# Articulating my goals



## Plugging Along

I've been one of those people that I can usually sort through many things in my head, and seldomly need to write things down. After going through the savings thread, I thought I would write down my goals to make sure I'm on the right track.

Goals
1. Pay off mortgage on PR - through additional lump sum payments, tax refund, and increased monthly amount

2. Pay off mortgage on rec property - Will increase payments once PR is paid off, and any additional tax refunds. Goal at the end of 2014.

3. Max out RRSPs for both spouse and myself (spouse first). Will have to determine with accountant the best strategy. Tentatively will be looking at increasing each amounts when PR is paid off. 

4. Start TSFA. Still haven't decided what to do with this. Will consider this most as my first attempts for diy investing with the couch potatoe. Other option will be to put a cash reserve for when I decide to leave my current work for consulting. Timeframe will about 3 - 5 years. 

5. Purchase another rental property. Was looking in the next 3-5 years too, but am not sure if this will be realistic or if the market is the right time. 

6. Have $1 mil in investable assets. Not sure when this is a realistic timeframe. Was aiming for 2019, only because I'll be 45 that year, and that sounded like a nice number

7. Would like to become more of a DIY for investments

Most of my goals are for the next 5 years or so, as this is where I will have the most certainty in terms of my career choice. If I stay at my current job, then I will have to take a slower approach to building wealth. If I go consulting, then I could make alot more than I do now, and will have a totally different plan. Also in 4 years, the plan is we will have lower child care costs once both kids are in school full time., and hopefully no more private school fees. The intent will be to have the kids in public when they hit grade school. Right now, that's still up in the air if we dont' find the right fit for one of our kids. 

What am missing? What do I need to tweek?


----------



## kcowan

Not much to add here. You have over $300k with a FA that you like. What is it costing you every year?

You are investing in rental properties. What ROI are you achieving presently?


----------



## Plugging Along

Based on my last calculations our fees are abou $5-6K a year. To be honest, I don't know the exact amount. I'm pretty happy with our advisor, and he does spend time on our portfolio, and helps me with a lot of my research. More importantly, he is a good balance and voice of reason for us, because I do have a tendency to take on more risk than I should. We've choosen to let someone else help us in managing our investment due to other things we have choosen to spend our time on. 

However, that being said, I would like to become more of a DIY, in terms of the TSFA, and non registered investments. I haven't been able to take the full plunge yet, as I find it easily to have the monthly RRSP contributions go to my advisor, than to start buying my own coach potato. Hence, another reason I started this thread.

Good question on ROI on the rental. What do you use for your formula, and factor in when calculating it? I get different numbers, and would be interested in how you would do that. 

I know how much we paid for it, and it's gone up considerably, I know what our monthly costs are, and our rents, and that was a lot more. However, I did refinance it to do some other investing, so does that factor in it?


----------



## Four Pillars

It's hard to argue with most of these goals - they all very beneficial.

#6 is one of those "milestone" goals that don't necessarily mean much. Why 1 million? It also probably depends on the markets, which makes a bad goal because it's out of your hands.

I'd suggest picking a contribution target each year (sum of all rrsp/tfsa/non-reg contributions) - this is something you have control over.

I also agree with kcowan - are you really getting that much value out of your financial advisor?

At your level of assets, a fee-only advisor might accomplish the same tasks for less money. 

This is a really good article about financial advice and how it doesn't have to be a regular event.

http://www.obliviousinvestor.com/how-do-you-pay-your-financial-advisor/


----------



## Plugging Along

#6 - Is merely an arbutary number. I had the same number for my net worth, and just decided that $1 mil would be my next goal. I actually haven't run the numbers, and what would I need to invest in order to have $1 Mil in 8 years? 

I know with the FA, I may want to look at other options. With the person I have, I do have a lot of trust, and he's always provided me excellent service. Like I said, I'm not ready to DIY yet, nor do I really want to at this scale. 

My FA is a good balance for me, as he is more conservative, and is the voice or reason with me. That's why I want him to balance out my higher risk tolerances for retirement. I know if I keep contributing with him for my RRSPs, then I will for sure have enough for retirement - he's the safety/insurance.

I tend to invest in some very high risk areas with my non registered account on my own. Some have done really well, some not so well, but over all pretty well. It's always a gamble on these other ones, so I like to have my fa balance me out. Not a lot of logic, but it does allow me to sleep well at night.

In terms of DIY, I do plan to gradually do that, but am still getting comfortable, and trying to stay disciplined before I put a lot of money into it.


----------



## Jungle

You're on networthiq right? If not, someone has the same name as you.  I would say you are doing quite well.


----------



## Jon_Snow

Yeah, I saw Plugging Along on Networth IQ... we are neck and neck.

It looks like his family makes more, while mine spends less (no kids here).


----------



## Sampson

Plugging Along said:


> I actually haven't run the numbers, and what would I need to invest in order to have $1 Mil in 8 years?


Not that difficult.

Make a table in excel and include:
(a) annual contributions to the savings
(b) projected growth rates
(c) tax on those returns
(d) inflation

You can easily plan (a) and get accurate numbers. (b) from your asset allocation, look at historical returns to get a sense of the range this could be. (c) calculate only non-registered accounts, and breakdown your earnings to types of returns, dividends vs. capital gains etc. (d) estimate

With this table in place, you should be able to vary your ROR and see what time frame you can reach your goal. Based on the outcome, you could adjust the risk and asset allocation in your portfolio to have a chance at higher gains if needed.


----------



## Four Pillars

Jon_Snow said:


> Yeah, I saw Plugging Along on Networth IQ... we are neck and neck.
> 
> It looks like his family makes more, while mine spends less (no kids here).


You're doing very well for yourself.

What's with all the cash? Planning a purchase or just sitting on the sidelines?


----------



## Plugging Along

Jungle said:


> You're on networthiq right? If not, someone has the same name as you.  I would say you are doing quite well.


That is me. 



Jon_Snow said:


> Yeah, I saw Plugging Along on Networth IQ... we are neck and neck.
> 
> It looks like his family makes more, while mine spends less (no kids here).


We've been pretty fortunate that we have good incomes. The kids are our biggest monthly expense right now (2 & 5). With just childcare, school tuition, and RESP contributions, not including activities, food, clothing, or anything else, we spend close to $3500 on them. My husband and I have said that we would have been able retire by 40 if we didn't have kids. 



Four Pillars said:


> You're doing very well for yourself.
> 
> What's with all the cash? Planning a purchase or just sitting on the sidelines?


To be honest, I know we're doing okay, but I do feel that we should be doing much better for our incomes. This was actually the reason I started this thread to try and figure out where I could do better. I actually find the idea of not having our RRSPs and TSFA maxed rather stressful. I'm seeing becoming more of a DIY is where my biggest area of improvement may be. 

In terms of the cash, we've kept large reserve for a few reasons. One, our monthly cash flow is ridiculously high. Two, my husband is a consultant, and the income can be rather unstable. Right now, things are good, but that could change at any time. Three, we're planning to pay off the rest of our mortgage, but just wanted to have a slight larger reserve. Four, we are planning a larger trip, and a new vehicle purchase in the next 3-4 years. Five, right after our 2nd child was born, and I was on mat leave, hubby got laid off. I had alot of emergency fund investments, which of course this was when everything had crashed, so I didn't want to sell at a loss. We still had cash, but I have to admit, I was stressed out about money more than I ever been. Six, we're pretty fortunate, that we get investment opportunities that many others do not, and at any time there can be a good opportunity for investment, but we need the cash ready, sometimes, in a short period.


----------



## HaroldCrump

Plugging Along said:


> To be honest, I know we're doing okay, but I do feel that we should be doing much better for our incomes. This was actually the reason I started this thread to try and figure out where I could do better. I actually find the idea of not having our RRSPs and TSFA maxed rather stressful. I'm seeing becoming more of a DIY is where my biggest area of improvement may be.


For high income individuals or families like you, the biggest expense is taxes.
Often personal income taxes dwarfs all other expenses.
It also causes clawbacks in other benefits like CCTB, CESG grant, property tax credit, etc.
What is your tax minimizing strategy?


----------



## Plugging Along

We use the the regular tax minimizing strategies such as rrsps, and reg. deductions, etc for our employment income. After our normal expense write offs, we do take cca on our rental to net zero for income. In terms of our corporation where we make our small business, and consulting income, we work with our accountant on the best mix of salary, dividend, leave in company.

