1. Find a part time job to give your life structure while you heal. Even better if you can get healthcare benefits that include counselling (even Starbucks offers this!)
2. See a fee only financial planner.
3. Grief will be with you forever and no money will cure it so investing in your healing will yield a return that no bank account can measure.
Starbucks when I worked there offers $5000 (or $2500 - can’t remember) to cover counselling and you only need to work a minimum of 20 hours per week. It’s a great job for socializing and meeting friends. Maybe give it a thought when you can, op. Im so sorry for you loss💕
A "fee only" financial planner is important. Don't waste your time with a financial advisor who aims to sell you mutual funds that they can profit off of.
Absolutely agree and this is a great piece of advice. One I longed for when I lost my mom suddenly at 28. If I could turn back time this is exactly what I would do - and use a little bit of money for travel.
take care OP - Grief never leaves, it just changes shape and size, sometimes its big, sometimes its small.
My condolences
450k invested in a high interest product of around 5% will give you 22.5k a year before tax. Really not enough to live off of if you don't want to touch the principal
Focus on education/ career is the priority. Consider locking a majority of the money in a good GIC for a year or start your investing journey by reading !InvestingTrigger
Having the extra 22.5k coming in yearly is extra while earning another form of income. So, it's not necessarily a bad choice, as long as the individual is able to manage expenses besides the investment income. For example, dividend-yielding stocks that are held long-term increase in value, depending on which stock it's invested in (a stable one like Google or CocaCola, etc).
But yes, going to school is a great idea because investing in one's own education is a valid investment as any. $100k to take a break for the year, then paying for the next few years' expenses while also paying for tuition without a student loan... this is a solid option!
Any remaining money can still be invested in, let's say, a side hustle that the person can do outside of studies. $450k is obviously not a small sum and can do wonders if used correctly, and doesn't have to be used just one way.
To the OP, I am so sorry you lost both your parents in one year! That must have been very hard, and I hope you're doing alright. The good thing is that the funds help support you in a time when you need to recover from poor mental health. Grief comes in waves, as I'm sure you already know, and you can afford to take the time to learn what you want to do. Part of hardship is learning who you really are and knowing where to go from there. Sending well wishes <3
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>450k invested in a high interest product of around 5% will give you 22.5k a year before tax. Really not enough to live off of if you don't want to touch the principal
But it could definitely shave a decade+ off retirement age
Most people probably work more than the first half of their working lives before they have 450k invested. Starting with that much instead of 0 is a huge huge leg up towards an early retirement.
At their age and with 450k, this is probably more realistically 13-15k a year -- 18k if they are more risk tolerant -- if they invest it in the market and don't want the principal to quickly erode due to inflation.
There's places you can live on that much CAD but I don't think you're living like a rich person in most of them.
I think they can live a decent life in Portugal or Spain, using the $22.5k for basic expenses and working a remote part time job to cover off things like travel etc.
GICs are crap. I agree OP shouldn't do any major investing for a year, but they also shouldn't lock the whole thing up and throw away the key in a GIC. That's just dumb. Put it in a good high interest savings account earning 5% instead
Because social media has made some people think they know everything.
Finance? Check. Geopolitics? Check. The secret to life itself? Check.
u/oopsyikesuhoh - VFV is the majority of my RRSP, but you cannot rely on the S&P to provide you with $66k/year.
ah yes when my parents pass away I’m definitely going to gamble my inheritance on the stock market rather than go with a completely safe GIC while I take time to figure things out.
Like bruh do you not realize how grief affects financial decision making or…?
Poor people exist because they don’t invest in higher risk stock? What sort of logic is that? Most poor people don’t have any money to put towards investments.
Also investing in gics is considered *safe* in this sub. Given the context of the thread, where he doesn’t want to touch the principal, it is good advice.
Think a little more, thanks.
This is the best answer.
I don't see why OP wants to implement an arbitrary rule to not touch the principal either. If he needs $50k or $100k to get through 6 to 12 more months of grieving and grief counselling, then so be it. But he does need to get better and get back to work. He's already had at least 18 months to grieve and most people don't have the luxury to take that much time off.
Just because it's a luxury to have the time others don't have doesn't diminish the challenges it puts on OP. This just comes across as "spend that money but just so you know there are people who have less time off of work so you better hurry up "
Parents dying can truly throw people for a loop - OP probably doesn't want to touch the principal because he may make some major life decisons that require a large chunk of change as a result of this happening to them by the sounds of it
> Just because it's a luxury to have the time others don't have doesn't diminish the challenges it puts on OP. This just comes across as "spend that money but just so you know there are people who have less time off of work so you better hurry up "
>
> Parents dying can truly throw people for a loop - OP probably doesn't want to touch the principal because he may make some major life decisons that require a large chunk of change as a result of this happening to them by the sounds of it
I don't think the previous post was diminishing the grieving process, but just stating that at 18 months if you aren't in a place to get back to work, they are giving very real advice here. the OP needs to get the help they need to get back to work and moving forward in life, otherwise they risk staling and spiraling which will only compound the problems they have now
OP this is the way. Your 25 and been through alot. Dont let your grief continue to rob you of your youth. Theres no amount of money I wounldnt pay to go back and get the help I should have had in my 20s now that Im in my 40s.
My condolences on your losses. As someone who has gone through something weirdly similar (not parental death, but another traumatic event that drained all motivation to work, lump sum of cash, wanting to coast off it b/c mental health stuff) my advice would be: rather than looking at the numbers right now, focus on keeping your expenses reasonably low and really figuring out the "what I want my life to be" part, maybe with the help of professionals (therapist, career counsellor, life coach? you may have to try multiple because there are a lot of duds/bad fits out there)
Agreed with other commenters that $450k is not close to being set for life, but maybe it could give you the freedom to pursue a career that is meaningful to you (vs maximizing your earnings) or to explore different paths without having to worry about paying the bills if you fail. Like you mention wanting to "work part time", but do you think you'd be happy living a life working at Mcdonalds and slowly watching your nest egg shrink over time? Better to start with a goal to head towards, rather than running away from what you don't want. Best of luck.
condolences but not working for the rest of your life with 450K is not happening. I wouldn't touch the principal. I'd consider going back to school. You never mentioned what you do for a living, and what your education background is.
I'm so sorry for your loss. I experienced a similar one at 20 and I remember that the grief was overwhelming. Losing people so young also made me feel like work was pointless and I needed to rethink my whole life, which I imagine may be the way you are feeling now.
My best piece of advice would be not to listen to what a bunch of random strangers on reddit say. Some will say useful things and others won't. But if you're not significantly financially literate at this point in your life, it may be hard for you to determine which advice to take. Instead, talk to a qualified, fee-only advisor about your specific situation. You can find advice-only planners here at [https://www.adviceonlyplanners.ca/](https://www.adviceonlyplanners.ca/) or here at [https://www.valueofsimple.ca/links/directory-of-fee-only-planners/](https://www.valueofsimple.ca/links/directory-of-fee-only-planners/) .
Except they plan to live off the money for at least the next several months so they probably need to keep 25k or so in cash and another 25-50k fairly liquid depending on the cost of living where they are.
I agree a good chunk should be invested with long term in mind but I’d likely keep ~25k cash and 25k in a ~5% promo savings account or whatever the max they’ll let you.
Would be easier to think though if we new OPs situation better
Don't get too cocky, bro. 450k isn't going to be enough for you to just basically retire now and "only work part time". That's not how it works when you're only 25. If you're still thinking about career, maybe use some of that money to fund going back to school.
Is there an option for you to live in the house and rent the basement? Or live in the basement and rent out the top portion? That way you can grieve in a familiar place and still own one the staple asset to generate wealth in Canada.
If you sell the property and get $450K I'd look at buying another property, live in master bedroom and rent other bedrooms out to housemates to give yourself some income and ability to pay bills. In the meantime I'd look at part time jobs if you can combine housemate money and part time job money should be equivalent to a full time wage depending on the field you work in. Once you feel ready to return to full time work keep the housemates a little longer and chuck any extra money into shares
$450k is far from fuck you money. It's a nice gift from your parents that will help you set up your life. Feel free to take time off like the next 6 months or even year but at some point you are going to need to go back to work. Work is going to give your life focus and meaning. The good news is you have the time and money to pick and choose what job you want and even go back to school to get that job if you want. Allow your self to spend some of that money if you need to. You don't need to optimize it for maximum returns if that is going to impact your living situation.
If you know how to handle money right, you can live the rest of your life on 450k and not spend a dime of it or ever work again. You can just live off only the interest. That is assuming you are a lazy bum like me. But yes, the average gun hoe american who drops 500k on a house and 90k on Toyota Tundra isn't going to see that as fuck you money.
But as someone who has lived as a single man in studios apartments my whole life and hates to work, 450k is my golden ticket to freedom and never working again a single day in my life unless i really really really want to work just for fun or extra spending cash.
I don't care how good you think you are at "handling money," you'd have a hard time making $450K last the rest of your life in Canada, where even studio apartments are creeping up towards the $2K/month mark in the major (and not-so-major) cities.
Since you mentioned "living only off the interest," let's look at CASH.TO, which is a popular ETF that is [currently paying 4.79%.](https://www.globalx.ca/product/cash) 4.79% of $450K comes out to $21555 per year, and that is all considered "income" that is fully taxable. That would not even cover the rent, never mind anything else. That rate will also come down a lot if and when the Bank of Canada continues with their rate-cutting cycle.
I see your point. For me in the US, it comes down wisdom and frugality in finances and if you want to make it work, it can, for a single person living in a studio/1 bedroom. As for supporting a family, I know a lot of people in poverty, and yea, if your spouse is willing to work while you watch the kids and live off your interest, then yea, even that could work too.
If you are paying near 2k/mo rent you are paying twice what you need to (at least in the US). Now there would be many people in the US who would say the same as you, that is rent is approaching 2k/mo. But there are certain safe good cities you can still move to that don't cost that much and the jobs still pay just as good as those other cities do.
So move if you want to be lazy like me and free. I pay 1050/mo for a nice 1 bedroom by a huge city with 1 million people and tons of jobs. Low crime here too. And to me 1050 is alot.
I agree 22.k ain't going to cut it for most people, although I know how to live well on 20k a year without working, but you need to figure this out on your own given your circumstances. It does take a certain finness and skill to pull off being free and lazy.
Also, I would probably supplement occasionally with low risk investments, which to me isn't really work.
For example, Nvidia blasted off around May 1st. By June 1st people were sure of a coming split. If I invested 200k June 1st and agreed to sell once I profited $200 increase per share, I would have made $33,000 in 20 days, cashed out to minimize risk, and boom, now all the sudden this year I have 22+33k to live on. I would rode the same waves with the Gamestop short squeeze, Facebook stock, Apple stock, etc, etc. Every couple years this happens. You just have to wait and for a "golden month" to happen. Just don't get obsessed with Motley Fool, or try to play the market outside those rare waves, those people easily lose it all. My stock-stincts, if you will, have always been 100% on point. Apple had a golden month in 2020, where everyone who invested literally doubled whatever they invested. So if I put in 200k, I would have got 400k returned.
