# 29yo Diary; Hoping I'm on the right track



## FinancialPanther

Long time lurker, I learned a lot on this forum. Here is my situation:
- 29yo Engineer
- Live with girlfriend; future plans (in the next 5 years): marriage, house, kids.

Expenses (average monthly expenses over last year):
- Rent: $600 (my half).
- Bills: $370 (cell phone, hydro, gas, etc).
- Groceries: $300
- Gas: $140
- Leisure/vacations: $650
- Clothes: $100
TOTAL: *$2,160*/month

Main Income (pre-tax): 
- $70k + ~$10k overtime + ~$5k bonus
Other Income (estimated, no tax): 
- Cashback on ~$50-60k travel expenses = $2k/year (TD First Class), Saved Per Diems = ~$2k/year.

Investments:
- Cash: $14,000 (USD + CAD)
- TFSA: $22,150 (I think I have about $8k contribution room left). Consists of mostly TD e-Series, and stock.
- RRSP: $23,000 (=$15k in TD Comfort Mutual Fund, $8k in work matched (2%) RBC Mutual fund. Both high MERs...)
- TD Waterhouse Stocks: $41,100 (Energy, REIT, Banks)
- Mutual Funds: $1,800 (TD Comfort from long time ago)
- Pension: $550 (from part time job 12 years ago...)
- Loan: $6200 (to girlfriend, interest free to help with student loans).
TOTAL: *$108,800*

Liabilities:
- None.

Thoughts:
- I want to avoid putting too much in RRSP, to keep my options flexible when buying a house (max. $25k HBP).
- I have a lot of cash, but that swings since I need to pay expenses for work before they are reimbursed at times.
- Marriage means merging finances with girlfriend; she makes $43k, and has about $20k loans (including the $6200 loan from me).
- I have much to do in optimizing my investments, add more to TFSA, get rid of high MER mutual funds.

Any advice or comments would be much appreciated!


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## MoneyGal

Hey FP: nice work on the savings so far. 

One project that I think would be worth your time - figure out your current asset allocation, and your desired asset allocation. Hive off the short-term funds (for house downpayment) and figure out where you're going to hold them, then focus on an asset allocation for your longer-term holdings. 

Amalgamate your longer-term holdings as much as possible. That little $1.8K in "TD Comfort Funds" - is that an unreg account? Can you sell the funds and merge the cash into one of your other accounts, whether RRSP or TFSA? 

(My advice: don't think about or track the pension worth $550.)

Then, once you have your desired asset allocation and your desired asset locations worked out and your accounts amalgamated as much as possible, implement your desired asset allocation across your accounts. 

Final step: set up automatic contributions to your accounts in accordance with your desired asset allocation. Voila! You have automated your savings.


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## My Own Advisor

Nice work FinancialPanther. Good name for a long time lurker.... 

I echo much of what MG wrote. She's pretty darn smart so follow her advice...

As for investments, I'd keep focusing on the TFSA, maxing that out sooner than later and get your money working for you to buy that house if you want in a few years. TD e-series is a good way to play that. 

Regarding RRSP, get out high MER stuff as soon as you can and rid yourself of that small amount in TD Comfort Funds if you can/consolidate with TFSA or RRSP. Get a self-directed RRSP once you have over $25,000 in there to avoid account fees. Then, pick a few solid ETFs, XIU or XIC for Canada, or VTI for U.S. holdings and maybe an international ETF. Then, let it ride.

Keep those CDN stocks unregistered. Capital gains and dividends are taxed favourably and should serve you well long term.

Keep a chequing account for daily expenses and some savings. 4 accounts, all with a defined purpose and plan.

Overall, you're doing very well. Kudos to you.


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## FinancialPanther

Thanks for the feedback.

My immediate plans are to sell off all my high MER, Comfort Mutual Funds. Then max out my TFSA after I figure out exactly how much room I have left. 

MoneyGal: Can you expand on setting automatic contributions (I use TD)? Would this mean only using no-fee mutual funds (ie e-Series); I assume this does not mean buying individual stocks, since I'd be charged with commission every time.

My Own Advisor: I'll have to look into some of those ETFs. I keep seeing those referenced on this forum, and the MERs seem nice and low. 

I'll also transfer my RBC RRSP in kind to my TD account (I hope I can do that), which should bring to my $25k no-fee threshold.

Part of the reason for doing this diary is for the motivation to make these changes 

Some more info on stock holdings, I hold CM, WCP (up ~50%, TFSA), LNV (down ~30%), COS, CPG, REI.UN, AX.UN. Nothing is DRIPing now, I'll have to change that too.


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## rd_aaron

I am extremely disapointed in myself for not thinking of "FinancialPanther" for my own user name. Get him Sheeba!

Everything looks pretty good. My only suggestion right now is to set up an automatic withdrawal every paycheque to your TFSA or whatever saving mechanism you want to use. You'll never miss that money if it never hits your account.


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## KrissyFair

That's seriously impressive savings so far!

We also have work-matched RBC RRSPs. The high MERs are a total drag, but the $30 per transaction fee to buy anything other than mutual funds would be worse. Get the most employer match you can and worry about the MERs once you hit their $50k threshold. 

One other thing - for rent, you put that your HALF is $600. If you make double what your girlfriend does it would be much more fair to split the expenses proportionally (i.e. 1/3 for her, 2/3 for you). It's going to be really hard for her to pay off her loans if she's paying for half of a lifestyle that's suited to a higher income. If/when you get married, her loans will be amalgamated into your finances anyway, so if you start setting up your finances a bit more fairly now (without actually joining them) then she'll be able to make a bigger dent in that number ahead of time and you'll both feel better about it.


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## FinancialPanther

KrissyFair said:


> That's seriously impressive savings so far!
> 
> We also have work-matched RBC RRSPs. The high MERs are a total drag, but the $30 per transaction fee to buy anything other than mutual funds would be worse. Get the most employer match you can and worry about the MERs once you hit their $50k threshold.
> 
> One other thing - for rent, you put that your HALF is $600. If you make double what your girlfriend does it would be much more fair to split the expenses proportionally (i.e. 1/3 for her, 2/3 for you). It's going to be really hard for her to pay off her loans if she's paying for half of a lifestyle that's suited to a higher income. If/when you get married, her loans will be amalgamated into your finances anyway, so if you start setting up your finances a bit more fairly now (without actually joining them) then she'll be able to make a bigger dent in that number ahead of time and you'll both feel better about it.


I split the rent in half with my girlfriend, but I pay for the gas ($25/month), hydro ($45/month), and groceries ($300/month), and the bulk of entertainment, so I think it's pretty fair.

Also, I just sold that $1,800 worth of mutual funds. My next step is to recover my CRA password and see how much TFSA contribution room I have, then transfer that cash in.


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## james4beach

I'm in a very similar situation to you personally, with age, income, and expenses 

I think you need more cash (in a high interest savings account, something like PC Financial at 1.35% or maybe a credit union at 1.7%).

My advice is to hoard more cash, which you'll need in case of job loss. Your girlfriend doesn't have very high income, and she's got debt.

Your 'investments' won't do you much good in case of job loss because economic conditions which kill your job may also kill your investments. Having to liquidate your stocks & funds during job loss will absolutely destroy your returns. Stock based investments have to remain invested for long periods (at least 10 years) to produce good returns.

