Personal Finance

If you have $10M+ CAD networth in your 20s, what would you do?

  • Last Updated:
  • Dec 10th, 2018 12:01 pm
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Deal Fanatic
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Feb 28, 2006
6880 posts
469 upvotes
Richmond Hill
If I had 10 million CAD. I would quit my job. Invest, buy a place, pay off my car. Travel the world after. Finally, stream or make youtube videos for the rest of my life while living frugally.
Jr. Member
Jan 14, 2013
100 posts
92 upvotes
Kitchener
rfdrfd wrote: Definitely invest that and spend only the dividends that cames out of it.

Here's a serious example, CIB512 mutual fund. It pays $0.06/unit/month cash dividend. Price has been moving around $10-12 for >10yrs (my Uncle has this fund and he tracks it).

$10 million / $11.49 (current price) = 870,322 units
870,322 units x $0.06/unit = $52,219.323 per month

So you will get $52,219 PER MONTH
times 12 = $ 626,632 PER YEAR !!

Okay, maybe just buy half of that, still enough to live off without touching your principal.
Close. I liked your idea, but I'd probably work out some couch potato portfolio that is more efficient with 90%. Save 10% for a business project, speculative or angel investing.
I'd live on 3 or 4% of the total and let the principal grow faster than inflation. I'd look for people that are trying hard to help up. Definitely hand out more fishing rods and fishing lessons than fish.
Jr. Member
Jan 14, 2013
100 posts
92 upvotes
Kitchener
newRFDmembers wrote: I have a friend who confided that he recently cashed out cryptos around $10M + CAD after tax. He said he used to have much more than that but he sold to protect his remaining capital.
I'm very jealous of him but also happy. He seems sad though. He doesn't know what he'll do in life. I dont know what kind of advice i can give him other than telling him, it's a lot of money.

What do you think? Would you retire? Would you keep working? He still works at his 9-5 job. I don't know why he's still working; I'd start a business!
If he's sad it may be that he had a purpose that no longer exists. Maybe he could find a new challenge, a mentor in an area of passion for him, or find a way to help someone.
Deal Addict
Jul 27, 2017
2096 posts
862 upvotes
GTA
rfdrfd wrote: Definitely invest that and spend only the dividends that cames out of it.

Here's a serious example, CIB512 mutual fund. It pays $0.06/unit/month cash dividend. Price has been moving around $10-12 for >10yrs (my Uncle has this fund and he tracks it).

$10 million / $11.49 (current price) = 870,322 units
870,322 units x $0.06/unit = $52,219.323 per month

So you will get $52,219 PER MONTH
times 12 = $ 626,632 PER YEAR !!

Okay, maybe just buy half of that, still enough to live off without touching your principal.
what is the risk with CIB512 or any mutual fund?

past performance is not an indicator of future results

https://www.cibc.com/en/personal-bankin ... -fund.html

or, how about 'keep it simple' with a nice laddered 5 yr GIC 3.5%+?, keep it rolling, deal with the tax

why have risk when someone already has $10 million
Last edited by porticoman on Nov 30th, 2018 3:32 pm, edited 1 time in total.
Jr. Member
Jan 14, 2013
100 posts
92 upvotes
Kitchener
porticoman wrote: what is the risk with CIB512 or any mutual fund?

past performance is not an indicator of future results

http://quote.morningstar.ca/QuickTakes/ ... ture=en-CA

or, what about kep it simple with a nice laddered 5 yr GIC 3.5%+?, keep it rolling, deal with the tax

why have risk when someone already has $10 million
That's one way of doing it. I'd take my chances with a diverse portfolio of dividend producers. If they all go to hell, inflation will be wiping out your GIC gains too I think.
Deal Addict
Jul 27, 2017
2096 posts
862 upvotes
GTA
FiftyYardFistFight wrote: That's one way of doing it. I'd take my chances with a diverse portfolio of dividend producers. If they all go to hell, inflation will be wiping out your GIC gains too I think.
are you sure, especially with $10 million, no longer building wealth for retirement, because that's a retirement fund already made.

