Fifth wheel financing

[canuckowner]

TroutSlayer:

You should easily be able to achieve a very safe 7% return annually with a balanced, diversified portfolio with 60% equities and 40% safe stuff (bonds, preferred shares, etc.). Simply set up a self directed investing account with an online brokerage or through your online bank and buy exchange traded funds (ETFs) which gives a big basket of stuff without the hefty fees of mutual funds. For your equities portion buy an index fund ETF that tracks the S&P 500 and an international fund and maybe even an emerging markets fund too. For your fixed income/safe stuff pick up some bond ETFs, maybe a preferred shares ETF.

There are plenty of good financial websites/blogs out there with lots of good advice.
Check out Canadian Couch Potato for the basics of ETF investing and some basic model portfolios. Also Mr. Money Mustache is an interesting American blogger who used ETFs to achieve his financial goals and retire before 40. The most popular personal finance blog in Canada is Greater Fool and it is entertaining reading, but if you are willing to sift through older posts you will find the balanced, diversified ETF portfolio thoroughly explained by a very savvy financial advisor and author.

You can always PM me and I could give you more info.

Warren Buffet is a pretty smart guy and recently stated that the cash left to his wife after his death should be invested 90% in a Vanguard low cost S&P 500 index ETF and 10% in short term government bonds (which could be held in ETFs as well).

The point being that even if you are paying some slick money manager you are unlikely to do much better than S&P 500 index over the long haul.

Most people will spend more time researching the purchase of a new TV than they will on how to manage finances, build wealth and retire well.

[canuckowner]

gtsum2:

You got an amazing deal!

[namusmc65]

Originally Posted by skijlw

A lot of your decision may be based on your age. I financed for 15 years for 3%. I make a lot more than that on my investments. I am retired so I look at this RV as a lease. Minimum down. I may or may not live long enough to pay for it. If I don't live long enough to pay for it I guess I won't care. If I do or decide to change Rv's I can take the same depreciation hit then as well as I can now except I will have less years to think about it. If you can actually afford the RV or TV use someone's money besides yours if you can.

X2. I use to pay all mine off in a couple years. In fact, no mortgage or any major bills. I went the above route this time and figured I'm just gonna rent! lol. Can always pay it off early if you like or can. Just bought a new truck with their money for five years. Will pay that one off early probably. Most of my money is in the mutual fund retirement market and it has done well. True, about 9 or 10 years ago, when I retired, the market fell apart. But, that said, I have now been drawing out for ten years and my retirement account is back where it was when I retired. You definitely need to plan ahead for the golden years. I see so many folks today really with no plan at all. It is so sad sometimes.

[troutslayer]

Originally Posted by canuckowner

TroutSlayer:

You should easily be able to achieve a very safe 7% return annually with a balanced, diversified portfolio with 60% equities and 40% safe stuff (bonds, preferred shares, etc.). Simply set up a self directed investing account with an online brokerage or through your online bank and buy exchange traded funds (ETFs) which gives a big basket of stuff without the hefty fees of mutual funds. For your equities portion buy an index fund ETF that tracks the S&P 500 and an international fund and maybe even an emerging markets fund too. For your fixed income/safe stuff pick up some bond ETFs, maybe a preferred shares ETF.

There are plenty of good financial websites/blogs out there with lots of good advice.
Check out Canadian Couch Potato for the basics of ETF investing and some basic model portfolios. Also Mr. Money Mustache is an interesting American blogger who used ETFs to achieve his financial goals and retire before 40. The most popular personal finance blog in Canada is Greater Fool and it is entertaining reading, but if you are willing to sift through older posts you will find the balanced, diversified ETF portfolio thoroughly explained by a very savvy financial advisor and author.

You can always PM me and I could give you more info.

Warren Buffet is a pretty smart guy and recently stated that the cash left to his wife after his death should be invested 90% in a Vanguard low cost S&P 500 index ETF and 10% in short term government bonds (which could be held in ETFs as well).

The point being that even if you are paying some slick money manager you are unlikely to do much better than S&P 500 index over the long haul.

Most people will spend more time researching the purchase of a new TV than they will on how to manage finances, build wealth and retire well.

Thanks for the info canuckowner. I'm already there but concerned that the 20 year average will not be in the 7%+ range (after fees). I guess I was just looking for THE "majic bullet".

[F14man]

Look at the interest rate. You can always pay more than your monthly due amount and it goes towards the principal so your paying it off sooner.

[skijlw]

Originally Posted by troutslayer

Thanks for the info canuckowner. I'm already there but concerned that the 20 year average will not be in the 7%+ range (after fees). I guess I was just looking for THE "majic bullet".

What Canuckowner states on investment strategies is pretty sound. I followed an investment strategy on my own that was similar to what he describes and it worked well for me.
That said I still believe your investment strategies change with your age. I can't agree with his statement of not using a "slick" investment advisor. Some are extremely good. Since I retired I have gone with an investment manager. I know longer watch the stock market or care if it takes a big fall. I sleep well at night knowing my income is stable. My returns reflect what an age appropriate diversified portfolio returns. You need to take the risks with investments when you are young enough to take a serious market correction.
The key is still age verses risk on returns and if you choose to use an advisor find a really good fee only person that is young enough that he won't retire in the next few years.
Troutslayer I'll bet you didn't think your original question would become complicated.

[troutslayer]

Originally Posted by skijlw

Troutslayer I'll bet you didn't think your original question would become complicated.

True enough. Falls under the heading; "be careful what you ask for...you just might get it".

[canuckowner]

Originally Posted by skijlw

What Canuckowner states on investment strategies is pretty sound. I followed an investment strategy on my own that was similar to what he describes and it worked well for me.
That said I still believe your investment strategies change with your age. I can't agree with his statement of not using a "slick" investment advisor. Some are extremely good. Since I retired I have gone with an investment manager. I know longer watch the stock market or care if it takes a big fall. I sleep well at night knowing my income is stable. My returns reflect what an age appropriate diversified portfolio returns. You need to take the risks with investments when you are young enough to take a serious market correction.
The key is still age verses risk on returns and if you choose to use an advisor find a really good fee only person that is young enough that he won't retire in the next few years.
Troutslayer I'll bet you didn't think your original question would become complicated.

Very true and I agree with all that you have said above. Sorry what I should have said is that a slick "fund manager" is unlikely to do better than the S&P index over time (net of fees). So that you are better off with a very low fee exchange traded index fund than most (but not all) higher fee mutual funds.

A good fee based financial advisor (not a mutual fund salesman) can be an excellent way to go and the fees are tax deductible (in Canada anyway). For now I enjoy managing my own portfolio but may at some point consider an advisor... and could spend the extra leisure time enjoying my RV! And the 2016 product enhancements look amazing! Almost tempting to finance a new rig ;-)

(There, off the rabbit trail and back on topic )