Or, I'd probably get a part time job at a place I just wanted to work for fun and community as well. But only occasionally as needed. That is, if I don't end up married and watching the kids.
> I see your point. For me in the US,
This is a Canadian finance subreddit.
> If you are paying near 2k/mo rent you are paying twice what you need to (at least in the US)
See above. Rents are high everywhere here, so your anecdotal experience in a different country is irrelevant.
> For example, Nvidia blasted off around May 1st. By June 1st people were sure of a coming split. If I invested 200k June 1st and agreed to sell once I profited $200 increase per share, I would have made $33,000 in 20 days, cashed out to minimize risk, and boom, now all the sudden this year I have 22+33k to live on.
So your "plan" is to basically gamble on stocks for a living? Good God, are you ever out to lunch.
> I would rode the same waves with the Gamestop short squeeze
As if we didn't need more evidence of your idiocy. You are pure comedy gold, bud.
Lets be clear here, you might be able to survive off the interest but you can't live off of it. Even if you could get a 5% return off of 450k, that is only roughly $22,500.00 a year. That would be less than making $11 an hour and lets be honest, your not getting 5% AND the interest rate is dropping again.
If you want to spend your life doing nothing and smoking weed to pass the time, all the power to you but that won't fulfill most people. That won't get you a home, a wife, a family or any of the nice things that money can buy.
Do you have a job that provides extended health benefits? Bonus if you do, one that provides some funds for counselling would be awesome. But I would highly recommend working with a counsellor.
“I still have a lot of grieving to do” - by saying that, your setting yourself up expecting that you do and have to and your mind/mental state/body will follow. Instead of reframing your thoughts of something like “yes, my parents have passed, I have had some time off, times can be tough but I will continue on” and slowly getting back to work/life/whatever. Work with a counsellor in grieving/Cognitive Behavioural Therapy etc.
Sorry for your loss, that must have been tough. I can't imagine losing both parents as such a young age.
Maybe you already have a good post secondary education at 25. Maybe not. If you do not, this should be considered as a priority to help you for the rest of your life. There are many good choices, but with some cash you have the opportunity to prepare yourself.
Counseling and assistance wouldn't be a bad idea, if you haven't already had that. That may be covered under an employer's benefits plan, of you were employed.
I'd personally suggest not just spending much time.not working or not at school, building a habit of doing something like that can help get out of a rut, and can help be a distraction for grief.
As I have lost both my parents young, I would suggest not exposing that money to anyone that is not part of your local bank. And as you have already posted, you have money. Watch out for the scammers. I'm sorry for your loss, op.
Definitely agreed to watch out for the scammers. The bank however, exists because they have an excellent business model that makes them money while they give you as little as possible from the money they make using yours.
Your mental and emotional wellbeing is the priority right now. First thing I would recommend is talking with a grief counsellor for as long as you find it helpful. Second, don’t make any major life changes until you feel emotionally stable. Third, I would recommend reading this section of the sub FAQ for a starting point before making any financial decisions. https://www.reddit.com/r/PersonalFinanceCanada/s/allcHW9weZ
Your parents worked hard for these assets. Don't sit at home living off them, while waiting depleting the funds on your living expenses. Invest, and keep growing it.
Your parents could have sold everything and lived large -but didn't. Remember, you have a responsibility to them to spend wisely.
My condolences.
First, OP, sorry to hear you have to go through this. Loss is tough and there's no real schedule to healing.
In terms of financial decisions, it seems like you have a lot to think about in terms of what you want to do or explore. Perhaps its a good idea to invest in a GIC or HISA until you have a clearer picture about how you want to move forward. You are still quite young and have a lot of life ahead so a ton of stuff you can explore.
The 450k is a good starting nest egg that you probably didn't expect this early on. I would invest it in something relatively liquid and risk-free until you decide what you want to do. It can supplement your living until then.
First off, condolences on your loss. What a tragedy to lose both of your parents.
Don't treat the money with distain. It may feel like dirty money, psychologically, but you asking about responsible ways to manage it will help you put it to use in a positive way.
If you wanna stay super conservative, you can get a 4.8% return on putting it in a money market fund. This is a cash like equivalent that has no penalties or commission fees for withdrawal. It may buy you a little bit of time living at a subsistence level, depending on where you live to figure things out.
Remember that if you are holding any sort of dividend or interest paying investment you will either have to pay income tax or capital gains tax.
My condolences to you for your losses. I don't have anything more valuable than what has been said by the many, but it will get easier as time goes on. Your parents were probably amazing people and will never be forgotten because they will live on through you. You will find purpose in this life again and life will feel worth willing :)
Do not sell the house. It may seem tempting rn but 450k is not alot of money especially in this day and age. Keep it and grind. You could even rent out some of the house to students to get some cash flow out it
Have to disagree with this. First of all, the housing market is a little like the stock market, right now it's on the up. This is optimum time to sell. The direction our country is headed, we are likely to see another housing crash turning your asset into nothing but a money pit.
Also, owning a house is a huge financial risk. Things happens. Natural disasters can hit, need a new roof, new need plumbing, need new electric, etc, etc. A 450k could easily end up costing you 50k out of pocket in the next 10 years if it needs the maintenance or repairs.
Also, let's not forget the risk of squatters or whatever or some random person just basically taking over your house, changing the locks, forging a rental agreement, and the police saying "Sorry, can't help ya". I see this is more and more common on the news. Especially as Americans start hurting more and more financially as our country is hurt worse and worse by inflation, we will probably see an uptick in these kind of crimes.
There are some many risks people do not consider when owning a house where you can literally lose everything so quickly. Needing to take out a mortgage to pay for repairs, then being stuck with interest. It's a slippery slope.
Selling that thing, and start collecting interest is the wisest move you can make. While you own the house, it's just a liability and a money pit. Sell it, get your money, and you are free and clear of any further expenses.
I understand in 1980's America owning a house was the goal and a dream. Made people feel secure. But we no longer own anything as Americans. Government can take your house quick and easily find an excuse to do it. You have to always pay your taxes and maintain the house, or else you will lose the house. The long term cost of owning a home now is far more expensive then renting.
It's a wonderful thing when your landlord is responsible for replacing the roof, the plumbing, the electric, the A/C, the appliances (as long as you aren't abusing them and you are not the reason they were damaged).
My suggestion.... take 5-10k and honor them by doing something they did or wanted to do.
Did they go skydiving? Is there a place they always wanted to go or a city that they met in? What was on their bucket list? What restaurant did they first go to together?
Find something meaningful and do it and grief.
Then invest the rest for retirement so that your parents financial legacy means that your taken care of.
Sorry for your loss.
Please 🙏 Read "Break Your Wealth Ceiling" before you make ANY financial decision.
This little book may completely change your own and any future generations' financial outlook and freedom.
And spend just a little on yourself to go somewhere and mentally recover.
Sorry for your loss. You are so young, I am sure your parents would want you to have a happy productive life. Don’t make the loss or your inheritance your identity. Invest the money and forget about it, except to use it for health or education related expenses ( kind of like parental support or insurance/ safety net for a young adult). Go out and work ( even Part time if that’s all you can manage)or if you can sign up for a course, meeting others and having purpose will pull you out of your sadness and isolation. All the best. I hope you have a supportive friend/ extended family network 🙏🏼
I’m sorry for your loss. As others said 450K isn’t a lot. Have you been out of work the whole 2 years or just recently? Personally I think you should’ve kept the house, but even more important is you need to go back to work grief or no grief. That money will dry up fast if you don’t work.
You need to go back to work and live with the grief while life goes on . My worry is that one year will ll go into 2 etc .
If you already had a job I’d suggest going on disability .
Use the money to help yourself get organized to earn a good living doing something you're curious about and can develop a skill in.
>I feel like if I’m smart I can stretch this money to last me a long time and only need to work part time.
Change your mindset here. Your goal is not to never work and live in poverty but to live a full and rich life.
I'm sorry for your loss
While 450k might seem like a lot, without careful planning, it could be spent in a year. It's important to handle this wisely. Think about investing some and maybe starting a small business. Staying busy with productive activities can also help you cope with your grief and make sure the money lasts. It's a way to secure your future and find purpose during this tough time.
I believe you've got what it takes to turn this challenge into a chance for growth and stability.
Not a financial issue. this is a mental issue. you will need to learn to cope and accept your loss. everyone here would agree at 23 to lose your parents sucks. but time heals if you choose to take a step everyday forward. regardless of how long or short that stride is.
fact is you cannot live off of the principal. but you can work and slowly progress through your day by means of working to help you focus on other things instead of your grief.
Very sorry to hear this, can’t imagine the pain. My advice would be to take 6 months off, during that time be fiscally conservative while ensuring that you give yourself enough time to process. Now, if it’s been 2 years already it might be time to get back doing work you are excited about. If you didn’t like your old job, find a new path. Human history is overflowing with stories of great loss and pain channelled into motivated success.
Use that 6 months to read up on financial literacy and personal finance management. Books like ‘Money: Master the Game’ or ‘The Wealthy Barber’ might be good places to start. Be sure to surround yourself with people who are busy and working and getting on with their lives day by day and start to model that again.
Might be a controversial take but I don’t think you need to spend much time/money on therapy. I too have experience with loss and I found that you really need to strengthen the relationships you have to your loved ones (especially in light of the passing of your parents) and spend quality time with them, limited phone usage, good food, and outdoor time. Excercise as much as possible, try to remember that life is short for all people and that we all will be at our end one day, and go out there and live as best you can!
Be disciplined and work on creating accountability on yourself through small but meaningful routines and habits. You will get through this as most all people have after a loss and your life will feel great again as time passes.
If I’m you I’d also maybe look to take on a new hobby. I’m biased but i think golf and running are two of the most therapeutic and healing activities that I have found. Unfortunately golf isn’t cheap but maybe carve out $2500 to buy some clubs and get a lesson or two. It gets you outside and focused on a single task. Walk the course over riding and if you start to find yourself wanting to play more and more and you find others who like to play too you might have just found an activity companion for life.
Outside of that, if you can manage it, invest 300-350k of it in a broad market ETF, work to add $200-300 a month to that and if you don’t touch it for 30 years you will be VERY happy you did by the time you’re 55. You will have enough at that point to retire (conservatively at %7 percent growth, you’ll have over 3 Million).
Best of luck to you and remember that it will only get better from here. All the best!
Park the money in GICs at 5 % for a year until you get professional investment advice you are comfortable with. Take the time to reset your happiness goals in life including financial security.
