Young Family -General Thoughts?

[crazyjackcsa]

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.

Details:

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

Assets:

House: $190,000

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


Debt:

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.

[Four Pillars]

'71 Riviera - very nice!

Obviously the older car is a hobby car, but why do you need 3 other cars? You would save some insurance, maintenance costs by getting rid of oldest/crappiest one asap.

I think you guys are in great shape - which is pretty good considering your income isn't all that high.

I don't have any suggestions for the cash - as you point out - there are some big expenses coming up and you need the cash.

[Dana]

I think you guys are in great shape - which is pretty good considering your income isn't all that high.

I don't have any suggestions for the cash - as you point out - there are some big expenses coming up and you need the cash.

+1

[crazyjackcsa]

The three cars is a fairly new development. The 1995 Riviera was a deal I came across just 3 weeks ago, (spawning my other "Financial bad habits" thread).

That of course creates the 3 cars - 2 drivers issue. We live in an area without public transit which precludes any fewer than 2 cars.

So that's why we have the three cars. At this point we plan on keeping all three on the road, until 3 becomes 2 due to age.

I do most of the work myself, so that cuts down on the repair cost, not the insurance cause.

[the-royal-mail]

I think you're doing fine. I love the idea that you have all that cash available to you. That's an amazing asset that gives you a tremendous amount of power over your own life. Well done. Keep it up.