# 37 year old's quest to retire early......someday



## Johnny199r (May 20, 2014)

Hi all. 

I'm a 37 year old male who lives in the Prairies and works in the legal profession. I registered for this website about 5 years ago but never really posted. I'm a long time lurker. 

My goal is to retire at 56. I have a common law wife. We have no children and don't plan on having any. I have a cat, he's enough for me.

I won't include my common law wife's assets with my updates. We keep our finances separate. She is also in the legal profession. She was never given any financial literacy lessons before meeting me. She also helps her extended family financially quite a bit. Her assets are not as sizable as mine but I have set her up with a questrade account and I use a couch potato portfolio for her TFSA and RRSP. She is starting to consistently build her investment assets. She earns about the same as me, but I predict she will eventually be elevated to a position in the legal profession that is extremely lucrative and pays far in excess of what I make.

Assets:

RRSP - $227,329.54
TFSA - $98,314.35
Non registered - $149,470.31

Cash - $288,739.10

Current Value of work DB pension - $129,712

2015 honda civic - for the sake of ease I will use half of the $15,000 purchase price we paid with cash (I understand there is probably some depreciation 2 years later) - $7,500

Liabilities:

My share (50%) of our monthly rent - $914.375 - we rent a 3 bedroom apartment that suites our lifestyle (includes a 2 story gym, close to running and bicycle trails) We have no interest in owning a house.

Monthly Cable/internet bill - $200 (she pays our hydro bill - about $30-$40 per month as well as our annual car insurance bill - $1500)

Personal worth - $899,950.92

My investments are divided between Mawer balanced fund, XIC and XAW. I invest with quest trade.

I understand I need to deploy far more of my cash. My desired cash reserves would probably be around $100,000. I plan to deploy more cash soon, however I forsee potential turbulence with the American election in November as well as COVID. I understand that trying to time the market is a fool's errand, but I will likely invest a good part of my cash reserves at the end of this year.

I have little in the way of expenses. I like to ride my bicycle (for fun and often to commute to work), workout, watch sports, play video games and I love to eat. I get takeout far more than the average person, but I'm fine with it. I don't drink, smoke or have any other money wasting vices.

When I plan my financial future, I don't count on my DB pension being there in it's current state. I recognize DB pensions are unsustainable and I expect big changes. I will consider my future DB pension as "a tip".

Using my pension plan's estimator, If I retire in 19 years at 56 years of age, I can expect a pension of $5,686.75 per month ($68,241 per year) if I select the option of 2/3 going to my beneficiary upon my death.

My wife and I enjoy travelling. We had plans to go to Europe this year, which obviously won't happen. 2021 seems to be the most optimistic timeline for international travel to resume for us.

Thanks for reading. Any feedback would be greatly appreciated.


----------



## like_to_retire (Oct 9, 2016)

Off the top of my head.

You already admit the cash is far too high, and timing the market is tough, and if you examine the Canadian market year-to-date, I see the Financial sector down -20%, Telecom sector down -15%, Energy sector down -50%, Consumer Discretionary down -12%, but you want to wait until the end of the year to deploy that cash? Those vaccines look fairly promising, and as soon as it's a go, watch out.

A Defined Benefit pension of $68,241 per year seems to me to be a bit better than _a tip_ - I guess you're telling us it isn't near fully funded?

ltr


----------



## Topo (Aug 31, 2019)

Congrats! You seem to be in good shape for your goal. You have not mentioned how much you will be saving going forward, but if you save at least 20k per year for the next 19 years, you will have a 2m nest egg to draw upon in retirement. With a conservative 3% withdrawal rate, that is 60 k per year in addition to your pension. Given that your expenses seem very reasonable, your expenses could be covered by either your pension or your portfolio, which is a great financial position to be in. 

If you could up your savings to 50k per year, then you would have a bigger nest egg, which will also give you the additional option of buying a house if you decide to do so at the time at the same time preserving a good-sized portfolio.

I have assumed a 3% real return in my calculations, so you could potentially take less risk by adding some bonds to your portfolio or using ETFs that contain bonds such as XBAL or ZBAL. If you are comfortable with the stock market risk, then you could keep investing in XIC and XAW. I believe MAW104 has some bonds already.


----------



## Johnny199r (May 20, 2014)

like_to_retire said:


> Off the top of my head.
> 
> You already admit the cash is far too high, and timing the market is tough, and if you examine the Canadian market year-to-date, I see the Financial sector down -20%, Telecom sector down -15%, Energy sector down -50%, Consumer Discretionary down -12%, but you want to wait until the end of the year to deploy that cash? Those vaccines look fairly promising, and as soon as it's a go, watch out.
> 
> ...


