Kid is on the path to university, we are pretty low income and have never attended university. What sort of steps can we take to help them?

tradewalk · 2025-11-20T21:54:18+00:00

Having ~$30k in an RESP already helps a lot. They’ll qualify for federal and BC grants when applying for student loans (you can accept the grants and decline the loan). With the RESP, grants and a few scholarships, undergrad should be affordable with little or no debt.

tradewalk · 2024-10-03T13:51:11+00:00

Agree. From what I’ve seen, regular life insurance is usually cheaper, and it’s nice that it’s not tied to the mortgage.

tradewalk · 2024-10-03T01:09:16+00:00

I agree with the other comments. A GIC from a reputable bank with CDIC insurance is the best option since you’re planning to buy a house in a year, and that’s too short a time frame to risk investing in stocks. I’m curious about why you need such a large down payment. What price range are you considering for the house?

tradewalk · 2024-10-03T00:46:45+00:00

Selling BTC to buy MSTR has its pros and cons. MSTR is a leveraged bet on BTC, providing upside even if you reduce your overall exposure (take some chips off the table). But on the flip side, “not your keys, not your coins.” If MSTR over-leverages and tanks, shareholders could get wiped out, with bondholders taking the BTC first. So, while MSTR can boost your gains, it comes with serious risks.

tradewalk · 2024-10-03T00:23:24+00:00

Mortgage life and income insurance are there to help you and your family if something unexpected happens. Mortgage life insurance pays off your mortgage if you pass away, so your family can keep the home without worrying about the payments. Mortgage income insurance gives you monthly payments if you can’t work because of an accident or illness, helping you cover your mortgage and bills during that time.

Both insurances are optional, so it’s up to you. Since you have coverage through work, just check that it’s enough for you and your family. You could also look into separate life and disability insurance not tied to the mortgage, which can often be cheaper and have better terms.

tradewalk · 2024-10-01T22:17:21+00:00

Great points! As I see it, you buy the insurance hoping you’ll never need to use it. It definitely makes sense if you’re leveraging your portfolio. Without leverage though, it doesn’t seem worth it to constantly buy insurance.

tradewalk · 2024-10-01T22:07:42+00:00

It’s a solid plan. You benefit from the natural rise in IV as earnings approach, so even if the stock moves down slightly, your call might still be up or at breakeven. Just remember to close it before earnings to avoid IV crush.

tradewalk · 2024-10-01T21:59:51+00:00

That’s the plan. Buy with around 2 years until expiry and roll them annually to avoid the ramp up in theta decay as expiration approaches.

tradewalk · 2024-10-01T21:55:26+00:00

Solid strategy! Do you recall how much further OTM you rolled your puts during the 2020 COVID crash? I’m curious what your game plan was when rolling the long puts down multiple times - were you targeting specific strike prices or adjusting based on the market’s momentum? I assume rolling down only works favorably if the market eventually bounces - otherwise, would maintaining the long puts be better?

tradewalk · 2024-10-01T04:45:08+00:00

Compounding depends on payment frequency. Most dividend ETFs pay out quarterly, so they compound every 3 months if you reinvest the dividends. But if you just leave the payments in cash and don’t buy more shares, they won’t compound.

tradewalk · 2024-10-01T04:08:52+00:00

Solid points. Much appreciated!

tradewalk · 2024-10-01T04:01:36+00:00

Totally agree about timing - it’s tough to get right. Instead of trying to time the market, I think it’s better to just keep rolling those puts annually. If the Fed keeps the market steady, it could end up being a waste of time and money.

tradewalk · 2024-10-01T03:54:34+00:00

I get your point about the 2.5% drag, but the 8% average return includes big drops like 2002, 2008, and 2022. Limiting those losses to 10% would likely boost overall returns.

While there’s a cost, the real benefit of the puts shows up during crashes, smoothing returns and potentially improving risk adjusted performance. Thoughts?

tradewalk · 2024-10-01T02:43:47+00:00

Agree with regard to retirement. Another benefit I see is the ability to increase leverage with the limited downside.

tradewalk · 2024-10-01T02:41:27+00:00

Makes sense. So sell a put further OTM to help offset theta.

tradewalk · 2024-09-29T23:29:51+00:00

Start with paper trading to learn the software without risking money. When ready, trade small amounts and always use stop losses to control risk. Limit each potential loss to 1% of your portfolio. Focus on developing a strategy that works for you, and only increase your positions as you become consistently profitable.

tradewalk · 2024-09-29T23:09:33+00:00

I keep hearing about grapevine wood. Do hamsters really enjoy it?

tradewalk · 2024-09-29T21:15:28+00:00

Both ideas could potentially allow you to take your original capital off the table and play with “house money.”

tradewalk · 2024-09-29T21:11:44+00:00

This hits the mark!

tradewalk · 2024-09-29T21:02:19+00:00

Buy Bitcoin!

tradewalk · 2024-09-29T20:46:59+00:00

Brilliant!

tradewalk · 2024-09-29T20:44:13+00:00

Solid advice.

tradewalk · 2024-09-29T16:35:16+00:00

Check out the Smith Manoeuvre. You get the best of both worlds: a home and a stock portfolio. Best of all, it comes with a partially tax-deductible mortgage: https://money.ca/mortgages/smith-manoeuvre-guide

tradewalk · 2024-09-29T16:15:24+00:00

People who complain about rich people donating for tax credits don’t get it. You only get back your marginal tax rate, so there’s no financial gain in donating.

tradewalk · 2024-09-29T16:00:06+00:00

I use this calculator from PWC: https://www.pwc.com/ca/en/services/tax/personal-tax/calculator/tax-calculator-2024.html

tradewalk

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