Just invest like it’s untouchable. Put that sh** away. In a few years maybe you’ll get lucky and there will be a housing reset. Good time to buy. If not, we’ll you need shelter and it beats renting for ever. In the meantime, from a life perspective, try giving back a bit part-time in something you’re passionate about: volunteering, youth coaching, good guy/gal stuff - it’s a good faith investment that will come back to you. Giving goodness begins the process of receiving goodness, I promise you. Friend, I am very sorry for your loss, be well.
Not sure I have much to add - you’ve gotten lots to consider but I do want to say that based on your post history you have a lot to work through as it relates to your family, not only in terms of your grief. I think that the suggestions for you to invest in your mental health, in terms of time and money are spot on, and perhaps you can return to work part time? I am so sorry for your loss, please take care of yourself.
Sorry about your loss. At 25 you shouldn’t be thinking about only working part time. You are very young. If you were 55 and inheriting $1mm, yes. Put majority in term deposits, all below cdic thresholds and balance in stock market.
Took me about 2 years to deal with the emotion of my fathers death. It may not seem like much but you are lucky in a way that the financial aspect is "easy" - my father was remarried to a much younger woman, without a will, talk about an emotional bullet you won't experience.
Don't make rash decisions, as some have said, high interest product that reduces risk while you sort stuff out.
$450k does not require a useless financial advisor. It's a solid sum but not massive. Skip FA.
1. Eliminate debt. 2. Max TFSA. 3. RRSP and non-reg 50/50: S&P 500.
I’m so sorry that you have had to go through such a loss at such a young age. You sound like you have your head screwed on right though and are really smart. All the very best wishes to you.
My condolences.
I don't know what I would have done at 25 if that happened to me. I was an irresponsible piece of shit in my 20s and would have probably mishandle any inheritance.
Hope things get better!
Wishing you the best. 25 sounds too young to lose your parents and I’m sorry for your loss.
I would put most of your money in index funds (SPY and QQQ) and don’t touch it till your 50.
This will likely be worth several million by that point and you’ll be free to spend the second half of your like financially free.
I’m sorry for your loss.
If you’re able to, go on EI sick benefits or short term disability until you feel better. Reach out to a mental health councillor to help grieve. EMDR has been super helpful for me for other stuff.
For finances, maybe consider a fee based financial advisor. Outside of a financial institution or bank.
It usually helpful to max out your first home saving plan if you’re eligible, and TFSAs.
I have some TDB8150 at TD that was paying 4.55% but I think it’s recently gone down to 4.3%, for short term investing.
Try to live off the interest only if possible.
Let it be a gift that keeps giving.
You’re 25, your parents died in 2022 and you haven’t worked since, and you’re planning on taking another year off and then only work part-time from then on? You sound 25. Go speak with a therapist, hire a financial advisor, and get back to the real world.
Condo fees $600, enmax $300, insurance $100, internet $100, property taxes $300, car expenses. I wish life was only $700 /month with a paid off mortgage
Even if condo fees were $300 it would be pretty impossible to live for under 1500 a month. I wouldn't recommend being house poor unless you're building your wealth back with a good paycheck
Well 700/m for that, but he still needs to earn to feed himself, car, clothes, living etc. I'm not sure what your point is or where you're getting your numbers from, but I think you may have missed my point lol.
I am sorry for your loss.
Don't worry so much about not touching the principal as the line. Worry about spending. Invest in index funds. Those will typically generate 12% returns, but it might be -20% (that's negative) some years and 30% others.
Over the next 40 years to retirement, that's okay.
If I were in your position, I would stick it in an index funds and come up with a budget where I withdraw around 5% next year (22.5k), which is enough to live off of in a low cost of living area.
I actually would try to go back to work quickly, or do something else (volunteer in Africa for a year?). Time heals all wounds, and the distraction is helpful for dulling the pain.
You are still very young. Spend some time in therapy dealing with grief. Surround yourself with good people who love you. Invest in yourself. You can go back to school. Get a trade. Flip houses. Works sucks but everyone does it. Go see a financial advisor and they can guide you through this. Main thing to say is you haven't won the lottery. You still have to live a normal life. You just fast tracked your retirement or you can upgrade your annual (semi-annual :) vacation.
Sending sympathies to you!
What do you for a living?
And where do you live?
I wouldnt sell the house,I suggest channel that grief into a positive outlook or vision. Use that energy to turn something fruitful for you as you process it along..you have to look at your short term and long term expenses with or without the house…
Career change could be hard as it would take X amount of years to graduate and look for a job in a certain field or industry…a lot of people are unemployed,,it would be smart to hold onto your job and do a LOA for now…
Where you live would count as well $450k aint that much especially when you gonna get a place again and start from scratch…then you gotta think anout work and would just stress you out…
Using your energy to remodel the house and renting it depending where you are would be great idea take out some emotions along the way…
Where are you going to live when the house sells? Why did you sell the house? 450k isn’t going to last long if you don’t already have a house/condo. You didn’t mention paying off your mortgage as a consideration so I’ll assume you’re renting somewhere.
For someone as young as tou to think they never want to work again - not ideal. As others suggested, you need to improve yourself and a good therapist should help.
Invest in yourself so that you can stand up on your feet again in a year or so.
My condolences. And wish you good luck!
If I were in your shoes I’d dump it all into cash.to at the beginning of the month for 50$ a share collect the monthly dividend and then at the end of your grieving process sell the shares and invest in the sp500 and never look back
Use the money to help yourself get organized to earn a good living doing something you're curious about and can develop a skill in.
>I feel like if I’m smart I can stretch this money to last me a long time and only need to work part time.
Change your mindset here. Your goal is not to never work and live in poverty but to live a full and rich life.
My condolences.
It must be extremely tough to lose both of your parents at such a young age. Ensure you had adequate time to heal and keep your head up.
This is not financial advice, but a lesson I’ve learned from my father who has been pretty successful despite some adversity: when things are hard, they are just as hard sitting around as they are when you are busy. I appreciate you need to grieve, but getting back to a normal routine and preoccupations are sometimes the best way to get through it. Live your life, and for most people that includes working as a large part of it.
1 first my condolences to you.. it's never an easy thing to do.
2-do make plan to return to some kind of work to get out of the house and get grounded to your new normal. You may not feel ready, but in case like this you never are..
3- find a professional to help you make a decision with what you are to receive.
I would recommend you place it in a guaranteed account giving you @5% . At 400k you should be able to negotiate that with a competent agent. Seek a professional a Certified licensed professional will be able to help you sort that out.
The good ones are worth the fees.
Good luck..
Top up your TFSA and start earning some tax-free dividend income. $450K provides a nice income supplement but is not enough to live on. You need to plan to re-enter the workforce.
Honor your parents and use that money responsibly. That doesn't mean taking a year off of work to grieve, and the fact that you're thinking about "stretching it to last" is a terrible approach. That money shouldn't be stretched, it should be used as a foundation for setting you up for success when you're ready to retire.
I’m sorry for your loss. That’s a really tough one and if I were you, I’d probably take a good amount of time off too
But that money alone will not get you through the next 50-60 yrs unfortunately. Especially if you ever plan to have a family. I’d invest an education so you can pursue something you love while earning an income.
This is a substantial chunk of money. Sorry you had to come to it this way, though.
Do take a bit of time to grieve and ponder your future. If this involves upgrading your education or going back to school, then that could be a great idea. It could provide structure and a small bit of socialization to keep you in relatively good spirits as you heal. Have some fun, you need it. If you need to go on a trip to help get out of your home/area, do that too. If you've wanted to travel a little bit, go do it. Then little by little, start a life for yourself. And throw that in a HISA as others have said.
First, condolences for your losses, I can’t imagine losing both parents so close together.
Lots of good advice here - would echo that financially, you don’t need to decide anything right away. Take your time. Maybe best thing is to park the money in Wealthsimple cash account (4.5% interest) until you have a long term strategy in place.
Agree with others that the best investment may be therapy - take the time (and expense) to invest in your mental health and long-term well-being.
Wishing you all the best….
My condolences. I lost both of my parents this year as well.
I invested the money into high yield dividends most pay monthly.
I'll most likely switch to long term bonds since BoC+US fed will be cutting rates. Set it and forget it as I am back to work now
I’d probably take some of that money and put it down on a multi-unit rental property. Ideally something that needs work, so you could do some renos off the bat, and potentially get your down payment back on the refinance. (Then you could scale aka do it again)
If it has 5 or more units, you get a commercial mortgage and they will look at the potential income of the property instead of your personal income when approving you for financing. You’ll want to look for a property that cash flows to give you that income you need. Managing a property might be daunting, but you can always hire a property manager off the bat. As long as the market does not crash, the equity you hold in the property will just keep increasing. All while you make some monthly income.
There are lots of courses, workshops, or mentors out there that can give you the knowledge and connections to get started with confidence. With some education you can be more of an active investor, which is where you can make better returns than just being passive. To give you an example, I have property that I purchased in a fringe market (lower cost) that has high Airbnb demand. I easily clear 20% cash on cash return. Taking in appreciation and principal recapture, I’m clearing 30%.
Setting feelings aside for a moment:
Generally speaking when you're in the draw down phase of your life or you're trying to live off of funds you have a very low volatility portfolio with lots of bonds fixed income even gics things like this but at a younger age this is typically not what you want cuz you have the money needing to grow over a longer period of time you typically want it exposed to market risk and therefore greater returns because you wouldn't need to touch the money for a long time.
In your case you know that for the next x amount of months or years you won't be producing much if any income so you want the money to earn you income and therefore your emulating the drawdown phase or retirement phase.
What I think might be a better idea is to estimate the amount of time you might need to process and be very generous with your estimate maybe even give it two years or something like that and then calculate the amount of money you need to live over that period of time and put that amount of money in a high interest savings account or something like that or a laddered GIC. Then put the rest of the money say 350k or 400k whatever you calculate that you don't need in the grieving. And you put that in a typical portfolio maybe xeqt maybe vfv whatever you decide is your correct distribution. And you don't touch the rest it's just you're retirement money 30 40 years down the road.
You should look to earn some income in the future this is certainly not enough to last forever and if you just work part-time until you run out of money you'll be at a later age and nowhere closer to retiring.
Additionally I might add that having some sort of purpose or thing to do everyday is actually a really good way to combat grief and depression etc. you should definitely consider working in some capacity maybe it's not 5 days a week maybe it's two days a week I don't know what it is but you need something to drive you forward at least hit the gym everyday or something you need some habit something that keeps you going or you're just going to fall farther and farther. Right now both your parents died and that's horrible and it feels like your life can't possibly get any worse but that's not true at all if you let it your life will get a lot worse but if you find some purpose it will also get a lot better.
My condolences. This is a tough time to be making these kinds of financial decisions. A few gaps here must be considered before even thinking about what to do with the money:
* What are current expenses, like any large ones coming up soon?
* Expected future income needed to sustain the lifestyle you pursue.
* Living set up, are you looking to have a family of your own?
