# 24 YR OLD - Could use some input...



## mattw (May 14, 2013)

So I have been saving and investing money for a few years, however, everything to this point in life have never had any input. Any advice and input would be greatly appreciated. 

I graduated University last April and am currently working full-time only making about 50k per year. No debt and $400 a month rent payment.

Investments:

TFSA - 34,500 - holdings: Telus, Boston Pizza, Discover, IBM, Diaego, Microsoft, Sirius
RRSP - 15,000 - holdings: Verizon, DHY, REM
Unregistered - 29,000 - holdings: VEE, XDV, XWD, XLE, SPY.

Savings Acct - 10k
Work RRSP - 7k
US Savings - 2k
Vehicle -2k

Net worth: approx 100k.

I plan to retire early 50ish possibly and save about 50% of earnings right now. But have never had any input into stock picks. And also am looking at some new stocks to add. I do not have any debt at the moment and single. Just curious what other's would do in a similar situation?


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## stephenheath (Apr 3, 2009)

You're way ahead of my curve... at that age I spent most of my money on women, comic books, and going out with friends, and since your TFSA is much higher than mine, all I can give you is kudos


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## peterk (May 16, 2010)

stephenheath said:


> women, comic books,


Something smells fishy there Mr. Stephen.... 


Awesome work Matt. You must be in at least the top 0.1% for your age range!

In case you're not aware, if you continue to save 50% of your income you'll be able to retire in your early 40s, not 50s...

See The Shockingly Simple Math Behind Early Retirement


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## My Own Advisor (Sep 24, 2012)

Great work Matt.

I didn't have $100K in NW until my late-20s, you're rocking.

Continue to save at least 10% of your income every year, max out TFSA every single year and try to contribute to RRSP when and where it makes sense (i.e., high income bracket as you approach that).

Continue that recipe, avoid major debt, and you'll be retired at 50 for sure.


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## Longer32 (Jun 12, 2013)

Withdraw it all. Go to the casino. Put it all on black.

No matter the outcome you're still ahead of most. Good work!


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## mattw (May 14, 2013)

Thanks for the tips! Well the majority of funds seem aimed towards going out, but need to have some fun. I just don't find it realistic to continue the high amount of savings long-term with need for a vehicle and house at some point in the future.


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## Yoqui (Mar 5, 2013)

You graduated last year, your making 50k...you have 100k net, most people I know would exit university with a 50k debt, not a 50k surplus. How'd you achieve that?


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## kcowan (Jul 1, 2010)

Resist the natural urge to "live high". Buy a good used car. Rent. Continue to save. Marry a woman of means.


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## mattw (May 14, 2013)

Yoqui said:


> You graduated last year, your making 50k...you have 100k net, most people I know would exit university with a 50k debt, not a 50k surplus. How'd you achieve that?


combination of a few factors, worked for the family business from a young age, plus few outside jobs that paid above average, parents matched RESP contributions, was given a vehicle at 16. Saved basically every dollar as a kid, and begun investing at 16. Lived at home first two years of college while working 30+ HRS a week. Then moved away for University and always lived within walking distance and cheap rent plus all schooling costs was used from my RESP, I was always responsible for every other cost. Made about 20k every year in University from summer employment. Definitely was blessed with great opportunities from parents but have also saved and been frugal throughout. Except for schooling costs did pay my way throughout school but have had some good investments! And being lucky with a reliable vehicle doesn't hurt. Sorry for the delay responding.

Definitely been lucky with a situation few have been put in but did not squander it! Have been reading Mr. Money Mustache blog the last few weeks and believe this could be entirely possible early on. No solid goal as so many variables exist currently at 24!


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## mattw (May 14, 2013)

kcowan said:


> Resist the natural urge to "live high". Buy a good used car. Rent. Continue to save. Marry a woman of means.


Thanks for the advice! All of those seem easy except one...


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## Jaberwock (Aug 22, 2012)

Well done Matt - At your age I spent 80% of my money on booze and women, and the rest I just wasted.

Seriously though, you are doing very well. Your portfolio should include a good solid base of large cap dividend paying stocks, (ones that increase their dividends regularly) and then add a few small cap and growth stock to give it a bit of pizzaz. 

You will be able to retire at 50, very easily, if you don't have too many kids, or too many wives.


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## Jon_Snow (May 20, 2009)

To the OP, you are well ahead of where I was at your age... and now I find myself close to early retiring in my early 40's.... you could pull this off as well, I have no doubt.


