Hope you came out better than I did
I did better than you but still crap. My cost base is about $35 as I was buying on the way down and then selling and buying as it rode the rollercoaster to reduce my cost base. So I am down about 50%. I was considering LSPD or SHOP. SHOP would have been better.
I would hope most already took their money out at the top...
$36,000 interest on $150,000 in a year is 24%, about 10 X a GIC. She's out $124,000 at the moment and the facilitator is out the future share of the take so technically nothing. The end user was probably paying 30%, not a good sign."I feel like I'm back where I started". Nope. You are in a much deeper hole than you were when you started.
She learned about private lending through instagram, pulled the LOC and then sought out someone that could make it happen. How could that process go wrong?
Interest payments she was getting were $3000/mo. Assuming it wasn't a complete scam, that means the borrower was paying interest of 30% or more. My money is on complete scam.
‘I would like my money back’: Ontario woman worried $150K invested in private lending is gone
An Ontario woman wanted to make some extra money by doing private lending, so she took out a line of credit on her house. It was going well, and she was getting interest payments each month. However, they’ve now stopped, and she’s worried her $150,000 may be gone.www.cp24.com
EDIT:
Person she used to facilitate the loan is a real estate agent. Her name is attached to a lot of RE firms and at least one Mortgage Broker.
The company she used "Unifocus Investments" does not appear to exist. "Unifocus Capital" is a real company. Bad reporting or a scam company passing themselves off as a legit company to people that fail to conduct diligence before writing cheques?
Melting down your rrsp before cpp starts normally makes a lot of sense. Why was tfsa not in your list of winnners/losers? I assume it's maxed?Well, things have gotten worse (and better?) since this post.
My registered portfolio has done spectacularly well... and my non-reg has done spectacularly poorly.
Net worth is up, but almost all of it is now in RSPs. Happy, but also Not at the same time...
Depending on how my non-reg port does over the next few months, I may have to start transferring stuff over. Realistically, I was hoping not to have to do this till 65, but the more I think about it, this might actually work out, as incoming CPP will put me in a higher tax bracket. So maybe it's smarter to start transferring stuff over before then. I may also pause the transfers at 65 to try to qualify for some OAS as well.
The age 65 was an artificial target anyway, since I haven't had employment income since 2012...
Here's another similar story. Cultural trust seems to be a common thread in most of them. In this case, 320K heloc through a financial.planner who personally guaranteed the investment for someone to purchase a boat. If you are buying six figure boats using private lending, it's hard to think of a higher risk borrower.
toronto.citynews.ca
I've never loaned money to a friend. I've given money and usually got it back. The amount I have to give is very very small and future gifts to others is based on people giving money back to me and my benefactor fund.
www.motorcycles.news
A couple of decades ago we were sitting on a $300K boat in the showroom. The sales rep was honest. If the people that bought in that class wanted mink cup holders they got them. If the next owner, ten year later, had major problems the manufacturer didn't care. They sold to the first buyer.100%
I've never loaned anyone money, but I've picked up many tabs for dinner and other shared expenses.
Not sure what others are seeing, but there's a lot of pain out there right now, economically. A few of my friends have been laid off and others are struggling with the rising cost of living and mounting bills.
What's really distressing is the shrinking middle-class and accelerating inequality gap between rich and poor. They're calling this the "K-shaped economy" - the two arms of the diverging K being the fall of the working class vs the rise of the owning class.
A lot of economic policies are now rigged in the favour of asset owners: real estate and stocks. Meanwhile stagnant wages and inflation are hitting hard for those who trade time for money.
What's worse is that all economic indicators focus on the average income/net worth vs the median, so it makes it seem like the aggregate is doing well, when it's really the top 10-15 percentile that is dragging the average up.
Corporations aren't blind to this and more brands are re-aligning their product offerings to cater to the upper-arm of the K-economy.
Using the motorcycle industry as a proxy, you get companies like Harley and now Indian, who are divesting themselves of the entry-level, sub $10K market and doubling down on marketing and selling $20-$30K+ luxury/aspirational offerings.
This just in from a few days ago:
Indian Motorcycle has no plans for an entry-level motorcycle and is focusing on cruisers and touring bikes.
Indian Motorcycle CEO Mike Kennedy explains why there will be no low-cost entry-level motorcycle and how the brand intends to grow instead.
