# Journey to Financial Freedom



## OrganicRain (Nov 27, 2016)

Hi all:

43 Years old with a 45 yo wife and three kids 8,10,12. Currently striving toward financial independence, suspect I am getting close. I believe in a low cost lifestyle.

*Current financial picture:*
*Assets:*
Home (no mortgage) $350,000
Invested in index ETF's $750,000 (RRSP's, LIRA, TFSA's and Non Registered)
Cash in savings account $32,000
Cars: 20,000

Total Assets: *$1,152,000.00*

*Liabilities*: Car Loan* $15,000*

*Net worth: $1,137,000.00*

*Household income currently is $110k* 
That has varied over the years through company changes, commission vs salary etc. Probably will continue to vary throughout rest of my career.


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## OrganicRain (Nov 27, 2016)

*Coffee Mug*

Next goal is to get to *$1,000,000.00 invested *assets across my RRSP's, LIRA, TFSA's, RESP's and NON-Registered accounts. Which at that time will feel that work is optional based on our annual expenses of roughly 34k. I don't see myself retiring, but, perhaps work in a more enjoyable job, or start a business etc. With the key being that I don't need to work, and can direct my life based on what full-fills me, not just what makes the most money.
It's been a bit of a struggle in terms of my work lately (stress, unstable business climate in the industry etc) - so just hanging on...lol


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## steve41 (Apr 18, 2009)

Break down the 750K RRSP/LIRA/nonreg/TFSA mix and what your gross salaries are (husband and wife), and I will run the numbers.


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## OrganicRain (Nov 27, 2016)

steve41 said:


> Break down the 750K RRSP/LIRA/nonreg/TFSA mix and what your gross salaries are (husband and wife), and I will run the numbers.


Hi Steve,
*750K*
LIRA 300k
RESP 25k
MY RRSP's 90K
MY TFSA 60k
Spousal RRSP 100K
Wife TFSA 50k
Non Registered WIFE 125K

Cash 32,0000

My income is 110k
Wife's Zero (currently in school as a career change) - She could make 40-50k/year when complete in a year and a bit, but may not.
$600/month CCB


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## My Own Advisor (Sep 24, 2012)

OrganicRain said:


> Next goal is to get to *$1,000,000.00 invested *assets across my RRSP's, LIRA, TFSA's, RESP's and NON-Registered accounts. Which at that time will feel that work is optional based on our annual expenses of roughly 34k. I don't see myself retiring, but, perhaps work in a more enjoyable job, or start a business etc. With the key being that I don't need to work, and can direct my life based on what full-fills me, not just what makes the most money.
> It's been a bit of a struggle in terms of my work lately (stress, unstable business climate in the industry etc) - so just hanging on...lol


Very well done.

I would agree. With no debt, $1 M in the bank churning out income > $34k per year and part-time work to put your kids through school, etc., this money will provide you with a great lifestyle. 

I am interested to see what steve41 runs for you - he's a real pro with numbers.

Again, great work.


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## steve41 (Apr 18, 2009)

PM me your email address and I will send you the plans. I didn't include the RESP since I need to know the girls' ages and RESPs for each. I made wife the same age and had you both working til 65. Your combined net income is rather generous BTW.... >$95K per year.


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## OrganicRain (Nov 27, 2016)

To add, wife is 45, kids are 8-10-12. Live in ON


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## OrganicRain (Nov 27, 2016)

My Own Advisor said:


> Very well done.
> 
> I would agree. With no debt, $1 M in the bank churning out income > $34k per year and part-time work to put your kids through school, etc., this money will provide you with a great lifestyle.
> 
> ...


Thanks, been a long road started in my early 20's packing away my extra sales commissions. Could be challenging shifting from saving/accumulating to withdrawing.


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## OrganicRain (Nov 27, 2016)

steve41 said:


> PM me your email address and I will send you the plans. I didn't include the RESP since I need to know the girls' ages and RESPs for each. I made wife the same age and had you both working til 65. Your combined net income is rather generous BTW.... >$95K per year.



Hi Steve, I sent you a PM - Thanks


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## OrganicRain (Nov 27, 2016)

New update: Saw some good gains in the market last week, lets see if they stick.

Current financial picture:
Assets:
Home (no mortgage) $350,000
Invested in index ETF's *$775,998* (RRSP's, LIRA, TFSA's and Non Registered)
Cash in savings account $32,000
Cars: 20,000

Total Assets: $1,177,000.00

Liabilities: Car Loan $15,000
*
Net worth: $1,162,000.00 = NW increase of 2.2%*


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## OrganicRain (Nov 27, 2016)

Asset allocation

RESP: 
25% Aggregate bonds 25% Canadian Index 25% US Index 25% International Index (rebalanced annually or after big market moves)

TFSA's, Non Registered, LIRA, RRSP's acting as one big account with Non registered holding the majority of our Canadian Index (VCN) 
35% Bonds with the balance split equally between Canada, US, International - (rebalanced annually or after big market moves)
Toying with the idea of going to allocation of 25%/25%/25%/25%.

Saving Account (non reregistered)
Cash

Early in my investing journey, I went from high fee bank mutual funds to using a financial planner with very high fee funds, to day/swing trading individual stocks and forex, to finally landing on the above mix. I believe this allows for maximum risk weighted returns, low effort, and low fees overall.


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