Where I feel we have fallen behind is our RRSPs, we used to always max out the amount, until our second was born, and my husband was laid off just as I started on mat leave. We stopped all contributions, as we felt it was more important to take the time at home with the baby, than me return to work. We did start recontributing since both of us started working again, but we're still not at the max amount yet. Also, I just stared a new job last year, and it has a db pension. I'm trying to figure out what the right amount for me to contribute it. 

I know we could be doing more with the TSFA, as we've done nothing, but this year, I wanted to pay off the mortage first, and that will make me feel a little more secure. 

Are there other strategies you may be thinking of that I may have missed?


----------



## Plugging Along

It's been a little while since I first posted on this. Up until, I was in a standard holding pattern of paying the mortgage and savings as our standard rate.

I am very happy to say that we paid off our PR this morning. It took us just over 8 years. It would have been sooner, but the money I set aside I put in equities right before the crash, and then we were hit with a lay off, and a mat leave. So it took us just over a year and half and things are not back to normal or better.

We were able pay off around $100K in exactly a year, through tripling our monthly payments, liquidating some of the equities at a gain *yah*, a large tax return, and a bonus paid out from our company. 

Now, it's for the next goals. Trying to figure out how to allocate the mortgage payments,

My thoughts, we have about $2100 month that is free. 

I'm thinking that I will allocate the following:
- $500 to my RRSPs, I have a pension so have lower amounts available. 
- $1000 to spouses RRSPs, his limit, is alot higher than mine about 6 times
- $600 added to our vacation property. It's up for renewal next month. 

We'll take our tax refunds, and put them directly to next mortgage. Goal would to be pay it off now in 2015, instead of 2014. 

I have to admit, I should be happier because we have our mortgage paid off, but it sure feels like we still have a long ways to go. 

I've updated my Networth profile temporarily for those curious. Will take it down when I get freaked out about privacy again.


----------



## DanFo

Nice job on paying off your mortgage!! One goal down and prob a few more to go. Enjoy the feeling and i hope you treat yourselves to a nice reward!! now on to the other goals and I wish yas luck!!


----------



## Jon_Snow

I have to admit I was wondering why your profile dissapeared suddenly.


----------



## the-royal-mail

Paid off PR? What's PR?


----------



## Jon_Snow

Principle Residence I think...


----------



## MoneyGal

I sense TRM is spoiling to create a "no acronyms" rule...wait for it...


----------



## Four Pillars

Jon_Snow said:


> Principle Residence I think...


Nonsense - PR is public relations. No wait - in blogging terms it's page rank.

Hmmm...I'm starting to think that these short forms are not a good way to communicate.


----------



## andrewf

Good form would be to use the expanded form at least once in your post, so people can more easily deduce which meaning. I was a bit baffled by FH (future husband?) in another thread, especially because it is non-canonical.


----------



## kcowan

andrewf said:


> Good form would be to use the expanded form at least once in your post, so people can more easily deduce which meaning. I was a bit baffled by FH (future husband?) in another thread, especially because it is non-canonical.


LOL
or as the new band is called
LMFAO

BTW shorthand is the way of the future. Comes from texting on cell phones.


----------



## the-royal-mail

The point of language is for us to be able to communicate _clearly_ amongst ourselves. It is true that there are many common acronyms/shorthand such as the ones mentioned above. But these are very common ones we all use everyday. Where there are problems is when people start inventing acronyms that no one has heard of before, just to save the writer from typing. The usual convention, thinking back to English class, is to first write out the full wording with the acronym in brackets to follow, so we know what the acronym means when it appears later in the text.


----------



## Plugging Along

Shesh... my apoligizes... I am sure that PR = principle residence has been used in this forum before. I figure that in my first post that I refered to the mortgage of a PR, which no body commented on, that it would be clear in terms of context, as most people do not get a mortgage on their public relations nor on their post rank. To be honest I am not what else would you get a mortgage on. I would have quoted the first, however, I thought that was something to be refrained from as indicated as many times. We have been told that we are all smart people that need not quote all the time, but apparently, my not quoting caused lost of context as people were not able to read the first page. This leads me to think either people are making too many 'rules' or that people are not as smart as they think they are?

Perhaps someone would like to spell out the rules in what is acceptable, and that every post should be a reviewed by a committee in order to determine if the acroynms, clarity, messaging is appropriate. While we are at we should also check the communication, and if the intended message will be received correctly by the decorder and is expressed correctly in english, and for this forum.


----------



## Jungle

^^Yea but it has to go through PR first. (pubic relations). Congrats on paying off your PR motrgage. (principal residence) This is a big accomplishment!


----------



## Plugging Along

One mortgage down, one more to go.

I think I may need a Public Relations agent just to post here.


----------



## Jon_Snow

We're having a mortgage burning party in about 8 months!!! Does the lender actually give you a suitable document that that would be fulfilling to burn? Have never paid off a mortgage so I don't know these things. 

This is the mortgage for our "PR"... our "RP" is all paid for, thankfully....

Savings that would go towards the mortgage now will go into the "ER" fund... still shooting for 45. 

Acronyms are FUN!!!


----------



## DanFo

A question PA did you have to pay a mortgage discharge fee with the last payment??


----------



## marina628

When I get close to paying the mortgage off i load MLS and buy another Investment Property lol.Congrats on paying off the PR ,when will the PR (PRESS RELEASE ) come out ?You really can get some good PR (Poker Rake ) going with the extra cash Flow .I am off to Vegas on Sunday and Playing the WSOP ,I should go get Botox before I go to improve my poker face


----------



## marina628

I paid out a mortgage at BMO in 2009 and I recall getting a one page doc in mail from their legal department showing the mortgage was discharged and paid in full.Back then all the mortgage fraud news was hot so it scared us into getting a secured credit line with title insurance about 3 months later.


----------



## Plugging Along

Jon_Snow said:


> We're having a mortgage burning party in about 8 months!!! Does the lender actually give you a suitable document that that would be fulfilling to burn? Have never paid off a mortgage so I don't know these things.
> 
> This is the mortgage for our "PR"... our "RP" is all paid for, thankfully....
> 
> Savings that would go towards the mortgage now will go into the "ER" fund... still shooting for 45.
> 
> Acronyms are FUN!!!


A discharge statement will be coming from the bank in about 4-6 weeks, or longer if the CP (Canada Post) strike lasts. We can't burn that document, as we have to take it to our land registries to get the lien taken off. We'll make a photocopy, and burn that, perhaps a few photocopies. 

I think we're going to have the x$ (extra money) go towards our RP (Recreation Property), and RRSP (Registered Retirement Savings Plan) for my hubby (Husband), and my self. So nothing really exciting for us. 



DanFo said:


> A question PA did you have to pay a mortgage discharge fee with the last payment??


I am in Alberta, so there is no mortgage discharge fee, I believe their is a fee to pay land titles/registry to take off the lien.



marina628 said:


> When I get close to paying the mortgage off i load MLS and buy another Investment Property lol.Congrats on paying off the PR ,when will the PR (PRESS RELEASE ) come out ?You really can get some good PR (Poker Rake ) going with the extra cash Flow .I am off to Vegas on Sunday and Playing the WSOP ,I should go get Botox before I go to improve my poker face


We are always looking for properties for investing also, we having been able to find ones with a positive cashflow, or even close (we're in Calgary). I will send out a PR (press release) once I find a good PR (Public Relations Agent). I am sure it can get cash flow going if I play poker, more likely go out wards, while someone else is get a postive one from me. Have an awesome time in Vegas, KSA (kick some @$$ aka the buttocks of others).

So Botox is the secret


----------



## Plugging Along

andrewf said:


> Good form would be to use the expanded form at least once in your post, so people can more easily deduce which meaning. I was a bit baffled by FH (future husband?) in another thread, especially because it is non-canonical.


This would imply since common knowledge isn't commen, that EVERY time that someone uses an acroymn, the should write the long form, no matter what. If people had problems understanding the PR is PRINCIPLE RESIDENCE when in context to a mortgage, then one should definately provide definations for big or non-common words. Crap, I had to look up canonical on multiple sites to get the proper context. The canoncial is an oxymoron in itself.

An oxymoron (plural oxymorons or oxymora) (from Greek ὀξύμωρον, "sharp dull") is a figure of speech that combines contradictory terms.

I thought FH was actually not that difficult to figure out (not the most common), much easier than non-canonical. I used to think CARVE was being a little condescending (showing or implying a usually patronizing) when he would provide definitions, now, I think he may have the best form. 

Patronizing - to behave in an offensively condescending manner toward (oh crap I used the word condescending in the definition to define patronizing, which was used to define condescending, )


----------



## ddkay

I'm still lost here. What's FH?


