# Married, Kids, Single income... Tryin' hard!



## kork

What a gem this place is! I spent the entire night last night reading... couldn't put it down!

I'm 33. Married and have two little girls, 5 and 3. My wife is a stay-at-home mom (has been for the past 5 years) and will be going back to work in 2 years and so income will increase.

A little bit about our situation:

*Assets - $579,785*

->Possessions - $335,000
--->House - $320,000
--->Vehicles - $15,000

->Registered (MINE)
--->RRSP - $80,435
--->TFSA - $21,024

-> Registered (HERS)
--->RRSP - $81,396
--->TFSA - $20,339
---> GIC - $579.25

-> Registered (Family/Kids)
--->RESP - $14,376

->Non Registered
--->Bank Acc. (Savings) - $20,000

*Liabilities - –$234,205*
->Mortgage - –$234,205 (2.25% variable)

*Net Worth - $344,809*

Ugly student loans have been fully paid off as well (That was a good day!)

I feel that I've been working hard, but that my money hasn't been working as hard as me. Since the beginning, our RRSP's, TFSA's and RESP's have been in the same funds. Relatively aggressive Royal Bank Mutual(Select Aggressive Growth Fund) with higher MER (2%+) and when the market crashed, I felt fortunate that we didn't lose everything. Felt sort of lucky so have been reluctant to change anything in the hopes that I'd see double digit growth like I saw it drop...

Over the last 8 years, $77,770 of the $80,435 to my RRSP has been contribution... $2665 growth in nearly a decade. I'm not going to scoff at $2665, but I can't help but feel that this has not been very good.

So yesterday I set up my discount brokerage accounts with TD Waterhouse. Looking to work with the e series low MER funds and diversify.

I don't really know much about this. Every time I think I do, I learn that there's so much more I need to know. The only thing that I DO KNOW is that I can work my arse off! lol

I'd love it if I could have enough equity and investments that I could generate an income from that to pay the bills... I mean, I'd much rather have $100 coming in monthly forever than to have $15k sitting in an account waiting to be spent. I'm all about building a machine that can be income generating without increasing my workload!

Anyways, I'm going to be very shortly walking down the road to diversifying my Registered investments and building a non-registered account and investing in elements that can generate an income!

All comments/suggestions welcome. Please be patient with me.


----------



## humble_pie

what a magnificent profile. You do yourself proud. Congratulations. Definitely it is ourselves who should be coming to you for advice on how to manage financially !

i'm even pleased to see you don't seem to be including possessions or car among assets in the net worth calc. This is a prudent common practice. Some persons don't include their houses or real estate; however i do, because these are giant assets that can be liquidated in organized markets, although this could take time.

it's great you've recently gone discount broker. TDW has a super research website; if you hang out there you'll soak up info like a sponge. The licensed representatives, too, will turn out to be exceptionally helpful whenever you're stumped about learning how a new research feature works.

could i make a little suggestion. One of the moderators of this forum has developed what i think is an excellent passive etf portfolio. It's compact, simple, fast to understand & proven successful over a number of years. He updates the model regularly. Unlike fund managers, he even immediately publishes his new rebalancing decisions. I believe he utilizes more than td e-funds; but you can certainly build core holdings & a good approximation of what he calls the "sleepy portfolio" out of td's e-offerings.

you can find this gem at Canadian Capitalist blog in Moneysense. There's a link at the bottom of this screen.

other parties will probably mention to you the big & first-rate canadian couch potato website. It's the mega-reference website that every indexer has to consult. I only brought up the sleepy portfolio because it is a timesaver & it sometimes gets overlooked.

one small admin detail that won't matter if you stick with td e-funds, but it will matter if you branch out into etfs or any other securities. TDW has a commission threshold at $50k for all household accounts aggregated. IE if your household has a total of less than 50k at tdw, commissions will be $29.95 (ouch); over 50k, commish drops to a more reasonable $9.99 per trade.

wishing you every success & believing you will be glad you made the DIY decision.


----------



## tombiosis

kork said:


> I've been working hard, but that my money hasn't been working as hard as me. Since the beginning, our RRSP's, TFSA's and RESP's have been in the same funds. Relatively aggressive Royal Bank Mutual(Select Aggressive Growth Fund) with higher MER (2%+) and when the market crashed, I felt fortunate that we didn't lose everything. Felt sort of lucky so have been reluctant to change anything in the hopes that I'd see double digit growth like I saw it drop...
> 
> Over the last 8 years, $77,770 of the $80,435 to my RRSP has been contribution... $2665 growth in nearly a decade. I'm not going to scoff at $2665, but I can't help but feel that this has not been very good.
> 
> I don't really know much about this. Every time I think I do, I learn that there's so much more I need to know. The only thing that I DO KNOW is that I can work my arse off!


Wow...I thought I was reading my own post!...(minus a few details)...very well written.
I found this forum the same way you did...after getting sick and tired of my hard earned $ not working as hard as me...in fact hardly working at all! I suppose it has worked hard enough over the last decade or so for my FA though. I also totally agree about realizing there is always more to know!
There are people on here that can offer much better advice for you than I can, but I will offer this:
Consider yourself fortunate to be doing changes now while you are still young. It is pretty daunting to know you have only 10-15 years until retirement and that you won't have enough moulah!
You have time. and are on a great path. I think you should assess your risk tolerance, then trim it back a touch from where you believe it to be. Also, concentrate a lot on asset allocation to protect you in these very volatile times. Trust no one but yourself, and remember that even the best financial minds rarely, if ever, beat the index.
I look forward to learning from the replies to this thread.


----------



## Sampson

One strong point I take away from your post is you are disappointed with the returns on your invested assets.

You should be careful when looking for new strategies to earn more on your money. Understand why you only gained $2500 on $77000, and if an alternative strategy would have produced any better returns. The past decade has not produced the largest returns so if you expect to do better by moving out of the RBC fund, check this first.

You obviously have a good handle on saving your money, keep it up.

As H_Pie mentions, the simple passive indexed portfolios are excellent places to start as you learn, but understand the purpose of that strategy is to minimize fees and to aim for the best risk-adjusted return - not the best overall return. It would be a shame if you find a new investment strategy and use it for 10 years only to be disappointed by low nominal returns and then change strategies again.


----------



## kork

Thanks for the words of encouragement.

@Sampson. When I first started a few years back. I was of the impression that with 30+ years to retire, that if I went aggressive growth and high risk, that as long as I weathered the storm, I'd be further along. I just needed to find that 7 year hump as I got closer to retirement.

So if I was 55 and my money was at a high and I could comfortably retire on it and then reduce my risk, then I would... If at 55 the markets were terrible, I'd just need to wait it out, perhaps for another 5-10 years, but it would inevitably return...

But then I took a look at the Great Depression.... 1929 crash.... Stock prices recovered from 1942-1966. They didn't return to their 1929 high until 1954, or so I understand...

So believe me, I appreciate the idea that switching strategies after 10 years (especially the past 10 years) may not be the best strategy, but I'm looking for something that may be lower risk and will still provide for retirement... Don't we all?!?

I'm just running out the door with the kids. Beautiful here in Ontario today!!! Will be back online later to read more and possibly ask some questions.

Thanks!


----------



## OhGreatGuru

kork said:


> ... I feel that I've been working hard, but that my money hasn't been working as hard as me. Since the beginning, our RRSP's, TFSA's and RESP's have been in the same funds. Relatively aggressive Royal Bank Mutual(Select Aggressive Growth Fund) with higher MER (2%+) and when the market crashed, I felt fortunate that we didn't lose everything. Felt sort of lucky so have been reluctant to change anything in the hopes that I'd see double digit growth like I saw it drop...
> 
> ... I'd love it if I could have enough equity and investments that I could generate an income from that to pay the bills... I mean, I'd much rather have $100 coming in monthly forever than to have $15k sitting in an account waiting to be spent.
> ...


The investment horizons & objectives for your RRSPs, TFSAs, & RESPs are not (usually) the same, so there is no reason why they should have the same asset allocation (or be vested in the same mutual fund)

My personal observation is that the Big Banks are not very good at most "Growth" portfolios, and part of the reason is those MER's. Having said that though, considering what markets have been doing for the past decade, you need to look at your returns compared to what the average returns for the same class of funds has been, before deciding how good or bad your return is. But changing to ETFs or eFunds is a smart move in most people's minds.

It's hard to advise on how to generate an income stream in the current interest rate markets. I am a fan of RBC's Monthly Income Fund, but they no longer allow you to buy it in registered accounts. You can emulate it fairly closely with a 50/50 mix of RBC Bond index and RBC Dividend Fund. TD Monthly Income has a slightly higher equity allocation, but is also well-rated.


----------



## kork

About 10 years ago I read the Wealthy Barber and the whole "historically averaged 12%" and dollar cost averaging. That's why I started in that direction. Then Smart Couples Finish Rich and the rest of the David Bach series. 

Then "The Wealthy Barber Returns" comes back and has a different story (albeit similar) to the first publication which takes the new economy into account.

And I've recently read the Money Sense "Guide to the perfect Portfolio" which has some very good arguments about some of the elements mentioned above.

My RRSP and TFSA. Both of these accounts I don't expect to use until retirement or semi-retirement. This is a long way out. At 33 years old, that's my current plan - so let's say 55 year old is the goal. 22 years to go.

From my understanding it consists of 4 different funds (correct terminology?)

TD Canadian Bond Index - e (TDB909) - 40%
TD Canadian Index - e (TDB900) - 20%
TD International Index - e (TDB911) - 20%
TD US Index - e (TDB902) - 20%

At this point, I don't even know how to really find out more information of these different funds except for morningstar. All I know is that in a couple weeks I'm going to have all of my funds sitting in my new TDW account as cash to be re-allocated....

It's daunting, but I've been reading and hearing that a self-directed account is the way to go and that TDW is a good way to go about it. I don't want fear to be the reason I don't change... But I also want to make a change that's good.

Don't even get me started about my girls RESP's... With 13 years before it starts to be potentially used, I don't want to mess up their future with bad decisions today!


----------



## Sampson

The index funds are good because fees are low, and there is empirical data showing that active money managers (like those controlling your RBC fund) can not consistently beat the market (mirrored by the index funds).

So, if you are interested in passive index investing, you need to know which index the fund follows (TSX60 in the case of the TD Canadian index), and you have to be comfortable in that market.

The one dramatic difference among your current allocations and the TD e-series portfolio you list is the among of exposure to bonds, an asset class historically showing little correlation to the stock markets. So when you saw a 20-40% drop in your portfolio value during 2008/09, had you held 40% of your portfolio in Canadian bonds, the drop would only have been half of what you experience.

Diversification among multiple uncorrelated asset classes (real estate, precious metals, commodities, stocks, bonds, cash) should give you the outcome you are after - reduced portfolio volatility, however, remember that it comes at a cost - reduced portfolio returns. Going forward, many (myself included) believe the rates of return will not be as high as in the past, so 12% per annum might not be possible.

A second consideration when constructing your portfolio and understanding the returns you might get from it is the sequence of returns risk. You might average a 10% return with a certain portfolio, but that doesn't mean a consistent 10% every year. More likely, you will get a return of 20% one year, 0% the next, -5%, then +10%. This will have a huge impact on your portfolios' growth and day-to-day value and makes it critical to stick with a plan. Find an asset allocation where you are comfortable handling the amount of ups and downs, then maintain that strategy. If not, you might be inadvertently timing the markets, and most people do poorly when they try.


----------



## MoneyGal

Sampson said:


> A second consideration when constructing your portfolio and understanding the returns you might get from it is the *sequence of returns risk*. You might average a 10% return with a certain portfolio, but that doesn't mean a consistent 10% every year. More likely, you will get a return of 20% one year, 0% the next, -5%, then +10%. This will have a huge impact on your portfolios' growth and day-to-day value and makes it critical to stick with a plan. Find an asset allocation where you are comfortable handling the amount of ups and downs, then maintain that strategy. If not, you might be inadvertently timing the markets, and most people do poorly when they try.


Technically this is just the sequence of returns...there's no actual risk in the scenario you described. The risk is that you will hit a market downturn when you want to convert the portfolio to a stream of income. If you time your conversion point with a downturn (no one does this deliberately), you will have less to withdraw over time even with the same average annual returns. 

There's no risk in the absence of withdrawals -- there's just a sequence of returns. Make sense?


----------



## Sampson

Oh, I understand MG.

The OP states earlier that he is worried about sequence of returns risk (SRR). I sort of mixed to ideas into one in the last post, but thanks for pushing a clearer breakdown.

My concern over SRR for the OP is that if the impetus for him to change investment strategies is poor returns over X period of time, if he moves to a passive indexing strategy and then abandons it because of a series of poor return years, then don't bother switching strategies.


----------



## kork

So I'm getting nervous. I've got around 115k being transferred into my TDW account and will be there within the next week. Then it's time to make some big decisions. I'm leaning towards a couch potato strategy. I like the idea of rebalancing and essentially forcing buying low and selling high... (my take anyways).

Honestly, investing seems worse than the tech industry. In my industry, things change every 6 months but it's at least somewhat predictable. Investing seems like the only predictability is unpredictability, lol. Right now I'm still trying to figure out why I've read advice indicating that for holdings over 50k, ETFs might be a better choice... why would I not just stick with index funds and then rebalance yearly with a long term expectation of growth? What advantage would ETFs offer?


----------



## Young&Ambitious

This article does a great job of explaining Index Funds vs. ETF's and the website is a wealth of information.

http://canadiancouchpotato.com/2010/06/25/should-you-use-index-funds-or-etfs/


----------



## kork

Awesome! Thanks Y&A! That makes it soon clear!