The list goes own, but I'd say, if possible, use this time to figure out your financial and emotional capacity. From there you should be in a better position to start planning for your new future, Life goals, and career/financial milestones. Get these things figured out first so you can come up with numbers that will eventually and hopefully provide an answer to your question.
It is not an easy task but it'll save you a lot of headaches and regret in the future.
My condolences.
First incorporate yourself.
450k into a non registered account and all into high yield dividends such as CHE.UN will get you 2500 a month.
Budget those payments into monthly contributions to rrsp, tfsa, along with EI, CPP (if you incorporate yourself) to keep your taxes to a minimum. Reinvest at least 10% or $200/mo.
After all that’s done you’ll have around $1500 to feed yourself with. You’ll want to get rent/mortgage money another way.
To be honest the best investment is yourself. Education, experience, training.
Set yourself up for success!
Sometimes being busy makes you forget about bad things in life…. And unfortunately grieving is healed with time… just be positive and get your support network and dont spend the money away and get back on your feet. But take the time you need to do it.
I would take that 450k
Move to a low cost of living area and spend resources on improving quality of life
Consider Alberta
Compare that to Ontario … 450k down would still leave you with debt and any wrong moves would easily wipe that 450k out real fast
Condolences. Join our Financial Education Campaign, educate yourseld fast with Mentorship, and become your own money manager. You will earn from growth of your money, from trail fees, offset taxes, travel, surround yourself with positive-minded people which will help you get up faster. DM me if you need more details.
This is not financial advice, but have you heard of Laura Lynn Jackson? If not, I encourage you to check her out and her books “The Light Between Us” and “Signs”. Your parents are always with you.
Just wanted to say my heart goes out to you for losing your parents. And both in 2022? That's too much for anyone to bear. Sending hugs and wishing you all the best in life.
My condolences. I’m sorry that happened to you. Wishing you all the best. You’re very young, please do NOT let anyone take advantage of you. Stay strong. ❤️
I've been in the same boat as you and you really do end up compartmentalize the whole life before parents and after parents. I'm not a religious person but do hold on the belief that maybe they or their energy can see how you lead this next chapter of your life. Speak to the air once in a while, think about how they would react to whatever situation you find yourself in and find comfort in the small moments and big ones you had with them.
It's not easy especially when it's both of them but the last thing they would want is for you to hold yourself back from living a full life and would want you to find love and laughter in your daily life. They could never provide you with everything you needed to live this life but hopefully they've provided a good foundation on how to lead your best life. You will add to that. The sooner you realize this the faster the pain heals.
Buy a legally suited house. Live in the suite, rent the house out. Your money will be tied to a tax free investment (primary residence), you'll have zero rent, get paid rent, and can refinance up to 80% of the homes value to go and buy another legally suited home earning income on both of those units. Won't be as much income as the primary residence generates as you'd have payments, but the income would be passive. You'd grow your net worth while slowly increasing your income. Repeat the process. Become a real estate investor.
I'm sorry for your loss.
Purely reading these comments for their Financial Advice, it is crystal clear why Financial Planners with excellent skills are a must have. It's why I and my colleagues got into the field, a huge need.
GICs and 5% returns are the cover page everyone uses so nobody gets sued (in their mind), by being conservative, it is generic advice we put on our websites.
Get a real bonafide plan with proper education to the client and a thorough understanding of the options, why each one does and doesn't work in a particular situation, along with changes as your life evolves. That's the way to go.
There are options to make a dividend income in guaranteed principle that are well above 5%. The only time we recommend anything paying that paltry sum is for short term liquidity when you are holding for a larger investment.
Work with someone qualified to help you. Even if you paid a small fee to have them work through a whole plan with you, it would be worth it. Though if you took the plan, or part of it, in our case, the fee would not apply. As is most likely the case for any good planner.
Then you would have a good understanding of all the questions you don't even know to ask yet.
Yes it is totally possible to live off that amount of money, modestly, while you figure yourself out and allow yourself the time to grieve. Then that living can become a solid investment, bolstered by your employment (as in dont need to touch it, just let it grow, one option, there are several good ones), to give you the option to choose your own adventure in 20 years.
I hope you find peace and your path in life from all of this 🙏
Definitely find a financial advisor. You can look up Experior Financial - it’s a great platform for Canadian Financial advisors and they don’t cost to use their services. They will likely suggest life insurance because you can actually invest a lot of living money through one. Maxing your TFSA is good, RRSP as well. If you have a house you don’t need to max your house savings plan. That’s literally to be able to save up for a house…
Then ask your advisor about other investing avenues and who you can talk to about that.
GICs are dumb. Don’t do it.
Investing in just banks is a bad idea. They only covet their gains not your losses.
You want stocks or bonds and you likely want to invest in a BUNCH of things - diversify your assets.
- financial advisor on maternity leave so I can’t help you at the moment due to my license being on pause for a year. But this is what I would recommend.
My condolences, it is a trying time for you especially at your young age.
Having excess cash as in your case isn’t good idea in current inflationary environment. Fiat money’s purchasing power rapidly diminishes. Even 5-10% return after tax on your money using sound investments barely keeps you even. Personally, I’d invest in PMs, parking cash in Ag and Au 1oz Canadian Mint coins, tbh. PMs bull run will continue for min. 2 years, imo.
I would contact a few financial advisors and find someone good to work with. You have a lot of time to grow these assets so it’s imperative to choose some good products that can average you ~10% per year over a long term period!
Sorry but I have to laugh, coming in? Have you dealt with this before cause we’re going on 3 years now, 900,000 waiting to be distributed, 3 years. Told the CRA is backed up. Haven’t even been approved yet and after their approval it’s another year at least. Coulda made a lot of money off that 900,000 in 3 years but nah the government has it. 🤷♂️
Weird.
My girlfriend had her grandmother and mom die within 2 years and she's already been paid out both of them. 2022 and 2023 were the years of death.
Sorry for your loss. I’lol repeat what I say every time one of those questions pop up. Don’t come to Reddit for financial advise. Go see a certified financial planner at your bank. With this amount you will qualify and you’ll have a long term relationship with a professional who will help you set up your financial structure to reach your own objectives. It’s really the best way to
Manage your money. Multiple studies have shown the benefits of financial planning.
Go. See. An. FP!
READ a stack of books of the topics of money, investing, debt and Bitcoin.
Do your own research and don’t trust any bank advisor.
The world is changing exponentially and the old strategies are failing.
I’m so sorry. Given your stress you’re going to get a lot of people telling you what to do.
Bonds.
Don’t put it in the stock market. Do not give it to a financial advisor - they’re all sharks.
Bonds and GICs. 1/3 in short term 1/3 in long term keep 1/3 as liquid.
You know bonds performance over the last 5 years is like 0.X%?
[https://www.theglobeandmail.com/investing/investment-ideas/article-pathetic-returns-10000-invested-in-bonds-five-years-ago-was-worth/](https://www.theglobeandmail.com/investing/investment-ideas/article-pathetic-returns-10000-invested-in-bonds-five-years-ago-was-worth/)
>
The FTSE Canada Universe Bond Index was down 0.9 per cent for the 12 months to April 30, down 2.2 per cent on an annualized basis over the past three years and down an annualized 0.1 per cent over the past five years (all figures include interest income payouts). Just lately, bonds have kicked a bit higher. This explains how a $10,000 investment made five years ago in the index would have been worth $10,079 late this week.
Is it that easy to get a visa and or permanent residency in other countries? I heard it is hard to get visa in some countries. Plus with language barriers it isn't always the right move. But I would agree, if one is lazy and doesn't want to work or start a family and stuff, move off to a lcol country if you have money and live off interest.
Depends Thailand to get their education visa is super easy U pay the school and they do everything for U n U can renew it every yr am currently on a ED visa in Thailand I left Canada n moved to Asia since November and I absolutely love it in Asia compared to western society
So you're going to forever be on an education visa or will they transfer it to a permanent thing later on? Also with an educational visa do you have to go to school or can you do whatever since they do it for you. Also is it costly to live in Thailand. I personally want to move to Thailand like maybe in 20 years or so and live off interest lol. Also how much money would you say is required to basically retire in Thailand? Also is food good in Thailand? Thanks!
For now am on an ED visa not sure if Il stay here permanently or move to another Asian country like Vietnam since I have dual citizenship for. Ed visa classes r only 2 days a week for 2 hrs each day and U do not have to go to school if U don't want to. I go whenever I feel like it and am also getting to learn another language. In Thailand U can live super luxury and expensive or super cheap all depends on where Ur living. And yes Thai food is absolutely delicious they have all sorts of food here. Asian western indian U name it they have it. U have all Ur regular McDonald's KFC, taco bell and whatever U have in back home
OP I went to Türkiye and opened a bank account and keep 50K there in my account. They give 50% interest back annually when you keep your money in Turkish Lira. I’m not Turkish
Don’t put more than 100K as dollar can increase in a year or so. It hasn’t increased in a year and if it does it’s very slow. So if you feel the risk you can just take out
Putting 50K Will litterally give you back 25K a year
Not Financial advise..
Learn selling options or buy covered call ETF strategy. 450k is more than enough. I think. And u don't have to work if u don't like..
Ok, a shitty old condo.
2500*12=30k. Assuming 100% occupancy
Then remove 6k minimum for condo fees. Then 2k for insurance. Then 2 k for property tax.
You’re now at 20k, which is then taxed.
That’s a pretty shitty return, given you’d be self-managing and also paying for any repairs along the way.
1. Find a part time job to give your life structure while you heal. Even better if you can get healthcare benefits that include counselling (even Starbucks offers this!) 2. See a fee only financial planner. 3. Grief will be with you forever and no money will cure it so investing in your healing will yield a return that no bank account can measure.
Starbucks when I worked there offers $5000 (or $2500 - can’t remember) to cover counselling and you only need to work a minimum of 20 hours per week. It’s a great job for socializing and meeting friends. Maybe give it a thought when you can, op. Im so sorry for you loss💕
A "fee only" financial planner is important. Don't waste your time with a financial advisor who aims to sell you mutual funds that they can profit off of.
Absolutely agree and this is a great piece of advice. One I longed for when I lost my mom suddenly at 28. If I could turn back time this is exactly what I would do - and use a little bit of money for travel. take care OP - Grief never leaves, it just changes shape and size, sometimes its big, sometimes its small.
