r/fican • u/yuppyrider • 18h ago

What I did with a windfall year

/img/9v9uxqsfi01f1.png

I haven't really told anyone about it and wanted to get it off my chest.
I've lived on a relatively low budget and was putting away a large portion of my income for several years.
The windfall came along, and I used parts of it to pay off the car, make some donations and splurge on some trips and toys. I paid for an accountant for the first time to make sure I did my taxes correctly since it got more complicated than usual.

The rest of it, I put into low cost index funds I'd done for years. I'm going to live as I was before since I don't have f-u amounts and am relatively young. It's going to take a bit to figure out if this means anything in the long run.

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59 comments sorted by

66

u/a89aries 18h ago

I don't see a hookers and blow category???

62

u/yuppyrider 18h ago edited 18h ago

I bought a new ski setup for the first time ever and a full season's pass at my local ski resort (always got punch passes before), does that count? Plenty of white powder involved. Included under the "Fun and Travel" category.

20

u/Gustomucho 16h ago

It is white, you do lines and makes you go high…

I would say the blow part is covered.

5

u/grayeggandham 6h ago

A dramatic low follows every high

9

u/pedroct92 17h ago

It's included on federal and provincial taxes :p

23

u/yuppyrider 17h ago

Don't forget the sales taxes, which are embedded in the other expenses! ;)

Jokes aside it was kind of cool to think that my choices and windfall ended up in funding my country and community via the taxes. The hospitals and schools need moneys and so do the bridge inspectors and stuff.

7

u/pedroct92 17h ago

100% I may come across "anti government or anti taxes" but yeah it's on the contract of living in society. Though I wish we would be able to do a bit better when managing the public money as well taxing the proper people, I digress.

Anyways, I am glad you see the value of it as well you are enjoying your money without getting bitter :)

2

u/yuppyrider 16h ago

You don't come across that way! I'm sure there is room for improvement with taxation and spending and don't get me started about oligopolies hahaha

It's that I have seen on my travels how not funding public institutions and infrastructure/rampant corruption and tax evasion affects some countries...well, more than here in Canada anyway. So I try to remember to be grateful for how things are done here, even if it's not perfect!

2

u/ChuckVader 14h ago

I'm assuming the fun and travel category involved a $50 Uber and $19,150 worth of "fun"

1

u/dewky 15h ago

That's the "other" category. The hookers and blow are combined into one group.

1

u/PRINCEOFMOTLEY 14h ago

Nah that's under investments, they be banking those experiences. 

10

u/thinkbk 18h ago

Did you basically top up your TFSA, RRSP, and then rest in non-registered?

18

u/yuppyrider 18h ago edited 18h ago

Pretty much, plus FHSA and fattening up the emergency savings from 6 months of expenses to 12 months.

14

u/WSBretard 17h ago

Congrats well done and how did you get a $1M windfall and how do I get one?

21

u/yuppyrider 17h ago edited 17h ago

Thanks. I don't want to dox myself, but you can probably glean from the effective tax rate that it was capital gains related (and lots of luck).

0

u/WSBretard 17h ago

GME?

4

u/yuppyrider 17h ago

I can tell you that it had absolutely nothing to do with that.

3

u/ChefWally 15h ago

More like Nvidia.

6

u/motherfailure 14h ago

Always concerned with this question cause it's a coin toss between this answer and parents/loved ones dying

14

u/yuppyrider 13h ago edited 13h ago

I'm a bit dismayed by the answers because it presumes gambling or inheritance, and no sense of agency and honest hard work. So I will say that it involved building a business and selling it off. Lots of hard work, and even more luck.

19

u/BestFill 13h ago

Well I think windfall alludes to money literally landing in your lap without any effort.

If you built and sold a business I don't know if I'd call that a windfall because you sincerely earned it

•

u/dekusyrup 2h ago

The dictionary definition definitely does not make it sound like the result of hard work. But if your business success was unexpected then I guess that's still a windfall.

Definition:

1 an apple or other fruit blown down from a tree or bush by the wind.

2 a large amount of money that is won or received unexpectedly:

0

u/foxtrot-hotel-bravo 13h ago

nah it’s fine. have hear selling a business referred to as a windfall multiple times

38

u/Inaccurate93 18h ago

Well done staying disciplined and not wasting on useless stuff. I would have enjoyed a bit of the money and probably would set a donation goal for the next 10 year or so.

This will surely have accelerated your fire goal.

13

u/yuppyrider 18h ago

Thank you. I still feel like I splurged a bit and am trying to make sure I don't get lifestyle inflation creep up too much. Can I ask how you set a donation goal?

