Of course we could stick part of the cool million in an TFSA invested in a GIC - but that wouldn't produce a lot of income right now
Or borrow a million against the million ... fools paradise, however if one was lucky they'd have twice as much as they started with, probably less after the taxman cometh
Last edited by not2old; Dec 8th 2013 at 6:26 pm.
Dec 8th 2013, 6:12 pm
#38
Dichotomus tinker
Joined: Aug 2013
Location: Ontario, Canada
Posts: 6,678
Re: household gross pre-tax annual income
On credit cards there's always credit (or credit card) arbitrage ...
, which I'm thinking is how corporations & every day folk run their lives or business
Dec 9th 2013, 7:37 am
#44
Account Closed
Joined: Jan 2006
Posts: 0
Re: household gross pre-tax annual income
I am attempting to pay off debt, mostly student loans, just not sure how to do it since the payments the government wants exceeds what I can afford, but I am attempting to get them to lower the payments. (currently between the federal government and provincial they want about 500 a month, which is over a weeks pay and not doable.)
Dec 9th 2013, 11:58 am
#45
BE Forum Addict
Thread Starter
Joined: Aug 2006
Posts: 3,124
Re: household gross pre-tax annual income
And remember not all cards with a Visa/MC symbol are credit cards, some are debit cards.
I am attempting to pay off debt, mostly student loans, just not sure how to do it since the payments the government wants exceeds what I can afford, but I am attempting to get them to lower the payments. (currently between the federal government and provincial they want about 500 a month, which is over a weeks pay and not doable.)
I am attempting to pay off debt, mostly student loans, just not sure how to do it since the payments the government wants exceeds what I can afford, but I am attempting to get them to lower the payments. (currently between the federal government and provincial they want about 500 a month, which is over a weeks pay and not doable.)
if you can find a bureaucrat with a heart and one who is allowed to exercise some discretion, then you might be able to come to an arrangement
food shelter clothing are the bare necessities of life
student loan paybacks are secondary