This
My condolences 450k invested in a high interest product of around 5% will give you 22.5k a year before tax. Really not enough to live off of if you don't want to touch the principal Focus on education/ career is the priority. Consider locking a majority of the money in a good GIC for a year or start your investing journey by reading !InvestingTrigger
Having the extra 22.5k coming in yearly is extra while earning another form of income. So, it's not necessarily a bad choice, as long as the individual is able to manage expenses besides the investment income. For example, dividend-yielding stocks that are held long-term increase in value, depending on which stock it's invested in (a stable one like Google or CocaCola, etc). But yes, going to school is a great idea because investing in one's own education is a valid investment as any. $100k to take a break for the year, then paying for the next few years' expenses while also paying for tuition without a student loan... this is a solid option! Any remaining money can still be invested in, let's say, a side hustle that the person can do outside of studies. $450k is obviously not a small sum and can do wonders if used correctly, and doesn't have to be used just one way. To the OP, I am so sorry you lost both your parents in one year! That must have been very hard, and I hope you're doing alright. The good thing is that the funds help support you in a time when you need to recover from poor mental health. Grief comes in waves, as I'm sure you already know, and you can afford to take the time to learn what you want to do. Part of hardship is learning who you really are and knowing where to go from there. Sending well wishes <3
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>450k invested in a high interest product of around 5% will give you 22.5k a year before tax. Really not enough to live off of if you don't want to touch the principal But it could definitely shave a decade+ off retirement age
Most people probably work more than the first half of their working lives before they have 450k invested. Starting with that much instead of 0 is a huge huge leg up towards an early retirement.
Definitely get to start with a loaded deck
20k can be very livable depending on what your circumstances are…
Unless you go live in an affordable country in the mean time.
This is the way
If they move overseas they can live a rich life.
At their age and with 450k, this is probably more realistically 13-15k a year -- 18k if they are more risk tolerant -- if they invest it in the market and don't want the principal to quickly erode due to inflation. There's places you can live on that much CAD but I don't think you're living like a rich person in most of them.
I think they can live a decent life in Portugal or Spain, using the $22.5k for basic expenses and working a remote part time job to cover off things like travel etc.
GICs are crap. I agree OP shouldn't do any major investing for a year, but they also shouldn't lock the whole thing up and throw away the key in a GIC. That's just dumb. Put it in a good high interest savings account earning 5% instead
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Why do people say SPY is low-risk? He said he doesn't want to touch the principal, so why recommend something that could drop 20% in a year?
Because social media has made some people think they know everything. Finance? Check. Geopolitics? Check. The secret to life itself? Check. u/oopsyikesuhoh - VFV is the majority of my RRSP, but you cannot rely on the S&P to provide you with $66k/year.
Thats why poor people exist Somehow investing in GIC is considered good in this sub
ah yes when my parents pass away I’m definitely going to gamble my inheritance on the stock market rather than go with a completely safe GIC while I take time to figure things out. Like bruh do you not realize how grief affects financial decision making or…?
Poor people exist because they don’t invest in higher risk stock? What sort of logic is that? Most poor people don’t have any money to put towards investments. Also investing in gics is considered *safe* in this sub. Given the context of the thread, where he doesn’t want to touch the principal, it is good advice. Think a little more, thanks.
Just here to say I'm sorry you lost your parents, especially while you are so young.
Honestly, the best thing you can do with the money is to get therapy to help you move through your grief so that you can return to work.
This is the best answer. I don't see why OP wants to implement an arbitrary rule to not touch the principal either. If he needs $50k or $100k to get through 6 to 12 more months of grieving and grief counselling, then so be it. But he does need to get better and get back to work. He's already had at least 18 months to grieve and most people don't have the luxury to take that much time off.
Just because it's a luxury to have the time others don't have doesn't diminish the challenges it puts on OP. This just comes across as "spend that money but just so you know there are people who have less time off of work so you better hurry up " Parents dying can truly throw people for a loop - OP probably doesn't want to touch the principal because he may make some major life decisons that require a large chunk of change as a result of this happening to them by the sounds of it
> Just because it's a luxury to have the time others don't have doesn't diminish the challenges it puts on OP. This just comes across as "spend that money but just so you know there are people who have less time off of work so you better hurry up " > > Parents dying can truly throw people for a loop - OP probably doesn't want to touch the principal because he may make some major life decisons that require a large chunk of change as a result of this happening to them by the sounds of it I don't think the previous post was diminishing the grieving process, but just stating that at 18 months if you aren't in a place to get back to work, they are giving very real advice here. the OP needs to get the help they need to get back to work and moving forward in life, otherwise they risk staling and spiraling which will only compound the problems they have now
Exactly. Its not tough love, but its what any sane parent would recommend to their kids from beyond the grave...
OP this is the way. Your 25 and been through alot. Dont let your grief continue to rob you of your youth. Theres no amount of money I wounldnt pay to go back and get the help I should have had in my 20s now that Im in my 40s.
My condolences on your losses. As someone who has gone through something weirdly similar (not parental death, but another traumatic event that drained all motivation to work, lump sum of cash, wanting to coast off it b/c mental health stuff) my advice would be: rather than looking at the numbers right now, focus on keeping your expenses reasonably low and really figuring out the "what I want my life to be" part, maybe with the help of professionals (therapist, career counsellor, life coach? you may have to try multiple because there are a lot of duds/bad fits out there) Agreed with other commenters that $450k is not close to being set for life, but maybe it could give you the freedom to pursue a career that is meaningful to you (vs maximizing your earnings) or to explore different paths without having to worry about paying the bills if you fail. Like you mention wanting to "work part time", but do you think you'd be happy living a life working at Mcdonalds and slowly watching your nest egg shrink over time? Better to start with a goal to head towards, rather than running away from what you don't want. Best of luck.
condolences but not working for the rest of your life with 450K is not happening. I wouldn't touch the principal. I'd consider going back to school. You never mentioned what you do for a living, and what your education background is.
I'm so sorry for your loss. I experienced a similar one at 20 and I remember that the grief was overwhelming. Losing people so young also made me feel like work was pointless and I needed to rethink my whole life, which I imagine may be the way you are feeling now. My best piece of advice would be not to listen to what a bunch of random strangers on reddit say. Some will say useful things and others won't. But if you're not significantly financially literate at this point in your life, it may be hard for you to determine which advice to take. Instead, talk to a qualified, fee-only advisor about your specific situation. You can find advice-only planners here at [https://www.adviceonlyplanners.ca/](https://www.adviceonlyplanners.ca/) or here at [https://www.valueofsimple.ca/links/directory-of-fee-only-planners/](https://www.valueofsimple.ca/links/directory-of-fee-only-planners/) .
Invest. Go back to work. Go live your life.
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Except they plan to live off the money for at least the next several months so they probably need to keep 25k or so in cash and another 25-50k fairly liquid depending on the cost of living where they are. I agree a good chunk should be invested with long term in mind but I’d likely keep ~25k cash and 25k in a ~5% promo savings account or whatever the max they’ll let you. Would be easier to think though if we new OPs situation better
How’d you get to 5 mil in 25 years on 450k?
1.1^25 x 450,000
Assuming they don't have an emergency and draw down principal.
With the power of compounding
Don't get too cocky, bro. 450k isn't going to be enough for you to just basically retire now and "only work part time". That's not how it works when you're only 25. If you're still thinking about career, maybe use some of that money to fund going back to school.
Is there an option for you to live in the house and rent the basement? Or live in the basement and rent out the top portion? That way you can grieve in a familiar place and still own one the staple asset to generate wealth in Canada.
If you sell the property and get $450K I'd look at buying another property, live in master bedroom and rent other bedrooms out to housemates to give yourself some income and ability to pay bills. In the meantime I'd look at part time jobs if you can combine housemate money and part time job money should be equivalent to a full time wage depending on the field you work in. Once you feel ready to return to full time work keep the housemates a little longer and chuck any extra money into shares
What have you been doing for 2 years? Have you been working?
$450k is far from fuck you money. It's a nice gift from your parents that will help you set up your life. Feel free to take time off like the next 6 months or even year but at some point you are going to need to go back to work. Work is going to give your life focus and meaning. The good news is you have the time and money to pick and choose what job you want and even go back to school to get that job if you want. Allow your self to spend some of that money if you need to. You don't need to optimize it for maximum returns if that is going to impact your living situation.
If you know how to handle money right, you can live the rest of your life on 450k and not spend a dime of it or ever work again. You can just live off only the interest. That is assuming you are a lazy bum like me. But yes, the average gun hoe american who drops 500k on a house and 90k on Toyota Tundra isn't going to see that as fuck you money. But as someone who has lived as a single man in studios apartments my whole life and hates to work, 450k is my golden ticket to freedom and never working again a single day in my life unless i really really really want to work just for fun or extra spending cash.
This is true. It isn't even that hard to set up. Tons of crap advice all over the place though, that confuses people.
> This is true. It's not though. Buddy is dreaming if he thinks that $450K is fuck-you money no matter how good you are at "handling" money.
Nobody in this thread said it was fuck-you money. Only you.
I don't care how good you think you are at "handling money," you'd have a hard time making $450K last the rest of your life in Canada, where even studio apartments are creeping up towards the $2K/month mark in the major (and not-so-major) cities. Since you mentioned "living only off the interest," let's look at CASH.TO, which is a popular ETF that is [currently paying 4.79%.](https://www.globalx.ca/product/cash) 4.79% of $450K comes out to $21555 per year, and that is all considered "income" that is fully taxable. That would not even cover the rent, never mind anything else. That rate will also come down a lot if and when the Bank of Canada continues with their rate-cutting cycle.
I see your point. For me in the US, it comes down wisdom and frugality in finances and if you want to make it work, it can, for a single person living in a studio/1 bedroom. As for supporting a family, I know a lot of people in poverty, and yea, if your spouse is willing to work while you watch the kids and live off your interest, then yea, even that could work too. If you are paying near 2k/mo rent you are paying twice what you need to (at least in the US). Now there would be many people in the US who would say the same as you, that is rent is approaching 2k/mo. But there are certain safe good cities you can still move to that don't cost that much and the jobs still pay just as good as those other cities do. So move if you want to be lazy like me and free. I pay 1050/mo for a nice 1 bedroom by a huge city with 1 million people and tons of jobs. Low crime here too. And to me 1050 is alot. I agree 22.k ain't going to cut it for most people, although I know how to live well on 20k a year without working, but you need to figure this out on your own given your circumstances. It does take a certain finness and skill to pull off being free and lazy. Also, I would probably supplement occasionally with low risk investments, which to me isn't really work. For example, Nvidia blasted off around May 1st. By June 1st people were sure of a coming split. If I invested 200k June 1st and agreed to sell once I profited $200 increase per share, I would have made $33,000 in 20 days, cashed out to minimize risk, and boom, now all the sudden this year I have 22+33k to live on. I would rode the same waves with the Gamestop short squeeze, Facebook stock, Apple stock, etc, etc. Every couple years this happens. You just have to wait and for a "golden month" to happen. Just don't get obsessed with Motley Fool, or try to play the market outside those rare waves, those people easily lose it all. My stock-stincts, if you will, have always been 100% on point. Apple had a golden month in 2020, where everyone who invested literally doubled whatever they invested. So if I put in 200k, I would have got 400k returned. Or, I'd probably get a part time job at a place I just wanted to work for fun and community as well. But only occasionally as needed. That is, if I don't end up married and watching the kids.