----------



## humble_pie

afaik pr is aok as is fh or dw or dh.
i'm an rpsm kind of cc myself.

does the ukrm ever go on strike or just cp goes awol.

rm is so htt when he goes aob about rules.
he's Xgaercyc aka ewaist tho.


----------



## Four Pillars

humble_pie said:


> afaik pr is aok as is fh or dw or dh.
> i'm an rpsm kind of cc myself.
> 
> does the ukrm ever go on strike or just cp goes awol.
> 
> rm is so htt when he goes aob about rules.
> he's Xgaercyc aka ewaist tho.


Humble illustrates to perfection what I've been thinking about acronyms. Why only use them sporadically? It it's only every hundred words or so, then there isn't any real savings in terms of typing.

Why don't short-form people use them more often if they are so good?

I'd say use them all the time or don't use them at all.


----------



## Plugging Along

humble_pie said:


> afaik pr is aok as is fh or dw or dh.
> i'm an rpsm kind of cc myself.
> 
> does the ukrm ever go on strike or just cp goes awol.
> 
> rm is so htt when he goes aob about rules.
> he's Xgaercyc aka ewaist tho.


ROTFLMBO (Rolling on the floor laugh my butt off).

I got most of it... please spell out Xgaercyc and htt (I think I have that one, but not sure)


Four Pillars - I think short forms do save some time. I think in Humbles case, if everything is in short form, unless, you have some contexting it is harder to follow. I actually didn't have that much problems with Humbles example, but it was definately more difficult. If there is no time savings is even using one acroynm, then we should all spell out RRSP (Registered Retirement Savings Plan), RESP (Register Education Savings Plan), CRA (Canadian Revenue Agency), TFSA (Tax Free Savings Account), HISA (High Intereste Savings, Account), LOL (Laugh Out Loud), BTW (By the way) etc. Why don't we go to that extreme? We could argue that there are readers on here that are so new that they wouldn't the acroynms. Acroynms are used when there are common words used within a community. In our community, finance related terms, and 'internet' short hand are common, and considered acceptable. If someone doesn't get PR in the context of pay off a mortgage, that is different than Humbles example, when many of the terms are not common in our frame of reference. 

If the moderators what to make such a rule of NO acryonms at all, I am fine with that, but then it has to apply for every post. You can say some are ok, and other are not. As common knowledge of what is commonly known, is not common. Or, why not just take things with a grain of salt, everyone try to just apply some of their own reasoning, and problem solving abilities and take some time to figure things out. 

What is clear to one person is not to another, but I appreciate everyone taking the time to take my money diaries on this tangent. Is there a rant about saying on topic there too?


----------



## the-royal-mail

PA, it has nothing to do with rules and everything to do with respecting your fellow poster so we can understand you. Several of us here did not know the abbreviations you chose. The ones you mention in your post above are all very common. The ones that started all of this quarrelling were unheard of by most of us. I agree that the thread is now off topic, we have all said what needed to be said about this acronynm thing, so let's now move on and get back to discussing the thread topic ok?


----------



## Sampson

Four Pillars said:


> Why don't short-form people use them more often if they are so good?


I bet if they made T9 keyboards, or if phones with T9 had better internet, then we WOULD see a lot more of that.


----------



## Four Pillars

@PA - Fine, shoot my argument to pieces!  

On a related topic - are smileys still ok?  (that's a wink).

I think you are right about having context. One point about your examples is that things like RRSP, RESP have their own meaning. It doesn't really matter if you know the words that make up "RESP" - it's more important that you know what it is. PR or FH you have to know the exact words and as we've discussed - there could be some overlap.

The problem with PR is that the idea of a primary residence is really only relevant to someone who owns more than one property which most people don't. I've seen that shortform before, I used to know what it is and I still couldn't figure it out from your comment (yes, I'm slow).

I never would have figured out FH in a million years.


----------



## humble_pie

plugging eyem w U rotfling


----------



## kcowan

Four Pillars said:


> I never would have figured out FH in a million years.


If DH is OK , can FH and PH be far behind?


----------



## Plugging Along

HUMBLE: You still didn't tell me what Xgaercyc... I spent most of the day trying to make it up, and still can't come up with anything approriate or in appropriate... I really want to know...

Back to topic... paid off the Principle Residence mortgage, and have already had a kink in my plan to pay off the other property.


----------



## Jon_Snow

And that would be?


----------



## Financial Cents

Jon_Snow said:


> And that would be?


Hey Jon,

You're rocking my friend. Just read your NW link. Very, very well done!


----------



## Plugging Along

Not quite ready to share the kink in detail yet. Its one of those obligation type of things.


----------



## Jon_Snow

Financial Cents said:


> Hey Jon,
> 
> You're rocking my friend. Just read your NW link. Very, very well done!


My wife and I could be the poster children for the "LBYM" strategy.... that is how we are getting ahead. Excluding our mortgage, we live on about 2k a month.... and we really aren't THAT deprived....


----------



## humble_pie

there was this couple just met. She told him she liked a bit kinky. Not too much. Just a hint of kink.

they went to her apartment. She lived in a hi-rise tower. He tied her wrists & ankles to the corners of the bed. Lightly, so she could get herself out if she wanted. But it would take her at least half an hour.

she wanted photos. He'd left his phone in the car, so he went down to the parking garage to get it. After that, he realized he didn't know her apartment number. Or her last name. Or her phone. Anyhow she was tied up.

he wandered around the building for a while, but all the floors & all the doors looked the same to him. Impossible to find her.

finally he went back to his car & drove home. A few months later he saw her in the crowd at a music festival.

OOH, she cried eagerly as soon as she saw him. KINK EEE !!


----------



## Plugging Along

Okay, it's been a while since I posted any thing useful on this post. I've been a little discombobulated and out of sorts. So maybe this will help.

We renew the vacation property mortgage at prime - 0.85 in a variable close. This was our first closed mortgage. I thought that was good as I could double my payments and pay the 20% yearly lump sum. We were aiming at doubling our payments immediately, and trying to pay off our place within the next 2 1/2 years. I found the catch is that you can't double up your payment so the amortization is less than 5 years. So that throws my plans off a little bit, as it will take a year longer at least because I of when I can make the lump sum payments. I think I'll still be ahead than an open.

I had to do a little rejigging. We'll be paying than we planned for the regular payments, so we'll try to make up for it using the the lump sum in Dec. We weren't planning to do a lump sum this year, as we did a huge one to pay off the PR (Principle Resident), and our savings was a little bit depleted.

We've allocated the payments that were making before on the PR towards the following goals.
- Increase the double up the mortgage, only though it was like 25% more rather than double to pay off the vacation place. 
- Increase my rrsps - goal to be caught up a maxed out by Feb 2013
- Increase spouses rrsps - he had a lot of room, so won't be maxed up for at least 6-7 years. 
- Replenished the savings very slowly. 



Currently also working on a plan for a vehicle for next year.


----------



## Plugging Along

I figure since it's near the year end, I'm going to do a little update for me.

My little 'kink' didn't occur. The kink was right after we put out alot of our free cash to pay off the house, my parents asked all of the siblings to help pay for the roofs on all the rental properties. (They all needed them at the same time). I was scrambling to figure out where the $12K cash would come from. Anyways, my parents came up with the money themselves. So that let us continue with our plan.

We've been maxing the payments on the vacation property, and just did the max lump sum, which was twice the amount we orginally planned. So now we have about 3 years left. We are going to aim for another 18 months, so we'll see how that goes. 

Nothing on the TSFA front, but I am beginning to think of selling my non registered holdings and rebuying. We haven't done that only because I wanted the flexibility, and we didn't know if we would need to pull out the investments. I may do that in the New Year.

Hopefully everything goes as planned. Next year is already looking good, I've offered addition contracts that will help me rebuild our savings within our company, and there is a very very very small hope that the high risk venture we took on a few years ago may finally come to fruition by the end of 2012. Perhaps if I write it, it will become true.


----------



## Plugging Along

2012 Here I come, and I really don't have any difference in my plan. I'm not sure if this is a good thing or bad thing now. 

My main goals are (not 100% sure which order)
Pay down the rec property mortgage
Start and max out TSFA
Extra contributions to catch up in maxing out RRSPs
Continue saving for our 2 kids education


We made the max payment for our vacation mortgage property in Dec. Now, we will be putting extra (just over $20K) aside to be able to do that again this year. OUr rate is prime - .85%. The plan was to use the tax returns, and additional amounts we have been putting monthly to do this. We should be able to stay on track with this as it's part of the plan.

