I'm 27 years old. My husband and I live in Toronto. We manage our finances mostly separately, so any figures below reflect only my own numbers. We're planning to start a family within the next year or so. For those who have families - what advice would you give someone starting out?
Here are my assets as of last month:
Cash: $8,614 - mostly sitting in an ING savings account
Non-registered stocks: $76,593 (allocation below)
Bonds in TFSA: $5068
Non-registered bonds: $386 (I know, I'm just waiting for the e-fund holding period so that I can sell them and reallocate my RRSP)
GICs: $38,449 - set up as a 5-year ladder with ING, ~$10k sheltered in TFSA
The house is my husband's, so it's not listed here
No debt - MBNA Smart Cash paid off in full each month
Current asset allocation: 66% equity, 12% US equity, 12% international
equity, 9% bonds, all in TD e-funds
Income: $72,664 last year (after tax; includes salary, dividends, interest, and gifts)
Savings rate: about 60-65% of net income
TFSA and RRSP are both maxed out - TFSA currently 66% GICs and 33% bonds, RRSP holds most US equities and bonds, although there are some I still have to shift over from my non-registered portfolio). I'm one of those keeners: I estimate income and RRSP contribution room at the beginning of the year so that I can invest at the start of the RRSP season instead of at the end of it, and I top it up after assessment once I know how far the $2,000 overcontribution room will take me. Someday I might switch my e-funds to index ETFs.
I have a some money set aside in GICs to cover emergency funds, seeing us through starting a family, living expenses for starting a business when I want to, and a possible sabbatical fund (it will be a year of living expenses, saved up over seven years).
I enjoy my work (I'm in IT). I like being frugal, too, so I'm happy to save as much as I can for a potential early retirement - which to me simply means the freedom to work on anything I want to do, whether or not it pays a lot. (As far as I'm concered, my standard of living is already fantastic!)
We're squirreling away whatever savings we can so that we might have the option of one of us staying home once we start a family. Our relatives don't live close by, so no free babysitting. Oh well! But I think we're in reasonably good shape.
Any advice for someone getting ready to start a family, or heading into her thirties?