----------



## financialnoob

Just because the money transfers in next week doesn't mean you have to make big decisions next week. Don't rush it if you're not ready.

If you're concerned about unpredictability, you should be thinking about your risk profile. You may want a higher percent of your portfolio in bonds to help offset some of the risk.

It sounds like you have a high income and good money habits so you may not need to take on much risk to reach your goals (whatever those may be). For example, you mentioned you'd rather make $100 a month than have $15K sitting around, but you could do that with your current assets in a HISA without taking on any risk. So you need to think about what exactly your goals are and what it would take to reach those goals.


----------



## kork

financialnoob said:


> Just because the money transfers in next week doesn't mean you have to make big decisions next week. Don't rush it if you're not ready.


Yes, I was reading another thread and i had the "AH HAH!" moment with one member stating "Relax, the market's not likely going anywhere, anytime soon."

That made me feel better with some breathing room. And I'm going to step back, breathe a bit and decide the best course.


----------



## kork

Been a while since I posted in my thread but wanted to make an update. Kids are 8 and 6. SAHM is now looking to start her own business and get back into the workforce. I earn a reasonable income, but we save well. We can eat dinner as a family almost every night and I've never missed one of my girls soccer games or been forced to miss out on anything due to work or career. Some sacrifices on income have allowed for a more family focused lifestyle.

Assets - $850,000

->Possessions - $374,000
--->House - $374,000 (Recently valued at around $500k, but I'm pessimistic for this exercise)
--->Vehicles - $0 - I now see our two vehicles as liabilities, not assets. 

->Registered (MINE)
--->RRSP - $148,000
--->TFSA - $56,000

-> Registered (HERS)
--->RRSP - $147,000
--->TFSA - $$55,000

-> Registered (Family/Kids)
--->RESP - $40,000

->Non Registered
--->Bank Acc. (Savings) - $27,000
--->BCE stock - $3,000 (Purchased this a month ago as a dividend producing asset to "test the waters" and figure out how it all works.)

Liabilities - –$191,000
->Mortgage - –$191,000 (2.0% variable)

*Net Worth - $659,000*


----------



## tygrus

Very nice. You are well diversified but probably need a little more equity exposure. Are your TFSAs invested? 

Personally I shun RRSPs because they will be coming out at a time when taxes will no doubt be higher and that scares me. You are saving and avoid tax for now, but the govt has also hedged its tax base into the future with RRSPs. With a stroke a pen they can force that money to come out, or they can simply wait it out and they know most people will be tapping this by the time they are 65.


----------



## OhGreatGuru

tygrus said:


> ...You are well diversified but probably need a little more equity exposure. ....


How did you arrive at this conclusion when OP gives no asset allocations for his two RRSPs, two TFSAs, & RESP, totaling ~$446K, or 2/3 of his net worth?


----------



## cashinstinct

Seems like a job well done to me, great progress in balances compared to 2012, only 3 years ago.


----------



## kork

TFSA's were just rebalanced with my index funds. Couch Potato as shown below.

TD CDN INDX -E /NL'FRACTDB900 - 25%
TD US INDX C$ -E /NL'FRACTDB902 - 25%
TD CD BD IDX-E SE/NL'FRACTDB909 - 26%
TD INTL IDX E SER/NL'FRACTDB911 - 24%

My goal with RRSP's is to try to bring my current taxable income down to $87k or (whatever that bracket is exactly).

*Awesome Scenario.*
By 50 our investments are worth wads of $. We start to withdraw RRSP's in a careful way not to have too much income, but so that when we "officially" retire we can still have a healthy income while sitting on a nice nestegg of TFSA income (and likely dividend income at the time).

----

Essentially, I want to be able to look at our life at 50 (14 years away) and say "what life decisions do we make now that our presumed living expenses are lower (no more RESP's, no more mortgage, etc)" Are we both still healthy? Do we want to work part-time? Are the kids off at school or working?

Goal is that our 50's are living for lifestyle and not living to bank as much as we can because we missed the opportunity of time and compound interest.

My father has the same RRSP concerns as well as the new ORRP plan that'll tack onto savings so I'm keeping an eye on those aspects. I'm smart enough to know that I don't have all the answers, but that I can plan for flexibility. Make hay while the sun shines right?


----------



## tygrus

You have the right mind set trying to get an edge now instead of in your 50s when most people start thinking about retirement.

One thing to consider is your age. Stats have on average anyone who is 65 today can expect another 20 years of life, so my guess is when you reach that age, that could be 30 or 35+ extra years. And your kids will hit 100 easy. Years ago people retired at 65 and died at 70 so their income doesn't need to last as long. Today, there is a strong chance your retired years will be just as long as your working years.


----------



## kork

tygrus said:


> You have the right mind set trying to get an edge now instead of in your 50s when most people start thinking about retirement.
> 
> One thing to consider is your age. Stats have on average anyone who is 65 today can expect another 20 years of life, so my guess is when you reach that age, that could be 30 or 35+ extra years. And your kids will hit 100 easy. Years ago people retired at 65 and died at 70 so their income doesn't need to last as long. Today, there is a strong chance your retired years will be just as long as your working years.


Yep, My one grandfather passed away at 73... My other grandfather at 91.... Both my grandmothers are still alive in their mid-nineties... 30+ years in retirement!


----------



## CalgaryPotato

Wow, I have young kids and a stay at home wife as well and I can't imagine being in the situation you are in. Good job however you did it. With her getting an income now the dough will be pouring in.


----------



## molviji9958802839

*卐{ bHaviSyaVāNī}☏ +⓽⓵-9958802839 LovE vasHikAraN spEciAlisT mOLvi*

GoLd MadliSt molviji+91-9958802839 world FamUs 
BlaCk MaGic LovE [email protected]@india is a CoMpLatE Of in NoVaTiVe IdEaS And CrEaTiviTy%%PeOpLe Of OuR CoUnTry Take The full Use Of TheiR Mind???Before Staring of a New Workindias Want To Move With The AsTroLoGCal World....BlaCk Magic////Love VasikArAn is Also PaRt Of The AstroLogy''AstroLogy is a Way WheRe you Can Get The FinicaLdesTinaTioN WhiTouT Any ProBlem...AftEr Making Ourselves in Touch With Astrology...We Can Get The SweeTsT Response From molvi ji we Are Well Known With The Name Of World Famous Astrologer...Our O Rganization is Giving The TransparEnt Result -Fake Results Are Not The Basic Mean Of Our Life molviji Devoted Their Whole Life in Sarving Astrological services $ BLACk Magic&& Love Vasikaran&& Kala [email protected]@ intercast Love Marriage$$love Problem Solution###Specialist in Front Of The World...Only Names Enough To Know About Us Because His Quality Servise is Always Readyof The Disire clients.$$$ our satisfaction when we see smile on your face..our intellgence and Dedication To Words Our Work ..Are Solid Reflection Of Astrology...Hundred Of Cases Are Being Solved By World Famus Astrologer molviji That Also Cited To Black Magic :::Love Vasikaran&&&get your Love Problemsoluton Back With Cooperation of Black Magic And Vasikaran..The Complete Benefit Of Our Services Happiness Of The Clients Are The Meain Motive That Sutis With Our Personality molviji...Astrological Services Like Voodospell!!!!Love Vasikaran///Love Spell///Love Marriage ///Love Problem////intercast Love Marriage Kala Jadu ///Husband Wife Love Problem Solution ///Divorce Problem Solution///Girl Vasikaran Specialist///GetLove Back By vasikaran+91-9958802839 
whats aap no. +91-9958802839 +91-9958802839::molviji COMPLETE ADVIC ASTROLOGER GOLD MEDALIST in fames in allword UK, USA, AUSTRALIA, UAE, DUABI, CANADA, ENGLAND, SINGAPORE, KKHJNEWZEALAND, GERMANY, ITLY, MALASIYA, all international. doka dene walo se love vashikaran specialist molviji+.YOU ARE VERY SAD IN YOUR LIFE SO DON’T WORRY. Apka visvash nahi tutne doga . FAMOUS ASTROLOGER VASHIKARAN SPECIALIST BABA/BLACK MAGIC SPECIALIST GURU GET YOUR LOVE BACK/ LOVE-RELATIONSHIP PROBLEM SOLUTION/ KAMDEV YGHHTJYJTHGYHIKARAN BABA/ TANTRA-MANTRA FOR LOVE CONTACT FOR ANY KIND OF PROBIEM AND GET QUICgttt [email protected]!U!!ION ONLY WITHIN 36 HRS ~MY OPEN CHILANGE 
. fames in uk usa canada landane AustrALia
1.BUSINESS PROBLt101%GIRanted resuult
2.FOREIGN TRAVELING
3.PHYSICAL PROBLEM
4.WILLFUL MARRIAGE+91-9958802839 ? ? ? ? ? ? 
5.STUDY PROBLEM
6.LOVE MARRIAGE
.PROBLEM BETWEEN HUSBAND WIFE+91-9958802839
9.GET XOUR X LOVE BACK gdapu kot maroi ch
.NOT:LOVE IS GOD GIFTS DON'T LOSE IT BECAUSE OF YOUR OWN WEAKNESS12.
maker World FamoHus molviji over world london, UK, USA, AUSTRALIA, UAE, DUABI, CANADA, ENGLAND, SINGAPORE, NEWZEALAND, GERMANY, ITLY, MALASIYA, all international
YOU ARE VERY SAD IN YOUR LIFE SO DON’T WORRY.
ALL SERVICE WITH GUARANTEE.ALL PROBLEM SOLUTION.IF YOU NEED HELP OF molviji HE JUST NEEDOUR FAITH AND FRUSTS NOTHING ELSE.GET ADVICE FROM HIM.HE WILL DO YOUR WORK BY.HIS HEART.JUST FORGET YOU'RE ALL PROBLEM 
VANSH RAJ GORE HAS ALL SOLVTIONS OF YOUR PROBLEMS. AS PROBLEMWITH HUSBAND AND WIFE,PROBLEM WITH LOVER CHEATING IN LOVE,BUSINESS PROBLEM,GET DONE OF MARRIAGE OR BREDKING OF AND MARRIAGE CHILADREN'S GO OUT OF ORDER FROM PARENTS,INTERRUPTION IN MARRIAGE,MANG Vashikaran specialist 
SOLUTION WITH 100 % GUARANTEE+91-9958802839
EXPERT IN YANTRA-LOVE AND BLACK MAGIC
RESPONSEPROBLEM,KALSARP,PROBLEM,MOVIE OR MODELING CAREER,CONTACT 
WHATS APP NO.+91-9958802839 

30YeAr ExPeRieNcE 
+91-9958802839 lOve pRobLeM SoluTioN baba ? ? ? ? ? ? ? ? 

+91-9958802839~MuTHkAraHanI sPeciAliSt baba

+91-9958802839~iNteRcAsT loVe maRRiaGe spEciAliSt baba 

+91-9958802839~kaLa JaDU sPECiaLisT baba

+91-9958802839~VooDOO dOLL sPECiaLIsT baba? ? ? ? ? ? ? ? 

+91-9958802839~lOvE sPEll CasTer abBa 

+91-9958802839~bLaCk mAgiC speCiaLisT baba 

+91-9958802839LovE vAShIkaRan sPECialIsT baba ? ? ? ? ? ? ? ? ? ? ? ? 
yety5t


----------



## kork

And to conclude 2015, our net worth just bumped up over $700k.

We've seen a $125k increase to our net worth in 2015. Not bad considering the economy, single income, renovations and two kids under 10 that are involved in a variety of activities. Quite honesty, I don't know how we did it? I mean, I can strip apart the numbers, etc but when reading the doom n' gloom of the economy, etc it feels like we should have come up in a different spot.

3 more years to 40!

Assets - $885,000

->Possessions - $374,000
--->House - $374,000 (Recently valued at around $500k, but I'm pessimistic for this exercise)
--->Vehicles - $0 - I now see our two vehicles as liabilities, not assets. 

->Registered (MINE)
--->RRSP - $155,775
--->TFSA - $55,557

-> Registered (HERS)
--->RRSP - $157,599
--->TFSA - $54,245

-> Registered (Family/Kids)
--->RESP - $42,060

->Non Registered
--->Bank Acc. (Savings) - $37,000
--->Unregistered (Currently, BCE, TD and cash) - $9,000

Liabilities - –$184,815
->Mortgage - –$184,815 (2.0% variable)

Net Worth - $700,700.


----------



## My Own Advisor

Very well done kork! You're doing great!


----------



## scorpion_ca

What is in yours and hers TFSA? The amounts are good compare to the limit of $41k.


----------



## kork

scorpion_ca said:


> What is in yours and hers TFSA? The amounts are good compare to the limit of $41k.


Pretty standard couch potato. Hers is a little more heavily allocated to bonds because she's a bit older, but pretty standard split. We'll be adding another $5500 to each tfsa tomorrow to break the $60k mark each.


----------



## Mechanic

When I look at our net worth I look at cash, investments and real estate. i don't usually include value of vehicles, sports equipment, furniture etc. i notice in other postings that "possessions" are listed and am curious as to what falls under that classification ?


----------



## kork

I also don't include possessions.... Vehicles, theatre equipment, technology, jewelry, computers, etc.... We just bought $10k worth of lazboy furniture but it brought our net worth down by $10k because we don't count it. I don't see those as being things that are of financial value. Technically they are, but they present a different kind of value to me.


----------



## kork

Good week! My wife started a job on Monday which is going to allow us to add about $2k a month to her unregistered investments (And I'll likely do the same if I can). 9 years as a stay-at-home mom and now she's back in the workforce. Let the good times roll!


