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Globe and Mail Financial Facelift Article wow...not a typical Gen Y'er.

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  • Nov 23rd, 2013 9:15 pm
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Globe and Mail Financial Facelift Article wow...not a typical Gen Y'er.

Just thought i'd share this article as I always love reading the financial facelift articles from the globe and mail.

http://www.theglobeandmail.com/globe-in ... e15465253/

Kudos and hats off to probably a fellow RFD'er on here. I think the only advice I would have for him is to diversify before getting into another real estate rental property as I see him as being too invested into real estate.
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Aug 29, 2004
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The only part of this that is impressive is that he had $170k when he graduated (and I'm sure some of that came from family). His networth at 28 isn't anything to get excited about, and frankly he seems like he doesn't exactly have a lot of fun in life

To each their own I guess
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Jun 10, 2010
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Yeah when you're doing just fine financially otherwise but still selling shoes on the weekend to pay off your mortgage faster, you need to reevaluate your priorities.
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May 28, 2012
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The article says he worked three jobs through school and graduated with no debt, so probably didn't rely on family money to get where he's at. He is obviously very driven, but at what cost? There has to be some balance between making money, getting out of debt and enjoying life.
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scarface wrote:
Nov 17th, 2013 11:50 am
The only part of this that is impressive is that he had $170k when he graduated (and I'm sure some of that came from family). His networth at 28 isn't anything to get excited about
Talk about a 1% comment there...I'm sure if you ask any other late 20s to early 30s person when they'll have their mortgage paid off it ain't 33 provided they didn't get any help from mom + dad (which doesn't sound like the case given 3x jobs while doing University, that in itself is no easy feat)
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[QUOTE]Monthly disbursements

Mortgage $3,300; property tax $270; insurance $75; utilities $350; maintenance, garden $145; groceries $250; clothing $100; gifts, charitable $50; vacation, travel $50, personal discretionary (dining out, entertainment, sports, grooming) $125; dentist, drugstore $50; telecom, Internet, TV $50. Total: $4,815[/QUOTE]

This guy averages $175 a month or $2100 annually for all of that? I mean to each their own, and I'm not suggesting to go outside your means, but that doesn't really sound like much of a "life" to me.
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-=phelan=- wrote:
Nov 17th, 2013 12:23 pm
Talk about a 1% comment there...I'm sure if you ask any other late 20s to early 30s person when they'll have their mortgage paid off it ain't 33 provided they didn't get any help from mom + dad (which doesn't sound like the case given 3x jobs while doing University, that in itself is no easy feat)
Again, I don't think the average financially responsible person in that age group would be willing to sacrifice those years for that goal. I'm not saying its wrong, but I don't think it's news worthy...
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-=phelan=- wrote:
Nov 17th, 2013 12:23 pm
Talk about a 1% comment there...I'm sure if you ask any other late 20s to early 30s person when they'll have their mortgage paid off it ain't 33 provided they didn't get any help from mom + dad (which doesn't sound like the case given 3x jobs while doing University, that in itself is no easy feat)
I'm younger than this guy and by income I am in the 1%, at least this year, but I'm sure that will change.

But as other posters have said, it's what is sacrificed. I could pay the mortgage on my primary residence off tommorow if I wanted to, but I would rather keep the money invested, and available for future business use, especially considering my mortgage is fixed at a ridiculously low rate.

I'll say again, to each their own. If this guy is happy in his life more power to him, but I don't think the lifestyle he leads is what the majority of people his age would consider fun.
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scarface wrote:
Nov 17th, 2013 11:50 am
The only part of this that is impressive is that he had $170k when he graduated (and I'm sure some of that came from family).
"When he bought his home in August, 2012, for $425,000, he plunked down $170,000 in cash as a down payment, money he had been saving since university."

It says that he saved $170k since (after) university. Where did you get that he graduated with 170k in savings?
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ksgill wrote:
Nov 17th, 2013 12:41 pm
"When he bought his home in August, 2012, for $425,000, he plunked down $170,000 in cash as a down payment, money he had been saving since university."

It says that he saved $170k since (after) university. Where did you get that he graduated with 170k in savings?
You are correct, I misread.

However, this guy had $170k by either age 26 or 27. Even if you assume he had the same salary he does now and graduated at 22, saving $170k in 4/5 years is still pretty impressive.
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Mars2012 wrote:
Nov 17th, 2013 12:03 pm
The article says he worked three jobs through school and graduated with no debt, so probably didn't rely on family money to get where he's at. He is obviously very driven, but at what cost? There has to be some balance between making money, getting out of debt and enjoying life.
The math doesn't add up - so I'd agree with someone that said endowment is part of his net worth. Not to belittle his effort (which, unfortunately, at low wages is poorly rewarded), but he would have received an endowment to have attained this net worth. There should be a disclosure to this effect so that the typical person does not benchmark against his windfall-founded networth.
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scarface wrote:
Nov 17th, 2013 12:48 pm
You are correct, I misread.

However, this guy had $170k by either age 26 or 27. Even if you assume he had the same salary he does now and graduated at 22, saving $170k in 4/5 years is still pretty impressive.
He probably saved every penny that he earned. Have you watched Extreme Cheapskates on Netflix? I remember one CPA in New York goes dumpster diving for food and owns her Manhattan condo free and clear. After watching that, nothing surprises me. Lulz.

http://www.tlc.com/tv-shows/extreme-che ... diving.htm

http://www.accountingweb.com/article/ex ... eap/220073
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-=phelan=- wrote:
Nov 17th, 2013 11:22 am
Just thought i'd share this article as I always love reading the financial facelift articles from the globe and mail.

http://www.theglobeandmail.com/globe-in ... e15465253/

Kudos and hats off to probably a fellow RFD'er on here. I think the only advice I would have for him is to diversify before getting into another real estate rental property as I see him as being too invested into real estate.
Kudos to this guy. That's awesome! Haters gonna hate. He's doing fantastic.
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Guy has a 3% mortgage and he's focused on paying that down? And he works at a bank?

You'd think if he knew anything about finance he'd leverage up at 3% and invest in something pretty safe at 3-5% return and be net positive. Hell he could buy the house next to his and just rent that out.
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corrupt123 wrote:
Nov 17th, 2013 3:10 pm
Guy has a 3% mortgage and he's focused on paying that down? And he works at a bank?

You'd think if he knew anything about finance he'd leverage up at 3% and invest in something pretty safe at 3-5% return and be net positive. Hell he could buy the house next to his and just rent that out.
Maybe he's looked at Canadian investment returns over the past 35 years and realized that there is no better investment, on an after-tax basis, looking backwards, than paying down a mortgage.

Of course, I personally don't think that will be the case in the future (and I've bet a lot of money on such), but if you look backwards, paying down a mortgage has generally provided a return better than investing in Canadian stocks.
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