Hey so throwaway because I don't want to be recognized. Basically I've been making YouTube videos for the past decade, but in the last 2-3 years it's started doing very well for me. Last year I made 400k before taxes, this year I'll probably make 250k. I would expect this business to continue at minimum for the next 2 years, assuming nothing drastic changes with youtube. It's all quite volatile though (which can be good or bad).
I've been investing my money into index funds - 25% each in of the following: Canadian Index, US Index, International Index, Canadian Gov Bonds Index. In total I've got about $600,000 sitting in the bank, but only $100,000 of that is currently invested as listed above. Basically just been following the whole 'dollar cost averaging' idea from The Wealthy barber.
I understand that index funds are quote volatile, but I'm looking to invest this money for the long term. Current expenses are less than 30k, as I live quite frugally given my current income. I've also incorporated so I save a lot in taxes that way. Paying myself around 30k a year as dividends, which I then don't personally pay any taxes on.
ANYWAYS. My question is this. What's the best way to grow my money for the long term? Is my current strategy a good one? Should I continue just doing the 4 investments I mentioned? Should I cut any of them out? Perhaps thinking of cutting out bonds and just doing the index funds.
The other question I have is actually regarding where I should be investing this money. Would it be better to pay myself more, say like 60-80k a year and then invest that extra 30-50k? I'm currently paying myself just enough to live and max out my RRSP/TFSA. OR would it be better to make the investments inside of my business account/Corportation, and just continue to pay myself ~30K a year?
tl;dr frugal 21 year old making +250,000 a year, and looking for a second opinion on what to do with the cash to make it grow
Submitted April 06, 2017 at 02:18PM by justsomedude51 http://ift.tt/2p6jX9u
