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Originally Posted by Dylan86
My dream is to get my personal port folio up first, second property in a couple of years, then get back into this great car (or similar car), in a few years. That was my initial plan when I came here for advice. That would put me close to my ideal property/ net equity level and would open up the doors for an easy vehicle purchase at that point. I just feel that most of my liquid cash "could" be doing more for me, financially, than sitting in a car.
The MJ (Marijuana/Cannabis) industry, is what I've been invested in, but on the Pharma side of things, not so much Growers/Producers/Dealers, but the medical sector of the industry, the one that's NOT currently on everyone's radar. It doesn't move with news releases like the MJ world, it's a much safer (imo) investment for a long hold. MJ companies will do great, but subject to the most manipulation and correction (as mentioned) as well as the legislative side of things that are still "unknown". Pharma is basically retail level margins, with less operating overhead (no growing facilities). This is basically the only side of this industry I'm messing with, today. I did well on some, but got out of Aphria and Aurora end of Jan and glad I did. Summer will be a great time to get informed on this, if you have any interest. It's all coming down to Canada's Federal Legalization, at this point.
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I don't know how old you are, but here's my take.
1) If you're in your low to mid 30s and don't have at least $250,000 in appreciating assets (own a home in a good neighborhood, solid investments) then you have no business owning a car like an M235 or spending lot of money on mods and other toys.
2) I don't believe you should sock away everything you make and live super frugally, but the YOLO mantra so many people live by is disturbing. It's all "Big hat and no cattle". The reality is you'll live well into your 70s thus you better plan for it. You have plenty of time to acquire wealth and the fancy toys, and yes, an M235 is a pretty fancy toy.
3) One must first focus on eliminating all of their debt except for perhaps their home. However, paying off the home as quickly as possible should be a goal.
4) If available, fund your company 401K to the company match. Nothing more. Choose low fee S&P 500 index funds. Nothing else.
5) Strongly consider closely following Warren Buffett's "15-minute retirement plan": 90% of your money in S&P 500 index funds and the remaining 10% in short-term government bonds. The book "The Little Book of Common Sense Investing" has lots of solid advice and mirrors Buffett's recommendations.
6) Buy cars and other toys with cash. If you can't buy it with cash, then you can't afford it.
7) Use credit cards and take advantage the rewards perks but ALWAYS pay the cards off at the end of the month.
8) Once you pay off your house and have around $1M USD in the portfolio, then consider perhaps a second property or other solid investment vehicles.
The medical marijuana investment is intriguing and I'll look into it. However, I hope this isn't all your invested in because it sound quite unstable compared to other investments. I invest in stand alone stocks and higher risk stocks for fun but they represent a very small part of my portfolio. Any money I make on them is viewed solely as fun money.
I've been in the market for a long time now and have gone through lots of ups and downs and have made many investing mistakes along the way. Believe me, market timing and get-rich schemes is about as risky as it gets. You cannot go wrong in the long-term with bullet #5. Trust me.
As for your M235, I'd hold on to it and not sink a penny more into it. I'd focus on maxing your investments, not add a penny more to the MJ stocks, and dial back some lifestyle spending and funnel that into your portfolio. Extra cars and homes will need to go on the back burner for a good long while.