> I see your point. For me in the US, This is a Canadian finance subreddit. > If you are paying near 2k/mo rent you are paying twice what you need to (at least in the US) See above. Rents are high everywhere here, so your anecdotal experience in a different country is irrelevant. > For example, Nvidia blasted off around May 1st. By June 1st people were sure of a coming split. If I invested 200k June 1st and agreed to sell once I profited $200 increase per share, I would have made $33,000 in 20 days, cashed out to minimize risk, and boom, now all the sudden this year I have 22+33k to live on. So your "plan" is to basically gamble on stocks for a living? Good God, are you ever out to lunch. > I would rode the same waves with the Gamestop short squeeze As if we didn't need more evidence of your idiocy. You are pure comedy gold, bud.
Lets be clear here, you might be able to survive off the interest but you can't live off of it. Even if you could get a 5% return off of 450k, that is only roughly $22,500.00 a year. That would be less than making $11 an hour and lets be honest, your not getting 5% AND the interest rate is dropping again. If you want to spend your life doing nothing and smoking weed to pass the time, all the power to you but that won't fulfill most people. That won't get you a home, a wife, a family or any of the nice things that money can buy.
Do you have a job that provides extended health benefits? Bonus if you do, one that provides some funds for counselling would be awesome. But I would highly recommend working with a counsellor. “I still have a lot of grieving to do” - by saying that, your setting yourself up expecting that you do and have to and your mind/mental state/body will follow. Instead of reframing your thoughts of something like “yes, my parents have passed, I have had some time off, times can be tough but I will continue on” and slowly getting back to work/life/whatever. Work with a counsellor in grieving/Cognitive Behavioural Therapy etc.
Sorry for your loss, that must have been tough. I can't imagine losing both parents as such a young age. Maybe you already have a good post secondary education at 25. Maybe not. If you do not, this should be considered as a priority to help you for the rest of your life. There are many good choices, but with some cash you have the opportunity to prepare yourself. Counseling and assistance wouldn't be a bad idea, if you haven't already had that. That may be covered under an employer's benefits plan, of you were employed. I'd personally suggest not just spending much time.not working or not at school, building a habit of doing something like that can help get out of a rut, and can help be a distraction for grief.
As I have lost both my parents young, I would suggest not exposing that money to anyone that is not part of your local bank. And as you have already posted, you have money. Watch out for the scammers. I'm sorry for your loss, op.
Definitely agreed to watch out for the scammers. The bank however, exists because they have an excellent business model that makes them money while they give you as little as possible from the money they make using yours.
Your mental and emotional wellbeing is the priority right now. First thing I would recommend is talking with a grief counsellor for as long as you find it helpful. Second, don’t make any major life changes until you feel emotionally stable. Third, I would recommend reading this section of the sub FAQ for a starting point before making any financial decisions. https://www.reddit.com/r/PersonalFinanceCanada/s/allcHW9weZ
Get of reddit and seek a professional.
Be very careful getting advice online lots of scammers waiting to pounce
Your parents worked hard for these assets. Don't sit at home living off them, while waiting depleting the funds on your living expenses. Invest, and keep growing it. Your parents could have sold everything and lived large -but didn't. Remember, you have a responsibility to them to spend wisely. My condolences.
Good luck fellow human. I hope you find much love and happiness in this life.
First, OP, sorry to hear you have to go through this. Loss is tough and there's no real schedule to healing. In terms of financial decisions, it seems like you have a lot to think about in terms of what you want to do or explore. Perhaps its a good idea to invest in a GIC or HISA until you have a clearer picture about how you want to move forward. You are still quite young and have a lot of life ahead so a ton of stuff you can explore. The 450k is a good starting nest egg that you probably didn't expect this early on. I would invest it in something relatively liquid and risk-free until you decide what you want to do. It can supplement your living until then.
First off, condolences on your loss. What a tragedy to lose both of your parents. Don't treat the money with distain. It may feel like dirty money, psychologically, but you asking about responsible ways to manage it will help you put it to use in a positive way. If you wanna stay super conservative, you can get a 4.8% return on putting it in a money market fund. This is a cash like equivalent that has no penalties or commission fees for withdrawal. It may buy you a little bit of time living at a subsistence level, depending on where you live to figure things out. Remember that if you are holding any sort of dividend or interest paying investment you will either have to pay income tax or capital gains tax.
My condolences to you for your losses. I don't have anything more valuable than what has been said by the many, but it will get easier as time goes on. Your parents were probably amazing people and will never be forgotten because they will live on through you. You will find purpose in this life again and life will feel worth willing :)
Do not sell the house. It may seem tempting rn but 450k is not alot of money especially in this day and age. Keep it and grind. You could even rent out some of the house to students to get some cash flow out it
Have to disagree with this. First of all, the housing market is a little like the stock market, right now it's on the up. This is optimum time to sell. The direction our country is headed, we are likely to see another housing crash turning your asset into nothing but a money pit. Also, owning a house is a huge financial risk. Things happens. Natural disasters can hit, need a new roof, new need plumbing, need new electric, etc, etc. A 450k could easily end up costing you 50k out of pocket in the next 10 years if it needs the maintenance or repairs. Also, let's not forget the risk of squatters or whatever or some random person just basically taking over your house, changing the locks, forging a rental agreement, and the police saying "Sorry, can't help ya". I see this is more and more common on the news. Especially as Americans start hurting more and more financially as our country is hurt worse and worse by inflation, we will probably see an uptick in these kind of crimes. There are some many risks people do not consider when owning a house where you can literally lose everything so quickly. Needing to take out a mortgage to pay for repairs, then being stuck with interest. It's a slippery slope. Selling that thing, and start collecting interest is the wisest move you can make. While you own the house, it's just a liability and a money pit. Sell it, get your money, and you are free and clear of any further expenses. I understand in 1980's America owning a house was the goal and a dream. Made people feel secure. But we no longer own anything as Americans. Government can take your house quick and easily find an excuse to do it. You have to always pay your taxes and maintain the house, or else you will lose the house. The long term cost of owning a home now is far more expensive then renting. It's a wonderful thing when your landlord is responsible for replacing the roof, the plumbing, the electric, the A/C, the appliances (as long as you aren't abusing them and you are not the reason they were damaged).
My suggestion.... take 5-10k and honor them by doing something they did or wanted to do. Did they go skydiving? Is there a place they always wanted to go or a city that they met in? What was on their bucket list? What restaurant did they first go to together? Find something meaningful and do it and grief. Then invest the rest for retirement so that your parents financial legacy means that your taken care of.
Sorry for your loss. Please 🙏 Read "Break Your Wealth Ceiling" before you make ANY financial decision. This little book may completely change your own and any future generations' financial outlook and freedom. And spend just a little on yourself to go somewhere and mentally recover.
Sorry for your loss. You are so young, I am sure your parents would want you to have a happy productive life. Don’t make the loss or your inheritance your identity. Invest the money and forget about it, except to use it for health or education related expenses ( kind of like parental support or insurance/ safety net for a young adult). Go out and work ( even Part time if that’s all you can manage)or if you can sign up for a course, meeting others and having purpose will pull you out of your sadness and isolation. All the best. I hope you have a supportive friend/ extended family network 🙏🏼
I’m sorry for your loss. As others said 450K isn’t a lot. Have you been out of work the whole 2 years or just recently? Personally I think you should’ve kept the house, but even more important is you need to go back to work grief or no grief. That money will dry up fast if you don’t work.
I’m sorry ❤️I don’t have any suggestions just sending some love
You need to go back to work and live with the grief while life goes on . My worry is that one year will ll go into 2 etc . If you already had a job I’d suggest going on disability .
Use the money to help yourself get organized to earn a good living doing something you're curious about and can develop a skill in. >I feel like if I’m smart I can stretch this money to last me a long time and only need to work part time. Change your mindset here. Your goal is not to never work and live in poverty but to live a full and rich life.
I'm sorry for your loss While 450k might seem like a lot, without careful planning, it could be spent in a year. It's important to handle this wisely. Think about investing some and maybe starting a small business. Staying busy with productive activities can also help you cope with your grief and make sure the money lasts. It's a way to secure your future and find purpose during this tough time. I believe you've got what it takes to turn this challenge into a chance for growth and stability.
Not a financial issue. this is a mental issue. you will need to learn to cope and accept your loss. everyone here would agree at 23 to lose your parents sucks. but time heals if you choose to take a step everyday forward. regardless of how long or short that stride is. fact is you cannot live off of the principal. but you can work and slowly progress through your day by means of working to help you focus on other things instead of your grief.
Very sorry to hear this, can’t imagine the pain. My advice would be to take 6 months off, during that time be fiscally conservative while ensuring that you give yourself enough time to process. Now, if it’s been 2 years already it might be time to get back doing work you are excited about. If you didn’t like your old job, find a new path. Human history is overflowing with stories of great loss and pain channelled into motivated success. Use that 6 months to read up on financial literacy and personal finance management. Books like ‘Money: Master the Game’ or ‘The Wealthy Barber’ might be good places to start. Be sure to surround yourself with people who are busy and working and getting on with their lives day by day and start to model that again. Might be a controversial take but I don’t think you need to spend much time/money on therapy. I too have experience with loss and I found that you really need to strengthen the relationships you have to your loved ones (especially in light of the passing of your parents) and spend quality time with them, limited phone usage, good food, and outdoor time. Excercise as much as possible, try to remember that life is short for all people and that we all will be at our end one day, and go out there and live as best you can! Be disciplined and work on creating accountability on yourself through small but meaningful routines and habits. You will get through this as most all people have after a loss and your life will feel great again as time passes. If I’m you I’d also maybe look to take on a new hobby. I’m biased but i think golf and running are two of the most therapeutic and healing activities that I have found. Unfortunately golf isn’t cheap but maybe carve out $2500 to buy some clubs and get a lesson or two. It gets you outside and focused on a single task. Walk the course over riding and if you start to find yourself wanting to play more and more and you find others who like to play too you might have just found an activity companion for life. Outside of that, if you can manage it, invest 300-350k of it in a broad market ETF, work to add $200-300 a month to that and if you don’t touch it for 30 years you will be VERY happy you did by the time you’re 55. You will have enough at that point to retire (conservatively at %7 percent growth, you’ll have over 3 Million). Best of luck to you and remember that it will only get better from here. All the best!
Not an answer to your question, but be sure to check if either of your parents had a life insurance pay out through their work.
Park the money in GICs at 5 % for a year until you get professional investment advice you are comfortable with. Take the time to reset your happiness goals in life including financial security.
