You could say that about the 3% market as well. I could adjust the 2 rates upwards at some future time, but didn't.
Originally Posted by Sampson
Now that I look back at it, you have 1% real returns going forward? You must be a bigger bear than some of the famous CMF bears.
Also, you might guess (correctly) that I am not in the 'biz'. (Except for the s/w biz, of course)
Originally Posted by Sampson
Is there an options market for your company shares? You could
Write covere calls on them till they finally get called away.
I would start with the money management of your budget.
Liz Weston recomends 50/30/20 budget, but also recomends starting to save as soon as possible.
50% of after tax money on Needs the things you need to spend money on or else you end up in the grave i.e., food, shelter, clothing & transportation for job. ( shelter can be anything from a card board box to a castle)
30% of your after tax income for having fun i.e., entertainment , vacation etc
20% of your after tax income for saving & investing
By only having 50% of after tax income for needs it allows you to take money from income for having fun & put it to needs & savings if salary should drop. If salary drops to much I would reduce percentage of money for having fun.
The most important thing is to save @ least 20% of your income. You will most likely be miles ahead of someone that chases after large returns but saves very little.
Last edited by lonewolf; 2012-07-01 at 05:15 PM.
In Vancouver, the average family has to commit 84% of their family income to shelter for the average SFH. Add in the other needs and the total reaches well above 110%.
Yes the insanity continues...
Thanks to everyone for your inputs. I am doing a lot of reading, revising my plans and adjusting accordingly.
I have 2 quick questions
- if i were to transfer the RRSP Balance invested in a Canadian equity MF to a different investment vehicle (say an ETF) at a loss, would i be able to claim a capital loss and then apply this to potential capital gains from selling my shares in the company i work for?
- how does one buy a US holding in an RRSP since contributions are in CAD?. I was thinking of buying VTI or some other US exposure from the proceeds of the MF
Thanks so much for your time.
1) RRSP's are tax-sheltered, that means that neither capital gains nor capital losses apply within an RRSP. So if you change investments at a loss, there's no paperwork involved. You also can't use a capital loss in an RRSP to counteract a capital gain outside an RRSP.
2) Your broker will convert the currency for you when you buy a US issue in your RRSP. The exchange fee can be somewhat high, so if you're planning to do it with a large amount of money it can be worth looking into something called "Norbert's Gambit". I won't get into the details because I think it varies by broker and stuff, but if you Google it or search this board you should be able to find information.
Thanks for the feedback guys.
So far so good...RRSP maxed for 2011. TFSA funds set aside for 2013. Next - cancel debt
I am wondering if i should cancel my credit cards and or/line of credit.
Line of credit $5,000@ 7%....current balance is $2K, to be paid off by Aug 31
2 CCs, each with $4K limit...current combined balance is $800 on both...to be paid off by end of Aug.
Once these are paid off, i will only have mortgage debt. I want to pay for everything using cash and i really don't need any credit.
So, do you think i should close these accounts or keep them or ask for smaller credit limits. What are the implications of closing them on credit score, etc
Not sure why you're wanting to reduce CC's, and close your LOC??? Aside from a large mortgage, hard to avoid in Calgary, you don't seem to have a problem with debt control. Used responsibly, a LOC and CC's are very useful.
If you don't mind me asking, what is your goal with your mortgage? Are you content with minimum payments, or do you have a plan to actively pay it off with larger payments? How long does your plan require to pay it off completely?