----------



## lonewolf

Kork if you rent out part of your house so it makes money instead of cost money to own then it would become an asset & not a liability. Asset makes money liability costs money


----------



## kork

lonewolf said:


> Kork if you rent out part of your house so it makes money instead of cost money to own then it would become an asset & not a liability. Asset makes money liability costs money


Isn't it making money with the value increasing 8% this year according to the averages where I live? I'm just not realizing that return yet... Same as any other kids of investment, no? Put money in, it goes up and down (hopefully up more than down). At least I can live in this investment though, no?


----------



## kork

Today is a happy day  Just passed 3/4 of a Million Dollars net worth! Most of that is savings over the last 4 months and a small bump in our home value based on city average.

3 more years to 40!

Assets - $932,500

->Possessions - $405,000
--->House - $405,000 (We're possibly looking to sell this summer and we've been told our home will sell for around $500(ish) but I'm being conservative with net valuation.)
--->Vehicles - $0

->Registered (MINE)
--->RRSP - $151,207
--->TFSA - $$60,232
--->Unregistered Blue Chip Dividend Stocks - $12,185

-> Registered (HERS)
--->RRSP - $152,453
--->TFSA - $58,956
--->Unregistered Blue Chip Dividend Stocks - $12,954

-> Registered (Family/Kids)
--->RESP - $42,486

-> Savings 
--->Bank Acc. (Savings) - $37,000

Liabilities - –$180,415
->Mortgage - $180,415 (2.0% variable)

*Net Worth - $751,285*

Hoping to hit $1 Million net worth by 40 and by 45, the goal is to have $1 million in RRSP's, TFSA's and Unregistered accounts with a paid off mortgage. 

That's the goal anyways!


----------



## kork

The last 4 months have been good all around... Assets passed the $million mark a couple weeks ago which was kind of neat (but not really a big deal). 

Kids are getting even more expensive! Wife has started working again but daycare is expensive. On top of that, tutors, soccer, singing and drum lessons, soon to be gymnastics, Kid's are not cheap!!!!

Anyways, Just keeping tabs here to stay motivated, but honestly, as that $1mil net worth starts to look achievable, It's become a bit of a race! I'm not sure how well I'll do emotionally when the economy tanks again since I'm becoming attached to growth and it represents FIRE.

Assets - $1,020,416.94

->Possessions - $405,000
--->House - $405,000
--->Vehicles - $0

->Registered (MINE)
--->RRSP - $161,661.67
--->TFSA - $64,477.65
--->Unregistered Blue Chip Dividend Stocks - $27,805.28

-> Registered (HERS)
--->RRSP - $163,143.87
--->TFSA - $63,118.34
--->Unregistered Blue Chip Dividend Stocks - $27,399.50

-> Registered (Family/Kids)
--->RESP - $47,346.29

-> Savings 
--->Bank Acc. (Savings) - $60,464.34

Liabilities - –$175,488.98
->Mortgage - $175,488.98 (2.29% fixed for 3 years)

*Net Worth - $844,261.32*


----------



## My Own Advisor

Impressive. Well done!! Once those liabilities are gone you'll be in a GREAT place.


----------



## kork

My Own Advisor said:


> Impressive. Well done!! Once those liabilities are gone you'll be in a GREAT place.


Thanks!

We locked in at 2.29% last month for a 3 year term (first time ever not being variable) and have kept our double payments. By the end of the term, we'll owe about $120k on the mortgage at which point, we can decide (based on interest rates) if we want to pay it off or whatever makes sense.


----------



## My Own Advisor

Great rate. 

We were very lucky to negotiate 1.95% last fall, 5-year variable. Our goal is by the end of that term, we payout the mortgage.


----------



## tygrus

kork said:


> The last 4 months have been good all around... Assets passed the $million mark a couple weeks ago which was kind of neat (but not really a big deal).[/B]


You need to properly account for inflation in your goals. Your assets increase, mostly thanks to inflation on your house, therefore, your goal needs to increase by a similar amount. A million dollars isnt what it was just 6 months ago. Apply a CPI to your end goal to be more realistic.


----------



## Tawcan

kork said:


> The last 4 months have been good all around... Assets passed the $million mark a couple weeks ago which was kind of neat (but not really a big deal).
> 
> *Net Worth - $844,261.32*


Wow that's really impressive at age 37! Hoping I'll be like you when am 37.


----------



## TK.61

Great work, in just over 4 years since your started this thread your NW has increased approximately 500K. Very impressive how you did it with a single income and 2 children!


----------



## kork

TK.61 said:


> Great work, in just over 4 years since your started this thread your NW has increased approximately 500K. Very impressive how you did it with a single income and 2 children!


Not too sure actually. I only wish that I found the momentum years and years ago.

Though, to be fair when my wife and I had our first child, we were a single income household at $60k/year. We still saved, but it was a slow process... The last 4 years we've been saving a fair amount and now with the wife working again, it's even easier!

But it seems almost surreal to have that much growth in 4 years... makes me wonder about the next 4? Though I can say that 1/2 of that likely comes not from investments, but from income and savings.

With that said, I believe that the first $250k was by far the hardest to get started.... $5k here and $2k there takes a long time to see anything of significance turning into a nest egg!


----------



## kork

So the new year is right around the corner and we're teetering on breaking the $900k net worth barrier! We started off the year at $700,700 and this year has seen some amazing increases to our net worth (the most since we've been tracking by far).... Just shy of $900k!. There's one more paycheck for my wife and I as well as a couple checks in the mail for freelance work. There's a "possibility" that we might just hit the $900k mark but even better would be if we managed to increase our net worth over $200k (we're off by $6476.63). Depending on the markets, we might just get there in the next 8 days!

Assets - $1,064,356.93

->Possessions - $405,000
--->House - $405,000
--->Vehicles - $0

->Registered (MINE)
--->RRSP - $180,908.3
--->TFSA - $66,121.26
--->Unregistered Blue Chip Dividend Stocks (and VCN) - $41,688.12

-> Registered (HERS)
--->RRSP - $183,221.34
--->TFSA - $64,731.27
--->Unregistered Blue Chip Dividend Stocks (and VCN) - $41,782.34

-> Registered (Family/Kids)
--->RESP - $50,245.50

-> Savings 
--->Bank Acc. (Savings) - $30,658.34

Liabilities - –$169,724.34
->Mortgage - $169,724.34 (2.29% fixed for 3 years)

*Net Worth - $894,223.37*

Also to note, I'm glad I locked in with a fixed rate mortgage a few months ago. Looks like the banks are just changing their rates to reflect what they want without following the overnight rate entirely. I got a hunch that banks wouldn't be passing the "sniff test" for much longer and with TD's increase a couple months ago (without the overnight rate changing), I guess I got lucky with my decision.

Anyways, the countdown is on to hit that $200k mark in a year!!!


----------



## lonewolf :)

Kork, Job well done. Good to chart net worth log scale see a parabolic advance on log scale net worth might not be on solid foundation.


----------



## bobsyouruncle

This is excellent.

Has this been achieved with a passive investing (Couch Potato style) or picking stocks as well?


----------



## kork

bobsyouruncle said:


> This is excellent.
> 
> Has this been achieved with a passive investing (Couch Potato style) or picking stocks as well?


All registered investments are Couch Potato.

Unregistered are Blue Chip Canadian Stocks (TD, Telus, BCE, etc) and VCN as well. Still learning in this front. Slowly but surely.

On another note, as of this morning we officially passed the $900k Net worth ($901,306.82 to be exact!). This also means that we managed to increase our NW by a hair over $200k in 2016 (which is the more exciting part.)

Unfortunately, I think that the markets are going to drag us back the other way if it keeps up today. No worries though. It was nice when we were there! Not bad for family of 4 with kids under 10. I also feel like we're not sacrificing anything. Sure, our vehicles are a little older, but we eat out for dinner, kids are playing Mario on the projector over the holidays, 2 weeks off. All is good. 

I know that 2016 can just end for most people, but for us it's been pretty decent!

Happy New Year everyone!


----------



## kork

Well a milestone has been hit today! Drumroll please...

*We just hit a net worth of $1,000,000.00+*   

While "being a millionaire" doesn't carry the same weight as it used to, I still take a fair amount of pride in being able to sit back and say "became a millionaire family before hitting 40 years old and 2 kids with plain' ol' work hard attitude."

Assets - $1,160,295.93

->Possessions - $450,000
--->House - $450,000
--->Vehicles - $0

->Registered (MINE)
--->RRSP - $188,288.30
--->TFSA - $74,101.47
--->Unregistered Blue Chip Dividend Stocks (and VCN) - $47,536.25

-> Registered (HERS)
--->RRSP - $190,630.34
--->TFSA - $72,656.48
--->Unregistered Blue Chip Dividend Stocks (and VCN) - $47,632.17

-> Registered (Family/Kids)
--->RESP - $53,826.07

-> Savings 
--->Bank Acc. (Savings) - $40,624.85

Liabilities - –$164,564.74
->Mortgage - $164,564.74 (2.29% fixed for 3 years)

*Net Worth - $1,000,062.44*

Real estate where we are has been crazy (like so many areas). We estimate that our home could sell for between $500-$650k (yes, quite the range but hard to pinpoint). But we're estimating the value of our home for our net worth very conservatively. We purchased 6 years ago for $300k and have renovated significantly so the value is definitely there if we were to sell it off and move to a LCOL area.

So the next milestone will be investments at $750k and then $1 million. That's the hope anyways!

The other neat thing is that I start a new job in a couple weeks with a salary of $100k+ (I've always been under $100k and my wife has been a stay at home mom for 8 years) so again, have worked very hard to save us much as we have.


----------



## redsgomarching

Wow what a great accomplishment! Congrats and good job with the commitment to saving and maintaining 2 kids on a single income! don't sell yourself short! 1 mill is a great number to achieve and you are pretty well diversified. How much dividends are your non reg's giving? Are you reinvesting those or do you use those to supplement your month-month expenses?


----------



## kork

redsgomarching said:


> Wow what a great accomplishment! Congrats and good job with the commitment to saving and maintaining 2 kids on a single income! don't sell yourself short! 1 mill is a great number to achieve and you are pretty well diversified. How much dividends are your non reg's giving? Are you reinvesting those or do you use those to supplement your month-month expenses?


Thank-you.

The non-registered investments have generated $964.44 so far as dividend payments in 2017. I don't have them set up as DRIP's as I've heard that it can be a pain to track in non-registered plans. However, they do get paid back into the non-registered account as "cash" and then I do invest them in something else.

I don't use them to supplement the monthly income, but the plan is that one day, I will! We only started the non registered investments about 2 years ago and while a lot can change, we sortof have a 10 year "working" plan still while the kids are at home/in school. We may "ramp down" over the next 10 years or way may keep doing like we have been. 

Someone told me when I was 25 that nothing freaks him out moire than turning 40, having a wife, kids, house and no options from being tied to pay check. We've worked hard to give ourselves a cushion.

Ever since we passed the $600k mark in RRSP's/TFSA's/Unregistered I've felt like we could "slow down" if we wanted to. But we don't want to yet.


----------



## DollaWine

Great work and accomplishments! As a 24 year old with a good income, this gives me hope for being a young millionaire some day with dedicated work and saving!


----------



## Steve Divi

Great work! Such a good story


----------



## Eclectic12

tygrus said:


> ... Personally I shun RRSPs because they will be coming out at a time when taxes will no doubt be higher and that scares me. You are saving and avoid tax for now, but the govt has also hedged its tax base into the future with RRSPs. With a stroke a pen they can force that money to come out, or they can simply wait it out and they know most people will be tapping this by the time they are 65.


To each their own ... but I've been hearing the "With the stroke of a pen" bit for almost three decades now so I'm less concerned about that than if my retirement income estimates were higher than current employment/investment income.


Cheers


----------



## Eclectic12

kork said:


> ... Unregistered are Blue Chip Canadian Stocks (TD, Telus, BCE, etc) and VCN as well ... I don't have them set up as DRIP's as I've heard that it can be a pain to track in non-registered plans ...


Don't believe everything you've been told. :biggrin:

TD, Telus, BCE are all paying 100% eligible dividends so the "pain" is to read off your monthly summary four times a year, however many full shares the dividend payment bought and the price paid for them. Where one believes the company future makes this a good investment choice - being able to skip the buy commission seems well worth it compared to the "pain" of plugging two numbers into a spreadsheet, four times a year. 

I am assuming here that it would be a broker synthetic DRIP so if there's not enough cash paid as a dividend to buy a full share (or several full shares), there are fewer than four a year to adjust the cost for.


VCN is generally more difficult as there are extra steps compared to the 100% eligible dividend investments. If anything is a pain it's a Canadian domiciled ETF, whether a DRIP is involved or not.

The investor has to subtract the return of capital (RoC) from one's cost base each year. Technically with each payment to confirm if the cost base triggers reporting the RoC as a capital gain on each tax year's tax return ... but for VCN, the RoC portion being paid looks like it is small enough that it would take a long time to happen.
http://howtoinvestonline.blogspot.ca/2010/07/return-of-capital-separating-good-from.html


As it is a Canadian domiciled ETF, the investor has to check for non-cash, taxable distributions (aka phantom distributions). These tend to be hard to find the details for. The investor that misses adding them to one's cost base means they pay taxes twice on these amounts. 
https://www.acbtracking.ca/glossary/phantom-distributions
http://www.theglobeandmail.com/glob...by-phantom-etf-distributions/article18225076/

VCN is new so there may be none or if it exists, it may be small. Long running, popular Canadian domiciled ETFs have paid as much as $6 a unit in phantom distributions or some focused ETFs have been reported as paying a couple of bucks in a single year. 


http://www.taxtips.ca/personaltax/investing/taxtreatment/etfs.htm


Where one already as to do these extra steps for an ETF, in the grand scheme of things, adding four DRIP adjustments for any added units does not seem to be a ton more work, IMO.