TFSA - We haven't started this, so have the full contribution room. I had a lot of shares in a single stock that just went up more than expected over the last week. I feel I was too heavily weighted here, so I'm thinking of selling off some shares in my non registered accounts and then started up mine and hubbies TSFA. My question is that I have no idea what I want to put in my TSFA. I can't decide if I should start the coach potatoe, or just do my individual stocks. There are few I've looking at. 

RRSP - I still have this with my advisory, and still am comfortable with my strategy with him. We will continue with our contributions. I forgot that I had a few hundred shares of DAY, which just closed. That was money wasn't anything I had planned. I am thinking that I will take the extra money about $7K, put it in spouse's RRSP right away, so we can use the deduction for 2011. We took out a lot of salary from our corporation, so he would be in the highest tax rate. I was thinking the refund would be used to help pay down the rec mortgage a little faster too. 

RESP/Kids future - we have that automotically coming out, put we have a seperate savings account which we put a little extra each month. Now, I'm thinking reading some of the other posts, we should just put that directly into the RESP so it's sheltered. I hate putting more money in when there is no grant, and there are implications if our kids down continue (though I do think that is highly unlikely). Perhaps, I should just put in the extra right into the RESP. Right now it's just in a HISA as we put all of their birthday, xmas money, etc in there too.

I think we'll probably buy another vehicle too, but we'll just put aside money from our company to do that. 

So here's my savings/debt paying goals for 2012:

Extra Mortgage Payment - $20100
RESP - $5000 (2 kids)
Kid's Non Registered - $3750 ($75/kid/every 2 weeks plus whatever else they may save)
RRSP - $12000 (1000/month)
Pension - $20000 (includes employer contribution)
Spouse RRSP - $25000 ($1500/month plus the DAY distributions))
Non Registered Savings - $6000 ($500/month)
TSFA - just cash out some non registered savings?

Anything I am missing, or you would consider doing differently?


----------



## Four Pillars

Plugging Along said:


> RESP/Kids future - we have that automotically coming out, put we have a seperate savings account which we put a little extra each month. Now, I'm thinking reading some of the other posts, we should just put that directly into the RESP so it's sheltered. I hate putting more money in when there is no grant, and there are implications if our kids down continue (though I do think that is highly unlikely). Perhaps, I should just put in the extra right into the RESP.


As I recently stated in another thread - I'm not a fan of making RESP contributions, unless there is no grant.

You do get tax sheltering and since the gains are paid out to the child, there could even be a reduction of taxes paid.

However, if the money doesn't get used for educational purposes, the penalties are pretty harsh.

I don't think it's a bad idea to use an RESP for your own tax shelter, but make sure you are aware of the risks. It could backfire in a big way.


----------



## Plugging Along

FP: Thanks for the response. I have been thinking the same way, but then I read the other post, and it got me thinking about sheltering it. I was using an In Trust account for a while, but we stopped that. 

I am thinking that the probability of both of my kids not going to school is extremely low. Our option is that if they both don't go (which would break my heart a little), my hubby would then get the Ph D he's been talking about, or I would get my masters. Then I question if I would want to start school again in my late 50's. I know we could transfer it into our own RRSP's. We have a fair bit of control on our contribution limits (we have a prof corp).

Would you still say just go for the grant, and forget about the rest. It doesn't seem like it would be that much of a tax savings in the big scheme of things.


----------



## MoneyGal

Plugging Along said:


> I am thinking that the probability of both of my kids not going to school is extremely low. Our option is that if they both don't go (which would break my heart a little), my hubby would then get the Ph D he's been talking about, or I would get my masters.


The best predictor of university attendance is (still) if dad attended university. 

I don't personally fund RESPs for my kids because my parents have taken that on. But after a review of their family RESP (for 8 grandchildren) they've decided all future contributions are to TFSAs. 

The stated policy goal of RESPs is to reduce the financial burden of university education for Canadian families. But RESPs are mostly used by high-income-earning families, not by the lower-income families for whom the program was designed. 

(I'm not sure why I'm including that tidbit - maybe just as additional justification, on my part, for not pursing RESPs for my own kids. Odds are very strong they'll both pursue post-secondary education. Heck, I'm about to start teaching a university course...they are doomed.)


----------



## Plugging Along

Sorry, I'm a little slow today. Could you please explain why the TSFA over the RESP. I also don't understand how they could do the TSFA for someone under 18. I thought that started at 18?

We have the 'predictors' that there is a good chance our kids will go to university. Both parents have degrees, and more. I also teach at one of the colleges here. However, I know there is always a chance that it won't happen.


----------



## MoneyGal

I didn't make that very clear. My dad doesn't like the administration associated with RESPs (I don't blame him). 

Some of his grandchildren are 18+ and they get their own TFSAs. The rest get in-trust accounts that will become TFSAs once they are 18. (At least that's the plan.) Setting aside the funds is not an issue for him, so the RESP container just became irritating to him. TFSAs provide a kind of PAYGO (pay as you go) system for funding post-secondary education at the level they're interested in.


----------



## Four Pillars

The TFSA is the obvious choice once the child is no longer eligible for RESP grants (ie 18+), but for younger kids - the RESP is far better as long as the odds are good that they will be able to use the money appropriately.

Keep in mind as well that the RESP plan is very flexible as far what kind of education it can be used for. It's not just for full time studies and not just college or university. Hair dressing school is on the list for example.

I'm also not sure what admin costs MG is talking about.

Here's a link to the CanLearn page which leads to lists of eligible institutions:

http://www.canlearn.ca/eng/saving/resp/program.shtml

Here is my article on withdrawing from RESPs which might help someone looking into the topic:

http://www.moneysmartsblog.com/withdrawing-money-resp-account/

Interestingly enough that article was rewritten line by line by a "tax expert" from one of the biggest mutual fund companies in Canada a few months ago and then posted to advisor.ca in her name. No attribution or anything.


----------



## MoneyGal

Not admin costs. Administration - i.e., paperwork. It's a lot when there are 8 grandchildren in one account. The paperwork for RESPs is equal to the paperwork for an RRSP. Imagine contributing to 8 separate RRSPs at once.


----------



## Four Pillars

MoneyGal said:


> Not admin costs. Administration - i.e., paperwork. It's a lot when there are 8 grandchildren in one account. The paperwork for RESPs is equal to the paperwork for an RRSP. Imagine contributing to 8 separate RRSPs at once.


Oh. Yes, I agree. 

However, the 20% grant is well worth a bit of extra paperwork in my opinion.


----------



## Sampson

But imagine having 8 grandchildren  They are fortunate.


----------



## Plugging Along

Thanks for the information. I think I'll continue with the RESP, for us the paper work for two is not a big deal, and the grant seems to be worth it. The remaining amount without a grant, I'm still debating.


----------



## Mall Guy

From PA above_"We have the 'predictors' that there is a good chance our kids will go to university. Both parents have degrees, and more. I also teach at one of the colleges here. However, I know there is always a chance that it won't happen."_

My FS ("former spouse") and I simply made it part of the language at home that going to school did not stop at grade 12 but included university (or whatever post secondary education to be named at a later date). We also planned for this, as there are four of them, which means one degree each will cost in the neighborhood of $300,000. We also stipulated that they needed to have 'skin in the game' and would be responsible for 1/3 of the cost, paid from summer jobs and after graduation. Three are currently in university, and at least one is talking about an advanced degree.

Maxed out the family plan and reinvested the dividend growth until the cash was needed. Plan is not longer growing (save for capital appreciation) as I take the cash out as an EAPs regularly.


----------



## Plugging Along

We do the same thing with the language and have just made it an expectation that they will go to post secondary and most likely a masters, and have planned for such. However, in the short 6 years I have been a parent, i have learned that there is always an element of surprise and unknown with these little people. 

We have instilled already in our children the value of education and finances. One of there savings jars goes to long term which we have said is for university, vehicle or house (that's really a long for a 4 year old)? 

It's still early in our plan, but we are plannring to be in a financial situation that when the oldest starts university, money will not be any concern. We are also encouraging them that scholarships are their job.


----------



## tombiosis

I started a small RESP for my son a few years ago...I only have about 4k in it, and he is 9 years old now. I haven't contributed anything to it recently, because I am trying to catch up on my TFSA contribution, (and my RRSP has so much room I doubt I will ever max it out...sigh)
I was wondering how much would be a good amount to have in the RESP to fund 3 years of University...say 9 years from now? I have no idea what school costs these days...


----------



## Saniokca

tombiosis, 

In my opinion you should only put enough into the RESP to get the maximum government match. After that max out your TFSA, if you have money left over, think about RRSP (cross that bridge when you get there).

this is not exactly the answer you were looking but I hope this helps.