I recognize what you're saying about the Canadian market. I will try to dollar cost average some investments. I understand my cash amount is unproductive.

The pension plan I belong to is in decent shape, relative to other large gov't pension funds. I just have no confidence that it will be there in it's current form in 20 years the way things are going with pension plan short falls and government deficits. I think the current projections, without a corresponding rise in contributions, is unlikely.

I've also been one who plans for worst case scenarios.


----------



## Johnny199r (May 20, 2014)

Topo said:


> Congrats! You seem to be in good shape for your goal. You have not mentioned how much you will be saving going forward, but if you save at least 20k per year for the next 19 years, you will have a 2m nest egg to draw upon in retirement. With a conservative 3% withdrawal rate, that is 60 k per year in addition to your pension. Given that your expenses seem very reasonable, your expenses could be covered by either your pension or your portfolio, which is a great financial position to be in.
> 
> If you could up your savings to 50k per year, then you would have a bigger nest egg, which will also give you the additional option of buying a house if you decide to do so at the time at the same time preserving a good-sized portfolio.
> 
> I have assumed a 3% real return in my calculations, so you could potentially take less risk by adding some bonds to your portfolio or using ETFs that contain bonds such as XBAL or ZBAL. If you are comfortable with the stock market risk, then you could keep investing in XIC and XAW. I believe MAW104 has some bonds already.


Thanks for your comments.

I currently save between $35,000-$40,000 of my income annually, I forsee that number going up. 

I have no interest in real estate, and firmly believe I never will. The thought of being tied down to a piece of property petrifies me. I like the comfort in knowing I could leave town tomorrow if I had to. I've moved around a lot so far in my career, as I get bored pretty easily.

My dream retirement would be spending 6 months in Canada, and another 6 months during the winter months somewhere else in a different country or region of the U.S every year, renting and exploring.


----------



## Topo (Aug 31, 2019)

Johnny199r said:


> I currently save between $35,000-$40,000 of my income annually, I forsee that number going up.


 Between your portfolio and pension, you could have about 10k CAD per month to spend on a dream retirement any way you like.


----------



## Johnny199r (May 20, 2014)

Question for others:

Do you keep your finances separate from your spouse? 

My common law wife has lots of TFSA room and RRSP room. I could theoretically contribute to hers as I have no room left in my registered accounts. That would be tax advantageous. We've been together for 10 years, and I dont forsee us separating, however.....I'm a pretty cautious person and have seen too many people part ways and then have issues with the intertwined finances....


----------



## Johnny199r (May 20, 2014)

August 29, 2020 update

Assets

RRSP - $231,654.13
TSFA - $100,605.77
Non Registered - $154,475.92

Cash - $294,366.99

Current value of DB pension - $133,894

Vehicle - $7,500

Liabilities

Rent - $914.375

Cable/Internet - $200

Total Net Worth = $921,382.43


----------



## newfoundlander61 (Feb 6, 2011)

I am 59 and thought the same think in regards to retiring early, age 60 was the plan but after being off work for 5 months due to COVID I am having second thoughts. I am looking forward to going back to work, go figure.


----------



## Valueinvestor (Dec 10, 2014)

With the economic downturn have you found it easier to negotiate on your annual lease for your home?


----------



## Johnny199r (May 20, 2014)

Valueinvestor said:


> With the economic downturn have you found it easier to negotiate on your annual lease for your home?


Yes. When we renewed our lease in May, we received one free month included for our next 12 months.

We pay our rent on time every month, never cause any problems, and rent the more expensive 3 bedroom apartment layout that seems to be difficult for the management company to fully lease in this building.

When the lease expires next year I will be seeking another free month included. If we moved out, it's likely the suite would sit empty for a few months, meaning much more lost revenue for the rental company. I'm happy to point that out to the leasing people.


----------



## milhouse (Nov 16, 2016)

Johnny199r said:


> My dream retirement would be spending 6 months in Canada, and another 6 months during the winter months somewhere else in a different country or region of the U.S every year, renting and exploring.


That's similar to what we're working towards too. We appreciate all that Vancouver offers but wouldn't mind spending some time away to get away from the rain during the winter along with some other trips all over the place while keeping our provincial health benefits. Looking forward to eventually having enough time to do a month long rental somewhere and fully exploring the area.