This is why you need *more CASH*. I would start by hoarding 1 years expenses (2160x12 = $26,000) and work on improving that hoard further up towards 2 years of expenses.

As you build up that 2 year cushion, you can put some of it into GICs which will get you a higher interest rate. Having sufficient cash reserves lets you not only feel better and more confident about your job (since you're less desperate) but also lets you comfortably invest in stocks and higher risk things, knowing that you won't have to liquidate and tap into those things due to emergency.


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## FinancialPanther

james4beach said:


> I'm in a very similar situation to you personally, with age, income, and expenses
> 
> I think you need more cash (in a high interest savings account, something like PC Financial at 1.35% or maybe a credit union at 1.7%).
> 
> My advice is to hoard more cash, which you'll need in case of job loss. Your girlfriend doesn't have very high income, and she's got debt.
> 
> Your 'investments' won't do you much good in case of job loss because economic conditions which kill your job may also kill your investments. Having to liquidate your stocks & funds during job loss will absolutely destroy your returns. Stock based investments have to remain invested for long periods (at least 10 years) to produce good returns.
> 
> This is why you need *more CASH*. I would start by hoarding 1 years expenses (2160x12 = $26,000) and work on improving that hoard further up towards 2 years of expenses.
> 
> As you build up that 2 year cushion, you can put some of it into GICs which will get you a higher interest rate. Having sufficient cash reserves lets you not only feel better and more confident about your job (since you're less desperate) but also lets you comfortably invest in stocks and higher risk things, knowing that you won't have to liquidate and tap into those things due to emergency.


Hoard that much cash? I lose out on ~$3k of growth every year by doing that! Higher rate GICs? I see I can get a piddly 2.25% if I lock in my money for 5 years (where I would have to take a penalty if I lost my job in a year). 

I'm open for comments regarding this, but my feelings are that I can afford to take on more risk and grow my money through stocks and ETFs (maybe a small bond position) rather than savings accounts and GICs.


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## MoneyGal

There's no consensus on this board or generally that people need one year of living expenses held in cash. I don't hold any cash except accidentally.


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## the-royal-mail

FinancialPanther, it is not necessary to quote everything you reply to. We've already read it!

Also, I agree with james4beach about saving cash. Everyone needs an emergency fund. If you're so desperate to invest, save separate funds over and above emergency funds for that.


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## KrissyFair

@FP you're right, that does sound fair  I didn't mean to jump on it, but I was in your girlfriend's shoes so it's something I notice.

I'm with MoneyGal on the cash thing. If you want to buy a house in 12 months, that's a pretty good reason to have a ton of cash. The risk that the poop hits the fan and both of you suddenly become unemployed AND all of your assets evaporate all at the same time is not that great a reason (to me) to forgo the return potential. But here's an idea for where to put your cash that's a little unconventional - keep floats in your chequing accounts. TD's middle of the road account costs $130 a year, but that gets waived if you keep a minimum of $2500 in it. That's over 5%. If you need an even more expensive account, the savings get even better.


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## Young&Ambitious

I keep my cushion with People's Trust. No fees, not locked in and I get 1.9%. http://www.peoplestrust.com/high-interest-accounts/savings-accounts/e-savings/

The "how much is enough" gets tossed around plenty. At the end of the day, choose a number that you feel comfortable with and makes sense for your situation.


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## FinancialPanther

@The-royal-mail: I'll stop quoting, thanks.

@KrissyFair: I use TD Select Service, so I keep the $5k minimum to waive all fees, including credit card annual fee. I suppose this would act as an emergency fund if need be.

If I lost my job, my monthly expenses would drop significantly from $2160; -$650 leisure, partial -$140 gas, partial -$100 clothes, partial -$300 food. If I was unemployed for a prolonged time, I would move back in with my parents, which would -$600 rent and partial -$370 bills.


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## KrissyFair

So there you go. If your leisure and clothes disappeared that $5k float would amount to 3.5 months expenses. I'd be comfortable with that as an emergency fund, especially since you've got a partner and parents to help you out of a jam too.


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## james4beach

That's fine (if your expenses drop in case of job loss). As long as you're prepared for the possibility of losing your job and potentially taking a while to find a new one.


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## the-royal-mail

You cannot presume that parents will be willing/able to help and the partner may bail as well. When the going gets tough...

3.5 months is not a sufficient amount of money for emergency fund, esp since said fund depends upon leisure and clothing expenses disappearing. This is a real stretch. Most people should have 6-12 months of living expenses saved, in cash, ready to deploy on a moment's notice. A emergency plan with this many assumptions is simply too weak. Better revisit.


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## none

What's the problem with using a line of credit as a form of emergency fund?

I mean you can always sell things in the TFSA - it might not be ideal time - but it might be and even if it's not it's probably not going to be too bad.

Also, as an engineer I think job security is probably pretty high - having tap tier employment insurance, and access to TFSA money if necessary and a secured line of credit I think is more than sufficient for an emergency fund.


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## FinancialPanther

I'm a little surprised at the recommendations for a large emergency fund. I'm more in the mindset of @none, for now, I could use a LOC or liquidate investments if need be (even if they lose 50%, I'd have enough for a long time in the most extreme emergencies).

@the-royal-mail: An emergency plan with that many assumptions may be weak, but I believe that the flipside is true too. Preparing for the worst (my investments failing, losing my job, losing my girlfriend's job, and being unemployed for a long period of time) at the expense of $thousands of potential income per year seems like a waste of investment income. Especially considering that I'm in a good career and industry in a growing company, and am young and marketable, and have no debts to service. I guess it's a personal risk I'm willing to take for the potential $thousands of returns annually. Like @MoneyGal says, there's no consensus for the amount of cash someone should have, so I suppose it's up the personal risk I'm willing to take.

It is something to think about though, thanks, especially as my financial and family situation changes in the near future (buy house, start a family). I'll revisit my risk level as these events happen.


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## HaroldCrump

FinancialPanther said:


> so I suppose it's up the personal risk I'm willing to take.


Yes, in the end, that is what it boils down to ultimately.
You have to assess your risk factor.
That depends on many factors - the security of your job, the security of the investments you are making, your social safety net (family, friends, etc.).
But keep in mind that many people over-estimate their risk tolerance (not just for investments, but for personal finance situation as well).
When s*th hits the fan, that is when they realize what their true risk tolerance in.

Remember - Misery likes company, and Murphy is alive and well.

There is no question it is about balance.
On the one extreme, you can throw caution to the wind and invest every last penny in risky stocks.
On the other extreme, you can stuff all your money into a mattress and live like a hermit.

Regarding the case for using an LOC as an emergency fund - this works only for small emergencies and for small amounts.
And it works if you have a regular income stream coming in, such as a job.
You need to pay monthly interest on the LOC, no?
So you need a regular income source.
If not, you will then end up borrowing from a credit card to pay the LOC and vice versa.
That Ponzi scheme will collapse fast.

In the case of job loss or other large emergency, it is an indeterminate duration and amount.
It is not wise (IMO) to borrow large amounts from an LOC for indefinite periods of time.
It can be kept as a last resort, but not as the first line of defense.
If an LOC is your first and only line of defense, you are stretched too thin.

Now, there _may_ be other folks, in different stages of life that can be comfortable using LOC as their first line of defense.
They may have other large assets, which can be liquidated if push comes to shove.
They may have large investments, interests in businesses, rental properties, or lots of equity in their homes they can borrow against.
They will say, yeah sure dude, the LOC is good as an emergency fund.

