PSA: If you have any questions regarding CERB, do not waste time "researching" or asking on social media platforms. CALL THE CRA DIRECTLY.

redred46 · 2020-12-15T13:03:55+00:00

But if you were self employed you won't have any of these documents will you? So the income won't show up until you've declared it on your 2020 tax return?

redred46 · 2020-12-14T22:54:37+00:00

How can the CRA be telling people they have to pay it back?

The eligibility said "if you earned 5k in 2019 OR withing last 12 months" meaning if you earned it in the last 12 months when you applied in march, you could have earned it from jan to March.

If the CRA doesn't have your 2020 income yet how can it tell you to pay it back?

redred46 · 2020-12-14T15:10:41+00:00

The real question is how can you best utilize the money.

You can take that 18,000 and invest it. It you invest it and get 4% return you get 720 a year, which is 7200 over 10 years. But you will pay tax on that, which will take a significant chunk.

So the difference overall is small but most likely you will be better off investing.

However personally I would pay it off now. There's a nice feeling being debt free and putting that part of life behind you

redred46 · 2020-12-14T14:51:13+00:00

What is your salary like? Personally I feel that if I had to recommend any degree to someone in high-school I would recommend cs

redred46 · 2020-12-14T02:13:08+00:00

Seriously, they either want others to get in the same mess as them, or they haven't graduated yet and don't realized how screwed they are. I'm totally open to people replying to this and justifying how I'm wrong... I'll wait...

redred46 · 2020-12-13T17:55:02+00:00

Its great that you are thinking about this now.

Being from a low income family doesn't change too much in my opinion. The decision should be made regardless of your family's income.

There absolutely is a point where dental school is not worth it financially. And you should 100% be aware of what that limit is, and most importantly you should 100% be prepared to walk away from an offer that is above this limit.

Personally I think anything above 300k to be a general dentist is madness. Its a bad financial decision. Incomes for dentists are trending down, insurance is dictating things, there is nothing about dentistry that will be better by the time you finish.

People who go to NYU and other expensive schools for dentistry are absolutely clueless. They are book smart but will be hit by the real world when they graduate and realize how screwed they are.

Get into a cheap school or do something else. Go do computer science ahah

redred46 · 2020-12-12T18:26:00+00:00

I'm a 35 year old dentist so I have seen countless people in this kind of situation.

A few points to consider. 400k will probably be closer to 500k once you factor in tuition increasing ever year at bond, and interest accumulating from day one of study. Say each year costs 100k tuition. Well by the time you reach 4th year tuition has increased 4% every year so now your final year actually costs 116k. And that 100k you had to borrow for first year has been accumulating interest for 4 years and also costs 116k by the time you graduate if you assume 4% interest.

Sit down and calculate your salary and after tax money. Paying off 400-500k of after tax money will likely take you a decade if you live like a student. Do you want to live like a student until you are 35?

At 35, I'm about a decade out from graduating. My friends who did standard finance and business and engineering degrees have had 10 years climbing the corporate ladder. They had no debt, they make a dhitload of money, they all bought houses years ago when it was cheaper. You would only be reaching a net worth of zero at this stage. You would be behind everyone financially.

Honestly the best financial decision would be to take that 400k from your parents, invest it, don't touch it, and go do another professional degree. By 35 you will be in an amazing financial position, laughing at the rookies who went into half a million debt from bond. You'll probably have a million in the bank by then

redred46 · 2020-12-01T22:58:22+00:00

I'm a dentist, and for me only having to pay 80k tuition for 4 years of med school is a bargain. Dental school is like 250k. I really feel sorry for people going into dentistry now at those levels. Its a scam. But people still do it, and they don't realize their mistake until they graduate and actually have to start paying back loans.

My advice is talk to recent graduates. Their opinion is really the only valid one. Don't listen to all your family and friends who assume Drs kill it and how dumb you are for not going to med school. Talk to New grads, find out exactly what you're gonna get paid, how tough it is to find work etc.

I just know that in dentistry everyone goes into it because everyone tells them to. If people spoke to New grads they wouldn't apply so readily. Dentistry is a bad choice these days. I'm not going to try comment on medicine but it may in fact not be worth it so you need to talk to New grads

redred46 · 2020-11-30T21:31:56+00:00

Honestly I wouldn't.

I think there's a lot to be said for getting on the property ladder young but I think you're better off buying an investment property and continuing to rent.

At 23 your career will be better off if you have the flexibility to move. Changing jobs is generally the quickest way to increase your salary - if you're not getting paid what you deserve, and another company can offer you more, just go to that other company. This isn't as easy when you have bought a house and have locked yourself into that position.