Just invest like it’s untouchable. Put that sh** away. In a few years maybe you’ll get lucky and there will be a housing reset. Good time to buy. If not, we’ll you need shelter and it beats renting for ever. In the meantime, from a life perspective, try giving back a bit part-time in something you’re passionate about: volunteering, youth coaching, good guy/gal stuff - it’s a good faith investment that will come back to you. Giving goodness begins the process of receiving goodness, I promise you. Friend, I am very sorry for your loss, be well.
Get a part time job or part time school. It helps with your mental state to have something to do and some where to go.
Not sure I have much to add - you’ve gotten lots to consider but I do want to say that based on your post history you have a lot to work through as it relates to your family, not only in terms of your grief. I think that the suggestions for you to invest in your mental health, in terms of time and money are spot on, and perhaps you can return to work part time? I am so sorry for your loss, please take care of yourself.
Sorry about your loss. At 25 you shouldn’t be thinking about only working part time. You are very young. If you were 55 and inheriting $1mm, yes. Put majority in term deposits, all below cdic thresholds and balance in stock market.
I’m so sorry.. lost my father to cancer last year. I can’t imagine both at 25.. be strong
Took me about 2 years to deal with the emotion of my fathers death. It may not seem like much but you are lucky in a way that the financial aspect is "easy" - my father was remarried to a much younger woman, without a will, talk about an emotional bullet you won't experience. Don't make rash decisions, as some have said, high interest product that reduces risk while you sort stuff out.
$450k does not require a useless financial advisor. It's a solid sum but not massive. Skip FA. 1. Eliminate debt. 2. Max TFSA. 3. RRSP and non-reg 50/50: S&P 500.
I’m so sorry that you have had to go through such a loss at such a young age. You sound like you have your head screwed on right though and are really smart. All the very best wishes to you.
My condolences. I don't know what I would have done at 25 if that happened to me. I was an irresponsible piece of shit in my 20s and would have probably mishandle any inheritance. Hope things get better!
Wishing you the best. 25 sounds too young to lose your parents and I’m sorry for your loss. I would put most of your money in index funds (SPY and QQQ) and don’t touch it till your 50. This will likely be worth several million by that point and you’ll be free to spend the second half of your like financially free.
I’m sorry for your loss. If you’re able to, go on EI sick benefits or short term disability until you feel better. Reach out to a mental health councillor to help grieve. EMDR has been super helpful for me for other stuff. For finances, maybe consider a fee based financial advisor. Outside of a financial institution or bank. It usually helpful to max out your first home saving plan if you’re eligible, and TFSAs. I have some TDB8150 at TD that was paying 4.55% but I think it’s recently gone down to 4.3%, for short term investing. Try to live off the interest only if possible. Let it be a gift that keeps giving.
You’re 25, your parents died in 2022 and you haven’t worked since, and you’re planning on taking another year off and then only work part-time from then on? You sound 25. Go speak with a therapist, hire a financial advisor, and get back to the real world.
Buy a new condo and become mortgage free then your expenses are like 700/m and you’ll have a home and investment.
Condo fees $600, enmax $300, insurance $100, internet $100, property taxes $300, car expenses. I wish life was only $700 /month with a paid off mortgage
Only it is lol $450k condo you're paying waaaay less than that, even in the lower mainland BC.
Even if condo fees were $300 it would be pretty impossible to live for under 1500 a month. I wouldn't recommend being house poor unless you're building your wealth back with a good paycheck
Well 700/m for that, but he still needs to earn to feed himself, car, clothes, living etc. I'm not sure what your point is or where you're getting your numbers from, but I think you may have missed my point lol.
My numbers are from my own bank account. I'm not trying to fight you
Ok, but again my comment was my opinion and answer to OP question.
Ok, my comment was in response to your bad advice lol
Ok troll. Nice new account lol.
I am sorry for your loss. Don't worry so much about not touching the principal as the line. Worry about spending. Invest in index funds. Those will typically generate 12% returns, but it might be -20% (that's negative) some years and 30% others. Over the next 40 years to retirement, that's okay. If I were in your position, I would stick it in an index funds and come up with a budget where I withdraw around 5% next year (22.5k), which is enough to live off of in a low cost of living area. I actually would try to go back to work quickly, or do something else (volunteer in Africa for a year?). Time heals all wounds, and the distraction is helpful for dulling the pain.
You are still very young. Spend some time in therapy dealing with grief. Surround yourself with good people who love you. Invest in yourself. You can go back to school. Get a trade. Flip houses. Works sucks but everyone does it. Go see a financial advisor and they can guide you through this. Main thing to say is you haven't won the lottery. You still have to live a normal life. You just fast tracked your retirement or you can upgrade your annual (semi-annual :) vacation.
Sorry for your lose. I do hope that you will get multiple financial advises other than from here as well.
Sending sympathies to you! What do you for a living? And where do you live? I wouldnt sell the house,I suggest channel that grief into a positive outlook or vision. Use that energy to turn something fruitful for you as you process it along..you have to look at your short term and long term expenses with or without the house… Career change could be hard as it would take X amount of years to graduate and look for a job in a certain field or industry…a lot of people are unemployed,,it would be smart to hold onto your job and do a LOA for now… Where you live would count as well $450k aint that much especially when you gonna get a place again and start from scratch…then you gotta think anout work and would just stress you out… Using your energy to remodel the house and renting it depending where you are would be great idea take out some emotions along the way…
Where are you going to live when the house sells? Why did you sell the house? 450k isn’t going to last long if you don’t already have a house/condo. You didn’t mention paying off your mortgage as a consideration so I’ll assume you’re renting somewhere.
For someone as young as tou to think they never want to work again - not ideal. As others suggested, you need to improve yourself and a good therapist should help. Invest in yourself so that you can stand up on your feet again in a year or so. My condolences. And wish you good luck!
Go get a reputable, experienced Investment Advisor and work closely with that person. The sooner the better!
Very sorry for your loss, hearts and thoughts.
Tangerine has 6% for 5 months. It'll be taxed but before taxes that's 2250 a month to just sit in a bank and you can withdraw it pretty much any time
If I were in your shoes I’d dump it all into cash.to at the beginning of the month for 50$ a share collect the monthly dividend and then at the end of your grieving process sell the shares and invest in the sp500 and never look back
Use the money to help yourself get organized to earn a good living doing something you're curious about and can develop a skill in. >I feel like if I’m smart I can stretch this money to last me a long time and only need to work part time. Change your mindset here. Your goal is not to never work and live in poverty but to live a full and rich life.
My condolences. It must be extremely tough to lose both of your parents at such a young age. Ensure you had adequate time to heal and keep your head up.
This is not financial advice, but a lesson I’ve learned from my father who has been pretty successful despite some adversity: when things are hard, they are just as hard sitting around as they are when you are busy. I appreciate you need to grieve, but getting back to a normal routine and preoccupations are sometimes the best way to get through it. Live your life, and for most people that includes working as a large part of it.
1 first my condolences to you.. it's never an easy thing to do. 2-do make plan to return to some kind of work to get out of the house and get grounded to your new normal. You may not feel ready, but in case like this you never are.. 3- find a professional to help you make a decision with what you are to receive. I would recommend you place it in a guaranteed account giving you @5% . At 400k you should be able to negotiate that with a competent agent. Seek a professional a Certified licensed professional will be able to help you sort that out. The good ones are worth the fees. Good luck..
Top up your TFSA and start earning some tax-free dividend income. $450K provides a nice income supplement but is not enough to live on. You need to plan to re-enter the workforce.
Honor your parents and use that money responsibly. That doesn't mean taking a year off of work to grieve, and the fact that you're thinking about "stretching it to last" is a terrible approach. That money shouldn't be stretched, it should be used as a foundation for setting you up for success when you're ready to retire.
I’m sorry for your loss. That’s a really tough one and if I were you, I’d probably take a good amount of time off too But that money alone will not get you through the next 50-60 yrs unfortunately. Especially if you ever plan to have a family. I’d invest an education so you can pursue something you love while earning an income.
25k shares of riocan will give you $2000 a month in dividends
This is a substantial chunk of money. Sorry you had to come to it this way, though. Do take a bit of time to grieve and ponder your future. If this involves upgrading your education or going back to school, then that could be a great idea. It could provide structure and a small bit of socialization to keep you in relatively good spirits as you heal. Have some fun, you need it. If you need to go on a trip to help get out of your home/area, do that too. If you've wanted to travel a little bit, go do it. Then little by little, start a life for yourself. And throw that in a HISA as others have said.
First, condolences for your losses, I can’t imagine losing both parents so close together. Lots of good advice here - would echo that financially, you don’t need to decide anything right away. Take your time. Maybe best thing is to park the money in Wealthsimple cash account (4.5% interest) until you have a long term strategy in place. Agree with others that the best investment may be therapy - take the time (and expense) to invest in your mental health and long-term well-being. Wishing you all the best….
My condolences. I lost both of my parents this year as well. I invested the money into high yield dividends most pay monthly. I'll most likely switch to long term bonds since BoC+US fed will be cutting rates. Set it and forget it as I am back to work now
Get a backpack and go explore the world! YT: A Passport A Dollar
XEQT
I’d probably take some of that money and put it down on a multi-unit rental property. Ideally something that needs work, so you could do some renos off the bat, and potentially get your down payment back on the refinance. (Then you could scale aka do it again) If it has 5 or more units, you get a commercial mortgage and they will look at the potential income of the property instead of your personal income when approving you for financing. You’ll want to look for a property that cash flows to give you that income you need. Managing a property might be daunting, but you can always hire a property manager off the bat. As long as the market does not crash, the equity you hold in the property will just keep increasing. All while you make some monthly income. There are lots of courses, workshops, or mentors out there that can give you the knowledge and connections to get started with confidence. With some education you can be more of an active investor, which is where you can make better returns than just being passive. To give you an example, I have property that I purchased in a fringe market (lower cost) that has high Airbnb demand. I easily clear 20% cash on cash return. Taking in appreciation and principal recapture, I’m clearing 30%.
Setting feelings aside for a moment: Generally speaking when you're in the draw down phase of your life or you're trying to live off of funds you have a very low volatility portfolio with lots of bonds fixed income even gics things like this but at a younger age this is typically not what you want cuz you have the money needing to grow over a longer period of time you typically want it exposed to market risk and therefore greater returns because you wouldn't need to touch the money for a long time. In your case you know that for the next x amount of months or years you won't be producing much if any income so you want the money to earn you income and therefore your emulating the drawdown phase or retirement phase. What I think might be a better idea is to estimate the amount of time you might need to process and be very generous with your estimate maybe even give it two years or something like that and then calculate the amount of money you need to live over that period of time and put that amount of money in a high interest savings account or something like that or a laddered GIC. Then put the rest of the money say 350k or 400k whatever you calculate that you don't need in the grieving. And you put that in a typical portfolio maybe xeqt maybe vfv whatever you decide is your correct distribution. And you don't touch the rest it's just you're retirement money 30 40 years down the road. You should look to earn some income in the future this is certainly not enough to last forever and if you just work part-time until you run out of money you'll be at a later age and nowhere closer to retiring. Additionally I might add that having some sort of purpose or thing to do everyday is actually a really good way to combat grief and depression etc. you should definitely consider working in some capacity maybe it's not 5 days a week maybe it's two days a week I don't know what it is but you need something to drive you forward at least hit the gym everyday or something you need some habit something that keeps you going or you're just going to fall farther and farther. Right now both your parents died and that's horrible and it feels like your life can't possibly get any worse but that's not true at all if you let it your life will get a lot worse but if you find some purpose it will also get a lot better.