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## Ponderling (Mar 1, 2013)

Life will get more complex as time goes on. 

I find keeping a pretty diligent journal of where the money goes is a powerful tool that allows you to analyse where you may need to modify behaviours to advance big picture goals. 

Wife and I look over where we spent money annually now; find we spend about the same avery year, and it is well below our means. 

Early on the reviews occured more frequently, and led to behaviours like brown bagging whenwe sat back and realised what is now called the latte factor was doing to sabotage our savings goals.


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## mattw (May 14, 2013)

Ponderling said:


> Life will get more complex as time goes on.
> 
> I find keeping a pretty diligent journal of where the money goes is a powerful tool that allows you to analyse where you may need to modify behaviours to advance big picture goals.
> 
> ...


I started using mint in the last few months and is interesting. I can't really cut any expenses unless I give up enjoying weekends / vacations which doesn't seem like a fair trade-off.

But unfortunately starting to notice everything getting more complex, with looking for a new job in a new city. But that is life..

as for my portfolio it currently is mainly blue chip dividend paying stocks / ETFs / Bond Funds. Been looking to add some small caps but difficult to find something am comfortable investing in. So if you have any ideas?


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## mattw (May 14, 2013)

So I'll do a year end update.

Investment Acct:
CDN Unregistered: 19,744
US Unregistered: 15,543
TFSA: 36,667
RRSP: 16,219

Bank Acct:
CDN Chequings/Savings: 10k
US Savings: 1k
Work RRSP: 9k
Vehicle: 10k

Total: 118k - although paying for two trips in the next few days and without any currency conversion. 

I had to purchase a new (used) vehicle in the past few months that set me back 12k. The two stocks added to my portfolio this year DFS (beginning), and ATD.B (mid-year) have actually returned above average!

My dilemma is just transferred to Calgary, and trying to find new employment within a finance field. Mainly, am getting bored in current line of work and areas for career advancement are minimal. And the easiest way to grow net worth would be increasing earnings.


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## mattw (May 14, 2013)

Another year away and been decent overall.

CDN Unregistered: 38k
TFSA: 52.5k
RRSP: 25k
Work RRSP: 15k
Bank Acct: 14k (includes emergency savings and US savings)
Vehicle: 6k

Total: 150.5k. 

Goals for 2015 is to save at least 24k for the year!


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## My Own Advisor (Sep 24, 2012)

Well done!

Big goals for 2015, I hope you nail it though


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## peterk (May 16, 2010)

Awesome work for the year!



mattw said:


> My dilemma is just transferred to Calgary, and trying to find new employment within a finance field. Mainly, am getting bored in current line of work and areas for career advancement are minimal. And the easiest way to grow net worth would be increasing earnings.


How's this going? Indeed the best way to accelerate your financial goals once you've got a handle on your expenditures is increasing your income!


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## Davis (Nov 11, 2014)

Matt, this is the future you speaking. Good job -- keep focused and you will reach your goal. I say that I am the "future you" because I started working in 1991 with the goal of retiring at 52 in June 2018. Despite moving to a more expensive city and to an employer with less income growth potential, despite acquiring a husband without means, despite continuing to travel as much as possible (inexpensively), and despite spending way too many years investing in mutual funds with 2-2.5% MERs, husband and I will retire in June 2016 with more money that I expect we will be able to spend. Well, not really, but I do expect our standard of living will rise a fair bit when we can stop saving. The plan has room for six months of travel per year. 

I did not acquire cars or children or expensive hobbies, which helped a lot. More importantly, I think, having the vision of early retirement and a plan to get there kept me focused on saving and investing rather than consuming. 

There are lots of "extreme early retirement" blogs and forums out there that you may want to rread. Retiring before 50 may well be possible for you if you want to, especially since you are investing in dividend stocks and ETFs way before I ever did.


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## My Own Advisor (Sep 24, 2012)

Davis said:


> Matt, this is the future you speaking. More importantly, I think, having the vision of early retirement and a plan to get there kept me focused on saving and investing rather than consuming. Retiring before 50 may well be possible for you if you want to, especially since you are investing in dividend stocks and ETFs way before I ever did.


+1

I really think this is more than half the battle. Having some financial goals or vision, goals and visions that you plan towards, and help stick to over time is SO critical to financial well-being. 

This is not to say the execution is not important, but if you have no idea where you are going how on earth are you going to get there?