Regardless ... the more important question is whether the investment that paid the income is the best place for re-investment.


Cheers


*PS*

For my eligible dividend DRIPs, I spend maybe twenty minutes a year updating the cost base spreadsheet for the additional shares. I didn't want to deal with the ETF (plus wasn't happy with how late the T3 form was being produced) so I transferred it to my TFSA.


----------



## Jaberwock

You are doing really well, I was nowhere near to your net worth at your age, (having 5 kids probably didn't help). I only really got started on saving in my late 40's but even so, I have a very comfortable retirement and will be leaving money for the kids when I go.

What you invest in is much more important than whether you have RRSP or non-registered. Those blue chip dividend stocks are the key, focus on stocks that regularly increase their dividends.


----------



## kork

Wow... I just read through this thread. It would seem that on this day a year ago, we had a net worth of $750k.... So in one year, NW has gone up $250k.... <blink><blink>


----------



## kork

Pushing forward still and have maintained a NW over $1million which is psychologically exciting.

We purchased 2 (new to us) vehicles in the last 6 months. the previous 2005 and 2007 vehicles were getting expensive and unreliable. So between the two, they were $40k. We paid for them from our saving.

Assets - $1,192,834.84

->Possessions - $450,000
--->House - $450,000
--->Vehicles - $0

->Registered (MINE)
--->RRSP - $205,260.30
--->TFSA - $75,690.53
--->Unregistered Blue Chip Dividend Stocks (and VCN) - $55,345.35

-> Registered (HERS)
--->RRSP - $207,635,34
--->TFSA - $77,218.54
--->Unregistered Blue Chip Dividend Stocks (and VCN) - $55,440.12

-> Registered (Family/Kids)
--->RESP - $57,627.52

-> Savings 
--->Bank Acc. (Savings) - $11,614.14

Liabilities - –$156,997.64
->Mortgage - $156,997.64 (2.29% fixed for 3 years)

*Net Worth - $1,035,837.20*

One really important realization that I've learned about myself is that while financially we've been striving for early retirement, I'm starting to realize that I don't think I would want to (not yet). It might be neat for a first few months, but I somewhat enjoy what I do and quite enjoy the process of "working." The thing is, I enjoy working on my own terms. So while I was looking to early-retire early at 50, I'm thinking that I may be more interested in a "new work adventure" rather than hanging up the gloves. So as long as we earn enough money to "pay the bills" which is now much easier with DW working full-time for the last 2 years, I find a lot of reassurance and freedom in having a decent amount of money working for us and providing a cushion.

So I *really like the idea of Semi-Retirement*. It could be doing what I've been doing (since there are opportunities and I already do freelance work) or it could be something new... Or a combination of some new and some old. Not too sure.

Semi-retirement would allow us to earn an income to cover "the bills" while our investments grow and grow and grow. It would also provide the flexibility to have more time. My wife's income currently provides 60% coverage on our expenses so I'd need to cover 40% to "stay stable."

So for now, I have a contract with my current employer that is still over a year remaining. Since I'm already fortunate enough to be able to work from home 1/2 the time, my job feels almost like it's part-time anyways. Working from home is a different atmosphere. I really enjoy that freedom though it can be lonely. So it's like I'm semi-retired (kinda sorta) but getting paid for it. Don't get me wrong, I'm still working, but I can have the TV on, the radio, I don't need to deal with office politics or that kind of crap. I can work in my PJ's if I want (and sometimes do).

So anyways, the idea of semi-retirement is very empowering as it's not an "all or nothing" type scenario and with our nest egg, it feels like we have the freedom and time to be able to explore that opportunity if we choose without the fear of feeding the family or losing the house.

Having options is an amazing thing that we sometimes take for granted, but we are extremely grateful when we sit down and think about it.


----------



## milhouse

I'd probably want to do some kind of semi-retirement work myself if I get pushed. I'm mid 40's now and am targeting a retirement ~50 but the missus will likely keep working until she's 50 which will mean a gap of ~5-10 years pending when I go. It'd be nice to keep busy ideally doing something interesting and fun while continuing to grow the nest egg a bit. Personally, I'm a bit of a chicken sh*t so I don't think I could make the leap myself unless I got pushed.


----------



## kork

Just deleted this message and asked it in my other thread at http://canadianmoneyforum.com/showthread.php/121905-Moving-from-Index-Funds-to-ETF-s/page5 as it seemed more relevent.

_Okay, so now I have about 1000 shares of VCN in my unregistered investments and I've re-read this thread. Not sure how I missed this before but it has me concerned with having VCN in my unregistered account. I have it through my TD Account. Would they not just send me a statement at the end of the year showing what to plug into what sections on my tax return? Or is it more complicated than that?_


----------



## kork

So 2017 was a pretty decent year financially! I don't own any WEED nor do I own any Bitcoin or cryptocurrency though I know people who own both and wish that I had a magic crystal ball to know that they both would be growing like crazy in recent months.

But instead, I sit with my boring balanced index funds and Blue Chip stocks, work my *** off saving a penny at a time...

Assets - $1,230,349.11

->Possessions - $450,000
--->House - $450,000
--->Vehicles - $0 (However, just bought 2 new to us vehicles this year totally about $40k so that wiped out cash reserves)

->Registered (MINE)
--->RRSP - $212,178.04
--->TFSA - $78,337.53
--->Unregistered Blue Chip Dividend Stocks (and VCN) - $58,237.46

-> Registered (HERS)
--->RRSP - $214,904.08
--->TFSA - $76,813.54
--->Unregistered Blue Chip Dividend Stocks (and VCN) - $58,331.73

-> Registered (Family/Kids)
--->RESP - $60,605.67

-> Savings/Chequing
--->Bank Account - $19,441.06

Liabilities - –$152,166.64
->Mortgage - $152,166.64 (2.29% fixed for 3 years)

*Net Worth - $1,076,739.13*

So an increase of around $174,489 from last year, but would have been higher if our vehicles didn't need to be replaced. Our vehicles set us back about $40k for both, but they'll give us 10 more years of worry free driving (hopefully).

Additionally, last year, $60k of our net worth grew from contributions and $62k grew from investments. We added an additional $45k for the value of our home. I believe that it's valued low since people are buying lots smaller than ours 2 houses down for over $500k and demolishing the homes on them. We like our home and it's nice. 

It's cool to see that for the first time our investments grew more through growth than contributions. I'm getting pretty burned out working and now that my wife is working again, I'm considering downshifting to something more part-time or less intense. Seeing the numbers this year as compared to 5 years ago makes this much more likely to be a reality. I have no clue what that might be, but it's assuring to think that we won't lose the house if I don't get a job next month.

But for now, I'll make hay while the sun shines of course, but I'm not going to be so eager to jump into another full-time salaried role if things don't pan out. Might just take some time to breathe.

So here's to another year of hopeful growth!


----------



## Steve Divi

Great work!


----------



## kork

So I've decided to make 2018, and more closely aligned to my personal goals, "39" my b*tch. I turn 40 at the end of the year and my "turning 40" birthday present is two-fold. 

#1) To be in the best physical condition of my life.

#2) To be [ADDED]Semi-[/ADDED]Financially independent by my 40th birthday (end of the year).

Lofty goals for a father of 2 for sure, but I'm up for the challenge. A good side effect of achieving both #1 and #2 is that hopefully I find myself in the best mental condition of my life as well. As someone who struggles with anxiety and has struggled with depression, these items are significant contributors.

So #1 above. Best shape of my life. I started in December, 2017 at 254lbs. My resting heart rate was around 75bpm. Bad!

As of this morning, I weighed in at 190lbs. That's a 64lb drop. GOOD! My resting heart rate now averages around 50bpm. I'm exercising, eating well (no gimmicky low carb fads or anything.) I don't believe in deprivation, just balance. I love pitas and pizza. Pretzels for a snack and yummy carbs, but I have much smaller portions and eat slower. Tiny bites of pretzels still satisfies the craving. My target weight is 180lbs... 10 lbs to go but I want to get down to a lean 165-170lbs. That puts me at the same weight when I was a highschool athlete. 

And #2, the Financially Independent part of it.

Assets - $1,297,000

->Possessions - $495,000
--->House - $495,000
--->Vehicles - $0

->Registered (MINE)
--->RRSP - $211,659.76
--->TFSA - $83,539.64
--->Unregistered Blue Chip Dividend Stocks (and VCN) - $59,508.40

-> Registered (HERS)
--->RRSP - $214,265.70
--->TFSA - $82,018.63
--->Unregistered Blue Chip Dividend Stocks (and VCN) - $59,604.42

-> Registered (Family/Kids)
--->RESP - $61,712.40

-> Savings/Chequing
--->Bank Account - $30,265.26

Liabilities - – $146,884.61
->Mortgage - $146,884.61 (2.29% fixed for 3 years)

*Net Worth - $1,150,689.60*

--

Investments have had a bit of a rough go but have continued adding to them so they're about the same value. We have about $740k in investments/cash. At a 4% SWR that brings us to nearly $30k a year. Without our mortgage and RESP payments our expenses are around $36k a year so we figure, the RESP is getting to be very reasonable and we can pay off our mortgage at any time with TFSA if interest rates spike or whatever with renewal.

We are very close to being Financially Independent with our currently lifestyle. When I stop working, my wife will likely continue. She brings in about $35k a year after taxes. So our mortgage and RESP's will be covered by her income and then our investments "could" cover the balance.

But they likely won't need to because I also like working on my own terms. I'm pretty confident I'll be able to earn enough from "fun jobs" or part-time work in my field. Just not Monday to Friday in a stressful environment. And let's not forget that if we both stop working, we get about $12-$14k from the government for simply having kids until they're 18. One way or another, there will be enough $ that if we were to both stop working we'd do okay. And one day, waaaay in the future we've still got OAS and CPP that will kick in to some degree.

So FI (to us) isn't necessarily being able to cover all our our expenses with our investments, but a balance of investments, income on our own terms and the extra benefits we can receive with kids from the "make it rain" gov't we have.

So all is good!


----------



## tygrus

You have a nice net worth, but you are not financially independent until you have replaced your working income and you are too young to plan a 4% draw. You might live to a 100. I dont see the cashflow from your assets. They are all tied up in RRSPs and your home. Million bucks should be giving you $50-60k tax free annually.


----------



## kork

tygrus said:


> You have a nice net worth, but you are not financially independent until you have replaced your working income and you are too young to plan a 4% draw. You might live to a 100. I dont see the cashflow from your assets. They are all tied up in RRSPs and your home. Million bucks should be giving you $50-60k tax free annually.


Perhaps financially Independent isn't the technically correct word. Perhaps it's Semi-FI (if that's even a thing) as I don't actually plan or want to stop working. Enough money saved to allow me to downshift and live on my terms rather than around work with very little concern about saving money.

We're comfortable on $50k a year after tax which includes doubling our mortgage payments and maxing out RESP contributions. It's not hard to earn that while we let our savings/investments grow for the next couple decades. What is hard is for a 40 year old who's tired of working to start saving for retirement (like so many In know).


----------



## OnlyMyOpinion

Congrats Kork. The numbers look great and will continue to grow. Your fitness results are really impressive. :applause:


----------



## milhouse

I know it's just a different non-essential label but how about "financially secure?"

Anyways, props to your health goals. I'm envious as I struggle with motivation around physical health/losing some weight and mental health/anxiety too.
We tend to focus on the financials but IMO, people need balance across all aspects of their lives from financials, to health, to relationships, etc.


----------



## kork

On the health side, for the past week, I've been averaging mid-high 40's for average resting heart rate. They say the normal adult is 60-100BPM and athletes are in the 35-50 resting BPM range. So I'm feeling pretty good that I can be considered having the heart of an athlete!

6 months ago my resting heart rate averaged between 70-75BPM. I'm getting much better mileage out of this thing now!


----------



## kork

milhouse said:


> I know it's just a different non-essential label but how about "financially secure?"
> 
> Anyways, props to your health goals. I'm envious as I struggle with motivation around physical health/losing some weight and mental health/anxiety too.
> We tend to focus on the financials but IMO, people need balance across all aspects of their lives from financials, to health, to relationships, etc.


Following your lead in this, I think you're right. I just read an article from J.D Roth about the 6 stages of financial independence.

https://www.getrichslowly.org/stages-of-financial-freedom/

Looks like I'm in the Stage 4 - Financially Secure stage. But we're also heading nicely to Stage 5 which is Financial Independence. The good thing about Financial Security is that most of the money we earn at this point beyond our investments really is for "us." Like when you were a kid... You get a part-time job and if you earn $100, you get to keep most of it and do as you please. 

Adulting sucks when you're making a bunch of money, but it passes through you to other things. $5k a month can get eaten up and you feel like if you have $100 at the end of it all for a night out or whatever, you're lucky. Mortgage, heat, hydro, insurance, car payments, etc... All the same stuff you took for granted when growing up and living under the parents umbrella. It's quite different when your investments CAN (not necessarily are) cover those basic needs and any money you earn beyond that is for "stuff you want" like when you were a kid. Helps with the fulfillment curve too!

So I think we're there, we have enough investments to cover our "if we were kids again" expenses and any money earned these days goes towards creating more of a buffer or to ourselves. It's a mindset for us. A paradigm or perceptual shift towards work.


----------



## kork

So I'm thinking that the simple math is that we need to earn $36k-$40k a year from our investments with a paid off home to be truly Financially Independent. I believe that looks like $1 million. Beyond that is CPP/OAS, any inheritance, etc. The good news is that with a 20+ year horizon to traditional retirement, if we were stop contributing today to our investments I hope we'd make it to our number by then.