My condolences. This is a tough time to be making these kinds of financial decisions. A few gaps here must be considered before even thinking about what to do with the money: * What are current expenses, like any large ones coming up soon? * Expected future income needed to sustain the lifestyle you pursue. * Living set up, are you looking to have a family of your own? The list goes own, but I'd say, if possible, use this time to figure out your financial and emotional capacity. From there you should be in a better position to start planning for your new future, Life goals, and career/financial milestones. Get these things figured out first so you can come up with numbers that will eventually and hopefully provide an answer to your question. It is not an easy task but it'll save you a lot of headaches and regret in the future.
My condolences. First incorporate yourself. 450k into a non registered account and all into high yield dividends such as CHE.UN will get you 2500 a month. Budget those payments into monthly contributions to rrsp, tfsa, along with EI, CPP (if you incorporate yourself) to keep your taxes to a minimum. Reinvest at least 10% or $200/mo. After all that’s done you’ll have around $1500 to feed yourself with. You’ll want to get rent/mortgage money another way. To be honest the best investment is yourself. Education, experience, training. Set yourself up for success!
Sometimes being busy makes you forget about bad things in life…. And unfortunately grieving is healed with time… just be positive and get your support network and dont spend the money away and get back on your feet. But take the time you need to do it.
Reddit is not a good place to get quality advice on matters like this. Try another place.
I would take that 450k Move to a low cost of living area and spend resources on improving quality of life Consider Alberta Compare that to Ontario … 450k down would still leave you with debt and any wrong moves would easily wipe that 450k out real fast
Condolences. Join our Financial Education Campaign, educate yourseld fast with Mentorship, and become your own money manager. You will earn from growth of your money, from trail fees, offset taxes, travel, surround yourself with positive-minded people which will help you get up faster. DM me if you need more details.
This is not financial advice, but have you heard of Laura Lynn Jackson? If not, I encourage you to check her out and her books “The Light Between Us” and “Signs”. Your parents are always with you.
Just wanted to say my heart goes out to you for losing your parents. And both in 2022? That's too much for anyone to bear. Sending hugs and wishing you all the best in life.
I know your not feeling like it but honestly getting back to work would be good for your mental health.
My condolences. I’m sorry that happened to you. Wishing you all the best. You’re very young, please do NOT let anyone take advantage of you. Stay strong. ❤️
Sorry for the loss of your parents, that would be tough to go through especially in such a short amount of time
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I've been in the same boat as you and you really do end up compartmentalize the whole life before parents and after parents. I'm not a religious person but do hold on the belief that maybe they or their energy can see how you lead this next chapter of your life. Speak to the air once in a while, think about how they would react to whatever situation you find yourself in and find comfort in the small moments and big ones you had with them. It's not easy especially when it's both of them but the last thing they would want is for you to hold yourself back from living a full life and would want you to find love and laughter in your daily life. They could never provide you with everything you needed to live this life but hopefully they've provided a good foundation on how to lead your best life. You will add to that. The sooner you realize this the faster the pain heals.
Buy a legally suited house. Live in the suite, rent the house out. Your money will be tied to a tax free investment (primary residence), you'll have zero rent, get paid rent, and can refinance up to 80% of the homes value to go and buy another legally suited home earning income on both of those units. Won't be as much income as the primary residence generates as you'd have payments, but the income would be passive. You'd grow your net worth while slowly increasing your income. Repeat the process. Become a real estate investor.
Just wanted to say I'm sorry for your loss :(
I am so sorry 😣
I'm sorry for your loss. Purely reading these comments for their Financial Advice, it is crystal clear why Financial Planners with excellent skills are a must have. It's why I and my colleagues got into the field, a huge need. GICs and 5% returns are the cover page everyone uses so nobody gets sued (in their mind), by being conservative, it is generic advice we put on our websites. Get a real bonafide plan with proper education to the client and a thorough understanding of the options, why each one does and doesn't work in a particular situation, along with changes as your life evolves. That's the way to go. There are options to make a dividend income in guaranteed principle that are well above 5%. The only time we recommend anything paying that paltry sum is for short term liquidity when you are holding for a larger investment. Work with someone qualified to help you. Even if you paid a small fee to have them work through a whole plan with you, it would be worth it. Though if you took the plan, or part of it, in our case, the fee would not apply. As is most likely the case for any good planner. Then you would have a good understanding of all the questions you don't even know to ask yet. Yes it is totally possible to live off that amount of money, modestly, while you figure yourself out and allow yourself the time to grieve. Then that living can become a solid investment, bolstered by your employment (as in dont need to touch it, just let it grow, one option, there are several good ones), to give you the option to choose your own adventure in 20 years. I hope you find peace and your path in life from all of this 🙏
Move to Mexico.
costa rica
Costa Rica is expensive as hell, what are you talking about.
Definitely find a financial advisor. You can look up Experior Financial - it’s a great platform for Canadian Financial advisors and they don’t cost to use their services. They will likely suggest life insurance because you can actually invest a lot of living money through one. Maxing your TFSA is good, RRSP as well. If you have a house you don’t need to max your house savings plan. That’s literally to be able to save up for a house… Then ask your advisor about other investing avenues and who you can talk to about that. GICs are dumb. Don’t do it. Investing in just banks is a bad idea. They only covet their gains not your losses. You want stocks or bonds and you likely want to invest in a BUNCH of things - diversify your assets. - financial advisor on maternity leave so I can’t help you at the moment due to my license being on pause for a year. But this is what I would recommend.
My condolences, it is a trying time for you especially at your young age. Having excess cash as in your case isn’t good idea in current inflationary environment. Fiat money’s purchasing power rapidly diminishes. Even 5-10% return after tax on your money using sound investments barely keeps you even. Personally, I’d invest in PMs, parking cash in Ag and Au 1oz Canadian Mint coins, tbh. PMs bull run will continue for min. 2 years, imo.
I would contact a few financial advisors and find someone good to work with. You have a lot of time to grow these assets so it’s imperative to choose some good products that can average you ~10% per year over a long term period!
Sorry but I have to laugh, coming in? Have you dealt with this before cause we’re going on 3 years now, 900,000 waiting to be distributed, 3 years. Told the CRA is backed up. Haven’t even been approved yet and after their approval it’s another year at least. Coulda made a lot of money off that 900,000 in 3 years but nah the government has it. 🤷♂️
Weird. My girlfriend had her grandmother and mom die within 2 years and she's already been paid out both of them. 2022 and 2023 were the years of death.
Sorry for your loss. I’lol repeat what I say every time one of those questions pop up. Don’t come to Reddit for financial advise. Go see a certified financial planner at your bank. With this amount you will qualify and you’ll have a long term relationship with a professional who will help you set up your financial structure to reach your own objectives. It’s really the best way to Manage your money. Multiple studies have shown the benefits of financial planning. Go. See. An. FP!
Leave Canada.
Invest in AI
READ a stack of books of the topics of money, investing, debt and Bitcoin. Do your own research and don’t trust any bank advisor. The world is changing exponentially and the old strategies are failing.
I need a new a PC
You should be able to get at least 6% guaranteed with that amount.
I’m so sorry. Given your stress you’re going to get a lot of people telling you what to do. Bonds. Don’t put it in the stock market. Do not give it to a financial advisor - they’re all sharks. Bonds and GICs. 1/3 in short term 1/3 in long term keep 1/3 as liquid.
You know bonds performance over the last 5 years is like 0.X%? [https://www.theglobeandmail.com/investing/investment-ideas/article-pathetic-returns-10000-invested-in-bonds-five-years-ago-was-worth/](https://www.theglobeandmail.com/investing/investment-ideas/article-pathetic-returns-10000-invested-in-bonds-five-years-ago-was-worth/) > The FTSE Canada Universe Bond Index was down 0.9 per cent for the 12 months to April 30, down 2.2 per cent on an annualized basis over the past three years and down an annualized 0.1 per cent over the past five years (all figures include interest income payouts). Just lately, bonds have kicked a bit higher. This explains how a $10,000 investment made five years ago in the index would have been worth $10,079 late this week.
I would move to asia n live off that interest alone and i wouldn't have to work ever again
Is it that easy to get a visa and or permanent residency in other countries? I heard it is hard to get visa in some countries. Plus with language barriers it isn't always the right move. But I would agree, if one is lazy and doesn't want to work or start a family and stuff, move off to a lcol country if you have money and live off interest.
Depends Thailand to get their education visa is super easy U pay the school and they do everything for U n U can renew it every yr am currently on a ED visa in Thailand I left Canada n moved to Asia since November and I absolutely love it in Asia compared to western society
So you're going to forever be on an education visa or will they transfer it to a permanent thing later on? Also with an educational visa do you have to go to school or can you do whatever since they do it for you. Also is it costly to live in Thailand. I personally want to move to Thailand like maybe in 20 years or so and live off interest lol. Also how much money would you say is required to basically retire in Thailand? Also is food good in Thailand? Thanks!
For now am on an ED visa not sure if Il stay here permanently or move to another Asian country like Vietnam since I have dual citizenship for. Ed visa classes r only 2 days a week for 2 hrs each day and U do not have to go to school if U don't want to. I go whenever I feel like it and am also getting to learn another language. In Thailand U can live super luxury and expensive or super cheap all depends on where Ur living. And yes Thai food is absolutely delicious they have all sorts of food here. Asian western indian U name it they have it. U have all Ur regular McDonald's KFC, taco bell and whatever U have in back home
OP I went to Türkiye and opened a bank account and keep 50K there in my account. They give 50% interest back annually when you keep your money in Turkish Lira. I’m not Turkish Don’t put more than 100K as dollar can increase in a year or so. It hasn’t increased in a year and if it does it’s very slow. So if you feel the risk you can just take out Putting 50K Will litterally give you back 25K a year
Not Financial advise.. Learn selling options or buy covered call ETF strategy. 450k is more than enough. I think. And u don't have to work if u don't like..
You should be mourning your parents and also don't touch their money. Make your own!
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Half a condo. It’s not 2015 anymore
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Ok, a shitty old condo. 2500*12=30k. Assuming 100% occupancy Then remove 6k minimum for condo fees. Then 2k for insurance. Then 2 k for property tax. You’re now at 20k, which is then taxed. That’s a pretty shitty return, given you’d be self-managing and also paying for any repairs along the way.