But you have to evaluate your own situation.



> at the expense of $thousands of potential income per year seems like a waste of investment income.


You have $14K in cash, yeah?
How do you figure you are losing _thousands_ of $ of investment returns every year?
How much RoR are you planning to get? ;o)
Even a 10% annual RoR will get you $1,400 a year (less fees).
Is that a significant enough sum to take on the risk of having no cash emergency funds?

Your net worth is $100K yeah, give or take.
Therefore, the $1,400 a year of investment returns that you are afraid of missing out in represents a mere 1.4% of your net worth.
Ultimately, you have to decide is that's worth it.


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## FinancialPanther

@HaroldCrump: The $thousands estimate was in response to the more extreme recommendations from @james4beach who recommended building 2 years of cash =~$52,000. I figure if I aim to keep ~$10k, that's $42,000 more in cash than what I am aiming for. Keeping it in cash at 1.3% vs ~5% gain = ~$1500 lost income. Vs 8% gain = ~$2800 lost income.


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## KrissyFair

@Harold, I think the thousands in lost returns he was talking about was actually based on the recommendation from James to have 2 years ($52k) sitting in cash. Even at 4% that really would be thousands lost.

@FP you've got a lot of assets right now in relation to your financial responsibilities. If your girlfriend were actually your wife and was on mat leave, then you'd want more cash on hand. Since that's in the near future I'd totally lean toward an 'invest to save' approach. Put everything into something with good yield. Make sure it's not in an RSP so you can get the yield out, then hoard the dividends into a savings account. As it stands today, that's a risk you can take. By the time you've got the mortgage and kids, you'll have built up the cash without sacrificing the earning potential.


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## HaroldCrump

FinancialPanther said:


> @HaroldCrump: The $thousands estimate was in response to the more extreme recommendations from @james4beach who recommended building 2 years of cash =~$52,000.


OK, sorry, I didn't see that it referred to 2 years of cash.
I can understand why it appears excessive to you.
2 years would indeed be extreme for most folks.
You can do 6 months or 1 year.

The other aspect is that you should try and reduce the number of emergencies you are self-insuring for (an emergency fund - cash or investments - is essentially self insurance).
You can transfer the emergency to an insurance company by using various types of insurance for each risk.
Such as getting $2M auto insurance for liability, disability insurance for own job, critical illness insurance, etc.
Of course, there should be a balance - don't go crazy buying all sorts of insurance either.

Decide what your key risk factors are and insure against them.
Then decide how much cash savings you need for the remaining risks (such as the difference between your annual expenses and your EI eligible amount).

You can't save for unknown and indeterminate risks, so don't sweat it.


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## james4beach

KrissyFair said:


> @Harold, I think the thousands in lost returns he was talking about was actually based on the recommendation from James to have 2 years ($52k) sitting in cash. Even at 4% that really would be thousands lost.


My 2 year ($52k) cash reserve idea may also *save* you thousands, if the markets were to tank (as they have twice in the last 13 years). Also there have been very long periods recently where stock markets basically matched, or trailed, cash/GIC returns ... so I don't think it's as big a sacrifice as you're making it out to seem.


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## james4beach

Hi everyone, I understand that 2 years of expenses in a savings accounts sounds really excessive. Maybe it's way too much, for his situation. Especially if (as mentioned) he would be eligible for employment insurance in case of job loss.

I still think 1 year of expenses is a good amount to shoot for. There is no hard rule for this kind of thing.

If you were self-employed or had highly volatile income (as I do), then I would still suggest more than 1 year.

But it's really impossible to know what will come up in life. This is why I endorse having a large savings account. Especially for young guys like me & OP, it's hard to imagine what kinds of things will happen to you (because we still think life is simple and we're invincible). For instance I had a relative come down with a serious illness, and found myself traveling a lot more to visit and provide support. Obviously this was totally unforeseen. As a result, my income suffered a bit and with the added stress I eventually had to leave my job. You can't get EI when you quit your job... so in my case, having over 1 year of expenses saved up was really great.

When you're trying to expect the unexpected, you generally need more cash than you expect you'll need 

Also, while the line of credit is certainly an option in lieu of cash/savings, I don't think it's the best idea. Lines of credit are callable loans (as I recall both on secured and unsecured loans)... meaning the lender can suddenly demand their money back or reduce the credit limit. And again this is more likely to happen in bad economic times or economic crisis, the same time you're likely to lose your job and may desperately need the money. This did happen to American borrowers in 2008. It's a real danger.

If the idea of a big cash fund causes you pain, here's something nice about it: as your total wealth grows, the cash for emergencies stays relatively constant. For instance with 100k net worth, sure 26k seems like a lot. But if you're sticking with the 1 yr idea (26k) before you know it your net worth will be 200k, then 300k, and suddenly your emergency fund is less than 10% of your net worth and really a non-issue. Yet it's potent as ever to save you in case of disaster. This is all good news.


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## james4beach

FinancialPanther: another thought on the emergency fund. As I understand it, your main hesitation is the _lost returns versus stocks_, due to cash sitting in a savings account at such low rates like 1.3%

The line of credit is one idea, so that you're not losing returns on that money. But it has the danger that these are callable loans, and limits can be reduced on you suddenly.

Another idea is holding a GIC, provided it has a cashable option. (This article talks a bit about this.) For instance Outlook Financial's 5 year GIC earns 2.7% and is cashable (with penalty obviously; rate goes down to 1%). Here's the logic on this one. You expect that it's very unlikely you will need to use this emergency fund at all. So maybe that penalty rate is acceptable. And if it's unused, you're earning 2.7%.

Now that 'lost performance' calculation is more favourable ... for instance stocks @ 4% versus GIC @ 2.7% for the 26k amount, you're potentially missing out on $338 a year. Not too bad. And since you're pretty confident you won't need the emergency fund anyway, you're pretty much going to earn that full 2.7% return.


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## FinancialPanther

@james4beach: Thanks for the posts and your POV. A 5 year GIC or something similar (bonds? I don't know much about them) may be something I will use to hedge against stock losses. 

But basically, a large cash position for me is useful to hedge against stock market losses. All my investments are fairly liquid, where I can get access to my money in 1-2 days. In your example where you had a relative come down with illness, you could have just as easily cashed some stocks.

To outline my risk assessment, I feel that the chances of the market tanking + losing my job simultaneously is low. I could ride out any of these situations individually without a problem. In case of this happening, I could reduce my expenses by ~$1k/month (I wouldn't be going to the bars or vacations or eating lavish meals or driving a lot if I was broke), which would stretch that $5k to 3 months, $10k to over 6 months. I would probably get some sort of severance, which would add to my cash position. I would get all of my bank time cashed out (currently at about 60 hours or so). I would get EI which would give me some income (how much does EI give you anyway?). I have no debts to service. I could still cash out my stocks, even if the value is greatly reduced. In case of a personal accident, I have some insurance from work, and I believe the TD Credit Card has some sort of insurances also.

Considering all this, I could probably stretch $5k to 6 months, and $10k to about 1 year as is. As mentioned before, if this was prolonged, I would move back in with my parents, saving me another ~800/month.

So all in all, I think I'm covered pretty well. Of course, this will all change when I start a family and buy a house, which I totally agree I would need a larger emergency fund. But I'll do that when I get to that point.