Until then, perhaps my "when I turn 40 goal" will be to get myself into the mindset that I will be able to down-shift and stop working full-time IF I choose to do so. If I'm still enjoying what I'm doing then I'll keep at it. If not, I can do something else and money doesn't need to be the determining factor.


----------



## peterk

It's funny, all these "levels" of savings and accomplishments... So many blogs and charts and detailed discussions, the nerdification of living life and saving for retirement... It all has the glossy surface message of promoting savings and responsibility and investing for a better life and retirement.

But then, just under the surface, it also leads "regular people" down the path of thinking about retirement in their 40s, thinking about "screw you money" in their 30s, towards making reckless decisions because some graphs on the internet say they have now leveled-up and are "safe". It seems like this could all go very poorly for many well intentioned middle to upper-middle class people.

Don't get me wrong, I'm super into it myself and want to retire in my 40s too, a big money nerd! I just wonder if we've gone too far sometimes. I am unaware of a time in history when a large chunk of the most productive members of society, the upper middle class, have been able to retire early and everything turned out rosy...

Sorry for being weird in your diary Kork


----------



## kork

peterk said:


> It's funny, all these "levels" of savings and accomplishments... So many blogs and charts and detailed discussions, the nerdification of living life and saving for retirement... It all has the glossy surface message of promoting savings and responsibility and investing for a better life and retirement.
> 
> But then, just under the surface, it also leads "regular people" down the path of thinking about retirement in their 40s, thinking about "screw you money" in their 30s, towards making reckless decisions because some graphs on the internet say they have now leveled-up and are "safe". It seems like this could all go very poorly for many well intentioned middle to upper-middle class people.
> 
> Don't get me wrong, I'm super into it myself and want to retire in my 40s too, a big money nerd! I just wonder if we've gone too far sometimes. I am unaware of a time in history when a large chunk of the most productive members of society, the upper middle class, have been able to retire early and everything turned out rosy...
> 
> Sorry for being weird in your diary Kork


Ha, no worries.

It's a perceptual thing for me. My goal isn't to hit a certain milestone and say "I'm DONE!" - Instead, it's more a "what's next?" with the perception that I'll be okay. I like work. It's challenging, rewarding and fun. But it's also overwhelming and without striking a work/life balance can be all consuming. As someone who is challenged with anxiety I find that a lot of positive impact is gained from not being in the frame of mind that "I'll lose the house and the kids will be on the street if I screw up."

I'm watching my parents. They both retired last year. They both tried retirement and got bored of it quickly. Instead, they both moved towards jobs/part-time income and volunteering that they dictate their own time and are in control 100%. It's not Monday-Friday 9-5. They don't have the fear that if they don't keep their skills up to date that they'll miss out on opportunities. Instead, they find what they're doing truly enjoyable. In the summer when it's weekends at the cottage, they'll do less of it.

That's my goal. To get to the point of financial security where I can say "I can mellow for a bit if I choose to."


----------



## kork

Good all around! My weight is down to nearly 175lbs. Waking up in BEAST MODE nearly every day. I have so much energy! Much different than 6 months ago @ 254lbs!

Finances are also moving forward.

Assets - $1,325,847.58

->Possessions - $495,000
--->House - $495,000
--->Vehicles - $0

->Registered (MINE)
--->RRSP - $211,659.76
--->TFSA - $83,539.64
--->Unregistered Blue Chip Dividend Stocks (and VCN) - $61,889.24

-> Registered (HERS)
--->RRSP - $221,013.54
--->TFSA - $84,414.63
--->Unregistered Blue Chip Dividend Stocks (and VCN) - $61,985.26

-> Registered (Family/Kids)
--->RESP - $64,070.45

-> Savings/Chequing
--->Bank Account - $33,619.55

Liabilities - – $144,894.29
->Mortgage - $144,894.29 (2.29% fixed for 3 years, term is up for renewal summer of 2019)

*Net Worth - $1,180,141.54*

So +30k to net worth and almost -15lbs since last post about 6 weeks ago. Net worth increases feel like weight loss. Slow and steady. No real "get it done fast" healthy/safe options.


----------



## scorpion_ca

OMG..how did you lose so much weight? My weight is 228lbs and I have been trying to reduce it to 200lbs for the last 8 years without any success.


----------



## kork

scorpion_ca said:


> OMG..how did you lose so much weight? My weight is 228lbs and I have been trying to reduce it to 200lbs for the last 8 years without any success.


The first 60lbs was easy. When I say easy, it was very disciplined, but the actual weight loss was really just calorie counting. Like they say, weight loss occurs in the kitchen. I use Loseit! to track calories and make sure to pay attention to quantity. Initially it's tricky because you need to enter everything, but once you get going, I found I eat much of the same food and so adding lunch was simple.

Once I got to 190lbs, then I ramped up the fitness (which coincided with better weather to break out my bike). I'd been going to the gym for the past 6 months 3 days a week, but I wasn't getting any stronger or building any muscle due to the weight loss. It's hard to cut and put on muscle at the same time.

So today for example, I did a 30 minute Group Power workout at home (https://mossa.net/) which is awesome. At lunch, I went on a 45 minute bike ride around the waterfront. We live 5 seconds away from the bike path so it's very convenient. 

On the weekend I try to go for another 60-90 minute bike ride. The entire ride my heart rate is between 100-120bpm.

The key is this. I find that I work for my calories now. For example, I won't deprive myself. 

So I do 30-60 minutes of varied exercise each day.

There are things I found as really pleasant findings (this list got long!)


When you work for the food (exercise) you appreciate it a lot more! 
ANYTHING taste good when you're hungry, even salad!
Drink 500ml of water 20 minutes before any meal. It'll trick your body into thinking you're fuller and one hamburger is filling rather than two.
Looking forward to something. Every night before bed I eat a bowl of pretzels and a small can of coke or pepsi (the little 100 calorie ones). After than is sometimes a small bowl of cereal. I used to drink 2-3 cans of soda a day. Now I drink a small one. I used to eat a lot of pretzels for a snack. Now, I buy the small pretzels and eat them in smaller bites. 189 calories for a bowl and 100 calories for the coke. I make sure that at the end of the day, I've got 300 calories to spare and I don't feel guilty at all.
The scale will trick you!!! For example, I'll be sitting at the same weight for nearly a week. Sometimes it even goes up a bit when I think it should go down. But then Wham! The day after I eat fries and a burger for dinner and creep over my daily calories, the next morning I'm down 1.6lbs from what I weighed in at the day before??? Water retention, bowel movements, etc... It all plays into it.
Aim for 2lbs a week MAX! Anything more than that and you're thinking about food and being hungry. I'm never hungry. I actually eat really well. Today (as of 2pm I've had a hard boiled egg, a banana, Bacon Wrapped Turkey Medallion, a Tomato with salt sand pepper, A Kirkland nut bard drizzled with chocolate)... For dinner, it going to be BBQ'd shish-kabobs, homemade baked fries and a ceasar salad. And then later is coke, pretzels, and some cereal. That's not a "diet" at all. But portions are controlled.
PILE ON THE VEGGIES!!!! There's virtually NO calories in most veggies and you can fill your stomach. An entire tomato is like, 25 calories.
No gimmicky weight loss programs! Low carb, high fat, gluten free, caveman, blah blah blah. For me, it's moderation. If I'm with friends, I'll eat with my friends; plate of nachos, bring it on! Fries, Hell ya! Nobody knows that I'm eating less than they are. 
I ride by bike a lot more to go places. Groceries, I take my bike. Hardware store... Bike. Anywhere I can go on my bike, I do. I've been doing this for a month. or so. I'm uncovering a child-like joy of riding my bike places. Enjoying the scenery more. Driving sorta sucks.
I take my time and enjoy every bite. Smaller bites, chew more, enjoy the taste before swallowing and getting to the next.


*^^^ That last one is HUGE!!!!!* It seems simple, but I'm finding more joy in many things. Very much the fulfillment curve. Having food whenever I wanted to gratifies immediately, but there's no lasting effect. In fact, it's the opposite. It starts off as satisfaction, but then leads to remorse. By limiting guilty foods, it creates more of an appreciation when I actually get it. I savour it and enjoy it more! But I'm not "on a diet." I still eat all thd same kinds of food. Just smaller portions and I make choices.


----------



## scorpion_ca

Thank you so much for your details response. I use treadmill around three times a week (55 minutes, 4mph, burn 600 to 750 calories) and I also stared to ride my bike since yesterday. I will ride my bike couple of times a week during summer (two hours on each day). I don't eat much; however, I will have to reduce the quantity of my food further. Let's see what happens.


----------



## milhouse

I lost 40lbs fairly quickly and then fell off the train once I went on vacation. :subdued: I need to jump back on the bandwagon. 

For me:
Step 1 was watching my calorie intake (which is not that different from watching my spend). 
I cut out the liquid calories; only water. 
I agree with the inconsistent scale readings. It's the trend that's you're looking for. However, I did try to weigh myself after on a consistent time which was basically after I "purge" every morning. 
Also agree with the veggies being low calorie. I ate as much fruit and veg as I wanted. 
To supercharge weight loss, ideally one should not just focus on cardio but also weights/strength. It's kind of counter intuitive in that you might be adding weight by building muscle but it helps with your calorie burn overall.


----------



## kork

Another 12lbs lost. I'm now down to 163lbs or so. Feeling great!

Assets - $1,352,708.13

->Possessions - $495,000
--->House - $495,000
--->Vehicles - $0

->Registered (MINE)
--->RRSP - $219,806
--->TFSA - $86,758
--->Unregistered Blue Chip Dividend Stocks (and VCN) - $65,725

-> Registered (HERS)
--->RRSP - $223,262
--->TFSA - $86,758
--->Unregistered Blue Chip Dividend Stocks (and VCN) - $65,821

-> Registered (Family/Kids)
--->RESP - $65,682

-> Savings/Chequing
--->Bank Account - $45,468

Liabilities - $142,232
->Mortgage - $142,232 (2.29% fixed for 3 years, term is up for renewal summer of 2019)

*Net Worth - $1,209,694*

So +30k to net worth and another -12lbs since last post about 8 weeks ago. Progressing right along.

One thing I would point out. I've lost 90lbs since Nov of 2017. I think my goal weight is going to be 150lbs overall (so another 13lbs to go - it'll be the hardest!) before I start to clean bulk. My goal will be to get up to 175lbs or so. That'll be my current frame plus another 25lbs of muscle at that point.


----------



## kork

Just hit a milestone. Now have over $800k in investments/savings. Only $200k more to go to get to the $1million in investments mark!


----------



## kork

Well the last few months has been pretty rough in the market! Investment value has gone down quite a bit ($50-60k since my last post), but rolling in the new year, Net worth is still up from last year! We also sold our home and bought a new (to us) home as well. We sold for $80k more than I had valued the home for when calculating NW.

Assets - $1,482,300.41

->Possessions - $685,000
--->House - $685,000
--->Vehicles - $0

->Registered (MINE)
--->RRSP - $204,268
--->TFSA - $80,756
--->Unregistered Blue Chip Dividend Stocks (and VCN) - $62,900

-> Registered (HERS)
--->RRSP - $206,888
--->TFSA - $79,276
--->Unregistered Blue Chip Dividend Stocks (and VCN) - $62,996

-> Registered (Family/Kids)
--->RESP - $64,045

-> Savings/Chequing
--->Bank Account - $86,167

Liabilities - $290,258
->Mortgage Term 1 - $137,269 (2.29% fixed for 3 years, term is up for renewal June of 2019)
->Mortgage Term 2 - $153,295 (3.49% fixed for 3 years, term is up for renewal December of 2021)


*Net Worth - $1,241,642*

Now we have two terms on the mortgage. One is up in 5 months and we'll decide what to do at that point. The other is 3 years out. I don't like having a mortgage and we've been doubling up our payments for the last few years. What's nice is that our monthly mortgage payments don't change with the new home, we're just not doubling up anymore. We also have a decent stockpile in our savings account as we plan on doing renovations over the next couple years. Hopefully we'll be able to bootstrap the renovations without cutting into savings too much. We do need to make our RRSP and TFSA contributions soon though and that'll knock $35k our of savings as well.

Additionally, by moving to the newer home, we have more balance in our net worth between physical property and stocks/bonds. We can live in our new home. I figure, we can have some of that investment in our primary residence while we're raising a family. In 10 years, we can decide what we want to do at that point. We're now in an executive neighbourhood with a public school rated in the top 5% (closer to top 3%) in Ontario. We're nestled in amongst $1-2 million+ homes. Not that it matters too much, but if we plan on doing renovations then we're still not the most expensive house on the street.

So Net Worth from last year grew $165,793 while our investments actually lost $25,159 on paper overall. Most of that increase was savings and after real estate commissions, land transfer tax, closing costs, etc, the house made up the rest (Maybe $35k on top of what I had the value of the home set at before). But most was good ol' fashioned saving from paycheques.


----------



## kork

We're now settling into our new home. Because of the challenges we faced with our last home (replaced the boiler, ductless AC units, significant renovations, etc) I've been overly sensitive with any new noises or creaks with our "new to us" home. When it's raining I wander the perimeter for pooling water, etc. Glad to say that over the last 2 months I've been able to fix a number of things the previous owners neglected and we're now getting comfortable in our new skin.

For the first time in a decade, we haven't topped up our TFSA right at the beginning of the new year. We did max out our RRSP room though for the 2018 tax advantages but my job is questionable right now and with the new home and some planned renovations, we're keeping a safe amount in savings/cash for a bit, just in case. 

Net worth also passed a milestone today. $1.3 million, woohoo!!!