Johnny199r said:


> Do you keep your finances separate from your spouse?


We do a split with an equal contribution from our incomes going to a joint chequing account for standard expenses while maintaining our own savings accounts that we used to fund our own savings and investments along with the rare purchases/spends that we don't think should be funded from the joint account.


----------



## Johnny199r (May 20, 2014)

Sept 27, 2020 update

Assets

RRSP - $228,288.03
TSFA - $98,699.74
Non Registered - $149,237.53

Cash - $300,460.14

Current value of DB pension - $127,798

Vehicle - $7,500

Liabilities

Rent - $914.375

Cable/Internet - $200

Total Net Worth = $910,869.06

Obviously I miscalculated the value of my pension last month in my analysis. In any event, rough month for stocks, so no surprise that my numbers are down.

I plan on deploying about $200,000 in the markets after the U.S election. I currently invest in XAW, XIC and Mawer balanced fund. I will continue to index, but maybe I'll also purchase a U.S total return fund in US $ on the NYSE in my RRSP to avoid foreign withholding taxes.

I have no plans of ever buying a house, so the cash sitting in my bank account is not productive.

While I don't include my wife's financial numbers on here, she has a recent $35,000 contribution sitting in her Questrade account that I need to deploy. I will wait until after the U.S election.


----------



## Valueinvestor (Dec 10, 2014)

Is that $300K cash or $3M cash? And rent for under $1000 - wow that is cheap


----------



## Johnny199r (May 20, 2014)

Nov 23, 2020 update

The government (my employer) passed a new bill that significantly reduced the amount of money that members of my DB public pension would be entitled to in lump sump format, rather taking the monthly pension. This has no affect on current or future employees' monthly pension amounts.

The reasoning was that the formula used for the lump sum payment calculation was resulting in big payouts which was potentially jeopardizing the health of the plan if too many members opted for it.

The result is that members are now only entitled to a sum which is approximately just less than half of what they would have been entitled to about a month ago if they took the lump sum either at retirement, or termination. I guess if enough public servants opt for the lump sum, those millions can add up pretty quick, although about half of that amount would be a lump sum that would be significantly taxed and go back in the gov't coffers. Additionally, it motivated a few employees I know to quit and take the lump sum.

I believe this pension plan change is just the beginning of chances that will be made to the plan. Future changes I could anticipate are: using the average 5 years of an employee rather than the 5 highest paid years, and of course eventually shifting to a shared risk model like the government of New Brunswick did, even retroactively on retirees (again just like government of New Brunswick did). By reducing the lump sum option, the government has gained the upper hand by limiting the main option for employees to "opt out" and take the money and run if they don't like future changes. Smart.

This is why I tell my colleagues they should be investing and looking after their own personal finances for retirement. No one really listens to me when I say that.

On my personal investment front I deployed $100,000 in the marketsrecently, mostly for couch potato indexing. I did put some money in Mawer global small cap fund, as some "fun money". I need to deploy some more money.

Assets:

RRSP - $240,644.11
TFSA - $103,803.09
Non registered - $258,863.73

Cash - $210,164.75

Current termination Value of work DB pension - $58,939

2015 honda civic ) - $7,500

Liabilities:

My share (50%) of our monthly rent - $914.375 

Monthly Cable/internet bill - $200

Personal worth - $878,800.31


----------



## afulldeck (Mar 28, 2012)

If you go back over your last 4 months, would you think that perhaps you might have been better off deploying your money earlier? This might help:


----------



## Johnny199r (May 20, 2014)

I know time in the market beats timing the market. Leaving cash on the sidelines is counterproductive. Absolutely I should have just it in a year or two ago, never mind 4 months ago.


----------



## milhouse (Nov 16, 2016)

I seem to always second guess myself. Realistically, it's better to dump it in and let compounding do it's thing but I always hate it when whatever I buy take a bit of a dive within a few months of me buying it and I could have bought it at a _discount_.

My wife's in quasi public sector and her pension plan has made a bunch of changes to her db pension the last few years to ensure the viability of it. Too many people retiring early and living long so the hit on starting benefits before the magic number for full benefits is more significant now.


----------



## Johnny199r (May 20, 2014)

Year in review:

1. Both my spouse and I each had our pay reduced by 5% by our employer due to the pandemic. I predict the government will try to extend that at the beginning of the next fiscal year (April 1).