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## mattw (May 14, 2013)

peterk said:


> Awesome work for the year!
> 
> 
> 
> How's this going? Indeed the best way to accelerate your financial goals once you've got a handle on your expenditures is increasing your income!


I ended up with a promotion midpoint of the year - and just received an offer for the new year so will be like a 25% pay increase over last year. Hopefully that continues! I managed to complete CFA Level 1 and awaiting CFP Level 1 results so hope those continue to push the pay increases.



Davis said:


> Matt, this is the future you speaking. Good job -- keep focused and you will reach your goal. I say that I am the "future you" because I started working in 1991 with the goal of retiring at 52 in June 2018. Despite moving to a more expensive city and to an employer with less income growth potential, despite acquiring a husband without means, despite continuing to travel as much as possible (inexpensively), and despite spending way too many years investing in mutual funds with 2-2.5% MERs, husband and I will retire in June 2016 with more money that I expect we will be able to spend. Well, not really, but I do expect our standard of living will rise a fair bit when we can stop saving. The plan has room for six months of travel per year.
> 
> I did not acquire cars or children or expensive hobbies, which helped a lot. More importantly, I think, having the vision of early retirement and a plan to get there kept me focused on saving and investing rather than consuming.
> 
> There are lots of "extreme early retirement" blogs and forums out there that you may want to rread. Retiring before 50 may well be possible for you if you want to, especially since you are investing in dividend stocks and ETFs way before I ever did.


Its tough to make 20-30 year long-term goals when life changes so much year to year. My goal is just to save 24k+ each year so 15-25 years down the line have the option to move in whatever direction is the most appealing. I don't think extreme early retirement is really an option unless could find a way to fill a day without feeling useless.


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## Davis (Nov 11, 2014)

Life does change a lot from year to year -- mine certainly did. I am ending up exceeding my retirment goals, but if I hadn't set a goal and planned for it, I think I wold have bobbed along on the current like everybody else heading for retirement in my early 60s. The important thing is that saving and investing gives you the choice. An important thing in retirement planning at this end of the cycle is being ready for all of those empty days. I have been doing a lot of reading and thinking about that too to make sure that I am ready for that. But I now have the choice of whether to work or not because of my earlier planning and decision. Good luck to you.


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## RBull (Jan 20, 2013)

Great job mattw. I really like to see people with a strong vision and the discipline to make it happen.

A similar approach to yours got me to semi retirement at 52 and a comfortable full retirement at 55. And you're further ahead than I was at your age. 

It won't be a straight line but the key to staying on course with your long term savings/retirement goal is exactly what you're doing. A regular series of small goals to keep stepping up another rung on the ladder. Course correct as needed and keep learning. 

Don't forget to enjoy a good life as well and reward yourself sometimes for jobs well done. 

Good luck.


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## 0xCC (Jan 5, 2012)

mattw said:


> Investments:
> 
> TFSA - 34,500 - holdings: Telus, Boston Pizza, Discover, IBM, Diaego, Microsoft, Sirius


Generally it looks like you are making some great progress for someone in their late 20's. I would guess that you are way ahead of where I was at your age and I am a few years away from "Freedom 45".

The only minor thing I would suggest you take a closer look at (if you haven't already) is those dividend paying US stocks in your TFSA (IBM, MFST, Diaego is an ADR I think so it might be a little bit strange from a tax standpoint. I also don't know if Discover or Sirius pay dividends). If you haven't noticed already you probably see a US withholding tax deducted from your US dividends. You don't get a foreign tax credit for that withholding so in effect you are giving the US IRS free money...


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## mattw (May 14, 2013)

0xCC said:


> Generally it looks like you are making some great progress for someone in their late 20's. I would guess that you are way ahead of where I was at your age and I am a few years away from "Freedom 45".
> 
> The only minor thing I would suggest you take a closer look at (if you haven't already) is those dividend paying US stocks in your TFSA (IBM, MFST, Diaego is an ADR I think so it might be a little bit strange from a tax standpoint. I also don't know if Discover or Sirius pay dividends). If you haven't noticed already you probably see a US withholding tax deducted from your US dividends. You don't get a foreign tax credit for that withholding so in effect you are giving the US IRS free money...


I have considered it. My RRSP is already maxed out with higher US paying dividend stocks with primary objection for dividend whereas those three (IBM is small holding thankfully) were for longer term growth so it seems to make sense it that regard. Most usually buy back more than dividend payments which is nice.