Assets - $1,545,071

->Possessions - $685,000
--->House - $685,000
--->Vehicles - $0

->Registered (MINE)
--->RRSP - $230,498
--->TFSA - $86,116
--->Unregistered Blue Chip Dividend Stocks (and VCN) - $68,313

-> Registered (HERS)
--->RRSP - $233,903
--->TFSA - $84,545
--->Unregistered Blue Chip Dividend Stocks (and VCN) - $68,409

-> Registered (Family/Kids)
--->RESP - $68,853

-> Savings/Chequing
--->Bank Account - $69,430

Liabilities - $290,258
->Mortgage Term 1 - $136,443 (2.29% fixed for 3 years, term is up for renewal June of 2019)
->Mortgage Term 2 - $152,845 (3.49% fixed for 3 years, term is up for renewal December of 2021)


*Net Worth - $1,305,688*

I'm still working on my plan of "what's next." Having spent 20 years working really hard (career and my own company) and saving, I feel that with each passing month of paying down the mortgage and adding to savings and passive income is getting us closer to even more flexibility.

The other realization is that my "side hustle" is what has allowed me to save as much as I did. The full-time job and salary paid the mortgage, the kids expenses, the vehicles. The side hustle has gone mainly to investing. In 15 years, I've had about $1 million in income (expenses drops that) but it's a nice round number. It's safe to say a good portion of that income has gone to the future.

In some ways, I feel guilty, almost like it's been to easy by comparison to others. But 15 years ago I could burn that midnight oil. Even after our daughters were born, I've had the flexibility to work remotely for much of the week. This makes day to day life much easier and the side hustle is easier when you don't feel like you've been "at work" all day. And priorities shift. As the girls get older and we struggle with them through school and so forth, the barometer of success we use is "are they happy." 

Yesterday we received their report cards and regardless of grades, both teachers commented how how sweet and helpful and positive an influence they are in class (Grade 6 and 4). They're adjusting exceptionally well to their new school and have made friends. They're developing wonderful relationships with their teachers and even though we struggle at times... Happiness is the yardstick for us.

So all in all, 2019 is off to a get start... Unfortunately, I've also put on 30lbs since the Fall. Have gone from 165lbs to 195lbs in 5 months. Granted, I'm not cycling in the winter months, but my eating habits have gone to the crapper and I'm trying to swing it back around. Just need to make that pattern/routine that I fell out of as we hit the colder months.


----------



## john.cray

Good job and congratulations.



kork said:


> The other realization is that my "side hustle" is what has allowed me to save as much as I did. The full-time job and salary paid the mortgage, the kids expenses, the vehicles. The side hustle has gone mainly to investing. In 15 years, I've had about $1 million in income (expenses drops that) but it's a nice round number. It's safe to say a good portion of that income has gone to the future.


Out of curiosity would you be willing to share more about your "side hustle" ?

Cheers,
JC


----------



## kork

john.cray said:


> Good job and congratulations.
> 
> 
> 
> Out of curiosity would you be willing to share more about your "side hustle" ?
> 
> Cheers,
> JC


Sure, Back in 2002 I started my full-time job working as a programmer doing Interactive CD's. . I spent most of my time working for my full-time employer and did the occasional website for friends.

In 2004, I got my first freelance project from an actual "web agency" and earned just under $2390 for the year. And an extra $2390 was a lot of money to help pay off student debt with only a $45k/year salary. The next year, I moved to another company in another city and resigned. At the same time, my boss also started his own agency and we worked together on some projects. So for the next 5 years, I did freelance CD-ROM design and programming.

2004: $2,390
2005: $15,068
2006: $15,910
2007: $34,458
2008: $37,768
2009: $70,864
2010: $58,343
2011: $44,585

In 2011 I also developed an interactive product and licensed it for monthly usage in a niche industry. It generated a decent amount of income for the next 5 years. Maybe to the tune of about $200k. It was a touchscreen sales product. iPads and other touchscreen apps killed it though over the years. When I launched it, the iPad didn't exist yet.

2012: $70,235
2013: $80,496
2014: $70,700
2015: $67,211
2016: $68,072
2017: $36,738
2018: $28,465

And the side hustle has been slowly dwindling back down but I'm okay with that. Web development is a different beast than it used to be. It used to be the wild-wild west. It was creative and there were few boundaries. It was fun and creative like painting with a blank canvas. These days, everything is frameworks and libraries and CMS's. Grid systems that limit design potential and front end frameworks that get updated and break things. It's like going from a blank canvas to "paint by numbers."

But with that said, the money has been made and now it's earning for itself. I expect that this year I may do another $20-$30k again. Could be as low as $10k though. But it allows me to add to the RRSP and the TFSA. 

The work consists mainly of easier web design projects. My full-time job is demanding so the passive income is for simpler projects that I can move through with minimal technical challenges or headaches. Wordpress websites, etc. With that said, I do take on more complex projects as well if they're right.

I don't look for new work though. It all comes through referral or previous clients. If I actively looked for new clients, I'm sure I could drum them up, but with a family and a full-time job, I'm glad I planted the seeds 15 years ago and let them grow!


----------



## john.cray

Thank you. Impressive feat.

With a full-time job and two kids, how much time do you spend on your own stuff a week? How do you manage?

Kudos again and cheers,
JC


----------



## kork

john.cray said:


> Thank you. Impressive feat.
> 
> With a full-time job and two kids, how much time do you spend on your own stuff a week? How do you manage?
> 
> Kudos again and cheers,
> JC


For the last 15 years in an industry where people work well into the evening and burn into the overnight, I've maintained a relatively structured work environment. There's a quote I read years ago by Jason Fried that went "Workaholics aren't heroes. They don't save the day, they just use it up. The real hero is home because she figured out a faster way."

And 99% of the time, I've been able to leave work right at 5pm. When I started freelancing, I also moved to another city which was literally a 7 minute commute door-to-door. I figured, most of my peers are leaving work late AND are stuck commuting. They're spending 2 hours a day just commuting. What if I took that commute time and dedicated 10 hours a week to freelance work? So for the most part, I'd be home by 5:15pm and could get the evening on the go. By 8-9pm, I could sit at my laptop and do a bit of work in bed, or wherever.

So I work full-time but I've made a conscious effort to maintain a work/life balance with that aspect. Even in my first job, I wasn't there to impress my boss by leaving after he did. Instead, we became friends and left together... Both at 5pm. He had young children at the time. We're still very good friends to the day.

I've always worked in small companies. I believe that that my work/life decisions would have limited my growth in a large corporation where you move up the ladder. And it's possible that I limited my earning potential by not growing up the ranks of a corporate ladder in a large organization. I have colleagues who are now earning a ton of money in senior management roles. I've never moved up the ladder. Instead, I've made my own ladder. It's not very large and doesn't reach very high, but it's the ladder I built. Not someone else's. 

How do I manage? I have great family support. My wife was a SAHM for the first 8 years of parenthood. She is now back in the workforce and it earning enough money to pay our mortgage and a few bills. Whenever I had a freelance project, she provided me the flexibility to get the work done and didn't make me feel guilty at all. If I had a SO who, upon arriving at home from a day at work instantly handed me the kids and stormed off with a "here, you take them!" then this would not have been possible. 

Instead, we managed an open and honest communication channel and made things work.

And today, both of our daughters are happy, well adjusted kids/young ladies. They both have strong work ethic and most importantly, subtle hints and clues that they're both happy which is the most important things for us.

So in total, I'd say I worked 50 hours a week on average (some weeks would have been more, some less). 35-40 for the F/T job and 10-15 for freelance. The F/T was M-F, 9-5 consistently and the freelance side-hustle was more an hour here and and hour there filling in the gaps of time when I wasn't needed elsewhere to tend to the kids or help clean the house or whatever.


----------



## peterk

kork said:


> I've always worked in small companies. I believe that that my work/life decisions would have limited my growth in a large corporation where you move up the ladder. And it's possible that I limited my earning potential by not growing up the ranks of a corporate ladder in a large organization. I have colleagues who are now earning a ton of money in senior management roles. I've never moved up the ladder. Instead, I've made my own ladder. It's not very large and doesn't reach very high, but it's the ladder I built. Not someone else's.


What I'm starting to see in the workplace is: 90% of jobs pay the right money, all things considered.

Factoring in pace of the industry and work, remote vs. town vs. city, big corp vs. small corp, management vs. operation... Once you consider the intangible compensation like Location, hours, freedom, it all factors out pretty well in the end and you get what you deserve.

There are for sure exceptions, where some have cushy jobs running departments that run themselves, or advisors that don't have anyone asking them for advice, making 200k+/year, and there are some brilliant people working 60hrs/week in high responsibility positions making 40k/year. But these are the exceptions. Usually the people making 40k aren't doing all that much and have easy lives, and the managers making 200k+ have hard, stressful lives.

This is of course prevalently portrayed as a myth in our society today, so that the lower income 50% of the population buys into the idea of taxing the "rich" because "they aren't paying their fair share" and because "poor people work just as hard too". But from what I can see, everyone is about getting what they deserve.

With the exception of the fantasy land public sector fake economy.... Where the train drivers make 80k, and 19 year olds doing some light gardening in public parks make 50k.


----------



## kork

@Peterk - Yes, I agree. My point was more along the lines that if I had started my career at the bottom of a large company, burned the midnight oil in an effort to impress, etc, 15 years later I would be in a position at the CBC or at a bank or something making better money than I am now in a comparable role in senior leadership.

But that's *just* when looking at the money. There's also high stress and workloads in much of that. When I get together with old school colleagues/friends, we all have stories to tell. One guy works in analytics for a company with 500,000 employees (well, up until a couple weeks ago). Before that, he was in analytics for a bank. He got burned out, just retired and is moving overseas at 45. He's going to garden and do pottery for the foreseeable future. Another just got laid off from a company where he was one of the first 5 employees, they grew to 1000+ and he got packaged out. He sold his home, bought a van with his wife and have been travelling north and south America. He'd spent 15 years at the same place then they threw him out. 

I'm not in either of those positions. The trade off is that I'm able to work remotely for a company, earn a decent income, have relative autonomy in my daily work life which is done remotely all while being able to do a little bit of freelance work still. Most people I know in larger organizations work more and have little interest in freelance work. Their side hustles are completely unrelated (if they have them). They're stuck to their job and that of large companies riding it out with the allure of a pension at the end which gets sweeter and sweeter with each passing year.

Instead, I made my own. But I'm more of a big fish in a small pond. Colleagues are becoming bigger fish in a big pond.


----------



## peterk

Ya exactly! Maybe others make more paper income than you by being senior employees, but then they have risks of layoffs you don't and vice versa for different risks. You have a lifestyle they don't which is non-money compensation. Burning out at 40 on super high income vs. lower income and being steady. It's all a wash in the end.

The one common denominator is to focus on learning to increase your skills, your value and ultimately your hourly rate, fully considering money compensation, non-money compensation, and risk.


----------



## john.cray

Thanks for taking the time to answer and keep up the good work!

Good luck,
JC


----------



## kork

So another milestone. As of yesterday, net worth has hit $1.4 million. We took some money out of our TFSA's to pay off the one mortgage segment. Whether or not it was a good choice financially, it was more of an emotional decision.

Assets - $1,551,055

->Possessions - $685,000
--->House - $685,000
--->Vehicles - $0

->Registered (MINE)
--->RRSP - $241,843
--->TFSA - $41,914
--->Unregistered Blue Chip Dividend Stocks (and VCN) - $74,480

-> Registered (HERS)
--->RRSP - $245,560
--->TFSA - $40,256
--->Unregistered Blue Chip Dividend Stocks (and VCN) - $74,576

-> Registered (Family/Kids)
--->RESP - $75,405

-> Savings/Chequing
--->Bank Account - $72,018

Liabilities - $150,724
->Mortgage Term 2 - $150,724 (3.49% fixed for 3 years, term is up for renewal December of 2021)


*Net Worth - $1,400,331*

And now for the real kick in the teeth. I've been talking for years about the dream of semi-retiring early and doing whatever I want to do. A few months ago as this gets closer to reality, my anxiety has seemingly taken hold and is projecting out into the future in a morbid way. Death.

So for the last 4 months, I've been struggling HARD with anxiety and depression. The last 10 years has flown by. I can't believe my first post to this thread was 7 years ago. I still remember sitting in my bed writing it out.

And poof! The time is gone. My little girl is now almost 13 (and the other is 10)... She's a young woman now. It feels like only yesterday that she was having her Monster High birthday party but that was 6 years ago.

My mind feels broken and destroyed. I've been seeing a therapist, have had multiple psychiatrist appts and am now on a powerful medication that treats depression, anxiety, psychoactive episodes and bipolar (I've been diagnosed with mild type 2 bipolar).

So it's almost like for the last 20 years I've been carefully planning for midlife. Putting the right pieces in the right places, looking forward to the time where I can have my freedom to do what I want to do. We've been frugal but haven't gone without. I've been feeling nostalgia more and more and it almost feels like everyone on my facebook wall updated their profile pics after 20 years. 

It's very disorienting watching TV (especially re-runs) and realizing that while I see myself as the younger couples in their early 20's I realize that I'm the age of their parents.

So anyways, the finances are in auto-pilot mode and I thought I would sail into my 40's with clear skies (unlike some of my peers who aren't nearly as fortunate as I've been) but I've learned that even without a situation change, my mind is powerful enough to dig me into a deep hole of despair. The anxiety keeps me there and the depression makes it seem hopeless. 

The pile-on continues even though I'm very fortunate with health, fortune and family.


----------



## OnlyMyOpinion

Thanks for the update Kork.
You recognize how well you've done, not just financially, but having a family that loves you. 
You also recognize it is your own mind creating the anxiety, and you are proactively working to address it. 
Stay the course. I'm confident you will come out the other side, well and happy again!