2. I finally deployed most of my big pile of cash. I should have done it earlier, but you live and you learn. Time in the market beats timing the market. I learned my lesson.

3. I do not include my spouse's personal finance numbers in my posts, but I'm happy she's starting to build up her own investment account on questrade (which I handle for her).

4. 2021 looks like it will be another year of just saving and investing as travel looks extremely unlikely. Travel is my only significant expense beyond rent and cable/internet. I'd like to buy a road bicycle in the spring. I cycled to work quite a bit this summer on my mountain bike, but I'd like to get a road bike so I can go much faster.

5. Most importantly I'm healthy and so is my family. 



December 31, 2020 update

Assets

RRSP - $245,879.71
TSFA - $106,084.65
Non Registered - $400,910.19

Cash - $78,514.68

Current termination value of DB pension - $60,429

Vehicle - $7,500

Liabilities

Rent - $914.375

Cable/Internet - $200

Total Net Worth = $898,203.85


----------



## Johnny199r (May 20, 2014)

February 21, 2021 update

I finally put most of my cash to work in December.

I bought a new road bicycle this week at a cost of $1500. I enjoy riding a bicycle to work and can't wait for the warmer weather in order to ride my new bike.

My spouse had a job interview last month for a job that would see her income increase to about double what mine is. The wait has been a bit stressful. Fingers crossed. I heard that she was very impressive in her interview, which was great to hear.

Assets

RRSP - $252,651.75
TFSA - $115,285.35
Non Registered - $421,015.31

Cash - $78,446.75

Current termination of DB Pension - $62,317

Vehicle - $7,500

Liabilities

Rent - $914.375

Cable/Internet - $200

Total Net Worth = $936,101.79


----------



## scorpion_ca (Nov 3, 2014)

What is in your investment accounts? Do you track passive income such as interest, dividends?


----------



## Johnny199r (May 20, 2014)

scorpion_ca said:


> What is in your investment accounts? Do you track passive income such as interest, dividends?


Primarily couch potato indexing - XUU, XIU, etc. I still have some Mawer balanced in my RRSP that I might switch out to XGRO.

I don't buy individual stocks.

My asset mix is very aggressive. Probably 95% equities, 5% bonds. I have a long time line and a DB pension to support an aggressive portfolio.


----------



## Johnny199r (May 20, 2014)

June 1, 2021 update

I recently turned 38.

Life is still boring with Covid19.

I got a root canal and some other dental work that was fully covered by work benefits.

Looking forward to potential international travel in Feb/March (laying on a beach in Mexico) hopefully. I wont risk booking a trip this fall, I don't have full confidence in international travel being open by then. If it does, I will book a trip for Nov/Dec. I have about 50 vacation days saved. I believe travel will be more expensive than it was pre-pandemic.

I fly on a regional carrier for work, monthly, and they increased their prices x 2 during COVID.

My spouse is still waiting to hear who gets hired for the position she interviewed for. If she gets it, she would make about what she and I make combined right now. I've always wanted to be a kept man.

RRSP - $255,755.41
TFSA - $117,577.40
Non Registered - $487,709.75

Cash - $39,144.42

Current termination value of DB pension - $69,912

Vehicle $7,500

Liabilities

Rent - $914.375

Cable/internet - $200

Total net worth = $976,484.60


----------



## Johnny199r (May 20, 2014)

Before I give my August update:

I was recently discussing finances with some colleagues, and man do I feel better about myself.
These people (3) are all in the private legal field, they probably make about $175-250k per year (probably took a big hit during the pandemic over the last year and a half. They are early 40s. Some may have some work related partnership loans to buy into the partnership they are still paying back, but I'm uncertain.

Each one of them has 0 investments and hardly any cash saved. They have partners who stay at home with the kids. They tend to have big houses and do expensive renovations (not in Toronto/Vancouver or any city that would likely turn RE into huge gains) and drive fancy cars (one guy has a range rover, another has something equal to that). All the education and world, and nothing saved for retirement, nothing! No health/dental benefits either. There are no pensions in their jobs either. All of them are just living like 1 day millionaires.

I wouldn't be able to sleep, living day to day, financially like that. I think it's insane. When are they ever going to fund their retirements? Or are they just going to work until death?

I'm most proud of the fact my wife was equally horrified. She has her own investments and certainly thinks long term and has improved with money management a great deal in the last few years. I also like that we both work and make about the same amount of money and contribute equally. That is not a dig at people who have different arrangements. Especially when kids are involved, every couple must find a situation that works for them, which sometimes results in one spouse staying home.