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## HaroldCrump

FinancialPanther said:


> Of course, this will all change when I start a family and buy a house, which I totally agree I would need a larger emergency fund. But I'll do that when I get to that point.


Keep in mind that (at your current income & expenses level), it will take you several years to save $52K.
Same for house down payment.
Even for a CMHC insured home, say you have to pay 10% down, that is another $50K assuming average SFH prices.


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## supperfly17

My Own Advisor said:


> Nice work FinancialPanther. Good name for a long time lurker....
> 
> I echo much of what MG wrote. She's pretty darn smart so follow her advice...
> 
> As for investments, I'd keep focusing on the TFSA, maxing that out sooner than later and get your money working for you to buy that house if you want in a few years. TD e-series is a good way to play that.
> 
> Regarding RRSP, get out high MER stuff as soon as you can and rid yourself of that small amount in TD Comfort Funds if you can/consolidate with TFSA or RRSP. Get a self-directed RRSP once you have over $25,000 in there to avoid account fees. Then, pick a few solid ETFs, XIU or XIC for Canada, or VTI for U.S. holdings and maybe an international ETF. Then, let it ride.
> 
> Keep those CDN stocks unregistered. Capital gains and dividends are taxed favourably and should serve you well long term.
> 
> Keep a chequing account for daily expenses and some savings. 4 accounts, all with a defined purpose and plan.
> 
> Overall, you're doing very well. Kudos to you.


I am just confused a bit here. Isnt it better to keep cdn stocks in a tfsa because of the tax shelter, rather then keeping them in an unregistered account?


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## none

If you have have room it's always better to have things tax sheltered. If , however, your RRSP and TFSA's are filled up you put all of your Canadian stuff in your non-registered account.


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## My Own Advisor

Agreed.


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## FinancialPanther

Main Income (pre-tax): 
- $71.4k + ~$10k overtime + $6k bonus
Other Income (estimated, no tax): 
- Cashback on ~$50-60k travel expenses = $2k/year (TD First Class), Saved Per Diems = ~$2k/year.

Investments:
- Cash: $18,240 (USD + CAD)
- TFSA: $33,666. Consists of mostly TD e-Series, and stock.
- RRSP: $24,350 (=$15.8k in TD Comfort Mutual Fund, $8.5k in work matched (2%) RBC Mutual fund. Both high MERs...)
- TD Waterhouse Stocks: $43,800 (Energy, REIT, Banks, cash)
- Pension: $550 (from part time job 12 years ago...)
- Loan: $4400 (to girlfriend, interest free to help with student loans).
TOTAL: *$125,006*

This is a $14,706 increase ($3676/month) from my first post. I am happy with this.

- Since my last update, I sold off my unregistered high MER mutual funds, and bought $5k of CM (which is up ~10% + 2 dividends since I got it).
- I got a small raise and $6k bonus.
- I contributed $9k to my TFSA (CRA website said I had $9700 contribution room left). Bought $6k of oil stock, which is up ~12%.
- Relatively high spending during the summer, but also a lot of overtime and travelling.
- My cash position ($18,240 + ~$10k of Waterhouse portfolio) is fairly high in my opinion; I think $15k is good enough.
- I may have to buy a car in the next month or so.

All in all, I am happy with the progress.


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## FinancialPanther

Main Income (pre-tax): 
- $71.4k + ~$10k overtime + $6k bonus
Other Income (estimated, no tax): 
- Cashback on ~$50-60k travel expenses = $2k/year (TD First Class), Saved Per Diems = ~$2k/year.

Investments:
- Cash: $17,006 (USD + CAD)
- TFSA: $38,054 Consists of mostly TD e-Series, and stock. Bought some new stock, still have room left.
- RRSP: $27,215 (=$16,415k in TD Comfort Mutual Fund, $10.8k in work matched (2%) RBC Mutual fund. Both high MERs...)
- TD Waterhouse Stocks: $48,659 (Energy, REIT, Banks, cash)
- Pension: $550 (from part time job 12 years ago...)
- Loan: $3800 (to girlfriend, interest free to help with student loans).
TOTAL: *$135,284*

Increase of $10,278 in about 3 months ($3426/month) since my last update.

- I bought some more stock (oil sands)
- No rent raise for the next 6 months! Happy about that.
- No overtime since last update. Higher than usual Christmas spending.
- Contributed $2500 to TFSA, so I have at least $3k left 2014. I'm not sure how much room I have left from previous years, since CRA is not up to date.
- I still have a lot of cash. Looking for buying opportunities and to diversify from oil (which has been good, but I am weighted too high IMO.
- Do not need to buy a car at this time.
- 2013 was my first real year for dividends and is when I bought the majority of my stock, so I am curious how much taxes I will owe. I will most likely offset this with RRSP contribution, and eventually migrate all my RRSP over to Waterhouse so I can invest in US stocks without worrying about withholding tax.


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## FinancialPanther

It's been 2 months, here is another update:
Main Income (pre-tax): 
- $71.4k + ~$10k overtime + $6k bonus
Other Income (estimated, no tax): 
- Cashback on ~$50-60k travel expenses = $2k/year (TD First Class), Saved Per Diems = ~$2k/year.

Investments:
- Cash - CC balance: $10,577 (USD + CAD)
- TFSA: $42,767 Consists of mostly TD e-Series, and stock. Bought some new stock, still have room left.
- RRSP: $31,897 (=$16,897 in TD Comfort Mutual Fund, $2,500 new contribution (unallocated), $12,500 in work matched (2%) RBC Mutual fund. Both high MERs...)
- TD Waterhouse Stocks: $55,213 (Energy, REIT, Banks, cash)
- Pension: $550 (from part time job 12 years ago...)
- Loan: $3150 (to girlfriend, interest free to help with student loans).
TOTAL: *$144,154*

Increase of $8,870 in 2 months ($4425/month) since last update.

- Contributed to my RRSP to offset amount I owed taxes.
- Contributed $3k to TFSA (bought BCE to help round out portfolio... not sure if I like it).
- I have a raise in the works right now.
- Still heavy on cash, my Waterhouse account is still about 15% cash + my cash accounts.


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## ashin1

Awesome stuff, i love seeing this kind of stuff!
best motivation to see other people succeed, and knowing your following the same path
subbed!


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## FinancialPanther

2 months (and 1 week) later, shortly before my 30th birthday. I got a raise at work which is nice. A lot of spending during these 2 months, travel ($1500), gifts ($900), and higher than average going out. The raise basically gives me $600/month after taxes additional cash, +slightly higher automatic RRSP deduction. 

Main Income (pre-tax): 
- $*85*k + ~$10k overtime + $6k bonus (estimated)
Other Income (estimated, no tax): 
- Cashback on ~$25k travel expenses = $500-$1000/year (TD First Class), Saved Per Diems = ~$2k/year.

Investments:
- Cash - CC balance: $13,817 (USD + CAD)
- TFSA: $46,050 Consists of mostly TD e-Series, and stock.
- RRSP: $33,357 (=$17,357 in TD Comfort Mutual Fund, $2,500 new contribution (unallocated), $13,500 in work matched (2%) RBC Mutual fund. Both high MERs...)
- TD Waterhouse Stocks: $57,900 (Energy, REIT, Banks, cash)
- Pension: $550 (from part time job 12 years ago...)
- Loan: $2555 (to girlfriend, interest free to help with student loans).
TOTAL: *$154,229*

Increase of $10,075 in 2.25 months ($4478/month) since last update.