----------



## OptsyEagle

You won't miss life anymore after you are dead then you did before you were born. Fear the way in which you die a little, but do not fear death. The person who does not have a problem after death, is the one who dies. At that time, all your problems will finally be solved. Don't worry about it.

Obviously you have a lot to live for so I am assuming you won't take my points above the wrong way. No need to expedite the event, but no need to worry about it either. I am just relaying how I deal with the unfortunate reality that we all have limited time. When today is over you will never, ever get it back, so use it well. Your net worth is not the numbers you listed above. They don't even come close to it. Your net worth is a set of working lungs, a pumping heart and an electrified brain. Your only valuable assets are the people who care about you and the ones you care about and maybe your dog.


----------



## OptsyEagle

The only other thing I have to say about death that may help you is the issue that at death life is over and you will now be missing out. Seems to be a common complaint.

The way I look at that is this way. It is a little grotesque but it makes my point well.

Think of the astronomical odds of you ever being born. Have you ever thought about that? We know how it happened. How you were created, but what were the odds that you were created.

How many little swimmers do you think your father created, in his lifetime, of which you were only one of. I don't know how old your father is or was, but I think you can imagine we are talking about millions and millions of little swimmers.

When your father created you or I should probably say, created half of you, you had only one hope in life and an extremely limited amount of time to accomplish it, or you would be dead, just like your sub-siblings (the name I will give to the millions of other swimmers your father created that never were to be). So here was the astronomical challenge you were faced with, when your father created you. I am sure they could make a great action movie about this. Your challenge now was that you had to find a female egg, and you had to find it in the next 72 hours, or you would never, ever be. So think of all the swimmers that never had a chance because some girl never agreed to go out on a date with your father. All the swimmers wasted on the lonely nights your father spent home alone during his college years. Yet you were lucky. How lucky?

You not only were created during a few day period where your mother so conveniently agreed to some hanky panky. What were the odds of that? I don't know your mother, but it wasn't the deed they did, but more it was when they did it, that was your lucky break that day. You're not done yet. After the deed, there was probably hundreds of thousands of little swimmers all swimming for the golden egg. You were just one of those, but you did it. You swam faster and more true then all the rest and just like the Olympic swimmer that touches the timer clock at the end of the meet, you turned around and you had won gold. 

What do you really think were the odds of all that?

My point, about the above, is that instead of thinking about what you will miss out on when you are dead, think about what you actually got. The odds of getting to take one breathe of life on this planet were so astronomically against you and yet, you got it. You are actually here. You were awarded the gold medal of life. You should think more about how incredibly lucky you were to be able to live at all and a lot less about how much time that life will be. Any time at all is a lottery win. More is just a small bonus compared to that and you shouldn't worry about small things.


----------



## OnlyMyOpinion

Ok Optsy, convincing I don't know, but imo that was a pretty weird post.


----------



## AltaRed

An interesting perspective. I am 70 and much closer to the end of the trail than the beginning. I am lucky to have had the journey I experienced along the way and the accumulation of all those experiences are the rewards and memories I enjoy today. Live in the moment and forget about what will lie ahead. You can't re-do today tomorrow.


----------



## fireseeker

Hi Kork,
Congratulations on the success of your plan, even though I recognize you are not in a place to feel that right now. 

I thought it might help to share something a therapist once told me:
Everyone will face three major life transitions: The first in adolescence, the second in mid-life and the third just before death. In all cases, the rules and foundations underpinning your old life are failing, but the new rules and foundation are not yet in place. It is highly destabilizing.

Of the three, I found the identification of mid-life as a tough transition the most puzzling. On the surface, the change does not seem to have the same magnitude as the other two.
But now, as I finish moving through mid-life, I understand. 

The first two decades of adulthood are spent in pursuit of compelling and demanding goals: a spouse, a family, a career.
In mid-life, those have been achieved. Or perhaps they have gone awry. In either case, a reckoning takes place: sex and promotions start to lose their lustre. Children are gaining independence.
The old motivations and foundations are crumbling. A new you with new goals -- or a greater acceptance of who and where you are -- has yet to emerge.

I hope you can find some patience with this process. I know it is difficult and I know you are in a rough place.
It sounds like you have accomplished a great deal, both financially and in terms of family. One day, hopefully soon, your ability to appreciate that will be restored.
I wish you, and anyone feeling what you are feeling, much peace.

-fireseeker


----------



## OptsyEagle

OnlyMyOpinion said:


> Ok Optsy, convincing I don't know, but imo that was a pretty weird post.


Yeah, not exactly about money. But hey, it's nice to know that we are all long shot lottery winners. It just kind of makes you feel good. lol


----------



## kork

Thank you all for the wonderful posts. As I've been reflecting, it's not so much my own death, but rather the journey to it. I'm not too concerned with missing out after I'm gone, but rather, I watched 3 of my grandparents grow into their mid 90's. All of them ended up in a seniors home and lost their mobility, cognitive abilities slowed and they all just wanted to pass on. It was like a long, slow death for all of them without anything to look forward to. Combine that with boredom and simply watching tv, eating, sleeping and remembering all the wonder times you used to have while reminiscing in at a table looking around and seeing many other older people, my mind is having difficulties shaking off this thought process.

I'm hoping that I will grow to accept it. I just wish it wasn't so painful.



fireseeker said:


> Hi Kork,
> Congratulations on the success of your plan, even though I recognize you are not in a place to feel that right now.
> 
> I thought it might help to share something a therapist once told me:
> Everyone will face three major life transitions: The first in adolescence, the second in mid-life and the third just before death. In all cases, the rules and foundations underpinning your old life are failing, but the new rules and foundation are not yet in place. It is highly destabilizing.
> 
> Of the three, I found the identification of mid-life as a tough transition the most puzzling. On the surface, the change does not seem to have the same magnitude as the other two.
> But now, as I finish moving through mid-life, I understand.
> 
> The first two decades of adulthood are spent in pursuit of compelling and demanding goals: a spouse, a family, a career.
> In mid-life, those have been achieved. Or perhaps they have gone awry. In either case, a reckoning takes place: sex and promotions start to lose their lustre. Children are gaining independence.
> The old motivations and foundations are crumbling. A new you with new goals -- or a greater acceptance of who and where you are -- has yet to emerge.
> 
> I hope you can find some patience with this process. I know it is difficult and I know you are in a rough place.
> It sounds like you have accomplished a great deal, both financially and in terms of family. One day, hopefully soon, your ability to appreciate that will be restored.
> I wish you, and anyone feeling what you are feeling, much peace.
> 
> -fireseeker


I've been told the same thing. Many people experience a mid life malaise of sorts (not necessarily a full blown crisis) where you aren't young anymore, but you're also not old. You're caught in the middle and it's challenging... for some, very challenging. You're no longer getting, acquiring, gathering but rather, need to simply... "be."

One thing you said is very key "Sex and promotions start to lose their lustre." - Sex is actually a big part of it. Not the actual "sex" part but the loss of opportunity. I've acknowledged before that much of this could be gone if my sex drive were reduced.

Sex has been such a big part of life for decades. I HOPE the lustre wears off because I'm looking through the optics of a 40 year old. There's still a lot of lustre to it!


----------



## milhouse

I have similar reflections as kork. 
No kids my own but I watch my nieces and nephews grow up to their 20's now, trying to get established in the world and having long term gf/bf's. That 20+ years of them growing up just flew by. 
On the morbid side, what makes me sad and makes me reflect on my own mortality is seeing celebrities I grew up with during my childhood and high school days start kicking the bucket for various reasons. 



OptsyEagle said:


> My point, about the above, is that instead of thinking about what you will miss out on when you are dead, think about what you actually got. The odds of getting to take one breathe of life on this planet were so astronomically against you and yet, you got it. You are actually here. You were awarded the gold medal of life. You should think more about how incredibly lucky you were to be able to live at all and a lot less about how much time that life will be. Any time at all is a lottery win. More is just a small bonus compared to that and you shouldn't worry about small things.


Your post Optsy made me think of a documentary called the Great Sperm Race (available on Youtube) that illustrates what an incredibly difficult journey it is for a sperm to fertilize an egg. I'm amazed women are able to get pregnant at all.


----------



## kork

milhouse said:


> I have similar reflections as kork.
> No kids my own but I watch my nieces and nephews grow up to their 20's now, trying to get established in the world and having long term gf/bf's. That 20+ years of them growing up just flew by.
> On the morbid side, what makes me sad and makes me reflect on my own mortality is seeing celebrities I grew up with during my childhood and high school days start kicking the bucket for various reasons.


Oddly, the celebrities that die younger are actually easier for me to deal with than watching them grow old.

In fact, I found out a couple weeks ago that one of my best childhood friends passed away. He was 41. We grew up together, would spend every weekend together and spent half of highschool together. We drifted our separate ways and started hanging out with different crowds part way through highschool but through Facebook, we remained connected, if nothing more than arms reach.

So he's dead at 41 and I'm sad about it. Sad to the point of a few all out drop to the knees cry sessions. The nostalgia, the loss, the void. I'm also sad that we won't sit down one day on the couch and replay old childhood classics on the Nintendo. But in a weird sort of way, I'm also relieved that his battle is over and that I'm not going to see him grow older. I'd rather remember him for who he was then and now than who he'd become in the future.

Anyways, I wrestle with this.


----------



## AltaRed

There is much to look forward too post-50. I am 70 now and while I am no longer a prized physical specimen, nor can I no longer consume mountains in leaps and bounds, nor can I participate effectively in active sports and hobby projects, I have much to be thankful for and to be excited about. ...
- I have no financial pressures. The mortgage is long gone and the kids are financially independent. Indeed, I can now gift to people and causes that bring me personal satisfaction.
- I can see my adult children further their careers and grow their own families. I can enjoy and enlighten the grandchildren and send them home to parents when I want too. If I am lucky, I will see them (and perhaps help them) launch their own careers.
- I have no work commitments (retired at 57) and can explore and enjoy my environment on my own time. I can take as long as I like having morning coffee on our sunny deck and I can avoid busy weekends at local businesses.

There can be a long list of wonderful things to do if one really, really expands their boundaries.

True I am getting closer to the end each year, but I have never been under any illusions that I am alive for more than a nanosecond in geologic time. No need to fret about it. My biggest fear is, like many others, declining health and a long, slow death. Maybe the rules of assisted suicide will get even better by the time I need it. If not, I hope to go as my father did, of a massive heart attack while curling at the local curling club, and not as my mother did with declining health for 5+ years before passing at almost 96. I don't dwell on it by being optimistic that I will hopefully be able to have some control over it when the time comes.


----------



## OptsyEagle

kork said:


> So he's dead at 41 and I'm sad about it. Sad to the point of a few all out drop to the knees cry sessions. The nostalgia, the loss, the void. I'm also sad that we won't sit down one day on the couch and replay old childhood classics on the Nintendo. But in a weird sort of way, I'm also relieved that his battle is over and that I'm not going to see him grow older. I'd rather remember him for who he was then and now than who he'd become in the future.
> 
> Anyways, I wrestle with this.


Do you really think you were ever going to sit down and play Nintendo with this guy, ever again, even if he and you lived till you were 100?

I don't want to belittle the passing of a friend, but I suspect you are looking to find reasons to be sad, as it relates to death, as opposed to coming across reasons that make you sad and blaming a lot of this on that. Because you and this individual were close friends, I think you believe that you are supposed to be sad about his passing, and therefore you become sad. I mean you haven't seen this person in how long, and except for Facebook, you and he were pretty much dead to each other, long, long ago. He did what we all knew in advance he was going to do, which is someday pass away, but now that it has happened, you are having a mini breakdown. In my opinion, that can't be coming from how close you were and long ago memories, but of course I don't know the extent of your fall to your knees cry sessions. In my opinion, that type of thing usually comes from the loss of a person that you were very, very close to, in the very, very recent past. A person you were dependant upon or who was dependant or reliant upon you in some way.

My opinion, is that you are probably associating this friends death with the fact that you could go just as easily and quickly as he did and what that means, to the people around you and of course what that means to you and your future plans. If you can figure out a way to properly deal with that, and you do need to, then you will find it a little easier to deal with all the deaths of all the people you are associated with, in the future.

Just my opinion. I know very little about you so it may very well be wrong.


----------



## Plugging Along

kork said:


> Thank you all for the wonderful posts. As I've been reflecting, it's not so much my own death, but rather the journey to it. I'm not too concerned with missing out after I'm gone, but rather, I watched 3 of my grandparents grow into their mid 90's. All of them ended up in a seniors home and lost their mobility, cognitive abilities slowed and they all just wanted to pass on. It was like a long, slow death for all of them without anything to look forward to. Combine that with boredom and simply watching tv, eating, sleeping and remembering all the wonder times you used to have while reminiscing in at a table looking around and seeing many other older people, my mind is having difficulties shaking off this thought process.
> I'm hoping that I will grow to accept it. I just wish it wasn't so painful.


I totally understand where you are coming from. Over the years, I have watched my parents and slowly lost their physical and mental abilities but still very happy. Then my mother had a stroke and needed to go to a seniors’ home leaving my dad at home. In the seniors’ home, her dementia has accelerated, and a physical ability has now diminished to her to a wheelchair. It difficult to see when she doesn’t always recognize you or the kids. However, she is happy talking about things that may not make sense to us, but you can see her smile. When she does remember something, often there is a memory in there that makes us all smile, or she says something hilarious that we will add to our memories of her. Her favorite foods are fresh fruits which they don’t have a lot of there, so every day, we bring in the sweetest fruit we find, and she has absolute joy over it. 

