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Thread: My Journey to Financial Freedom

  1. #21
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    thank you for sharing your current picture! how old are you? great mind set and attitude towards getting yourself set for life and nice goals.

    the 15k per month in passive income goal is certainly a big one. do you have any ideas on how you will achieve this? or is this a combined goal for you and your wife?

    in your first post, do you also include your wife's investments in the networth calculation?


  2. #22
    Senior Member tygrus's Avatar
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    For the OP, just to be realistic, $4-6 MM throwing off $15k monthly income is not possible with your set up. I am all for setting goals, but better to be realistic I think. You need other asset holdings like big RE portfolio to get those kinds of numbers and that involves risk and you dont sound like that kinda guy. I think something in the order of couple mill is doable if you use your RRSP/TFSA and govt pension the right way.

    Also, if you want to get wealthy forget paying down your mortgage. If you take those extra payment you are making and invest and monthly compound them, they will far exceed the value on your home one day.
    Last edited by tygrus; 2017-04-24 at 03:25 PM.

  3. #23
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    Quote Originally Posted by tygrus View Post
    For the OP, just to be realistic, $4-6 MM throwing off $15k monthly income is not possible with your set up. I am all for setting goals, but better to be realistic I think. You need other asset holdings like big RE portfolio to get those kinds of numbers and that involves risk and you dont sound like that kinda guy. I think something in the order of couple mill is doable if you use your RRSP/TFSA and govt pension the right way.

    Also, if you want to get wealthy forget paying down your mortgage. If you take those extra payment you are making and invest and monthly compound them, they will far exceed the value on your home one day.
    15k per month, conservatively (3.5%), would require a total portfolio of nearly 5.2 million aha. That is a lot of after tax dollars to save.
    Truth be told, for the way you describe you live currently, what would you need 15k per month for in passive income?

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  5. #24
    Senior Member humble_pie's Avatar
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    Quote Originally Posted by tygrus View Post
    For the OP, just to be realistic, $4-6 MM throwing off $15k monthly income is not possible with your set up. I am all for setting goals, but better to be realistic I think. You need other asset holdings like big RE portfolio to get those kinds of numbers and that involves risk and you dont sound like that kinda guy. I think something in the order of couple mill is doable if you use your RRSP/TFSA and govt pension the right way.


    tyg imho you have been ever so slightly too hard on this OP from the get-go.

    he's 27 years of age. He has a job, a wife, a family on the way, a house, a TFSA, good savings. He even boned up on investing & he knew enough to avoid the mutuals & buy index e-funds instead.

    bref, he's a poster millennial. So maybe his thumb wobbled when he typed in a big passive income as a retirement goal. A goal is only a motivator. What counts is what he's accomplished already, where he's at today, where he's going tomorrow. Looks good to me.


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  6. #25
    Quote Originally Posted by humble_pie View Post
    A goal is only a motivator. What counts is what he's accomplished already, where he's at today, where he's going tomorrow. Looks good to me.

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    That's what I was thinking when I set that goal.

    I know it is really an ambitious goal, I really don't have much substantiation for that number other than using it as a motivator. Maybe I'll be 80 years old before I get to that number or maybe I'll change that number after my first two goal is realize. I just wanted to throw a number up to get myself to stop procrastinating.
    Last edited by joetheneighbour; 2017-04-24 at 07:21 PM.

  7. #26
    Quote Originally Posted by gibor365 View Post
    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).....
    I am moving for work. Going to be moving to the Fredericton area, been looking at houses online, its even cheaper than Newfoundland. I won't recommend Newfoundland because of the Tax, weather, and cost of living. The provincial gov't has recently hiked tax on several areal. The cost of living is high cause most goods gets on the island via the commercial ferry which makes grocery more expensive. The Iceberg are kind of nice tho.

  8. #27
    Quote Originally Posted by redsgomarching View Post
    in your first post, do you also include your wife's investments in the networth calculation?
    I did not include her investment which is around $17,000. I am currently restructuring her investment portfolio since it is all in standard TFSA savings account right now. I will include it on my progress update.
    Last edited by joetheneighbour; 2017-04-24 at 07:48 PM.

  9. #28
    Senior Member tygrus's Avatar
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    Quote Originally Posted by humble_pie View Post
    tyg imho you have been ever so slightly too hard on this OP from the get-go.


    .
    Just being very honest. IMHO you cant work or save yourself rich. Only way is to get some asset that is wickedly influenced by inflation or speculation, or to compound like the devil and that takes saving which goes back to the first point.

    To get $6M requires something different than just working a job owning a home and saving/investing what you can. It would require taking on some leveraged debt right now and hope its paid off and inflated in 25 yrs.
    Last edited by tygrus; 2017-04-24 at 09:15 PM.

  10. #29
    Senior Member humble_pie's Avatar
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    Quote Originally Posted by tygrus View Post
    Just being very honest. IMHO you cant work or save yourself rich. Only way is to get some asset that is wickedly influenced by inflation or speculation, or to compound like the devil and that takes saving which goes back to the first point.

    To get $6M requires something different than just working a job owning a home and saving/investing what you can. It would require taking on some leveraged debt right now and hope its paid off and inflated in 25 yrs.


    out of all the data the OP provided about his situation - an excellent situation btw - a few people have chosen to harp, as above, on a casual retirement goal he happened to mention in an offhand manner. Later he qualified that future & hypothetical $15k a month, which might or might not materialize half a century from today, as merely a figure that motivates him at the present time.

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  11. #30
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    Think back 40 or 50 years, there was the double digit inflation, tech bubble, financial crisis and how many others. Cars in 1980 averaged $5,500 a house $86,000, income $11,300. Today an average car cost $25k but most probably pay over $40k and average income $75k? So what will happen 30 or 40 years ahead? I certainly don't know but it clear that prices and costs won't go down. Maybe 30 or 40 years ahead, if the trend continues, $150k of income from savings or more might be reasonable, especially if one is actively working towards that goal.


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