I LOVE STOCKS!
Because I get to choose which stocks to buy and how many shares I would like to buy. In addition, I know how much online brokerages charge me for commission. Lastly, I could buy and sell my shares anytime via online brokerage.
Having said that, I am not a fan of day trading because I just do not have the time to sit in front of computer everyday to wait for the perfect moment to enter the stock market.
Instead, I love to buy and hold the stocks for a while. You have to pay commission any every time I buy and sell stocks anyway, so why don’t I let my investments grow for a while and sell when my investments are trading at much higher prices.
Furthermore, dividends stocks are one of my favourites not only because I get dividends, but also my money would grow and I can profit when the stocks are trading at very high prices.
One very good example is I bought TD Bank (TSE:TD) back on March at $69.90. Today, the stock’s current price is $71.67.
THAT IS A 1.36% GROWTH! Better than having your money in a savings account right? Plus I have been receiving dividends from TD Bank so that’s even better!!!!!!!!!!!!!!!!!
I ALSO LOVE REAL ESTATE!
Although it could be pricey to buy a property, but history tells us real estate values appreciate over time. That was why I bought a condo to allow myself to borrow more money to purchase other investments in the future.
By the way, my condo will be done next year and..
ITS VALUE HAS ALREADY RAISED MORE THAN 25% BEFORE IT IS EVEN FINISHED
I basically look at listings near my condo’s area and compare their prices with my condo’s.
Using the borrowed money from my condo, I plan to buy income properties that would generate passive income. My goal is to generate about $1,200 of income from my properties by the time I am 65.
Pursuing this further, I plan to grow my RRSP (Registered Retirement Savings Plan) money after I repay all the funds withdrawn under Home Buyers’ Plan via Arm’s Length Mortgage. Basically, the Canadian government allows you to invest your RRSP money into someone else’s real estate (someone else meaning that person cannot be related to you). It can be in the form of a first, second or third mortgage; on residential, commercial, industrial properties, vacant land or recreational property. My plan is to have about $500,000 in my RRSP by the time I am 71 and transfer my money to a RRIF (Registered Retirement Income Fund).
In conclusion, I love stocks and real estate because I UNDERSTAND THEM. I know the risks associated with these investments and I know how to eliminate any potential losses.
There is also ONE MORE INVESTMENT THAT I LOVE, and I will talk about it in the next post.
So what are your views on stocks and real estate? Please feel free to leave any comments below! Catch you on the flip side!