Aug 8, 2021 update

*Assets:*
Investments: - $914,000
Cash - $43,239.95 (I gave a $10,000 loan to a family member who I trust a few months ago. There's 3 people in the world I would give a loan to, they are one of them)
Current termination value of work DB pension - $72, 812 (on track to retire at 56 with annual pension of about $62,000 per year)
Vehicle - $7,5000

Total - $1037,551.95

*Liabilities*

Rent: $914.375
Cable/Internet - $200

Current net worth - $1,036,437.58


----------



## scorpion_ca (Nov 3, 2014)

Congratulations for becoming a millionaire! What is your target net worth...3MM, 5MM?


----------



## Johnny199r (May 20, 2014)

Assuming a 6.5% rate of return on my investments, and that my savings rate remains constant (which I anticipate it will), using a compound interest calculator - By age 56, my investments should be worth around $4,047,567.36.

I don't have a number in mind. The minute I can retire at 56 with a work pension paying between $60-65k a year, I'm gone.


----------



## Numbersman61 (Jan 26, 2015)

I was in a similar situation like your colleagues - high income but little savings. Switched careers at age 37 (took an income cut) but made a lot of money after I turned 55 - primarily from stock option and similar benefits from successful public companies. I did not retire until age 69 since I really enjoyed my career as a senior officer and independent director.


----------



## Johnny199r (May 20, 2014)

If someone has a job that they really like and are happy to go past normal retirement age, that's great. Hats off to you Numbersman61.

I find that with my profession (criminal defence lawyer) a few guys work way too long as their career is their identity (and never really get to enjoy life), but the stress and associated problems that come with a high stress profession results in a lot of premature deaths and people not necessarily wanting to work longer than absolute necessary.

This job will kill you early.


----------



## Johnny199r (May 20, 2014)

Nov 6, 2021 update

Took a vacation last month to Montreal and Quebec City. It was my first time in Quebec City. I really enjoyed it and recommend it to anyone who hasn't been.

We signed a new collective agreement at work with a raise and some back pay, which was nice.

Looking to book a trip to Mexico for 2 weeks in February. Beyond that, I had to pay for some car stuff lately and bought a new laptop and phone.

I joined a gym recently and started swimming and working out. I've been using my building's really nice gym for the past 2 years but got sick of it. Needed a change, especially with outdoor cycling season pretty much over. The new gym has been fun.

Looking forward to seeing if the Liberals will introduce this $40,000 home buyers TFSA fund for people under 40, as it was an election promise. I will put 40k in it immediately (I'm currently 38). I understand the rules will be if I don't buy a house with it, it will continue to grow tax free, like a TFSA. I personally think it's a stupid policy, but I will certainly take advantage.

My wife applied for an extremely lucrative job earlier this year. I have a feeling we might be hearing something back on that soon. I know the position has not been filled yet but things are now in place to be able to fill it and I've heard she is a very competitive candidate.

Age 38.5

*Assets:*
Investments: - $953,028

TFSA - $130,609.92
RRSP - $282,022.98
Non-Registered - $540,459.98

Cash - $64,897.67

Current termination value of work DB pension - $76,732 (on track to retire at 56 with annual pension of about $62,000 per year)

Vehicle - $7,5000

Total - $1,102,157.67

*Liabilities*

Rent: $914.375
Cable/Internet - $200

Current net worth - $1,101,043.29


----------



## scorpion_ca (Nov 3, 2014)

Did you get any good deal for your new laptop? Which one did you get it?


----------



## Johnny199r (May 20, 2014)

scorpion_ca said:


> Did you get any good deal for your new laptop? Which one did you get it?


I got a good HP laptop for $800. I have it for work and other things and it does a good job. No need for an expensive macbook or anything like that.


----------



## Johnny199r (May 20, 2014)

Feb 19, 2022

I have insurance questions...

I have a universal life insurance policy that my parents took out on me when I was born. The value was $25,000. It's now up to around $110,000. The premiums are about $220 a year. The cash value would be $22,000 right now, of which $15,000 is taxable if I were to pull the policy.

I also have life insurance through work, as follows:

Age Death benefit Biweekly premium

Up to 64$736,180.00$60.8265 to 69$552,135.00$45.6170 to 74$460,113.00$38.0275 and over$4,500.00No Cost

The ironic thing about having 2 different insurance policies is I have no dependents and won't be having kids. My wife has her own life insurance policy, makes the same income I do and she'd get all of my money when I die anyway.