https://www.cibc.com/en/personal-bankin ... -fund.html

mutual funds, segregated funds, guaranteed investment funds, GIC's

inflation pops so does the GIC interest rates

in funds, any funds, it's buyer beware

since the OP is already money rich-level (retired mode) with $10 milllion, to do whatever - safe is better

plonk it in a HISA, GIC, even a chequing account, as I posted up thread, spend $2.5 million, $7.5 million in a chequing account or a GIC .... no risk
Jr. Member
Jan 14, 2013
100 posts
92 upvotes
Kitchener
I'm sure. There's no right way, but I'm a pretty confident investor. I'd be looking at legacy. You're not wrong.
Deal Addict
User avatar
Dec 13, 2016
3122 posts
2510 upvotes
newRFDmembers wrote:
I'm very jealous of him but also happy. He seems sad though. He doesn't know what he'll do in life.
Awww.....poor baby.

Thankfully he has you posting his worries on rfd
Deal Fanatic
Feb 9, 2009
7952 posts
4954 upvotes
newRFDmembers wrote: I have a friend who confided that he recently cashed out cryptos around $10M + CAD after tax. He said he used to have much more than that but he sold to protect his remaining capital.
I'm very jealous of him but also happy. He seems sad though. He doesn't know what he'll do in life. I dont know what kind of advice i can give him other than telling him, it's a lot of money.

What do you think? Would you retire? Would you keep working? He still works at his 9-5 job. I don't know why he's still working; I'd start a business!
He seems sad?

Donate to the Sanyo fund... may bring some happiness to him :)
Deal Addict
Jul 7, 2013
1178 posts
695 upvotes
North York
FrancisBacon wrote: Oh no, I'm in absolute agreement. Having too much money can be a terrible affliction.

Luckily I have found a way to relieve anyone so afflicted and I'll be happy to help you or anyone else. Just PM me for details.
Thanks for taking one for the team. Hope it doesn't burden you too much
Sr. Member
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Dec 21, 2007
678 posts
180 upvotes
Scarborough
If he made 10M from crypto, know that he likely has a target painted on him by the CRA...so first and foremost any money/portion of it for taxes/capital gains should be available to keep things on the up and up.

After that, low risk investments or some other method to keep the principal safe while living off the interest imo. That's my plan if I ever made it big (come on $10 BTC before it hits $100K lol) or won the lotto.
I am the Stig's brother's cousin's friend's former roommate.
Deal Addict
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May 11, 2014
3606 posts
3405 upvotes
Iqaluit, NU
I would advise your friend to seek professional help in the form of an accountant (there are likely huge capital gains taxes we are talking here), financial planner and if needed, a counseler. Having all this sudden wealth is likely overwhelming especially considering the up and downs he probably endured. While alot of people laugh at the prospect, it has been well documented that people thrown into sudden wealth often are overwhelmed and can become depressed. As a friend it would also be important to reassure/support him.
Support your local Credit Union!

Sask Pension Plan Upto $6300/yr in Credit Card spending on RRSP contributions
http://forums.redflagdeals.com/sask-pen ... ns-2167222
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May 7, 2007
8950 posts
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OttawaGardener wrote: Why not use some of the $$ to help a low income student to afford university, sponsor a refugee family, or contribute to an environmental cause? I'm a minority on this forum in thinking that you can have too much money Smiling Face With Sunglasses and at my stage in life (retired) have a different perspective about these matters than someone in their 20s.

If he has a hobby he really enjoys, he could turn it into a business. Edit: actually, no need to make it a business. Get creative and just enjoy the process, whether art, woodworking, restoring vintage cars, whatever!
Yep .... Let's bring some more of 'em refugees over, while singing "Kumbaya, Save the Dolphins" ... :D

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