I am looking for buying opportunities, still sitting on a lot of cash in my Waterhouse account... Overall, I'm happy to hit the $150k mark before turning 30.


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## RBull

Congrats on the big raise and on reaching such a high milestone on assets at such a young age. Way to go!


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## cashinstinct

Congrats ! Your progress is great.

One thing to consider if your girlfriend net worth. You did give her an interest loan, but what about her assets ?

If you plan to stay with her long-term, you must think of your finances as a combo. Is she able to save too in investments?

For example, how do you split rent / grocery / other expenses ?

If your assets are growing a lot only for you, you might want to consider paying a bigger share of the monthly expenses based on your possibly higher income.


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## FinancialPanther

Latest update:

Main Income (pre-tax): 
- $85k + ~$10k overtime + $6k bonus (estimated)
Other Income (estimated, no tax): 
- Cashback on ~$25k travel expenses = $500-$1000/year (TD First Class), Saved Per Diems = ~$2k/year.

Investments:
- Cash - CC balance: $15,300 (USD + CAD)
- TFSA: $45,930 Consists of mostly TD e-Series, and stock.
- RRSP: $33,490 (=$17490 in TD Comfort Mutual Fund, $2,500 new contribution (unallocated), $13,500 in work matched (2%) RBC Mutual fund. Both high MERs...)
- TD Waterhouse Stocks: $65175 (Energy, REIT, Banks, cash)
- Pension: $550 (from part time job 12 years ago...)
TOTAL: *$159,795*

An increase of only $5566 over 2 months ($2,783/month). This is due to higher than normal spending in the summer time, and flat markets. I am still looking to allocate some money somewhere, my cash position is big (Cash + around $15k in my TD account). High prices everywhere are making me apprehensive.

@cashinstinct: I am planning to stay with her long term, so I suppose I should think of finances as a combo (which kinda sucks since her net worth is relatively tiny). Marriage is in the conversation now too. Regarding income, she makes ~$50k. Rent is split even, but I pay all bills, groceries, and most entertainment expenses.


----------



## cashinstinct

You pay more expenses than her, makes sense. When you rent, who pays which expenses does not matter too much as long as the totals are reasonable for each partner. (Contrary to mortgage/owner situation).

I understand your pain, my gf's net worth is smaller than mine (lower income, lower prior savings)... I try to think about our finances about as combo (help her to track her net worth, I track mine) and I make sure she has enough savings monthly to invest too. I want her net worth to grow too. Expenses are split accordingly.

Congrats for the great investment savings.


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## FinancialPanther

I have not paid much attention to her finances other than making sure her student loans were being paid off diligently, but those will be paid within the next 2 months or so (huge milestone). The loan I had in my summaries above were due to me consolidating her credit card debt, which saved her a lot of interest payments.

I will take a better look into our combined investment strategy once these pesky loans are done with. I could pay off her loans all at once, but I believe the journey of her paying them off herself will instil a better understanding of debt and money than if I just wiped it off the slate.


----------



## cashinstinct

Yeah she should pay it off herself for sure... it's a huge milestone indeed.

Let her walk before asking her to run 

She does not need to invest huge amounts of money, but she could invest monthly the amounts she used to pay her loans.


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## FinancialPanther

Latest update:

Main Income (pre-tax): 
- $85k + ~$10k overtime + $6k bonus (paid)
Other Income (estimated, no tax): 
- Cashback on ~$25k travel expenses = $500-$1000/year (TD First Class), Saved Per Diems = ~$2k/year.

Investments:
- Cash - CC balance: $18,575.20 (USD + CAD)
- TFSA: $41,434 Consists of mostly TD e-Series, and stock.
- RRSP: $32,905 (=$17204 in TD Comfort Mutual Fund, $2,500 new contribution (unallocated), $13,200 in work matched (2%) RBC Mutual fund. Both high MERs...)
- TD Waterhouse Stocks: $69,663 (Energy, REIT, Banks, cash)
- Pension: $550 (from part time job 12 years ago...)
*TOTAL: $163,127*

An increase of only $3,332 over 2 months ($1,666/month). This is deceiving, since like many others, I am getting smoked in the market, especially all my oil. I had my bonus paid out ($6k before taxes) which helped me stay in the positive. I bought some more stock (mostly enough BNS to DRIP a share per quarter). I am concerned about oil in general with all the news in renewables and how quickly that's developing, along with seemingly everyone ramping up oil production. Looking back, I am happy my cash position is fairly high (about 27% cash, and waterhouse cash positions). I'll probably look into buying more index funds in the near term. Looking forward to USD holding for TD RRSP, so I can finally reform that.

On top of all that, I broke up with my girlfriend.


----------



## cashinstinct

Sorry for your ending relationship. 

For the stock market, the great news for young investors is that we will invest much more in stock markets in the next years, so low prices is not that bad news when accumulating shares, especially when there is $ ready to be invested. It's deceiving when you are used to see high increases in net worth, but as long as great habits are kept...

When there is concerns about a sector, example for oil right now, I often see it as a sign to buy (need further research of course)... When there is no talk about risks in the media, valuation may be too high.


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## FinancialPanther

Latest update:

Main Income (pre-tax): 
- $87k (small raise) + ~$10k overtime + $6k bonus (paid)
Other Income (estimated, no tax): 
- Cashback on ~$25k travel expenses = $500-$1000/year (TD First Class), Saved Per Diems = ~$2k/year.

Cash:
$50,700

Investments:
- TFSA: $37,787 Consists of mostly TD e-Series, and stock.
- RRSP: $31,757 (=$17757 in TD Comfort Mutual Fund, $14,000 in work matched (2%) RBC Mutual fund. Both high MERs...)
- TD Waterhouse Stocks: $37,598 (Energy, REIT, Banks)
- Pension: $600
*TOTAL: $158,424*

This represents a DECREASE over 2 months, mainly due to crashing oil prices. This is right after one of the biggest stock market drops in a while too. I've rearranged my investments to show cash (summarized from all accounts) separate from investments. Right now I am fairly cash heavy, looking to allocate somewhere (not oil lol). There has been more spending than usual during this time, I pay all of my rent now (+$600 per month), and I went on vacation.

I am looking to get more USD and non-Canadian investments.


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## lonewolf

FinancialPanther said:


> I have not paid much attention to her finances other than making sure her student loans were being paid off diligently, but those will be paid within the next 2 months or so (huge milestone). The loan I had in my summaries above were due to me consolidating her credit card debt, which saved her a lot of interest payments.
> 
> I will take a better look into our combined investment strategy once these pesky loans are done with. I could pay off her loans all at once, but I believe the journey of her paying them off herself will instil a better understanding of debt and money than if I just wiped it off the slate.


If you want to stay on track financially long term


Keep an eye on your girlfriends finances if shes in debt she has a problem that will become your problem. I would not make your a girlfriend a partner if she can not go @ least 5 years spending less money then she makes. (Should be able to save 10% a year) I know people that were good with money then they meet someone that lives beyond their means & they both end up in debt. It seams the spender can throw away money faster then the saver/investor can make it. Spending faster then money can be made seems be the path of least resistance.


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## lonewolf

financial panther job well done


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## Plugging Along

^Lone. Maybe you should read the thread a little closer post 43. They are no longer together No need to add salt to a wound


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## FinancialPanther

^Ouch, right in the feels.