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## mattw (May 14, 2013)

Another year in the books. Managed to be decent overall.

Investment Acct's
Non-Registered: 49,000
TFSA: 69,000
RRSP: 60,000

Bank Acct: 7,000
Vehicle: 5,000

Hit my goal of $24,000 with just over $25,000 saved. And grew overall net worth by about $40,000. Boasted income again and because of a job switch no bonus this year. Although this should be paid (hopefully) in the first quarter.

2016 Goals: Continue to average around $2,000 per month savings.


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## redsgomarching (Mar 6, 2016)

mattw said:


> Another year in the books. Managed to be decent overall.
> 
> Investment Acct's
> Non-Registered: 49,000
> ...



great job with your savings goals! may i ask what type of job you were able to secure to pay that much?


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## Davis (Nov 11, 2014)

I finally got around to writing down how I got to financial independence at 50, and have posted it at www.adifferentpathblog.wordpress.com

You may find it to be interesting, useful, or a load of self-indulgent twaddle.


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## amack081 (Jun 23, 2015)

Davis said:


> I finally got around to writing down how I got to financial independence at 50, and have posted it at www.adifferentpathblog.wordpress.com
> 
> You may find it to be interesting, useful, or a load of self-indulgent twaddle.


I really enjoyed your blog. Sometimes its nice to read personal success stories as opposed to the opinions of experts/industry leaders.

Cheers,


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## Davis (Nov 11, 2014)

^ I'm glad you enjoyed it. Thanks for the feedback.


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## mattw (May 14, 2013)

Thanks! Working in the finance industry. Income was about 65k last year.


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## mattw (May 14, 2013)

amack081 said:


> I really enjoyed your blog. Sometimes its nice to read personal success stories as opposed to the opinions of experts/industry leaders.
> 
> Cheers,


Thanks! I'll check it out one night. Unfortunately is blocked at work.


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## mattw (May 14, 2013)

2016 turned out to be quite a solid year! Income continues to grow each year, and expenses have not changed much.

Investment Acct's
Non-Registered: 77,000
TFSA: 83,000
RRSP: 75,000

Bank Acct: 7,000
Vehicle: 17,000

Net Worth: $259,000

Easily hit my goal of $24,000 with just over $37,000 saved. And grew overall net worth by over $65,000. Although $10,000 was the result of insurance pay-outs for new vehicle.

2016 Goals: Likely increase to saving $2,500 per month as that should be quite reasonable. And attempting to live off $2,000 income per month just to actually get an idea what my budget would be. Unsure if that would include vacation costs or not.


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## DollaWine (Aug 4, 2015)

Awesome! I hope to be like you in 3-5 years


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## james4beach (Nov 15, 2012)

mattw said:


> Thanks! Working in the finance industry. Income was about 65k last year.


I don't know the details of your investments, but if you're in the TSX you're exposed to a lot of finance. Since you also work in that sector you might want to de-emphasize financial sector investments.

That's the same advice I've given to people who work in the energy sector. If you concentrate your investments in the area of your employment, you get a double-whammy when the sector slows down.

Some ways you can reduce your financial exposure in your investments (if you do have too much of them) is to invest more internationally, or increase your allocation to bonds and gold.


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## mattw (May 14, 2013)

Thanks for the tips James. Aside from ETFs, which do have strong financials exposure do not hold any financials directly and Canadian exposure is sub 30%. I do have no gold exposure and probably only 10% to bonds but do hold about 20% cash. Which have been buying on the dips such as beginning of last year and Brexit. Hopefully more opportunities present themselves next year. Non-Reg portion is entirely ETFs, TFSA holds ATB, Telus, Discover, Microsoft, DEO, few others and added Expedia and Service Corp International, RRSP is mainly US ETFs, US REITS, US High Yield, and Mawer Balanced. Sure could be doing things better but returns have been above average especially on the TFSA which is stocks I like. Hopefully that continues but who knows.


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## mattw (May 14, 2013)

Investment Acct's
Non-Registered: 162,000
TFSA: 96,500
RRSP: 102,000

Bank Acct: 8,000
Vehicle: 15,000

Net Worth: $383,500

This year turned out to be excellent, saved almost $100,000. Not sure on monthly spending but averaged around $2,000 per month and then probably another $500 on vacations. Not sure if can repeat this but would be nice for 2018. My original goal was for $300,000 by 30, and now might be able to hit $500,000 by 30. 

Goals for 2018 would be to save $4,000 per month.


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