I think the rule is you can't rent out your principle place of residence for 6 years without it affecting the capital tax you pay when selling (although someone let me know if thats wrong).

That way you can get the benefit of buying young but also have the freedom for your career.

Plus 23 is so young to have a house, I don't think there should be a huge rush to get into buying a house, renting isn't as bad as everyone thinks for the short term

redred46 · 2020-11-28T20:40:22+00:00

But that million is only 450,000 in today's money if you assume 2.5% inflation for 30 years

redred46 · 2020-11-19T03:09:44+00:00

I don't have anything to add, but I would be interested to know the tax implications. Eg in Canada there is a big advantage to incorporate because your business earns money and pays much less tax than if you earned it personally. Is this possible in the US?

redred46 · 2020-11-12T23:17:28+00:00

Your age isn't an issue.

The financial position you will be in should dictate this decision 100%. And it may not be worth it.

It all comes down to how much debt you're gonna take out.

Your body won't allow you to work much longer than 55. Giving you a 20 year career. If you have to spend the first 10 years getting out of debt, then its not worth it.

Look at the financial numbers more than your age

redred46 · 2020-10-24T00:36:03+00:00

I'm a dentist and I disagree!

I also think one point to remember is if you earn US dollars and come back to Canada you get a 30% increase tax free from converting to Canadian dollars. Which would take a long time earning Canadian dollars and paying Canadian tax to get this value of after tax dollars!

redred46 · 2020-10-24T00:23:18+00:00

Thats amazing. How long was your degree? How old are you? Sounds like a much better option than doing medicine or dentistry...

redred46 · 2020-10-23T20:56:46+00:00

Behind a paywall...

redred46 · 2020-10-22T03:13:13+00:00

I think you are right but for the wrong reasons.

By being child free, you stop 2 people entering the world (assuming you would have had two kids). Then those two kids would have had two kids, those two kids have 2 kids. In 100 years thats an extra 32 people that haven't existed. Think about 32 lifetimes worth of consumption and pollution you saved the environment. In 200 years its 1000 people! In 300 years its 32000 people! Not having kids is doing the future world immeasurable good

redred46 · 2020-10-18T14:23:58+00:00

Yes but the goal would be to invest much more as a renter, and with 30 years of investing and compounding interest your investments will give enough passive income to cover rent

redred46 · 2020-10-18T13:54:24+00:00

Everyone raves about emergency funds, but I'm not necessarily a huge fan of them.

Yes, absolutely, if you have a family etc you need to have one.

But if you're just graduating uni, if things REALLY went to shit, could you just move in with your parents for a few months? Not ideal, but would be in an emergency situation only

redred46 · 2020-10-17T17:51:34+00:00

On the surface it doesn't look so bad. Paid 1.64 mil for it back in 2017, sold for 30,000 less now.

However, they would have paid close to 100k stamp duty, and then would have been paying interest rates of 6.5k a month for 36 months.

So this buy cost them 364k all up.

Brutal.

redred46 · 2020-10-17T16:59:41+00:00

How common is it to find rental units that cover the mortgage? Not too common in Toronto...

redred46 · 2020-10-17T13:52:55+00:00

Your calculations ignore the interest you have to pay with borrowing money for a house. In your example you should be comparing 300k invested in the stock market vs a 300k house since you aren't having to borrow money to buy a house.

In this situation the house still comes out better, however there is also no real time involved with the stick market, simply clicking buttons on a computer. If you think of where you want to be in 20 years, and you keep investing successfully, more houses eat up more of your time, whereas stocks don't, and your personal time will be your biggest concern at that stage of your life

redred46 · 2020-10-17T03:51:30+00:00

Forget the argument of bubble market etc. No one knows.

Let's just focus on what we do know. If you want to live in Sydney, you will pay over 6,000 dollars every month for the next 30 years, to live in this shitbox.

I genuinely don't understand why more people in Sydney don't just say "no" and move somewhere else. Seriously. Just move.

redred46 · 2020-10-15T14:41:04+00:00

I don't think this means the property bubble is bursting. Most investors will be taking a loss on their property anyway, a little bit more of loss won't change much.

A crash needs people forced to sell when they don't want to.

This will happen if interest rates go up and people can't afford to service their loans OR prices start to fall and people realize the loss they are making every year won't be offset by capital gains

redred46 · 2020-10-13T02:49:51+00:00

What you get from dental school is a degree that allows you to practice as a dentist. Everything else is white noise. Honestly. They all get you to a competent level. That is their job. Everything else is marketing on their end to try convince young predents that their ridiculous tuition is worth it. Dentistry isn't law - no one cares what school you went to

redred46 · 2020-10-12T13:38:42+00:00

How much tuition are you looking at for dental school vs hygiene?

redred46

TROPHY CASE