# How am I doing/How Can I Do Better?



## Pennypincher (Dec 3, 2012)

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## the-royal-mail (Dec 11, 2009)

Wow. Can I take lessons from you?


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## peterk (May 16, 2010)

Sounds pretty sweet!
Are you both going to have full time jobs continuing into the future, or is one going to quit/go part time for the kids? What's your savings rate? Can you cut back on expenses on things that you think you want right now but will realize were a waste of money 5 years in the future?

I'm sure if you have specific investing/allocation questions the forum will be able to help you out.

Welcome!


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## MoneyGal (Apr 24, 2009)

Pennypincher said:


> Basically, we are wondering how to grow money and where to save it. I think we are doing pretty well, but we want to do even better.


Your username seems right. Actually pennymultiplier might be even better. 

It's hard to provide commentary on where to save/"how to grow money" when you've provided no detail about your current asset allocation and holdings, rate of return, expected rate of return, desired retirement date, desired income in retirement, etc. 

From a balance-sheet persepective, you're doing phenomenally.


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## Sampson (Apr 3, 2009)

No Cash?

Lots of wealth tied up in your home and much of your liquid assets in your Pension/RRSPs. I am guessing you focused on paying down the mortgage? 

I suspect you have free cash flow of $50,000-$70,000 per year, but little experience with investing. Make sure you define clear objectives and required rates of return on your investments, then take only as much risk as you need to reach those goals while being able to sleep at night.

I would make sure to top up your TFSAs and RESPs since those are not maximized.

I make the assumption that you have little investment experience (due to the distribution of your wealth), may not be true, but it doesn't hurt to read and understand what you are trying to achieve. There is a thread, 8 with weight that lists some very fundamental books and resources to get started.

Great job and good luck.


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## Pennypincher (Dec 3, 2012)

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## Sampson (Apr 3, 2009)

Seems like the $50,000 per annum is pretty close.

Check out one of the model 'couch potato' threads and sample portfolios. It would be wise, if necessary to reach your objectives, to wade back into equity markets using a simple, balanced approach. Start out with a more conservative portfolio if you feel it is necessary (and you will not experience 2008 like swings), but over the long term, since you are relatively young, you will need that equity allocation for you monies to grow. I think it is good to simply keep monies as cash, and slowly get into the investing as you read more and more. Alternatively, you could seek the guidance of a financial advisor whom focuses on simplicity, but make sure you have a good understanding of your objectives and what strategies are necessary beforehand, otherwise you will end up with the same basket of investments that TD currently sells to you.


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## Pennypincher (Dec 3, 2012)

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## Pennypincher (Dec 3, 2012)

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## Young&Ambitious (Aug 11, 2010)

Good thoughts on the insurance. Making sure you two have life, disability and critical illness will be very important in consideration of your assets, children, and reliance on dual income. 

Some info that has been left out is ages, planned retirement ages, and do you have some ideas of how much you will need to save for your retirement? It may be a long way out but starting to think about the numbers is good.


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## Sampson (Apr 3, 2009)

I highly suggest the couch potato strategy. It will take a little of effort to understand how it works, but after that, it will be perfect for you, hands-off approach, simple rebalancing annually or semi-annually.

Two terrific sites to learn are:
http://www.canadiancapitalist.com/
http://canadiancouchpotato.com/


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## My Own Advisor (Sep 24, 2012)

Other than getting along a bit better with DIY investing, using indexing as your tool as Sampson points out, you're well on your way. 

Congrats on getting this far, this fast pennypincher. Although I have no data to back this up, you're probably in the 1% of the financially-I've-got-my-act-together 30-somethings.


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## Jon_Snow (May 20, 2009)

I was tempted to stop reading the original post when I saw the 16k monthly income.

Very hard to screw things up with this type of income, IMHO.


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## Barwelle (Feb 23, 2011)

Jon: You've heard of lifestyle inflation, right? 

http://www.torontolife.com/daily/informer/from-print-edition-informer/2012/02/15/almost-rich/


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## Pennypincher (Dec 3, 2012)

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## Guigz (Oct 28, 2010)

Jon_Snow said:


> I was tempted to stop reading the original post when I saw the 16k monthly income.
> 
> Very hard to screw things up with this type of income, IMHO.


Looks like the income is gross, not net. This amounts to 192,000$ per annum. 

Although it is nothing to sneeze at, it is not exactly out of this world considering two earners near their peak earning years.

OP: You are doing good and you will be fine. As long as you manage expenses, retirement should not be a problem for you guys.

Just a note, in some posts, you use the passive voice whilst at other times, you use the active voice. I get that maybe you are trying to protect your identity, but it makes it hard to follow your posts.


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## Pennypincher (Dec 3, 2012)

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## Pennypincher (Dec 3, 2012)

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## Pennypincher (Dec 3, 2012)

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## mind_business (Sep 24, 2011)

Nice work on increasing networth since 2012. Just a comment ... when I look at your assets from 2012 and now, it appears as if you don't have much in TFSA(s) that can be used as an emergency fund. Now with only one spouse working, you might want to have a bit more easily available than having to cash out RRSP(s). Excellent work though. Very impressive.


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## Pennypincher (Dec 3, 2012)

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## peterk (May 16, 2010)

Congrats on the 1M mark!

What is your typical amount of spending for the year?

Also,


Pennypincher said:


> TD Comfort Growth Fund


Customer: I want to grow my investments.
Bank: Well we have this aggressive growth fund that's perfect for you!
Customer: Woa woa. That sounds way too risky for me.
Bank: We can put you in the money market or a bond fund it will be much safer.
Customer: Noooo. I would like to grow my funds, but, you know, in a more _comfortable_ way.
Bank: Ohh - Well isn't today just your lucky day.....

:biggrin:

You are doing great though. Especially if the other spouse goes back to work after a couple years; you guys will be able to retire much earlier than 65. Probably more like 45-50!


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## Pennypincher (Dec 3, 2012)

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## Pennypincher (Dec 3, 2012)

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## Marguerite Gilmore (Apr 10, 2014)

I have a small business. Tell me the strategy that I should have to grow it up...


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## Abbie Darcy (Apr 10, 2014)

I think CToption can help you. You can go for it.


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