# Starting a bit late, playing catch up



## clark_danger (Jul 14, 2010)

edit: really shouldn't be putting this info on a public forum


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## the-royal-mail (Dec 11, 2009)

LOL your crudeness is amusing if not a bit offensive. But anyway, you came here for financial advice.

Personally, I don't see too much wrong with your plan. It sounds like you've got everything well balanced out. My only suggestions would be to 1) beef up your 3-tiers of savings a bit (see my sig file, won't be difficult for you as tier 3 is already in place) and 2) due to your age, take your investing risk more on the RRSP side rather than on the TFSA side, which is a good place to keep your emergency money IMO.

Regarding kids, I think you should first get a structured savings plan in place as mentioned above. Second, what are your short term goals. Kids...house? Car? If these things (or others) are in your future (which it sounds like they are) then get your savings setup #1 and then #2 save for those specific goals. Last I heard it costs $250K to bring up a child from 0-18 years. You need to save for that separately to your own emergency and retirement savings.

Oh and as far as just dumping $ into mutual funds RRSPs, I heard the same advice as you and blindly did just that for years. Since coming to CMF my eyes have really been opened as to the fees these things charge and navigating the minefield that is investing. But hey, you're realizing this now so go ahead and read the existing threads at CMF, ask questions, learn, you should be fine. Good luck.


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## Cal (Jun 17, 2009)

At first glance....

Yes, you need to replace the money withdrawn for the home buyers plan....otherwise it will be taxed as a withdrawl, plain and simple.

Second, why pay taxes on your 1.25% in a savings account, utilize the full amount allowable within your TFSA, how you invest within the TFSA is up to you.

Yes a bit more in savings would help...I don't know if the full extent of the afore mentioned 3 tier savings plan is necessary.

And nothing wrong with renting, sometimes it is a better financial move than buying a home. Obviously depending upon personal situations, and purchase price vs cost of renting.

Your expenses are reasonable...but you might be able to save on the internet and/or cell to get the monthly expenses down to an even $700.


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## MoneyGal (Apr 24, 2009)

Technically, he has replaced the money withdrawn for the HBP because it is in an RRSP account. He simply needs to indicate, at tax time next year on the RRSP form, that the $6000 deposited into that account is a repayment of the HBP.


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## clark_danger (Jul 14, 2010)

Thanks for the replies! sorry if I'm offensive

on savings: so the 10k sitting in savings would be better in a TFSA for emergency money. that makes sense. I can still get at it!
now when TFSA is topped off would it be better to start contributing more to RRSP until there is no contribution room left or non registered investments?
I have about $7500 room in TFSA (till 2011) and about $33000 room in RRSP

On HBP: I called BMO they just said just put the money back in. but wouldn't I loose cotribution room and the chance to use a HBP when I do buy?
I phoned CRA they had little idea what to do either.
but they did point m in the direction of this http://www.cra-arc.gc.ca/E/pub/tg/rc4135/README.html
page 15 has a cancellation form. so I just need my official reciepts to send in.
Does any one know if you can download your rrsp contribution reciepts from Questrade or do they mail them out?

Goals: yeah kids and house hopefully in the next 5 years. if gf is still on board. shes a bit younger than me and still in university.
there is also a very good chance that you owners of the company I work for is going to just give me a chunk. This would be a great learning experience, but it will also take up alot of time. I just hope what little savings I have arn't exposed if something goes wrong with the company.

oh and I'll go check out that 3 teir savings


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## MoneyGal (Apr 24, 2009)

You don't lose contribution room if/when you repay to the HBP...the repayment does not count as a (new) contribution but a re-contribution. Your existing contribution room is not affected by a HBP repayment. 

You can participate in the HBP in a subsequent year. Read the circular that you linked to - the section *right after* the section on cancellations explains the conditions you must meet in order to participate, and from what you've told us, you would still meet them.


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## KaeJS (Sep 28, 2010)

the-royal-mail said:


> Last I heard it costs $250K to bring up a child from 0-18 years.
> 
> *Good luck*.


$297k


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## clark_danger (Jul 14, 2010)

edit:really shouldn't be putting this info on a public forum


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## the-royal-mail (Dec 11, 2009)

INCREDIBLE! Keep that up!


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## Wealthy1Day (Aug 30, 2009)

Gotta give you huge credit for one very simple but incredibly important thing... you're living beneath your means! That's rule #1 and usually the first that's broken no matter how close people look at their finances. Awesome that you and your gf are minimizing your rent which is usually a much more significant expense. Not everyone can do that so good job! I lived in a small bachelor when most people can't imagine not having a bedroom, but I saved a lot of money.

Awesome that ya joined a gym! Now your gf doesn't have to spend the rest of her 20's getting drunk and getting it on with a fat dude! 

Keep up the good work!


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## clark_danger (Jul 14, 2010)

edit:really shouldn't be putting this info on a public forum


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