I've seen a lot of postings in thie vein, and figured I'd jump on board.
My wife and I are both months away from 30. We live in a small town in Southwestern Ontario. We figure we have a good handle on things, but I was wondering what another look at our situation would bring.
My wife and I are both in our chosen (and historically underpaid) fields. We have a gross family income of about 55-60k.
We both have minimal defined contribution pensions at our jobs which see about 200 dollars a month in deposit into RRSP.
Two kids, a 3 year old and a 1 year old.
My wife has a full life insurance policy, premiums are 19 dollars a month, cash value 10k, (don't even bark up that tree, I tried).
So here's what the balance sheet looks like
4 Cars: $20,000(ish): 2000 Chrysler Intrepid, 1995 Buick Riviera , 1994 Chevy Suburban, 1971 Buick Riviera
Pension RRSP: $10,000
Cash: $35,000 (Maxed out TFSA's + bank accounts)
Kids RESP with TD index funds: $10,000
Mortgage: 90,000 @4.7% fixed 3 years remaining.
Our plan so far is to take the government cheques for the kids, and plow it into the mortgage. (We're very debt adverse) It will take 9 more years to pay off the house. At that point what was the mortgage payments and remaining government cheques hit the RESP to play catch up, and when the oldest turns 18, the former mortgage payments turn to retirement.
So what are your thoughts? it's a lot of cash, I know, but we forsee 2 newer cars within 3 years to replace the aging fleet, and a few big house repairs (roof and furnace) within the next 3-5 years.