The single life is not bad though, every cloud has a silver lining.


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## lonewolf

Thanks Plugging Along never noticed. Sorry Financial Planner never noticed, I think this is a case where less is more.


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## FinancialPanther

Latest update:

Main Income (pre-tax): 
- $87k + ~$10k overtime + ~$6k bonus
Other Income (estimated, no tax): 
- Cashback on ~$15k travel expenses = ~$500/year (TD First Class), Saved Per Diems = ~$2k/year.

Cash:
$55,921

Investments:
- TFSA: $38,557 Consists of mostly TD e-Series, and stock.
- RRSP: $33,209 (=$18,609 in TD Comfort Mutual Fund, $14,600 in work matched (2%) RBC Mutual fund. Both high MERs...)
- TD Waterhouse Stocks: $35,178 (Energy, REIT, Banks)
- Pension: $600
*TOTAL: $163,466*

This represents a decent rebound over 2 months. I'm still expecting some volatility with energy. I went on vacation again, so more spending than usual, although that was offset by OT. Still sucks to see I'm still at the same net worth as October, and it's 4 months later.

I haven't yet bought the USD securities I wanted to, now I'm kicking myself cause of the drop in the $. My priority is to allocate this years TFSA, and allocate some of my cash position.


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## oob

Wow you had a monster year of growing savings relative to your income!


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## FinancialPanther

Latest update (numbers from April 11):

Main Income (pre-tax): 
- $87k + ~$10k overtime + ~$6k bonus
Other Income (estimated, no tax): 
- Cashback on ~$15k travel expenses = ~$500/year (TD First Class), Saved Per Diems = ~$2k/year.

Cash:
$55,401

Investments:
- TFSA: $39,526 Consists of mostly TD e-Series, and stock.
- RRSP: $35,023 (=$19,609 in TD Comfort Mutual Fund, $15,900 in work matched (2%) RBC Mutual fund. Both high MERs...)
- TD Waterhouse Stocks: $41,246 (Energy, REIT, Banks)
- Pension: $720
*TOTAL: $171,917*

Looks like after the onslaught of my oil stocks, things are starting to rise again. These numbers are from April 11, so they are up higher right now actually. I also have a lot of OT coming up, so I am looking forward to a bigger increase for my next update. Cash is still high, I bought some SLF, but I need to by some more stock. I also need to allocate this years TFSA still...


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## FinancialPanther

Latest update (It's been a while):

Main Income (pre-tax): 
- $88.7k + ~$10k overtime + ~$6k bonus
Other Income (estimated, no tax): 
Saved Per Diems = ~$2k/year.

Cash:
$66,300

Investments:
- TFSA: $39,174 Consists of mostly TD e-Series, and stock.
- RRSP: $36,050 (=$18,050 in TD Comfort Mutual Fund, $18,000 in work matched (2%) RBC Mutual fund. Both high MERs...)
- TD Waterhouse Stocks: $35,089 (Energy, REIT, Banks)
- Pension: $720
*TOTAL: $177,333*

Oil is still in the dumps (stocks are down 50% since my last update), but I am pretty heavy cash wise. The OT I mentioned before helped balance out the losses. Cash is very high, with the recent drops, I will try to allocate it. I bought some CHE.UN for TFSA, which promptly dropped. If it wasn't for my bonus and OT, I would've been in the negative over 4 months.


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## MorningCoffee

Great progress! One thing to think about is the opportunity loss of not investing in RRSPs. You have a high marginal tax rate. I get staying flexible, but it's costing you, unless a house is in the near future? You could set up an RRSP account similar to your TFSA with e-series, and reduce taxes.


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## FinancialPanther

Yes, I do have RRSP in my TD account (normal mutual funds, not e-series yet), and RRSP for work. At first, I was thinking about buying a house, but that looks a few years away at this point. Now, I've looking at either filling in the eSeries forms for my generic TD RRSP, or migrating both the TD and work RRSP to a Waterhouse TD account ($25k minimum). I haven't decided which one to do yet, but thanks for the reminder.


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## cashinstinct

I would consider TD Waterhouse RRSP account. You have enough for the 25k minimum.

You can trasnfer amounts from RBC Mutual Fund account to TD Waterhouse. You might have to keep the RBC Account open for work matched 2%, but inform yourself when you can move the $$$ out (maybe needs to be with RBC for some time).

You can buy TD e-series too in TD Waterhouse, that's what I do for weekly purchases...

If you take the time to setup an account, better setup an account that works for both e-series, ETF, stocks, bonds, GICs, etc... future-proof.

____

TD Waterhouse Stocks: $35,089 (Energy, REIT, Banks)" is non-registered? Do you have capital losses?

You could consider selling some of these stocks, take the capital loss, and reinvest this money either in TFSA or RSSP, if you have enough contribution room left. You cannot buy the same stocks for 30 days though....


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## My Own Advisor

You are doing very well...keep it up!


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## FinancialPanther

@cashinstinct YES I have capital losses, everything in the TD Waterhouse line is unregistered. I will make it a priority to move some money around and transfer my RRSP to TD Waterhouse. Hopefully by next week. I need to learn more about how claiming a loss works, but I have enough information to do some research. Thanks, much appreciated!


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## FinancialPanther

Latest update:

Main Income (pre-tax): 
- $88.7k + ~$10k overtime + ~$6k bonus
Other Income (estimated, no tax): 
Saved Per Diems = ~$2k/year.

Cash:
$71,845

Investments:
- TFSA: $41,672 Consists of mostly TD e-Series, and stock.
- RRSP: $39,499 (=$18,496 in TD Comfort Mutual Fund, $18,500 in work matched (2%) RBC Mutual fund, $2503 unallocated. Both high MERs...)
- TD Waterhouse Stocks: $38,680 (Energy, REIT, Banks)
- Pension: $720
*TOTAL: $192,416*

Haven't done much money wise. I moved, so my monthly expenses have decreased by about 50%:

Current Expenses:
- Rent: $0.
- Bills: $Unknown; $150? (cancelled cell phone also)
- Groceries: $300
- Gas: $250 estimated
- Leisure/vacations: $650
- Clothes: $100
TOTAL: $1,450/month

Taking a vacation this month, spending will be high. I need to purchase some securities, my cash is really high (sitting in TDB funds mostly).


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## FinancialPanther

Have not updated in a while. Latest info:

Main Income (pre-tax): 
- $92 + ~$10k overtime + ~$6k bonus
Other Income (estimated, no tax): 
Saved Per Diems = ~$2k/year.

Cash:
$91,578

Investments:
- TFSA: $40,760 Consists of mostly TD e-Series, and stock.
- RRSP: $54788 (=$32910 in TD ESeries, $21,878 in work matched (2%) RBC Mutual fund (high MERs, need to move these))
- TD Waterhouse Stocks: $46,262 (Energy, REIT, Banks)
- Pension: $720
*TOTAL: $234,108*

Since my last update 10 months ago, I moved again with new GF, bought some financials (SLF, MF), switched my RRSP to ESeries and put some more in. I will do my taxes earlier this year before RRSP deadline, and strategically put in an amount to offset highest tax brackets. Had more expenses than usual, new furniture, vacations. I now have a good amount in RRSP, and will move it to Waterhouse when I get a chance, as per the posts above. I will definitely move at least $25k into new securities this week, my cash position is very high.