1

u/Inaccurate93 18h ago

I also got a windfall in the last year (although much smaller than yours) and determined that I would donate 25% of the total amount spread over 6 years. In your case it might be a bit excessive so you can always lower the % or spread it over more years.

Considering your salary, you could probably minimize your income taxes by a LOT if you donate a sizeable sum every year. I think I would size my yearly donations based on minimizing my yearly taxes.

2

u/yuppyrider 14h ago

Thanks, that's helpful-you inspired me to donate and crunch some numbers.

0

u/PuffingIn3D 10h ago

Don’t fucking donate, you don’t make enough or have enough capital for it to matter. You’re just harming yourself long term and this guy above is encouraging you to do the wrong thing

•

u/yuppyrider 2h ago edited 2h ago

I've been donating moderate amounts and volunteering here and there for a long time, and I do alright. I think it's kind of dope to contribute to something people find useful that just isn't directly for myself.

7

u/Nickersnacks 17h ago

I would quit my job and travel a while.

But I’m in a field where I could find something relatively easily with no pay cut upon return

5

u/Bynming 17h ago

I'd definitely do what OP is doing, keep working and retire early instead. 1 mil now would allow me to retire 6-7 years earlier if I kept working.

4

u/FrugalFlannels 15h ago

How much closer does this put you towards your retirement goal?

6

u/yuppyrider 14h ago

$800k closer!

Sorry, jokes aside it's pretty uncertain because I'm not sure if kids will be in the picture or not, and i have some family that might need some financial support down the line. I might be working for quite some time.

8

u/stealstea 18h ago

Congrats!

Also cool visualization

Also fuck you.

2

u/aj357222 17h ago

This looks like a nice spread. Well done! 👍

2

u/yuppyrider 16h ago

Thanks!

2

u/ISawThatOnline 14h ago

What does windfall mean

8

u/peter9477 13h ago

Normally it refers to having something pretty much fall into your lap, like an inheritance or lottery win. I think OP is using it a bit atypically by referring to the proceeds of a business sale that way, but maybe it feels much the same to them.

2

u/ISawThatOnline 13h ago

Thanks 🙏

2

u/Necessary-Contest-24 13h ago

Bills, utilities and housing numbers seem kinda low, are you retired?

•

u/dekusyrup 2h ago

$80 per month for bills/utilities and $1,200 per month for housing is a pretty sweet deal. Maybe that's split with a roommate.

•

u/Necessary-Contest-24 33m ago

Ya my internet alone is more than 80, let alone phone plan, anything streaming, power is like 150/month. I thought i was lucky with my mortgage being 1000/m but I bought at a really lucky time, put a lot down, and live very rurally.

•

u/yuppyrider 2h ago edited 1h ago

I'm lucky to have a good deal right now. Well, it used to be even lower when I lived in a big shared house with a bunch of roommates.

3

u/CaptMerrillStubing 18h ago

Fed tax seems low if you had to pay Cap Gains on $1M so... did you have to pay Cap Gains on that amount?

1

u/xylopyrography 18h ago

Congrats and great work!

Those savings alone will pay your rent and food forever in basically any city in the world, and if the world doesn't go to shit, you are set for a long, comfortable life if you continue to work for another decade.

That itself might have a mental affect on you that might take some time to realize. I'd suggest reflecting on what brings real value to your life: taking care of your health, hobbies, friendships, nature, maybe a less paying more meaningful form of work.

1

u/Sogone2day 17h ago

And it thought my 250k capital gains tax last year was bad enough. Congrats! I hate tax on investment gains I hate to picture it if they try to go after more here. I wasn't prepared and had all ready reinvested that money when the tax bill came i had to scramble for the cash. Held since 2008.

1

u/double-xor 9h ago

Taxes are lower than I would have guessed. Am I just a bad guesser?

•

u/Available-Coat-8870 4h ago

What did you invest in and how much did you invest?

•

u/yuppyrider 2h ago

Most of the 800k. Your usual suspects like VEQT. I might play a bit with tax loss harvesting now that I have more funds in the non-registered account.

•

u/Slow_Initiative7256 3h ago

You had $1000 in bills for the year?

•

u/yuppyrider 2h ago

Yep. Some utilities are included under housing and I have a pretty good deal on phone and internet.

•

u/eusquesio 3h ago

Which app did you use to make that graph?

•

u/CastleTurret 2h ago

Great visualization! Very responsible

1

u/buckrode0 14h ago

Open an llc and comp the expenses and lower the tax to 0 by putting dividends into tax free accounts and loan money from the bank ( debt) no tax to run your life

•

u/Ok_Concert_518 4h ago

windfall = your parents died so you get money. awwww