----------



## Plugging Along

^ Agreed. We're maxing the RESP amounts to get the grants, but I don't thinnk that will be enough for our kids education, even with growth. The rest we are saving outside with an in Trust account, and will have our kids fork out some of the bill too. 

In terms of amounts, it depends on the program. My nephews tuition (no books) is about $10000K a year, then books. My neice is in her MBA right now, and it's about $25K a year. Then there is the cost of housing if they go away for school. I'm budgetting for about $15K a year in todays money.


----------



## Pigzfly

A fairly frugal, but not starving, student will spend 16-18K per year living on their own.

$5000-7500 for tuition, depending on discipline
~$1000 books, printing, school supplies, replacing those pesky calculators that go missing...
$400-1200/month for rent and utilities (almost always have to take a 12 month lease)
$200/month for food, etc

Midpoint with just these basics: $18,450 (assumed rent for 12 months, food for 8)
Throw in a $40/month cell phone, transportation, sports/entertainment costs, a new pair of runners or winter jacket, amortize a computer, travel home for a holiday or two...


----------



## Helianthus

Pigzfly said:


> A fairly frugal, but not starving, student will spend 16-18K per year living on their own.
> 
> $5000-7500 for tuition, depending on discipline
> ~$1000 books, printing, school supplies, replacing those pesky calculators that go missing...
> $400-1200/month for rent and utilities (almost always have to take a 12 month lease)
> $200/month for food, etc
> 
> Midpoint with just these basics: $18,450 (assumed rent for 12 months, food for 8)
> Throw in a $40/month cell phone, transportation, sports/entertainment costs, a new pair of runners or winter jacket, amortize a computer, travel home for a holiday or two...


I agree with this. I graduated 4 years ago and my costs were as follows:

Tuition and other school fees: $6,000/year
Books, supplies and other materials: $1,500/year
Rent and utilities: 600/month, $7,200/year
Food: 400/month, $4,800/year
Entertainment: 200/month, $2,400/year
Clothing/gifts: 100/month, $1,200/year

Total: $23,100/year

Food does not include takeout. That was all groceries. I'm sure I could have eaten more frugally, but I do not like to sacrifice what I feed my body.


----------



## Plugging Along

My after 2011 taxes update:

We will be receiving a large tax refund $12K+. It will go directly on our vacation property mortgage along with some other money we put aside about $5K. We will be able to put another $3K for 2012 on our mortgage prepayment planned for Dec. This should allow us to pay off the mortgage in full from next years tax refund
Target June 2013 - mortgage free on non investment properties

RRSPs – (me) Based on current plan, caught up on all contributions by Mar 2013 
RRSPs - (spouse) He has a lot to put in still, we will continue with the current contributions which will only allow him to catch up slightly for next year, until mortgage is paid off. 
Target – max out rrsps by 2016

TSFA – Have money set aside for mine, but haven’t figured out what to invest in yet
TSFA – Need about $6K more to catch up, if the markets go up a little more, will cash in Non registered and move over the amount to spouses.

RESPs – In good shape to get max grant amounts. 

Other Savings – build up contingency for when I go consulting. Will plan for June 2015. No clear plan yet. Most likely will take some from future tax refunds, and money current used to pay off mortgage.

Expected net worth increases (due to savings and paying down debt, no appreciation) ~$60K/year


----------



## marina628

Just have feedback on the parents wishing that the kids go to school (get degrees etc). My Dad had 8 siblings and only one got to go to University because the older brothers and sisters had to work as soon as they got done high school.In fact they had to all work to pay for the youngest to go to University .He became a Professor at the University after 12-13 years of studying.His older sister(my Aunt) never got to go to school although she wanted to.She ended up marrying and having 3 kids and all their life she preached to them about going to University ,they were not given a choice .Every one of them went to school got their degrees but they were/are miserable people.It is great that we can give our children options but when time comes I hope the decisions get left to our kids. My daughter has some friends who went to Univeristy for one semester and came home xmas and never went back either because of poor grades or they were forced to go in the first place.
For my own daughter I knew she was not ready to go to University at the age of 17 so we let her make her own decision.She worked for a year and we left her to decide on her education goals ,she did the applications on her own.She surprised herself and us by getting a paid job as the teachers assistant in her first semester and came through with 93.8 average.We need to encourage our kids to go to school but be prepared if they do not want to.


----------



## Plugging Along

My next update.

We put the whole tax refund against the mortgage, and added some to max out the pre payment for the year. 

I have to admit, I thought the summer months would be easier, as I don't have to pay for tuition for the kids school, CPP&EI payments maxed out a while ago, and I caught up on dd2 RESP for the year. Usually when I have extra money like this, I would just automatically transfer it to my slush fund or increase my spouse RRSPs, but it has been tight. I am thinking it's because we put down extra money to max out the pre payment and day camps have been the addition costs for the summer, so I guess not really that much ahead. 

I have a few thoughts that I am trying to ponder through. Suggestions and considerations are always welcomed.

Our vacation rental property has a mortgage of ~$24K based on the current payments it would be paid off in Jan 2014. The plan was the do a prepayment with our tax refunds next year which should pay it off in July 2013. I am wondering if there is a benefit of just taking some of our emergency fund and paying it all off in Jan 2013. Our rate is a variable, currently at 2.15%. The advantage I see is paying it off faster as just a general accomplishment of being completely consumer debt free, and then being able to take the payments from January and Feb 2013, and putting them into RRSP for the tax refund for the 2012 year. We are in the highest tax brackets. The disadvantage would be that we would almost dimish our first emergency fund (we have other ones that are less liquid). The difference would only be about 7 months, so it is worth it? I guess it's primarily to be debt free, but then be really low on an emergency fund, which would be rebuilt when the tax refund comes it. Make sense?

My other thoughts I am pondering through is how to save up an 'Operating' fund, and what to invest it in. I am planning to go consulting in a few years (about 3), and would like to make sure that I have money set aside to cover my current salary and time off for a period of time. The money may not be used if the consulting goes as planned, but if it doesn't take off as quickly, then I would use it to bridge the time and stay home with the kids more. I am looking at trying to save about $60-100K in three years. My question is where do I stick this money, just in an HISA? The intent is that of course i wouldn't leave my job until I have a contract, but they are usually only 6 month. I could potentially have to use the money after the my first contract if it's not renewed, or may not need it for a long time. 

So here are my goals restated (primarily for me)- 
1. Pay off mortgage on Vacation Property - either Jan or July 2013
2. Max out my remaining RRSP contributions - target Feb 2013, will be completely caught up, and will transfer the excess amount to Operation Fund
3. Max out My TSFA - have done that for mine, just have to determine how I want to invest it
4. Max out Spouses TSFA - goal by 2013 
5. Continually maxing out Spouses RRSP - will take part of the payments from the Vacation Property to do this and additional money throughout the year. The limits are large, so it could take until 2016 (will have to calculate this better later)
6. Start saving for "Operational Fund'. Using extra money through the year, and part of the money from my current RRSP contributions, Vacation Property Mortgage, and extra money found throughout the year. 

I think those are my priorities. Just execution now.


----------



## Four Pillars

Plugging Along said:


> Our vacation rental property has a mortgage of ~$24K based on the current payments it would be paid off in Jan 2014. The plan was the do a prepayment with our tax refunds next year which should pay it off in July 2013. I am wondering if there is a benefit of just taking some of our emergency fund and paying it all off in Jan 2013. Our rate is a variable, currently at 2.15%. The advantage I see is paying it off faster as just a general accomplishment of being completely consumer debt free, and then being able to take the payments from January and Feb 2013, and putting them into RRSP for the tax refund for the 2012 year. We are in the highest tax brackets. The disadvantage would be that we would almost dimish our first emergency fund (we have other ones that are less liquid). The difference would only be about 7 months, so it is worth it? I guess it's primarily to be debt free, but then be really low on an emergency fund, which would be rebuilt when the tax refund comes it. Make sense?


My suggestion would be to stick to your original plan and not use the emergency fund to pay off the mortgage.

I know how tempting this is, because I was in the exact same situation last year with our mortgage when it dipped below $20k (the amount of our emergency fund).

Bottom line is that you aren't really paying off any debt, since you are just 'borrowing' from yourself in different areas. Sure, the mortgage will be gone, but then you'll have an emergency fund 'debt' to fund. Same difference.

If you are willing to cut down your emergency fund to pay off the mortgage - the question has to be asked, why even have an emergency fund if you have any debts? Why is it ok to have $x in a high interest savings account when you owe $N in a mortgage when the mortgage is $100k, but not when the mortgage is less than the EF? 

