What to do with Extra Cash?

[jjz]

Hey All,

I would like to see what your opinions are on having extra cash.
I paid off my mortgage, just have a bit of line of credit left.
What should I do with the extra cash that I have, about 1600 a month.

Invest it? I am thinking I should open an investment account with my Financial advisor and let him do his thing.

Have fun with the money? More vacations, see more ladies buy toys (Watches, Motorcycle, or other fun Shit)?

Save for a down payment for a house?

What did you do when you had the extra cash?

 

[K Douglas]

To celebrate the paying off of a property I'd first recommend seeing a lady on your TDL.
With the newfound monthly cash I'd let it work for you. The markets are headed for a meltdown, we are seeing the inflation concerns creeping back in with the Fed there's no better place to be than precious metals as far as I'm concerned. Gold and silver whether it be physical, stocks or ETF's that is your best play. How much credit do you have available on the credit line?

 

[jjz]

To celebrate the paying off of a property I'd first recommend seeing a lady on your TDL.
With the newfound monthly cash I'd let it work for you. The markets are headed for a meltdown, we are seeing the inflation concerns creeping back in with the Fed there's no better place to be than precious metals as far as I'm concerned. Gold and silver whether it be physical, stocks or ETF's that is your best play. How much credit do you have available on the credit line?

I was thinking of Gold and Silver, I have stacked some silver but not so much gold.

I have a pretty significant credit line.

Ya I think I will definitely celebrate with a lady either from my TDL or a regular.

 

[HungSowel]

Pay off your credit line, get totally debt free. Max out your RRSP and TFSA. After that then you move onto investing into a non-registered account.

For someone new to investments I suggest a very broad market ETF like XEQT. Gold and Silver are decent options but probably more volatile than XEQT. Do not use your line of credit to invest unless you are a savvy investor.

 

[Ponderling]

Pay off your credit line, get totally debt free. Max out your RRSP and TFSA. After that then you move onto investing into a non-registered account.

For someone new to investments I suggest a very broad market ETF like XEQT. Gold and Silver are decent options but probably more volatile than XEQT. Do not use your line of credit to invest unless you are a savvy investor.

I second going the index route. Depending on the age of the OP a bond fund for some part of the new money might be prudent.

We paid off our mortgage in 2009. Kept investing the 'mortgage money' in a non reg account, as were already fully funding RRSP and TFSA accounts
Doing this, by 2018 my wife retired from a stressful job at age 54.
Then we cut funding the non reg acct.

And by 2021 I was able to cut back to working 3 days a week

We have gone on three overseas 2-3 week vacations about every other year.
So investing early certainly can pay off in the modest longer term.

I plan to retire from work full time in a year or two when I turn 61.
Then work to drain RRSP so I do not see all OAS clawed back after I turn 71.

 

[richaceg]

Put 600 on the ladies....life is too short.

 

[richaceg]

I was thinking of Gold and Silver, I have stacked some silver but not so much gold.

I have a pretty significant credit line.

Ya I think I will definitely celebrate with a lady either from my TDL or a regular.

Get a hobby that would get you busy on down time. You already paid off your mortgage... time to spend your hard work money. See the world. Be spontaneous. Put aside some emergency funds....never getting hitch.

 

[jjz]

Pay off your credit line, get totally debt free. Max out your RRSP and TFSA. After that then you move onto investing into a non-registered account.

For someone new to investments I suggest a very broad market ETF like XEQT. Gold and Silver are decent options but probably more volatile than XEQT. Do not use your line of credit to invest unless you are a savvy investor.

Thanks!
Ya only have about 8G to pay off on the credit line so I expect to pay that off by May.

I have a DCPP so that ate up most of my RRSP Room, but I definitely need to catch up on my TSFA, I still have a lot of room left.

Ya I need to set up an non-registered account.
I have done self directed register accounts before, managing it my self, I found I don't have time to pay attention to it. So have I have someone managing it now.

I am not going to use the line of credit to invest.

 

[jjz]

Get a hobby that would get you busy on down time. You already paid off your mortgage... time to spend your hard work money. See the world. Be spontaneous. Put aside some emergency funds....never getting hitch.

I may save up for a House as I am in a Condo. I want the back yard space.
Not married, and at my age, it's getting difficult.

 

[Indiana]

 

[HungSowel]

If it all works out then eventually your investments generate more income than working and you will realize that hoarding money and assets is the best way to make money. Working is for poor people.

 

[jjz]

If it all works out then eventually your investments generate more income than working and you will realize that hoarding money and assets is the best way to make money. Working is for poor people.

Most definitely!
I am hoping to retire in like 10 years.

 

[richaceg]

I may save up for a House as I am in a Condo. I want the back yard space.
Not married, and at my age, it's getting difficult.

I'd buy a bungalow by the water...I myself is looking for a smaller place for myself and leave the property I have to my kids.

 

[K Douglas]

I was thinking of Gold and Silver, I have stacked some silver but not so much gold.

I have a pretty significant credit line.

Ya I think I will definitely celebrate with a lady either from my TDL or a regular.

If you invest using the credit line you can write off the interest as an investment expense. I would only use it in case there was an imminent buying opportunity and you didn't have enough cash. I think that buying opportunity will come in later 2026 early 2027.

 

[jjz]

If you invest using the credit line you can write off the interest as an investment expense. I would only use it in case there was an imminent buying opportunity and you didn't have enough cash. I think that buying opportunity will come in later 2026 early 2027.

Awesome Thank you for the advice! I will check with my advisor on how to do that.