Questions:

#1 - Should I take the cash value of my universal life policy now or just leave it?
#2 - I'm soon to be 39. I will be retiring around age 56-57. A quick online quote from TD shows a 20 year term policy for $755k has a monthly premium of $68.40. Much cheaper than the current $121 per month I pay for insurance, which seems to be geared toward covering me in my 60's, when I don't plan on being employed anymore anyway. Should I make that switch?

I haven't put any of my insurance numbers in my in asset analysis for no particular reason.

As far as investments go since my last update, no surprise, the markets are down and my portfolio reflects that. I hold 100% market tracking ETFs (XUU, XIU, XAW etc) I don't care if they're down. I don't plan on touching the money until retirement. They could drop 20% this year and I still wouldn't care. They will come back up eventually, whether it be this year, next year or 5 years from now. I made my $6,000 TFSA 2022 contribution in the beginning of January.

Glad I don't own a home during this winter. It's been snow day after day after day. I wouldn't want to be clearing that all the time.

I'm currently in the middle of two weeks off - vacation. I wanted to go somewhere warm, my wife was reluctant to travel, so we stayed home. After a week of generally relaxing and taking it easy, I'm happy we didn't go anywhere.

*Assets:*

TFSA - $131,767.94
RRSP - $268,373.33
Non-Registered - $519,475.32

Investments = $919,616.59

Cash - $72,005.83

Current termination value of work DB pension - $84,463 (on track to retire at 56 with annual pension of about $62,000 per year)

Vehicle - $7,500

Total - $1,083,585.42

*Liabilities*

Rent: $1,000
Cable/Internet - $150

Current net worth - $1,082,435.42


----------



## Fisherman30 (Dec 5, 2018)

Great job, Johnny. Awesome to see.


----------



## Johnny199r (May 20, 2014)

It's important to be consistent with these updates in good times and bad, in my opinion.
Obviously the market is down, but that's fine with me, it will come up eventually.

My wife is talking about maybe buying a home when our lease expires in December. She wants to have her mom move in with us. Financially, it makes sense as she would be paying her mom's rent ($1900) along with her portion of our rent ($1000). Our budget will be around $550,000. I get the impression my wife has $0 to contribute to a down payment right now......which is something else. We make the exact same salary and yet she never seems to have money as she is always helping her relatives who are idiotic with money and go from one disaster to the next. I will never understand it. Cultural differences.

We have our Italy trip booked in August. Not looking forward to the inevitable flight delays that are widespread. I'm also going to visit my family in N.S for a week for some cottage time and going mountain biking in the U.S for a weekend with my buddy to complete my month off.
I last took a day off in September of 2021. I haven't used a sick day since 2016/2017 when I used one day.

I've been cycling to work about 4 days a week. I love it. It's so much better than driving. I'm also finally losing my gut, due to also eating a bit better.

*Assets:*

TFSA - $119,585.59
RRSP - $240,228.58
Non-Registered - $467,687.53

Investments = $827,501.70

Cash - $85, 721.62

Current termination value of work DB pension - $92,077 (on track to retire at 56 with annual pension of about $62,000 per year)

Vehicle - $7,500

Total - $1,005,300.32

*Liabilities*

Rent: $1,000
Cable/Internet - $150

Current net worth - $1,004,150.32


----------



## londoncalling (Sep 17, 2011)

Congrats on the improvements regarding a healthier lifestyle. Once the actions become engrained habits its amazing how easy it becomes. Keep up the good work.


----------



## Johnny199r (May 20, 2014)

The natural tendency is to only update these journal entries when times are good and markets are up. I resist that urge. It's important to provide a true account.

I cycled to work all summer. I continue to do it now, even though it is quite cold in the mornings. I like it so much more than driving. I can't stand the thought of driving to work this winter.

I went to Italy last month. It was my first time in Europe. It was very enjoyable and we had no flight problems. The weather was great, it didn't rain once. We went to Rome, Naples, Amalfi Coast, Capri, Florence, Lido, Milan and Lake Como. We are already thinking of going to Croatia/Slovenia next year or maybe Greece. We like the heat and ability to swim or go to the beach if we desire.

I paid for the trip on my no foreign fee credit card. My wife will just pay my share of the rent for the next few months instead of paying me a lump sum for her share. I won't pay any rent until January. I'm fine with that. I just got 2 - $100 gift certificates from the keg redeemed in credit card points thanks to the trip.