It doesn’t seem like much of an existence at times. Having spoken to my dad who is his mid 80’s, he shares a very interesting view on getting old. When making arrangements for my mom over the last few years, he has also talked to us about his wishes. He has always been very practical in his thinking. It seems very morbid when he says, he probably won’t be around more than 10 years or so. We tell him that it is an awful thing to think about. He reminds us that not thinking about unpleasant truths (he will die), doesn’t stop it from happening. He would rather instead of ignoring the unpleasant to talk about how we make his and my mother’s remaining time as enjoyable as possible. 

In my mother case’s, we weren’t given very long to live (as I posted before). She is ticking and it has baffled the medical community. Even in her deteriorated mental and physical state, she has told us she still has lots to live for. Even though we have made the final arrangements, every day she is alive, is a blessing. She gets her fruit, she knows that someone who cared came and she knows that is loved. So, for her, that’s a pretty good day. 

In my father’s case, he is still mentally sharp, a little slower in his physical body. He has already told us that at his age if he gets to visit with his buddies to play cards once or twice a week, have a few good meals, and know that his family cares by calling or visiting every day then that’s a great way to live. 

My parents worked VERY hard immigrating to Canada and providing for the kids. They didn’t have the luxury of as much experiences in leisure and ‘self fulfilment’ as I do. They worked so much harder than we ever did. Yet, they feel they have done so much and are happy. They raised a good family where the kids care about them and each other, they have lots of extended friends and family in their network, and don’t worry about not having enough. They look at it if there are people that you care about and they care about you, you have done pretty well. The biggest influencer of happiness is perspective. No point is being sad over the things we cannot control, just making the best of it. The situation is going to happen regardless, so one can focus on the sadness of it, or one can focus on the positives. 

I am a little older than KORK with kids the same age. I hit a realization not too long ago that my kids are potentially only a few years before they are out of the house. It’s a good reminder how fast the time goes. We take a little time to reminiscence about some of the memories, but make sure that we are around for the things happen now. Attitude and perspective is the main thing we can control. We are all going to eventually die, we can either look at the things that could have been better, or just appreciate what we have.


----------



## OnlyMyOpinion

^+1 Great attitude PA!


----------



## kork

OptsyEagle said:


> Do you really think you were ever going to sit down and play Nintendo with this guy, ever again, even if he and you lived till you were 100?
> 
> I don't want to belittle the passing of a friend, but I suspect you are looking to find reasons to be sad, as it relates to death, as opposed to coming across reasons that make you sad and blaming a lot of this on that. Because you and this individual were close friends, I think you believe that you are supposed to be sad about his passing, and therefore you become sad. I mean you haven't seen this person in how long, and except for Facebook, you and he were pretty much dead to each other, long, long ago. He did what we all knew in advance he was going to do, which is someday pass away, but now that it has happened, you are having a mini breakdown. In my opinion, that can't be coming from how close you were and long ago memories, but of course I don't know the extent of your fall to your knees cry sessions. In my opinion, that type of thing usually comes from the loss of a person that you were very, very close to, in the very, very recent past. A person you were dependant upon or who was dependant or reliant upon you in some way.
> 
> My opinion, is that you are probably associating this friends death with the fact that you could go just as easily and quickly as he did and what that means, to the people around you and of course what that means to you and your future plans. If you can figure out a way to properly deal with that, and you do need to, then you will find it a little easier to deal with all the deaths of all the people you are associated with, in the future.
> 
> Just my opinion. I know very little about you so it may very well be wrong.


I appreciate the insight. I don't feel like I'm looking for reasons to be sad. Not in any way shape or form. It feels like the rules of life have literally been turned upside down and I'm trying to adjust and cope with all the new rules (which are just perceptual). For the longest time, life has felt like riding a bike. Riding over or avoiding obstacles climbing hills, going downhill sometimes, but all the while enjoying the ride. Nowadays, I'm still riding the same bike on the same path... except the bike is on fire, I'm on fire and everything else is on fire. 

Did I ever think I was going to play Nintendo again? I was hopeful. I have a NESPI and a couch. In May of 2018, I sent him a message which read _"I was just playing some old school Street Fighter 2 and got me thinking about NES and SNES games we used to play. What are you up to these days? I hope all is well."_ I didn't hear back but he may have had limited access to Facebook or may have chosen to leave (as many people I know currently are, myself included). But who knows. I just know I never heard back but I was reminiscing and nostalgic. So it was "unfinished business" if you will.

I seem to be able to live in past emotions and have started those discussions with my therapist. My wife is different. She's more of a _"do I love you today?"_ sortof person. I'm more of a "let's take an accumulation of 20+ years of emotion and wrap the relationship up in it." It's the feeling of loss of what can never be. My wife's first boyfriend passed away from cancer a few years ago. She has zero emotion around it. Nothing, nada. I can't understand that. I'd almost feel like a part of me is missing, even if small.

So the loss of my friend definitely feels very real, despite it being a long time ago that we were very close. We were best friends for years. I feel the emotion of the loss as though I was a kid again. Best way I can describe it.


----------



## kork

OnlyMyOpinion said:


> ^+1 Great attitude PA!


Agreed... Now if only I could train my brain to get off this bone. Hopefully the mindfulness workshop I start next week can help.


----------



## AltaRed

kork said:


> I seem to be able to live in past emotions and have started those discussions with my therapist. My wife is different. She's more of a _"do I love you today?"_ sortof person. I'm more of a "let's take an accumulation of 20+ years of emotion and wrap the relationship up in it." It's the feeling of loss of what can never be. My wife's first boyfriend passed away from cancer a few years ago. She has zero emotion around it. Nothing, nada. I can't understand that. I'd almost feel like a part of me is missing, even if small.
> 
> So the loss of my friend definitely feels very real, despite it being a long time ago that we were very close. We were best friends for years. I feel the emotion of the loss as though I was a kid again. Best way I can describe it.


People are obviously wired differently. While I may momentarily lament the passing of a 'long ago' friend, and remember good memories, I certainly don't dwell on what has long past. From that perspective, I am with your wife. Can't re-live or do anything about years past, but can certainly enjoy the present and look forward to the future. 

Think you need to find a way to 'let go' of the past. It may have defined who you are today, but today and the future are what should define you going forward.


----------



## kork

Net worth has hit $2 million. I guess I'm now a multi-millionaire? The value of our home has gone up nearly 40% in our area, thank-you covid and people relocating out of the concrete jungle. So the house is valued closer to $1 million now, (actually, based on the increases, $1.1 million) but I'll keep it lower in case there's a bubble.

Assets - $2,262,000

->Possessions - $985,000
--->House - $985,000
--->Vehicles - $0

->Registered (MINE)
--->RRSP - $341,468
--->TFSA - $114,497
--->Unregistered Blue Chip Dividend Stocks (and VCN) - $86,628

-> Registered (HERS)
--->RRSP - $324,617
--->TFSA - $112,205
--->Unregistered Blue Chip Dividend Stocks (and VCN) - $86,724

-> Registered (Family/Kids)
--->RESP - $105,861

-> Savings/Chequing
--->Bank Account - $115,000

Liabilities - $220,813.73
->Mortgage - $220,813

*Net Worth - $2,051,236

----------------*

And life is certainly interesting.

I'm doing much better now than I was 2 years ago mentally. Certainly not well, but at least able to function and I've been able to maintain my job, somehow.

How can everything feel wrong when my children seem so right and they’re directly tied with everything? Career, life, marriage, even friendships feel a wee bit off. It’s “off” almost like a specific childhood "fork in the road" led to a path where most things just feel off. Like there’s a parallel Universe that’s got things set properly, but the one I'm in isn't it.

Documenting my path from a $300k net worth 30-something father with young kids when I first started this thread to now $2 million in 9 years, my mind just spins. As mentioned before, I was chasing the allure of FIRE and financial independence. Early retirement and all the awesomeness I could envision with that. But I've had autonomy and freedom with my job for years. I've essentially been living a semi-retired lifestyle for the past couple years, but didn't realize it. But my view now is that, for me, FIRE sucks!

The allure of the almighty paycheck is nearly gone beyond the pattern and routine that life has created around it. It’s funny because I went from chasing the freedom with FIRE to now being at a point where I want to double down on keeping busy with something meaningful!


----------



## hfp75

When i track my net worth, i am including resps also but in reality they wont be yours and will get subtracted from your asset list, i have debated if i should be including in net worth as really net worth is more directed at retirement planning - income streams ect & resps will likely not contribute unless kids dont go to school.

also you list posessions & the number is high. Most people here dont track vehicles since they cost money and depreciate, what kinda possessions are you tracking at that declared dollar value ?


----------



## kork

hfp75 said:


> When i track my net worth, i am including resps also but in reality they wont be yours and will get subtracted from your asset list, i have debated if i should be including in net worth as really net worth is more directed at retirement planning - income streams ect & resps will likely not contribute unless kids dont go to school.
> 
> also you list possessions & the number is high. Most people here dont track vehicles since they cost money and depreciate, what kinda possessions are you tracking at that declared dollar value ?


I keep the RESP's in there because, is it sits right now, they have not yet started school. As it gets withdrawn if will take that value away over time. And we'll be depleting the gov't contributions first for their education.

As for possessions, we don't list anything other than our home. Jewelry, computers, phones, furniture, appliances, theatre/audio equipment, baseball cards... It's listed at $0. Even our vehicles are listed at $0 even thought they're both fully paid for.


----------



## NotJustDreaming

I list RESP in my net worth. 

We have three kids. Two are in university now. We’re supporting them fully regardless of whether the RESP covers it all. 

So absolutely it is a net worth asset in my mind.


----------



## NotJustDreaming

Though, I don’t consider it in any retirement spending calculations.


----------



## AltaRed

It is semantics. If one didn't have an RESP, one would be funding a child's education as an ongoing cash flow expense at a future date anyway at the detriment of retirement plan funding. What one is effectively doing with an RESP is pre-loading a retirement plan and getting the government to contribute to it in the form of CESG. It most definitely should be counted in net worth.


----------



## scorpion_ca

Just wondering what is your yearly income? "300K to 2MM in 9 years"...Do you track your contribution amount and investment gain amount?


----------



## kork

scorpion_ca said:


> Just wondering what is your yearly income? "300K to 2MM in 9 years"...Do you track your contribution amount and investment gain amount?


I have most of the info, but there were a few years I didn't track my contributions when the family was younger and we were super busy with 2 very young kids. In the early days was earning $45k at 24 and then $60k at 27 (moved cities, wife stopped working for the next 10 years as stay at home mom). Then $80k at 30 and hovered there for 10 years with a stay-at-home wife and two children. Then hit $120k at 39.

*DATE / NET WORTH / SALARY / CONTRIBUTION / WIFE INCOME*

2007 - $89,855.05 - $60k / NOT TRACKED / $0 Baby #1 born
2008 - $122,116.13 - $60k / $25,600.00 / $0 Wife at home
2009 - $190,765.30 - $80k / NOT TRACKED / $0 Wife at home Baby #2 born
2010 - $241,434.32 - $80k / NOT TRACKED / $0 Wife at home
2011 - $279,356.32 - $55k / NOT TRACKED / $0 Wife at home
2012 - $361,536.29 - $80k / NOT TRACKED / $0 Wife at home
2013 - $459,323.36 - $80k / NOT TRACKED / $0 Wife at home
2014 - $575,216.35 - $80k / $40k / $0 Wife at home
2015 - $700,700.66 - $80k / $75k / Wife earning $30k/year
2016 - $897,143.64 - $80k / $53k / Wife earning $30k/year
2017 - $1,074,489.06 - $80k / $110k (HELOC to top off TFSA's) Wife earning $35k/year
2018 - $1,240,282.65 - $120k / $60k / Wife earning $35k/year
2019 - $1,474,553.24 - $120k /$29k / Wife earning $37k/year
2020 - $1,613,787.43 - $120k / $25k / Wife earning $39k/year
2021 - $2,051,390.20 - $120k /$0 so far / Wife earning $40k/year

I don't have the returns calculated for each year. I had a side hustle not included here (but fully taxed and legitimate), some years were better than others. Those helped towards contributions since it was "extra" income that didn't need to pay for cost of living and couldn't be counted on.

The contributions came mainly from pinching pennies and taking advantage of saving opportunities. For example.

Kept cars a long time. 10+ years. After the payments are done, as long as there's no big repairs the car keeps paying for itself.
Groceries. I shop for discount and deals. Not coupon clipping, but finding great deals on meat and then buying it and freeze packaging it in the deep freezer. Our groceries are between $400-$500 a month. Also, veggies that are going bad are MOUNTAINS healthier for you than nice veggies. And for those veggies that you can't stand the look of? Juice them and still get the nutrients.
Eating out for dinner. We go to places that have "kids night" such as East Side Marios, etc. We learned how to eat out for under $50 including tip for a family of 4 in most places.
Fast Food. Check your receipts. KFC? Fill out the survey and get a free popcorn chicken... Like Burger King? Fill out the survey on the receipt, get a free Whopper. I haven't paid full price for a fast food chain in a long, long time. Wendy's? Coupons in the mail for cheeseburger combo's for around $6.
We went with a variable mortgage for the first 10 years of home ownership, but we doubled the payments. Philosophy was to be in control of our own payments. If rates went up, we could adjust or second payment to keep payments the same. This allowed us to pay down faster while being in control with a historically lower rate. We've since locked in since rates are so low.
And much of our expenses go like this. So it's less about how well our investments have done and more about how we got to those contributions.


----------



## kork

So I did something silly. I bought, I panicked, I sold, I've become paralyzed. 

Thread is over here: I bought, I panicked, I sold. I'm paralyzed...


----------