To be honest, in your (very good) financial situation, neither choice is bad and I can't really say that either is better than the other. So I'd say just stick to the plan.


----------



## Plugging Along

Thanks FP for the reply. I think what I was getting drawn into was the tempation as you mentioned. I just really wanted to pay it off quickly, but I guess there's not much of a gain for a few months faster. 

In terms of your question on why have an EF when you have any debt, I had to work through this my self. At least here was my justification, the requirements for EF is based on cash flow, and risk environment of th individual. 

Normally, I am a big advocate of emergeny funds, even when there is debt. The reason is that even if your mortgage is lower by the amount of the emergency fund, in a case of job lose, your cash flow is about the same even if you have a slightly lower mortgage. The fact that there could still be more than one year on the mortgage still has a risk involved (the longer the remaining mortgage, the larger the risk added to the profile). Consumer debt is the same if not worse. The fact someone has consumer debt, *may* be an indication of the risk that they are unable to manage their finances under normal circumstance, and are comfortable debt, therefore in emergency times, with out an EF will more likely get into more trouble. 

In terms of my case on why I considered it, was that by paying off the mortgage COMPLETELY with my EF, it would reduce my cashflow requirements if a job lost were to occur. Also, the timeframe in which I would have my EF rebuilt (with my tax refund), would only be about 7 months. I am usually able to determine the stabiliy of my job, and my spouses contracts in at 6 month intervals. Also, based on the other risk factors in my life, I would be at a relatively low risk. That's why I was able to consider the justification of not having an EF, though it would bring more risk.


----------



## Plugging Along

I thought I would take a little time to provide an update, and articulate my plans for 2013. 

First, not much of an update since last time. The major points were somehow our accountant missed a t5 or two, so we got reassessed and ended up having to pay back almost $5k in taxes. Also, we were asked to help out our parents just recently, so had to lend another $5k to them. They are just waiting for some investments to mature, so I know we will get the money back next December.

Spouse has decided to stop consulting and go back to climbing the corporate ladder. He took a position that is really great for him. We will lose a lot of flexibility from no longer being self employed. I am still really enjoying my work, and have been presented with some great opportunities assuming I can pull off this big project. That will change my direction of my career. I will continue consulting on the side, but will see how this other project pans out. It is quite exciting for me.

In terms of finances, the payback to cra and loan to family will mean that I will just have to continue holding course on paying off vacation property mortgage. My original goal was to have it paid off by July, that may have to wait nit I get my money back in dec, but I am going to see if I can still pay it off early. I may now dip in the EF.

I will have my rrsps maxed by February, and will need to reduce my monthly contributions so I do not over contribute for 2013. I plan to take the amounts and start putting it towards my unregistered accounts. That should be when we receive our taxes I will know the exact amounts. Tsfa will be maxed Jan 2. Also plan to put my raise directly into savings that will go into my unregistered accounts. 

For spouse, still working on maxing rrsps. We will continue on track, and may increase it a little once we figure his new work contributions. Tsfa will be maxed jan 2, however, right now it's all in cash, so I need to find some buying ops for $25500. I have been waiting to see what happens with the cliff.

For the kids, we are continuing on course with their rrsps. However, they now have enough saved in their personall hisa accounts that it may be worth teaching them investing, well at the least the oldest. She was pretty excited to see she made $92.74 this year just by having the money in the bank. I would like to start some sort of couch potatoe for them. Te shortest time frame is 11 years. I am a little nervousness, as I always go through my advisor for other things, and tend to take huge risks with my personal money. It seems different with the kids mney. They will each have about $8 k to invest, plus what ever they get for gifts through out the year, and a monthly $150 contribution from us.

I think our main goal this year is just really building a solid unregistered portfolio. I also kind of want to save for another rental. I do like real estate, and this has always been our plan. 

Any thoughts, especially on the kids accounts or Tsfa investment accounts would be great.... Or guess the non registered accounts too.

Okay here's my summary for 2013

1. Figure out how to invest TFSA - $25500 for spouse, about $9K for me
2. Figure out how to invest kids In Trust accounts about $8-9K each to start
3. Pay of that darn mortgage on rec property
4. Reallocate money that used to pay off mortgage to non registered account, along with raises. 
5. Forgot... we are saving for a replacement vehicle. We will buy when we find the right one. We can't decide of bringing another one in from the US or buying here. Need to figure out this strategy. I think this will replace number 4


----------



## Plugging Along

I am actually pretty happy to be able to make some major updates in a short time.

*1. Figure out how to invest TFSA - $25500 for spouse - I did one big buy of BCE for the whole amount,* so I am happy to see that we're up $1800 in the month, but I'm not counting that for every month.

B) about $9K for me - still haven't found what I am looking for, but am waiting for maybe CPG to drop

2. Figure out how to invest kids In Trust accounts about $8-9K each to start - still haven't figured this one out either
* 3. Pay of that darn mortgage on rec property - Hurray.... this is the best update, as of midnight tonight, we are totally mortgage free and debt free *on all non investment debt. I took the plunge, and sold all my CP shares, then paid off the mortgage. 

* 4. Reallocate money that used to pay off mortgage to non registered account, along with raises. After this week, I have already set up an automatic transfer of the whole mortgage payment into our investment/savings account.*

*5. we are saving for a replacement vehicle. - Decided that we will wait until next year, as we can get at least one more year out of our vehicles, and can use the mortgage money saved perhaps towards this*

We had a few unexpected expenses, like our fridge dying and our freezer nearing it's death, so will be buying one of those, plus one of our private equities has an opportunity to buy more, so we may take some of our extra cash, and drop it in.

I hear that once the mortgages are done, then the real savings begins, so let's see if that's true. Yeah!


----------



## Plugging Along

*I hear that once the mortgages are done, then the real savings begins, so let's see if that's true. *

Yeah right.. so far I think I was doing better when I had a mortgage. It's been a real challenge, this money update is more of a rant, and a way to kick my butt into gear.

Since we paid off the mortgage, we have made little or no further progress. 

1. 9K still sitting in cash, my CPG just went up, when do I just buy when I think it's a good buy instead of timing.
2. Kids accounts are still sitting in a HISA, not even in trust. I will post for advice on this. Part of me just wants to give the money to my FP as it's at least doing something more.
3. Mortgage is still paid off, but it's hard to see that my former CP shares have increased another $30 a share since I sold. 
4. I transferred the mortgage payments into my savings, however, we had to with draw it all again. Our fridge and deep freeze crapped out at the same time, we had to pay for our nanny to return overseas for her vacation (it was negotiated long time ago), had to pay for extra child care while she was gone, all the summer camp and school fees where due in the same month, nanny hit some sharp (non living) object, which cost us another $2, and we had our spring break vacation to cover the nanny's time. All of this was over $10K on top of our normal expenditures.
5. Our car today, just stopped while we were driving. It sounds like it could be the transmission, so if it is, we will not fix it this time and have already started to look for a new vehicle. Our tax refunds will help this, but really, nothing has worked over financially so far.

So my next steps right now are figuring out what to do for the vehicle. That will decide on where any of spare money goes.

Also, we found out that our recreation property the area has been hit with many foreclosures, so condos are selling for half of what we paid. I know that it's doesn't matter for us, it is a lifestyle and long term hold, but it still sucks to see your networth drop by $100K. It actually is less of a deal than number 4 on my list, even though the number is larger, but I am just whining now.


----------



## Plugging Along

I hate whiners, including myself.

Here's what I am very thankful for. 

All of my issues are first world problems, or middle class problems. 

1. So I missed CPG, but I've been fortunate in other investments. I have money to invest, that's a good thing. 
2. Whining about my money not doing anything is silly. I would rather have cash sitting around earning very little, than none at all 
3. Mortgage is still paid off, and I doubled my money in shares, so if CP goes up, then it really doesn't impact me. It allowed me to be mortgage free, which was very important. I have to remember not be greedy.
4. Okay, some of these do suck, but my kids are safe, my nanny is happy, and takes good care of my kids, and drives them which allows me to work, which I like We did an awesome family vacation of teaching the kids skiing for the first time, and they loved it, and now we have another family activity. My kids are one of the main reasons we work so hard, and spending on their education and activities we love.
5. Broken car is never fun, but everyone is okay. Now, hubby gets to look at a new vehicle, it ends our debate of when should we buy a new car. The fact that we have the ability to go out and buy a vehicle in cash is really positive.

6. Condo losing value. It's only paper loses. We had always intended to keep it for 20 years or more. The fact that my kids were really upset with the thought of us selling, it's well worth what we get out of it. 