We both got covid for the first time when we got back from our trip. Better after than before our trip. We made full recoveries.

Our winter travel plans include Mexico for 2 weeks in Playa Del Carmen in February and maybe a long weekend in L.A in January (newly announced direct flight from YWG)

My wife did not want to buy a house this fall. We decided to renew our lease instead. I was able to negotiate 1. free parking for the year and 2. one month free rent. We always pay our rent on time and never ask anything of management.

I estimate I'll have around $150k for a down payment if we buy a house next fall. (max budget around $550k - Winnipeg) but I expect prices to fall a bit in the next year. I could always take some dividend cash out of my non registered account if I want a bigger down payment. I will reinvest the dividends I have in my TFSA and RRSP.

Stocks are down, that's fine with me. They'll come back up eventually. Dividends are still rolling in. It should be a big dividend week coming up.

*Assets:*

TFSA - $116,805.14
RRSP - $236,229.99
Non-Registered - $458,069.09

Investments = $811,104.22

Cash - $99,723.69

Current termination value of work DB pension - $97,821 (on track to retire at 56 with annual pension of about $62,000 per year)

Vehicle - $7,500

Total - $1,016,148.91

*Liabilities*

Rent: $1,000
Cable/Internet - $150

Current net worth - $1,014,998.91


----------



## cainvest (May 1, 2013)

Johnny199r said:


> The natural tendency is to only update these journal entries when times are good and markets are up. I resist that urge. It's important to provide a true account.


Yup, not always positive but it's the long game that matters saving for retirement.



Johnny199r said:


> I cycled to work all summer. I continue to do it now, even though it is quite cold in the mornings. I like it so much more than driving. I can't stand the thought of driving to work this winter.


Good job, wish the weather here was a bit better so we could cycle more. They have done fairly well with adding & maintaining the bike paths in most areas.


----------



## bigmoneytalks (Oct 3, 2014)

Johnny199r said:


> The natural tendency is to only update these journal entries when times are good and markets are up. I resist that urge. It's important to provide a true account.
> 
> I cycled to work all summer. I continue to do it now, even though it is quite cold in the mornings. I like it so much more than driving. I can't stand the thought of driving to work this winter.
> 
> ...


I remember you have an aggressive investing strategy, 90% towards equity I believe. Question if you don't mind me asking: a) have you changed your asset mix since then? or are you still at 90% equity? b) if the answer is no, how much are you down this year? c) how are you saving for a downpayment when most of this money is tied up in investments and on the decline?


----------



## Johnny199r (May 20, 2014)

bigmoneytalks said:


> I remember you have an aggressive investing strategy, 90% towards equity I believe. Question if you don't mind me asking: a) have you changed your asset mix since then? or are you still at 90% equity? b) if the answer is no, how much are you down this year? c) how are you saving for a downpayment when most of this money is tied up in investments and on the decline?


a) I have not changed my asset mix. It's actually 100% equity.
b) I believe I'm down from from about $930k to $811k
c) I have 100k in cash, and have no apartment related bills to pay until 2023. I net about $7.2k per month. My only bill each month is cable/internet and buying food. I'll be fine for the down payment. I don't expect to use any money from my investments. Worst case scenario, I will take out some dividend payment money from my non registered account. I won't touch the principle.
d) I have a whole life insurance policy my parents took out on me when I was born. I could cash it out and receive about 18k-19k right now, if I wanted the money for a down payment. (I have better life insurance through my employer). With no kids, it's insane to have 2 life insurance policies.

I'm comfortable with 100% equity asset mix because:
1. Timeline - I'm 39
2. I have a government defined benefit pension
3. I'm disciplined. I'm not tempted to touch my investments. I believe with time, whether it be one or two years, the market will recover.


----------



## bigmoneytalks (Oct 3, 2014)

Johnny199r said:


> a) I have not changed my asset mix. It's actually 100% equity.
> b) I believe I'm down from from about $930k to $811k
> c) I have 100k in cash, and have no apartment related bills to pay until 2023. I net about $7.2k per month. My only bill each month is cable/internet and buying food. I'll be fine for the down payment. I don't expect to use any money from my investments. Worst case scenario, I will take out some dividend payment money from my non registered account. I won't touch the principle.
> d) I have a whole life insurance policy my parents took out on me when I was born. I could cash it out and receive about 18k-19k right now, if I wanted the money for a down payment. (I have better life insurance through my employer). With no kids, it's insane to have 2 life insurance policies.
> ...


