I'm new here and hoping to hear some investment advices and/or savings goal. Here is the background:
- couple in 30's (35 and 32) with a 1 year old boy (hoping for another baby in 1-2 years)
- recently paid off the mortgage and looking for ways to invest
- net monthly income is about $8800 (combined income) and could save about $4K per month
- no company pension
- house: 300K
- 120K of registered investment portfolio that is filled with bank stocks, prefs and a few other companies. The breakdown by industry are: 65% financial; 15 Telecom; Resources 15%, 5% others.
- 45K cash outside of RRSP
- 20K Staff Loans
From what I can gather, if I save about $55K a year, I should be able to achieve $2M target in about 20 years (I intentionally exclude the house, thinking that the house can be used to fund children post secondary education). Hoping the $2M will yield 5% and will bring us about 75K of net income per year (after tax). As soon as $2M goal is achieved, we will stop working all together.
Here is my questions:
- is the $2M goal achievable or is it being too naive?
- since I'm hoping for only a 5% yield, my portfolio should be fairly conservative. I'm looking for investment ideas.