# How am I doing?



## thebomb (Feb 3, 2012)

I have long hesitated posting this for fear quite frankly that I will be told I am in serious trouble of not being able to live my retirement years comfortably. So be honest but relatively kind. 
Looking for feedback on how we are doing. I think daily about what our future looks like, whether we are saving enough, whether I can retire at 55, etc. Here are the numbers:

Age me 35 (DC plan, but have included the total in my overall registered amounts below)
Husband 39 (just joined an OMERS plan wth 1 yr of credited service to date)

Combined Income (not including rental income or bonus)
160k (this income was approx. 95-105k until a year ago)

*Assets*
Registered 150k
HISA - 11k 
Chequing accounts- floats around 5k
Maternity leave savings acount - 6k (5.5 months until I am due)
DB - I have a very small DB plan that will pay a whopping $145 montly at 65
Primary Residence Valued 350k mortgage 90k (we have 9 yrs left but expect to pay in 5)
Investment Property Valued 360k mortgage 220k (17 yrs left on mortgage - no big hurry to pay ahead of schedule)
2 cars paid off but I dont consider that an asset (they are not Ferrari's)


*Liability *
HELOC 20k


*Backstory*- My husband worked in the automotive manufacturing industry for 17 yrs before the bottom fell out in '08. He didnt want to keep going back to that uncertainy and was working part time in the municpal govertment for 3 years until he did his 'time' and was hired on full time 6 months ago. So this hurt our ability to either pay down debt or save very aggressivly for the last 3 years which is a shame. 

We dont spend lavishly, have travelled internationally 2x in the 16 years we have been together. We dont try to keep up with the Joneses but dont live like hermits. We stay active with mostly low cost outdoor hobbies. Our annual vacation is a backcountry camping trip each summer. 

I just feel like we are not far enough ahead....I would ideally like to retire when I am 55. Looks like based on my husbands age and yrs in the OMERS plan that he will need to work until either 62 or 63 to get an unreduced pension. 

What do you think CMF'ers? Am I (we) screwed? Will I be preparing cat food in my old age?


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## RBull (Jan 20, 2013)

It's way to early to answer your last question, however it's highly unlikely given the fact you're interested enough to make this post, and with a cursory look at your situation. The most important question to be answered which doesn't appear in your post is your current and future expected lifestyle expenses. Once you have that you can determine what $$ you will need. 

Cat food....LOL I think you are a long way from that. 

I'll let some of regular experts here run the numbers....

Your rental should generate decent cash flow in the future. How much...is it cash flow positive now?
Your combined incomes should allow some serious savings amounts - if you are reasonably frugal
Your husbands future pension may be worth a lot- what are survivor benefits?
Have you considered OAS / CPP


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## MoneyGal (Apr 24, 2009)

Well, you are far ahead of many of your peers, if that's any help. 

If whether you will have enough to retire in 20 years is something that you "think about daily" and you hesitate to look for advice/confirmation because you feel as though you might be "screwed" if you don't get that outcome, there might be something else going on other than worry about your finances. Maybe you will feel more relaxed as the reality of your husband's OMERs pension kicks in.


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## donald (Apr 18, 2011)

I'm not a number's guy but i think your doing fine.Your income/assets/rental ect ect.
I think your way too young to worry about life 20 yrs out(sounds like your doing all you can and are planning)

I don't know if it's type A personalities or a fear of the future or what(i'm the same victim to this)But don't let the ''financial'' industry cloud you......You don't need 5 million/you won't end up eating cat food ect.

The industry reminds of the ''beauty'' industry quite frankly aka:Tell young women they are worthless if they aint a size 2.(media tells people they are worthless if they aint millionaires by a certian age ect)

Ok i'll let the numbers people depress you lol
Note:I get bitter and hate when people try to run bullshit numbers and try to predict this and that......it's a waste of time.....live one day at a time and do what you can with what you got.....yesterday is history,today is a present and tomorrow is a mystery.Worry is a bad habit!!Have a good wknd.


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## thebomb (Feb 3, 2012)

To answer some of the question that have come up so far;

Expenses last year just roughly were approx. 62k. This includes some major house expenses, mortgage payments etc. Does not include income tax deductions/cpp or anything of that sort. 
Rental Income after all expenses were approx. 4k.
Survivor benefits (not sure will look into this)
I have considered CPP and OAS but havent actually run the numbers to see how it would impact us.

*MGal* - My worry really stems from the insecurity of the last 3 years, my natural worrying personality and from the unknown factor that the next 6 months will bring us with our first kid.

*donald*- I am not shooting for that crazy 5 million figure or anything, but I am looking to be 'comfortable'...and yes, I am a type A worry wart. Totally. I frankly dont see 20 years as being all that far off.....

