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Thread: My Journey to Financial Freedom

  1. #11
    Senior Member humble_pie's Avatar
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    congratulations on the baby & the growing family. I think you have a terrific financial profile. You're working hard on your financial plans & undoubtedly all will succeed in the end.

    the suggestions upthread are excellent. Pay down the debt ASAP, say the suggestions. Don't buy mutual funds, their management fees are too high. Buy ETFs instead. Even better than ETFs, start accumulating a 5-pack of quality individual stocks. DRIP everything that can be DRIPPed.

    you mention a pension, presumably from work. This means you & spouse can concentrate on building those 2 TFSAs for a long time to come.

    re including house in net worth calc or not - opinions & practices from cmffers range across the spectrum, so the OP could take his pick.

    persons who do not include personal residence in net worth point to the illiquidity of real estate. Net worth should be cash that can be raised fairly easily, they say. Obviously parties who own rental properties but no other investments would have a different point of view, still, this particular OP is not in the landlord category at present.

    a compromise approach among the house includers is Dmoney's. He includes his principal residence at cost. He has a fairly large mortgage so the inclusion compares nicely. Dmoney has a diary thread in this section, you can see how he handles the house.

    all cmffers agree though: do not include vehicles, boats, jewellery, art or any other personal possessions in net worth.

    welcome to the forum. You've made a great start, now please don't forget to come back & tell us about the baby when he or she arrives.

    .


  2. #12
    Senior Member tygrus's Avatar
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    The biggest asset the OP has is that govt pension and if he quits work at 40, it will be a fraction of what it could be. Have to put in 25-30 yrs to get that thing close to max.

  3. #13
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    Home is an asset for sure.
    However, in general, would worry about relying too much on house value increase.

    Example: if net worth went up from 100k to 200k in a couple of years, only because of home value, but mortgage stays the same (person refinances / has a heloc balance / etc) and there is no extra savings...

    In your case, you have good savings habits, so you should have great progress in the future.

    Some people would use a "Financial Net Worth" to isolate how their investments are doing.

    For pension, did you get a 2015 annual statement (probably too early for 2016) saying its "commuted value" ? (value you would get if you quit). It's something you own and could be part of net worth.

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  5. #14
    Thank you everyone for the replies. I am actually quite surprise on the number of replies and all the great opinion and advice. I am slowly trying to learn things along the way and I think this forum will help me out a lot. My mutual fund is currently invested into TD e-series, not quite sure what my plan is with that yet. My next few financial move is to bring my debt down while putting a little bit aside for investing. I have a DRIP setup but I don't hold enough share to make it work right now so I'll have to buy a few more share as well.

    Someone asked which province I was living in. I currently live in Newfoundland but will be moving to New Brunswick in the near future.

    But a lot of you mention pension which I never actually looked into. I think I'll go find out how much is actually in my pension plan right now and add that on here.

    For the long term goal of $15,000/month, I am not sure if it's realistic or not. I just wanted to put a tangible goal down to strive for and use it as a way to measure progress. I find that it helps motivate me.

    In terms of mortgage, I was actually doing bi-weekly payment at $925 per payment until recently. I wanted to free up some cash flow for baby expenses so I changed it back to monthly payment for now.

    Once again, I am very grateful for all the replies and opinion. It definitely allow me to see some alternate point of view. I'll definitely keep you guys updated with the baby and my progress.

  6. #15
    Senior Member none's Avatar
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    Quote Originally Posted by gibor365 View Post
    Thus car, iphone and TV are also assets
    Of course they are - anything you can sell for $$$ is technically an asset. Whether it's worth accounting to that level is up to you. If you're talking about a $100 asset versus an asset worth more than 100K is up to you.

    House being an asset is a no brainer.

  7. #16
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    Quote Originally Posted by humble_pie View Post
    .
    all cmffers agree though: do not include vehicles, boats, jewellery, art or any other personal possessions in net worth.

    Quote Originally Posted by none View Post
    Of course they are - anything you can sell for $$$ is technically an asset. Whether it's worth accounting to that level is up to you. If you're talking about a $100 asset versus an asset worth more than 100K is up to you.

    House being an asset is a no brainer.
    I think for cars I would include an expensive car as an asset, and a junker commuter not. Perhaps also based on whether I plan to drive it for a few years and sell later for a newer car, or drive it into the ground and sell for scrap. Since I don't own a car I don't have to deal with the issue.
    Last edited by peterk; 2017-04-24 at 01:24 PM.

  8. #17
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    Quote Originally Posted by none View Post
    Of course they are - anything you can sell for $$$ is technically an asset. Whether it's worth accounting to that level is up to you. If you're talking about a $100 asset versus an asset worth more than 100K is up to you.

    House being an asset is a no brainer.
    Some cars are more expensive then some homes

    For the long term goal of $15,000/month, I am not sure if it's realistic or not.
    I'm sure it's not , unless you are NHL or NBA player

    there are a lot of discussions on this forum how much family needs for very comfortable retirement .... afair, the maximum amounts was about 6-7K per month. In Maritimes it can be less
    Last edited by gibor365; 2017-04-24 at 02:01 PM.

  9. #18
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    Plus, right now you're living comfortably on just over 3k/mo, are you going to 5x your living standard?

  10. #19
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    Quote Originally Posted by Spudd View Post
    Plus, right now you're living comfortably on just over 3k/mo, are you going to 5x your living standard?
    Sure We live in very expensive GTA, family of 4, 3-4 times per year we travel abroad, spending thousands on food (like tasty stuff) and we spend 80K per year...

    If you want to save, consider moving your bank account to Tangerine. If your salary is deposited there , you gonna get some cash as a gift + $50 if you open account there and no any fees...
    Also for saving account they offer much higher rates than big banks.

  11. #20
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    Someone asked which province I was living in. I currently live in Newfoundland but will be moving to New Brunswick in the near future.
    Just curious where and why are you going to move? Considering that house prices there at least 4-5 times cheaper than in GTA, I was thinking in future to retire there (one of the options)....


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