My perspective is getting restored now.


----------



## My Own Advisor

Definitely first world problems 

Mortgage is still paid off - very well done!

"Kids are safe", seems like # 1 priority in life to me, money is just that.

"Broken car is never fun" - yeah, been there with my clunker, 2000 Mazda. In a few years, I will get a new car.

I wouldn't worry about the condo unless you are wanting to sell.


----------



## kcowan

Thinking about replacing my 1993 Ford Explorer this fall. It would be easier if it broke down. We had a transmission seal leak last year and they confirmed that the TX is in great shape. Had to replace a starter motor last fall.


----------



## Plugging Along

It was a crazy weekend trying to get the vehicle fixed. $700 in parts not including labor and we are up and running. 

We've decided that for now, we will leave our cash reserves in cash, and not invest it. We are officially on the hunt for TWO vehicles.


----------



## Jon_Snow

Looked at a 73k Ford Mustang and a 100k Audi Coupe today... I like cars - a little too much to be honest. Not too compatible with ER plans that's for sure. :stupid:


----------



## My Own Advisor

Uh, no, but fun to dream Jon....

For you, that just means retirement at 44


----------



## Plugging Along

I gaurentee both of our cars will not be $100k or even $73k combined.


----------



## Plugging Along

Thought I would give another update.

My car died AGAIN 3 weeks after the last post so we spent another $1200 plus the amt first amount. At that point my spouse couldn't take the break downs any more. Upon receiving the txt the car was dead, he took a detour on the way home from work and walk junto a deal ship and just bought a new car. There goes almost $20k in a few minutes, plus we paid for the car repair because our car wouldn't be sellable otherwise.

Sold the old car just this weekend for dirt cheap, but honestly, we just don't care. 

We have one more vehicle we are planning to buy hopefully next year. 

We haven't been getting much further ahead in our savings in terms of percentages. We were hoping to put the money from our paid off mortgages and my maxed rrsp contributions into maxing rrsps for spouse, but it has been spent on cars, vacation, appliances, and stuff. 

Our current goals are the following:
Continue maxing my rrsp each year (I have a very small limit because of work db)
Continue maxing both tsfa, we presave each year for the following year, it also serves as part of our emergency fund.
Kids resps and in trust accounts continue at the same rate
Spouses rrsps, we are maxing current year contributions, but have about $55k in unused room. Are slowly trying to reduce the additional room by about $6k this year, but would like to increase that.
Save for the car next year.

I have to admit, I feel really behind this year.


----------



## jcgd

I find that in striving to save and not waste money I sometimes go too far and get a little behind on the essentials. Things like toiletries, groceries, clothing and every once in a while I need to take some money and catch up. It feels like I am then falling behind, when in reality I just pushed the savings forward and fell behind on the things I needed, but neglected to buy.


----------



## Plugging Along

I have reread my thread and thought I would put in a little post.

My TSFA lost about 20%. I will still keep plugging along there trying to figure it out.
Spouses TSFA up about 20%. So I guess we are even. 

Until I do better on my own in my TSFAs, I will still continue to use my advisor and pay the fees. Overall, I am up on my rrsps.

It has been a very challenging few months as my spouses health has been up in the air and we then found out his life insurance was not renewed. At the same time, he decided he wanted to pursue his PhDs, so we decided to divert our extra funds as an emergency fund or education fund. Now, he has decided that he may not be able to handle the stress of a phd with his medical issues, so he wants a truck.

My goals for the next year...

Save an extra $2k a month to use for either spouses education, a truck, or emergency fund as he is no longer insurable. 
Try to convince spouse to wait on phd, and truck and most importantly help him get his health back on track
Keep investing the TSFA and try to make money on both accounts next year
Continue working on closing the gap on maxing spouses rrsp


----------



## marina628

Sorry to hear about your husband's health ,just curious was it a term life policy that you could not renew?


----------



## Plugging Along

It was a term policy. It was because my spouse cancelled the account that the insurance payment was coming out of, and forgot about the insurance. (Stupid mistake on our part). The insurance didn't get paid, so they cancelled it. By the time I figured out his out, my husband had started having health issues. Now, he is uninsurable until he gets better. 

It wasn't that the insurance found out hew as sick and cancelled. Our mistake.


----------



## Plugging Along

Plugging Along said:


> I have reread my thread and thought I would put in a little post.
> 
> My TSFA lost about 20%. I will still keep plugging along there trying to figure it out.
> Spouses TSFA up about 20%. So I guess we are even.
> 
> Until I do better on my own in my TSFAs, I will still continue to use my advisor and pay the fees. Overall, I am up on my rrsps.
> 
> It has been a very challenging few months as my spouses health has been up in the air and we then found out his life insurance was not renewed. At the same time, he decided he wanted to pursue his PhDs, so we decided to divert our extra funds as an emergency fund or education fund. Now, he has decided that he may not be able to handle the stress of a phd with his medical issues, so he wants a truck.
> 
> My goals for the next year...
> 
> Save an extra $2k a month to use for either spouses education, a truck, or emergency fund as he is no longer insurable.
> Try to convince spouse to wait on phd, and truck and most importantly help him get his health back on track
> Keep investing the TSFA and try to make money on both accounts next year
> Continue working on closing the gap on maxing spouses rrsp


Wow, time flies... The kids started back at school. So I have a little breathing room. 

Updates....

Spouse finally came to his senses and agreed that a phd was a not a good idea while he was experiencing health problems. He didn't have much energy, so a phd would have made it worse.

So... He prompted took the money that we were saving just bought a truck. :stupid: Oh well... He isn't most frugal but at least the impact is limited to money not his health or time with family...

Health problems are still outstanding, but seem to be a bit better, still don't know what the cause is, so that is a stressor.

Tfsa has finally been in the black. Yeah.... With that I am slowly developing my coach potatoe plan. I was going to do the coach potatoe on one of my smaller accounts, but don't totally understand the tax impacts, so need some more time to jump in....

Am planning to call the couchpotatoe dan Bourtelli to see if they will take us on to get me started. I hope to have my strategy by January. 

That's all for now.


----------



## Jon_Snow

Has hubby seen a doctor? And I completely understand his truck lust... 

I'm kinda pinching myself with regards to our TFSA's... unless something bad happens, once we contribute our 11k on Jan 1, 2015 our TFSA's should be clocking about 100k combined. 

Keep updating P.A., your story is one of the most interesting on the forum.


----------



## Plugging Along

Jon, you only want me to post so you can say 'sucker, I am retired' (j/k). I definitely don't find my diary very interesting but will keep posting to keep me motivated to do the diy jump.

My hubby has been to many dr, and they still don't have it fully under control, and part of it is stressing him out, so we decided to take it a little more easy, but I secretly stress out without him knowing, so honestly, if the truck keeps him happy then it's worth it. 

As for my finances, I think I would make a good case study or something. I am lucky I have a good income to offset poor investment decisions. I know better, but yet still use an advisor. I have a business finance background, and know with a little bit of work I can get the right portfolio on my own. I choose an advisor to offset my lack of discipline in sticking with a strategy and being overly aggressive with my own funds. For that the money was well spent, because I am I the one to buy huge amounts on one stock on a gut feel. 

Now, that my portfolio is getting larger, when I calculate this fees, I ask myself if I am getting my money's worth. When my portfolio was $50k and the fees were about $1k a year, I was getting the $1k worth of advice every year. Now, I am not so sure. 

I have been researching couch potato for a while now, and am getting ready for the jump, however with tfsa, resp, rrsp, in trust accounts, and non registered accounts for the whole family the paper work seems too much. I HATE paper work. So I know that will be an excuse not to do it,
Hence why I think contacting the couch potatoe guy is a good idea, HOWEVER, I read on the site for portfolios over $500k it is recommended not to use their self serve but their full service which has 1% fee of all assets. So now I hesitate again.

Then I was thinking since I would be going over to td where my other account is to do the e series, of contacting the td private wealth person, have them more money over into their bank, pay the fees to have them manage it for a year or so, but have them cover the transfer and then transfer into the self directed as there is no fees to more from the full service to the self directed.

So CMFers. What do you think?

Option 1. Go with couch potatoe guy Dan ,pay the $3000 k to essentially have them do my paper work and provide a little advice

Option 2. Go with the couch potatoe guy through their full service at 1% of asset as recommended by the site. Of course would call to get a lot more information

Option 3. Go with TD private wealth to have them do my paper work, I would get them to pay for the fees, but am sure I would still pay mers for a year, and then transfer to the sell directed.

Other options? Other than doing everything myself.


