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Don't feel bad about renting. In german real estate is called "Immobilien". And it is, I saw an investor somewhere put down some actual math and buying a hous

Don't feel bad about renting. In german real estate is called "Immobilien". And it is, I saw an investor somewhere put down some actual math and buying a house tends to be a bad investment compared to what could have been done, largely because of illiquidity of it. >seeing 45% of my before tax income going into savings feels amazingly liberating. By "savings" I hope you mean an ETF or mutual fund. If you do that you should stop calling it "3 years of unemployment" and start calling it "early retirement".

Waterluvian 9y ago
Under my mattress! Kidding. A combination of TFSA max out, RRSP max out, rolling GIC, RESP. I doubt I'm min-maxing my savings ideally, but I'm generally interested in infinitesimal risk solutions I don't have to think about more than once a quarter or so. I've only been in the workforce for 4 years. Married for 1. Was planning on a house so I valued liquidity. But you're right, I need to do the mature, responsible thing and actually do some financial planning. I just really hate money and want to not think about it.
- alien_at_work 9y ago
  That's exactly what index funds are for: just dump what you can spare into it every pay period and don't even look at the statement. When you get to, say, mid 50's, have a look to see if you can retire. My advise, when you're ready to give a little thought to this is to check out this site: [1]. EDIT: After you pick out some indexes (at you're age I'd probably just do SP500 exclusively), you can use this [2] to see what that could look like over a given time frame. Normal disclaimers apply: past performance does not gaurentee future success, etc. but it can give you a good idea of what will probably happen. I'd advise picking a date before the financial crisis so you can see how little these "end of the world" events actually matter over 30+ year horizons. [1] https://www.bogleheads.org/wiki/Lazy_portfolios https://www.bogleheads.org/wiki/Lazy_portfolios [2] https://www.portfoliovisualizer.com/backtest-portfolio https://www.portfoliovisualizer.com/backtest-portfolio
  - hectorlorenzo 9y ago
    Just out of curiosity, which platform do you use to make these investments? Do you use your regular bank?
    - alien_at_work 9y ago
      I don't live in the USA so I use Interactive brokers and buy ETFs. If I was in the US, I'd probably go to Vanguard and setup a monthly payment into the fund.
      - hectorlorenzo 9y ago
        I'm in the UK, so your advice is spot on. Thanks!

Waterluvian 9y ago

Under my mattress! Kidding. A combination of TFSA max out, RRSP max out, rolling GIC, RESP. I doubt I'm min-maxing my savings ideally, but I'm generally interested in infinitesimal risk solutions I don't have to think about more than once a quarter or so. I've only been in the workforce for 4 years. Married for 1. Was planning on a house so I valued liquidity. But you're right, I need to do the mature, responsible thing and actually do some financial planning. I just really hate money and want to not think about it.

alien_at_work 9y ago
That's exactly what index funds are for: just dump what you can spare into it every pay period and don't even look at the statement. When you get to, say, mid 50's, have a look to see if you can retire. My advise, when you're ready to give a little thought to this is to check out this site: [1]. EDIT: After you pick out some indexes (at you're age I'd probably just do SP500 exclusively), you can use this [2] to see what that could look like over a given time frame. Normal disclaimers apply: past performance does not gaurentee future success, etc. but it can give you a good idea of what will probably happen. I'd advise picking a date before the financial crisis so you can see how little these "end of the world" events actually matter over 30+ year horizons. [1] https://www.bogleheads.org/wiki/Lazy_portfolios https://www.bogleheads.org/wiki/Lazy_portfolios [2] https://www.portfoliovisualizer.com/backtest-portfolio https://www.portfoliovisualizer.com/backtest-portfolio
- hectorlorenzo 9y ago
  Just out of curiosity, which platform do you use to make these investments? Do you use your regular bank?
  - alien_at_work 9y ago
    I don't live in the USA so I use Interactive brokers and buy ETFs. If I was in the US, I'd probably go to Vanguard and setup a monthly payment into the fund.
    - hectorlorenzo 9y ago
      I'm in the UK, so your advice is spot on. Thanks!