God I sound pathetic:hopelessness:


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## Plugging Along (Jan 3, 2011)

First, congratulations on your future addition. 

My thoughts are you are entering a whole new phase of life with parenthood. There are more immediate things to think about than 20 years out such as your newest additional. 

I don't know if you can retire at 55, you may need to include you spend and savings rates, which are probably going to drastically change in the next 5 months or so. You are doing better than a lot as others have said, so no worries about cat food. 

Do you think here is a possibly for a second child? Would you want to stay home, have you looked into child are costs?

To put it in perspective, if it takes you a few more years to retire but then here is less worry,does it make that much of a difference. You are not going to eat cat food, but it's going o be balance of what you wan to sacrifice now vs later. Try to keep the baby expenses down, I will post some tips in he frugality section.


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## donald (Apr 18, 2011)

20 yrs.....it's a long way off!!You might be a grandma by then lol......Think about that.


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## MoneyGal (Apr 24, 2009)

I'm sorry if my response seemed brusque. I understand how long it can take to feel as though you can "relax" after major (even good!) changes have taken place. You know that your household income has gone up by almost 70 percent (!!!!!!) over the past year. 

If the only thing you do is keep living as though you are earning less than $160K, you will be fine. You're talking about having a paid-off mortgage at your age 40 - that is huge!!!!


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## Plugging Along (Jan 3, 2011)

Donald don't give her more things to worry about *lol*

But 20 years is a long time, and as a parent you will find so many other things to worry about. 

Perhaps posting a more detailed budget would be more useful.


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## Islenska (May 4, 2011)

We just had our friends young son badly injured on the rigs in Sask. Doesn't look good for his future.
It really has affected my view going forward.
Financially I am more than secure.
But I won't take anything for granted and I hope everyone out there takes a pause and realizes "it could be worse"
Appreciate you are here this morning and improve those around you.
We only go around once........


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## My Own Advisor (Sep 24, 2012)

I think you're doing quite well.

To have $150k in registered assets in your mid-30s is great. That should double every 10 years. That should be close to $600k by the time you want to retire.

With a paid off home in a few more years, plus the rental for passive income, you're in good shape. 

With a great pension on top, as long as you have your human capital for the next 20 years you have little to worry about for a financially secure retirement.


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## thebomb (Feb 3, 2012)

My savings rate is kinda screwed up right now. I am diverting money to a maternity leave account that equates to about 30% of my take home monthly pay. I will keep doing so until I am due. My combined DC contributions are 10% and my RRSP's roughly 5%. The rest goes to bills and paying off the HELOC. Keep in mind that this covers my portion of savings/spending and does not include my husbands salary. He pays a portion of the mortgage, 'his' bills, i.e insurance/cell phone etc. He makes a hefty contribution through OMERS so no RRSP's for him right now. Otherwise he puts leftover money into the savings account. Not sure exact percentage. I am planning on more than 1 kid. I know with daycare and all that down the road, the landscape of my finances will change dramatically..... I'm dreading it. 

As for budget....I am not one to follow an EXACT detailed budget monthly. As long as my savings and debt repayment goal is reached and I stay close within the parameters of my budget than I am happy with that. Each year I set up a budget and then review it monthly to look for anomolies or holy crap moments. 

and yes...I must concede that alot can change in 20 years....even the change of becoming a grandparents (thanks for that additional worry donald!!)


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## Plugging Along (Jan 3, 2011)

With the starting of your family, going on mat leave, and then having more, it's hard to get an accurate prediction.

You will have you mortgage paid off early, and that's huge


I think if you focus on saving as much as you can, stay living below your means, and enjoy the ride with as a parent. You may want to do a better job of tracking your expense to see where the money goes. This was one of biggest eYe openers. We budget he same wa, we had our saving and investing goals, and didn't worry about he budget. When we tracked for a few months, it was really surprising how much we wasted and could cut back on.

After hat eye opener, we made some changes, and now have managed to increase our savings goals.


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## donald (Apr 18, 2011)

Good point mike!I myself have a hard time reading personal finance advice anymore.The globe/garth turner/financial post ect......All articles drive me crazy(speaking of averages)The op atleast according to stats is in fine shape esp in her demo.I don't know if it is ''toronto'' centered or what(not bagging on t.o!)but so many of the financial press,journalist ect convey this message that if you don't have xyz by this age or if you dont have a db pension ect ect life aint worth living(maybe this is a sickness of my mind)I always wonder-the people writing or the financial advisors advising and esp the posters on the comment sections are worth what they preach........I know most people over 50(all they care about is money)few people in society care about nothing else it seems.....not trying to hijack the thread op


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