So you're.down about 12 percent on all equity portfolio? I'd expected around 18-20 based YTD all equity portfolios. What's your asset mix? Mostly Canadian?

Yes, you're fortunate to have a pension. Let's you take on more risk.


----------



## Johnny199r (May 20, 2014)

*Jan 8, 2023 update*

We booked a trip to Playa Del Carmen Mexico for 2 weeks in February. Looking forward to it.

I put 90k in a 1-year GIC yielding 4.5% in case my spouse wants to buy a house at the end of next year. Our lease runs until then and it was a pretty good, safe return.

I haven't been able to run for a few years due to knee problems. I've been going to physiotherapy for about 6 weeks and following my rehabilitation program religiously and it's going great. I'm back to running, in a slow and deliberate way and expect to be 100% next month. My physiotherapist has been very impressive. I've had some bad ones in the past.

I'm really focusing on losing my gut. I always exercise a lot and am generally in pretty good shape, but have a bit of a stubborn gut. I've been pretty militant with my diet lately, cutting out pop and bad food. Now that I'm just about 40, unlimited working out doesn't cancel out poor eating habits.

I'm seeing noticeable results. It's taken a lot of discipline, but that's fine with me.

Plans this summer are to book a trip to Europe. We're thinking potentially Croatia or Greece.

Trying to get my spouse to contribute to her investment accounts over the last 2 years has been challenging. I think she's been helping her family members quite a bit and doesn't really want to discuss the subject with me. We make the same salary, but she seems to be spending every penny that comes in.

On the other hand, she has an interview for a job that will double her salary. It's very competitive, and she didn't get the position the last time she interviewed for it, so fingers crossed this time, but it's always really, really tough to land this sought-after position with tons of applicants.

I opened up a new CIBC infinite VISA due to the nice welcome bonus and am sitting at about 102,000 aeroplan points (and counting) which I plan to use to upgrade to first class for our Europe trip.

*Assets:*

TFSA - $132,432.92
RRSP - $254,420.11
Non-Registered - $489,846.24

Investments = $876,699.27

1 year GIC @ 4.5% taken out in November 2022 - $90,653.62

Cash - $20,850.40

Current termination value of work DB pension - $103,836 (on track to retire at 56 with an annual pension of about $62,000 per year)

Vehicle - $7,500

Total - $1,099,539.29

*Liabilities*

Rent: $1,100

Cable/Internet - $150

*Current net worth - $1,098,289.29*


----------



## jlunfirst (1 mo ago)

Regardless of whether or not your spouse gets that better paying job for herself, she might not necessarily see same priorities as you --yet. However it might be useful to ask an open-ended question, what she hopes her family member(s) will do (soon) to help themselves. You may not know past family relationships situations at all, where there may be 1-2 members worth helping out -short-term.

I understand she may not want discuss it with you because it may be thought others, would not understand the whole historic arc of family relationships and dynamics. So rather than focus for now on what money she could contribute, is have friendly chats how she feels about certain family members that she is helping. It is suggested not to even discuss money she is giving/loaning others at beginning. Always support her willingness to be helpful but explore how else she could help besides in large monetary ways. It becomes more complex if her family members live in another city/faraway where she can't be there in person. You must learn to keep mouth shut, be willing to listen to her ..for a long time. Because it may take awhile.

*In my opinion, this why I've posted topics, that are broader than just understanding taxation rules, numeric figures, and other purely mechanical means about money. How we spend, save and invest money, are powerfully driven by our personal values, our personal relationships with those who we love, how we were raised in family, our lifestyle habits through each life stage.*

Sometimes we use money in our personal relationships, too long to solve problems, instead of giving/loaning money give a person boost to become better themselves via new skills, stop unhealthy addiction and or adopt a new activity to become healthier, etc.

However there is point in life, towards the end, when the person is genuinely physically dependent which creates a serious quandary for the whole family.


----------



## Forebiz (May 31, 2018)

It's interesting what you consider liabilities to be. I'd personally consider rent/utilities (amongst other things) part of a monthly budget or monthly spend. Congratulations on making it to the first million, the next one will be far easier especially if you keep your expenses so low.


----------



## Thal81 (Sep 5, 2017)

Liabilities should be things like mortgage left in the house, other debts like car loan, student loan or a large credit card balance that you aren't able to pay monthly. What you included as liabilities is just some of your monthly expenses, they don't belong there.


----------