Current Expenses:
- Rent: $1050.
- Bills: $50
- Groceries: $150 (lowered since GF is vegan)
- Gas: $200 estimated
- Leisure/vacations: $500
- Clothes: $100
TOTAL: $2,050/month


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## FinancialPanther

Main Income (pre-tax): 
- $92 + ~$10k overtime + ~$6k bonus
Other Income (estimated, no tax): 
Saved Per Diems = ~$2k/year.

Cash:
$90,000 (various savings accounts)

Investments:
- TFSA: $57,000 Consists of mostly TD e-Series, and stock.
- RRSP: $60,350 (=$35,350 in TD ESeries, $25,000 in work matched (2%) RBC Mutual fund (high MERs, need to move these))
- TD Waterhouse Stocks: $62,000 (Energy, REIT, Banks)
- Pension: $720
*TOTAL: $270,070*

Since my last update 6 months ago, I bought some more stock (EMA, PWF, and TD in my TFSA). I usually buy in $4k to $8k chunks; my cash position is still really high, I will put in most to index funds, but I hate buying when things are high. $10k of my cash position has been put in RRSP, so I am expecting $3,700 back.

I have spent a lot of money recently (TV, audio equipment, vacation, clothing = $5-6k), which makes the $6k/month increase look pretty damn good considering. The $300k milestone is a big one, I think; it represents $1k/month income using the 4% rule which is nice to visualise.

I am looking into spending some time living in Europe, while the gf gets her masters. I figure it is now or never, and I think it would be good to live outside the GTA; the only issue for me is getting a decent job, so we will see... If anyone has any tips, please share!


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## FinancialPanther

Main Income (pre-tax): 
- $100k + ~$5k bonus
Other Income (estimated, no tax): 
Saved Per Diems = ~$2k/year.

Cash:
$120,594 (various savings accounts, RRSP unallocated)

Investments:
- TFSA: $59,662 Consists of mostly TD e-Series, and stock.
- RRSP: $66,781 (=$36,408 in TD ESeries, $30,381 in work matched (4%) RBC Mutual fund (high MERs, need to move these))
- TD Waterhouse Stocks: $67,982 (Energy, REIT, Banks, Utilities)
- Pension: $720
*TOTAL: $315,747*

I am 33 now, hard to believe I have been doing this for 4 years. Since my last update 7 months ago, I increased my savings by $6525/month, which is great, but misleading. GF went abroad to get her Master's degree, so I moved back home in June, which saved me an additional ~$1200/month. My goal is to get a job in Europe and join her there, and I have been applying (when I have time between work), with limited success (interviews, etc) so far. That is the dream right now..

The biggest issue I have is huge cash position... I keep getting cold feet entering the market as it keeps going up, remembering my high losses when oil sunk... my goal is to reduce this cash position greatly in the next 2-3 months.


----------



## motl

FinancialPanther said:


> The biggest issue I have is huge cash position... I keep getting cold feet entering the market as it keeps going up, remembering my high losses when oil sunk... my goal is to reduce this cash position greatly in the next 2-3 months.



Well consider that if you hadn't had cold feet you'd have made nice gains as the market increases. No reason to think it's going to stop now, and even if it does it really doesn't matter if you don't need the money any time soon. I'm speaking of index funds obviously. Other options in the market could have higher risk of not recovering depending on what you buy.


----------



## FinancialPanther

Main Income (pre-tax): 
- $100k + ~$5k bonus
Other Income (estimated, no tax): 
Saved Per Diems = ~$2k/year.

Cash:
$53,323 (various savings accounts, RRSP unallocated)

Investments:
- TFSA: $69,641 Consists of mostly TD e-Series, and stock.
- RRSP: $82,158 (=$49,054 in ESeries, XEF, $33,104 in work matched (4%) RBC Mutual fund (high MERs, need to move these))
- TD Waterhouse Stocks: $131,565 (Energy, REIT, Banks, Utilities)
- Other: Pension $720, Bitcoin $300
*TOTAL: $337,709*

Finally, I am reducing my hoards of cash! I have bought positions of XAW, XEF (for RRSP) to diversify from CAD, and RY-PR-Z, as well as BP.UN, PZA.UN, ENF. I really like the idea of these index funds, and I will primarily add those for the future, as my "cornerstone". At the same time, I do like seeing dividends and seeing that monthly income grow; it is now >$500/month. My bank and insurance holdings have continued to do well. Net worth has now increased $7,320/month increase since my last update, which is nice!

No change in home situation (rent free) or my moving to Europe dream; still working on that. But in the meantime, I'm happy to see my money grow.


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## FinancialPanther

Main Income (pre-tax): 
- $100k + ~$5k bonus
Other Income (estimated, no tax): 
Saved Per Diems = ~$2k/year.

Cash:
$72,729 (various savings accounts, RRSP unallocated)

Investments:
- TFSA: $69,342 Consists of mostly TD e-Series, and stock.
- RRSP: $84,715 (=$48,120 in ESeries, XEF, $36,595 in work matched (4%) RBC Mutual fund (high MERs, need to move these))
- TD Waterhouse Stocks: $130,615 (Energy, REIT, Banks, XAW, BP.UN, PZA.UN, ENF, Utilities)
- Other: Pension $820, Bitcoin $150, money owed $5000
*TOTAL: $363,371*

So investments have basically been flat since my last update 6 months ago, and my gains are mainly due to accumulating cash. It was definitely a lot worse 1 month ago, so I am glad I am back to flat. Still, I have now crossed the $350k mark, and I should have a bonus coming in a month or 2.

I am writing this from Europe, and my moving here is becoming a strong likelihood. I am looking into getting my MBA here (12 month), hopefully starting Jan 2019 if all goes well. This would cost me a lot of money, however, I feel this would be worth it for the sake of my current and long term happiness and transition to the career path I want. I have a decent nest egg, and I think this has afforded me some risk tolerance. If I stay >$310k by the end of 2019, I would consider that a success.

I am now turning 34; and I am happy with where I am so far. I have read that you need 3x your salary at 40 to meet retirement goals, so being 3.5x at age 34 looks good to me.


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## scorpion_ca

I am also thinking to pursue an MBA next year. How much is the tuition in Europe? Do you need to write a GMAT to get an admission over there? 

I am planning to do it here in Calgary. The tuition is $34k for evening MBA and also require a GMAT score of 550.


----------



## FinancialPanther

Tuition is 40-60k Euro depending on the school, the main program I am looking at is about 44k Euro for a full time program. This is before any grants or scholarships which I hear are quite common here.I wrote the GMAT, got a 680, which is above their average; most schools require it.


----------



## scorpion_ca

Would you mind to share on how you prepared for GMAT? Any specific materials or courses? I haven't started to read any GMAT books yet. There are so many books at the local public library. Don't want to read all of it. How long did you study? What is your lessons learned? TIA...

I don't want to do full time MBA because I don't want to lose my six figures salaried job. Also, our small company doesn't support for executive MBA.


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## FinancialPanther

I borrowed the Official GMAT 2018 book from someone; it was ok in terms of giving an introduction to what each section is. I downloaded the GMATPrep software, went through the prep questions, and googled the ones I didn't know. That took me to GMATClub.com, which is by far the best resource I have seen, with a test prep interface with timer, discussions and explanations on every question I have seen, sorted by type and difficulty, and summaries for everything I need to know. I strongly suggest going there, they even have a section on how to prep.

I specifically got the Manhatten Verbal book as recommended by GMATClub, that went in depth in a way other materials didn't, which helped.

I also watched some YouTube videos when I was lazy and didn't feel like working. They were also really helpful.

In the end, during the actual test I found myself running out of time, and I needed to guess on like ~10 questions; timemanagement is really importan. If I took it again, I'm sure I would score 700+


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## scorpion_ca

Thanks for your detailed explanation.


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## FinancialPanther

Main Income (pre-tax): 
- $102k + ~$3k bonus
Other Income (estimated, no tax): Saved Per Diems = ~$2k/year.

Cash:
$18,437.62 (various savings accounts - credit cards)

Investments:
- TFSA: $70,768.69 (Consists of mostly TD e-Series, and stock.)
- RRSP: $104,050.72 (=$64,566.79 in ESeries, XEF, cash $39,986.86 in work matched (4%) RBC Mutual fund (high MERs, need to move these))
- TD Waterhouse Stocks: $175,425.17 (Energy, REIT, Banks, XAW, BP.UN, PZA.UN, ENF, Utilities)
- Other: Pension $896.21, Bitcoin $150, money owed $6000
- MBA deposit -$6000
*TOTAL: $375,728.41*

I got into my MBA program, and will be moving to Europe in 2019! This will be the next chapter of my life, and I feel like I have a good financial base for whatever happens. I now have 2.5 months of work left before everything changes. 

My goal from June was to end up with $310k after all is said and done; with my current numbers, I don't think that will be a problem. I have ~$53k in tuition left to pay, so I have a decent cushion.


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## scorpion_ca

I just bought Manhattan GMAT books from a lady who is also going to France to do her MBA. A lot of Canadian going to Europe to pursue their MBA.


----------



## FinancialPanther

Main Income (pre-tax): 
- $0k

Spending:
- 3 months rent in 2019: -$4700
*TOTAL: $358,528.21*

Soooo... everything turned to **** since September. Didn't feel like doing a detailed breakdown. My Unregistered investment account is down $23k alone. Not good. I have also received my final paycheck from work; no more work income from here on in for the next year. 

I bought a bit more XAW and XEF last week, will likely buy a bit more if things keep tanking. Sticking to mainly index funds from here on in. I will be paying ~$26k tuition (1/2) in January, but my first 3 months rent is paid. I will also sell some stocks to put against taxes, and also contribute to RRSP; that should hopefully new me a few $k return next year. I should also get ~$10k OSAP for some interest free spending that should last a while.

Not happy, but what can you do...


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## james4beach

Well losses are natural in the current market. Pretty much everyone has seen losses during this year... it's not a disaster. Just an expected part of stock investment. Stocks can go up 20% in a year but they can also go down 40% in a year. And nothing that severe has happened, this is a relatively small amount of stock volatility by historical standards.


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## FinancialPanther

Main Income (pre-tax): 
- $0k

Spending:
- 1/2 Tuition, $26.5K
*TOTAL: $344,619.37*

So I am thankful the market turned back around from those down days of December; I finally timed a XAW and XEF purchase right. Despite paying $26.5K tuition, and living with no income in a foreign country for 2.5 months, my net worth only went down a small amount! This brings me back to my initial goal of ending the year with $310k net worth. Even if that slips to $300k, that's not too bad.

Despite the focus on money in this forum, I am now more focused on planning my future lifestyle and career, figuring what I want to do and where, and having fun doing that; a few k here or there won't break the bank.


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## peterk

Have you managed to get any of that scholarship money you were talking about? Or is that like a next-year thing if you get good grades in your first year?

How's Europe?


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## FinancialPanther

Wow you just reminded me that I didn't account for the OSAP amount I received....I edited the post above... So the numbers aren't as good as I hoped, but still OK.

The program is only 1 year, I received a small scholarship, but there is still a large amount of cash I need to pay. Europe is great! I really like the lifestyle here, walking and biking everywhere, slower pace of life. No regrets.


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## FinancialPanther

Main Income (pre-tax):
- $0k
- $20k gift

Spending:
- 1/2 Tuition, $26.5
- Vacations to Asia (4 weeks), Caribbean Islands, and more.
- Living expenses for 9 months
*TOTAL: $345,898.33*

How quickly a year passes! I finished my MBA abroad, with only a minimal hit to my finances. My goal was to end up with $310k, and even if I take away the $20k gift, I am >$15k under budget. My net worth is better than it was in March, great.

I plan to stay in Europe for now, I find the work-life balance to be exactly what I am looking for. Now, I just need to find the "work" part, and I'll be on my way. And figure out tax implications...


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## scorpion_ca

Congratulations for completing your MBA. I hope you will get a job there soon.


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## FinancialPanther

Main Income:
- New job since May, 75k Euro + 10k Euro stock options

Net Worth:
*TOTAL: ~$320k*

Now post-MBA, I successfully pivoted my career into something else I really like, living in a new place, and I feel lucky that I got a job during COVID. My net worth is down, both because of no income for 1.5 years, and also various stocks suffering during the pandemic. Still, not bad.

In the end, I feel incredibly fortunate that I got to this position, living abroad, doing something I enjoy everyday, taking advantage of the European lifestyle (a lot of vacation days, cheap weekend trips to different countries), which makes me value the idea of FIRE a little less.

I am not sure where this will leave me regarding investing in Europe and net worth for now, but I do expect large tax returns in the next couple years that will help.


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## scorpion_ca

Congratulations on your new job. Would you care to share about your new job and what field did you work while you were in Canada?


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## FinancialPanther

Right now, I am working in finance/tech for an international company. Super exciting, a lot of innovation happening. Before that in Canada, I was working for an engineering services company that served heavy industries, really slow moving, with my career plateauing there..


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## scorpion_ca

I am on the same boat... I work for a small EPC firm and we are not doing good this year. I am tired of seeing ups and downs every couple of years. I would like to work in the finance industry in future. Any suggestion?


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## FinancialPanther

If you are set on finance, an MBA at a finance oriented school may work for you. You mentioned being interested in taking an MBA a couple years ago, it is worth researching what employers hire grads from the schools you are interested in. A low risk first step would be doing your GMAT.


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## FinancialPanther

Main income:
- 75k Euro + 20k Euro stock

Net Worth:
*TOTAL: ~$470k CAD*

The market has rebounded (and then some), which now leads me to my all time high net worth. I am expected to receive pretty large tax refund as well hopefully, which should put me around the $500k mark. My job has been great, and I have received a pay raise, with another bump due this month as well (it is night and day how much better this company is compared to my last one). Expenses in Europe are quite low, but I will happily offset that with higher entertainment spending.


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## milhouse

FinancialPanther said:


> Expenses in Europe are quite low


Can you expand on this? What areas of expenses are you finding low and why do you think this is the case? Is it housing, transportation, groceries, taxes??
I'm just curious because we'd like to spend some extended time in Europe eventually. Interested to hear some insight.


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## FinancialPanther

@milhouse, this will radically vary in different European cities (and I don't want to be too specific here), but generally, in my specific experience, my rent is lower, groceries are generally lower, going out is cheaper (especially alcohol), with transit/ride sharing and bike options make getting around cheap and convenient (no car needed). And of course, in Europe there are a ton of vacation destinations by plane or rail which is cheap. Some things are more expensive (like electronics).


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