----------



## carverman

Plugging Along said:


> It was a term policy. It was because my spouse cancelled the account that the insurance payment was coming out of, and forgot about the insurance. (Stupid mistake on our part). The insurance didn't get paid, so they cancelled it. By the time I figured out his out, my husband had started having health issues. Now, he is uninsurable until he gets better.
> 
> It wasn't that the insurance found out hew as sick and cancelled. Our mistake.


Yes, I would have to agree that was not a wise decision for your hubby to make, especially if his health is in question and he has a family to support ..as nothing in life is guaranteed as they say.



> Poor Health
> 
> One reason people get life insurance is so their family will be protected should they be diagnosed with a terminal illness. Provided the policy is current on payments and there has been no misrepresentation on the insurance form, the company can not cancel the policy based on a customer having a terminal illness.
> 
> You can protect yourself from problems like this and ensure that your coverage will remain intact. Answer all questions on the forms honestly. Keep a copy of the application for your own records. Review the application to ensure that you have answered all questions.
> 
> If possible, have a family member review the application with you to ensure everything is filled out. Never allow any other person to sign the application. It is a legal document which requires your signature. Finally, set up the insurance premiums so they are automatically withdrawn from your account. You can do this with the insurance company or you can use your financial institution’s online banking options to set it up with your bank. Either way, you can be confident that the payment will be made on time so you can keep your policy in effect.


I'm surprised though, that your husband and you were NOT NOTIFIED by your Term Insurance company that the policy would be cancelled if the missed payment was not made within the allowed GRACE PERIOD of the term policy..papers that I'm sure they sent your husband and you.

It is ALWAYS advisable to take the time to read insurance policies to get a reasonably understanding of the conditions set forth in the policy.

Ensuring that the payments are not cancelled by the insured, is one way you can protect yourself and your family from a major financial issue, should something happen in the future health wise to the insured.

Depending on your hubby's current health and prognosis , it still may not be too late to find some insurer that will provide a policy at a lesser benefit and a much higher cost now, since ALL current medical information may have to be disclosed from now to avoid the excuse of the insurance company denying a future claim, if not all medical information was submitted to them at the time of issuing a new policy. 

They also, (I read somewhere), have up to two years to decide if they will pay a claim, depending on what was disclosed at the time the policy was issued.. Going out and finding another insurer will always have some risk now. 

From the CBC news files, there have been cases of life insurance obtained through the banks as part of the mortgage payment, that were denied when the husband (usually) died while the mortgage was not paid off completely. 
The insurance company found out as part of their investigation into the claim that there was an UNDISCLOSED MEDICAL CONDITION present at the time the mortgage was obtained. The insurer denied the claim and simply
refunded the premiums paid, and left the widow with a huge financial mess to deal with..something that the life insurance policy was to supposed to take care of..that "peace of mind'..which didn't happen exactly as the couple had expected.


----------



## Plugging Along

Carve... My husband f'd up.... Simple as that.... I have tried to fix up his mistake, but no luck. For the small amounts of insurance I can get now, it isn't worth it. The best I can hope for right now is that we have enough assets to be self insured and that he gets better.


----------



## carverman

Plugging Along said:


> Carve... My husband f'd up.... Simple as that.... I have tried to fix up his mistake, but no luck. For the small amounts of insurance I can get now, it isn't worth it. The best I can hope for right now is that we have enough assets to be self insured and that he gets better.


I understand..and I hate to preach, but I believe you have two preschool children?.....he was IRRESPONSIBLE to cancel the payments for his life insurance, IMO....now that being said...
You mentioned you "lost 20%" in your TFSA "investments``...how did you manage to do that? 
I thought that a TFSA was a reasonably safe investment, unless you included Mutual Funds that go up and
down depending on market conditions.

*You are the one responsible for your money and need to examine your own conscience of what is the best thing to do now.*

As the saying goes.."When you laugh, the whole world laughs with you...When you cry..you cry alone!
The same principle applies to managing your life savings...give to somebody else and you may be pleasantly surprised at the results..
or *extremely disappointed*. There are NO Guarantees...and ...if someone offers you a strategy that includes "guarantees on big returns" "Plugging"..you should run from that as fast as you can! 

You say, you hate paperwork and want someone else to look after it for you..for a price....*that is something I would never do!*

My money ( and what's left of my life's savings , ALWAYS stays under MY CONTROL...I am responsible for it...no one else out there would be.


----------



## Plugging Along

There is no point to harp on the past with my spouses mistake, it is what it is. Me staying mad will not change anything. I have to work with what I know. Focusing on the mistake and being angry is what breaks up marriages.


Actually, the tfsa was what I was investing without an advisor. So the promise of big returns was only by myself. I have chosen my tfsa for equities. I also know myself well enough that I have a high risk tolerance, but can lack discipline, hence why I have kept my financial advisor with my rrsp for all these years, because he generally does try and balance out my aggressive investment nature. Don't get me wrong, I have generally liked my advisor and believe he has done a good job in the past. However, as my portfolio gets larger so do the fees, so I believe the cost vs benefit is no longer worth it. 

I also know that paperwork is something that I detest, and will avoid at all cost, and making a jump on my own is something I have been trying to do but have yet to do it. Therefore, having someone help me make that first jump is what I need. Heat is my question, do I have pay the one time fee up front, or do I pay someone to manage for a short time.


----------



## carverman

Plugging Along said:


> Actually, the tfsa was what I was investing without an advisor. So the promise of big returns was only by myself. I have chosen my tfsa for equities. I also know myself well enough that* I have a high risk tolerance, but can lack discipline, hence why I have kept my financial advisor with my rrsp for all these years, because he generally does try and balance out my aggressive investment nature.* Don't get me wrong, I have *generally liked my advisor and believe he has done a good job in the past.* However, as my portfolio gets larger so do the fees, so I believe the cost vs benefit is no longer worth it.
> 
> If you like your financial advisor AND he has done a good job in the past...why do you even think of 'rocking the boat" to change things?
> 
> Ok, I don't understand the 20% loss you are saying on your TFSA...did you invest your money on your own?..or did you follow the advice of your financial manager?
> In the past year, have you had any correspondences with your financial manager?
> Does he provide periodic feedback on your investments as he should to earn his fees.
> Do you get an annual report on how your investments in your RRSP/TFSA are doing, and what the
> trends are in the current investment climate?
> 
> 
> 
> 
> 
> 
> I also know that paperwork is something that I detest, and will avoid at all cost, and making a jump on my own is something I have been trying to do but have yet to do it. Therefore, having someone help me make that first jump is what I need. Here is my question, do I have pay the one time fee up front, or do I pay someone to manage for a short time.
> 
> 
> 
> I used to have an RRSP with Altimira that was no load (no upfront fees), and did very well with them. I would get 6 month reports and prospectus literature from Altimira and how my funds were doing short term..+ or -, since these were Mutual funds by they did a very good job managing them for me..I just had my say in whether I wanted to move from saY "PRECIOUS METALS FUND" TO "EQUITY' etc.
> These were all NO Load FUNDS with the management team taking a small service fee each year.
> I cashed in my RRSP fund back in 2000, when I bought my existing home (after divorce), since I didn't want to carry a mortgage on a pension. I don't see them around any more, so they may have merged with some other bank or trust company.
> 
> but, here is some friendly advice from the Toronto Star..
> *5. Watch the fees*
> 
> 
> 
> Fees are the biggest drag on portfolio return. The average Canadian equity mutual fund fees run from 2.25 to 2.50 per cent annually which is a big hurdle to jump when markets are flat, sagging or tanking. Fees for segregated funds (sold by insurance companies) and niche or sector funds are even higher.
> 
> If you are working with an adviser ask the question, “Is there a lower fee fund available?” Advisers can easily search for funds with low fees. Of course, you don’t want to sacrifice performance but it is a simple task for an adviser to add in a return figure or range as part of the criteria.
> 
> You can negotiate sales commissions with your adviser. There are low-load versions of many funds, which shorten the deferred sales charge schedule from six years to two or three. And there are some very good no load funds such as those offered by the major bank brokerages.
> 
> Click to expand...
> 
> Here is the link to the above.
> http://www.thestar.com/business/personal_finance/2012/01/15/5_ways_to_make_better_rrsp_choices.html
Click to expand...


----------



## Plugging Along

My answers to your questions... 

If you like your financial advisor AND he has done a good job in the past...why do you even think of 'rocking the boat" to change things?

I am thinking of changing because the fees as you posted below are high and now that my portfolio is larger, the fees are very high. Also, there have been changes from the advisor that I am not sure I like any more. The past has been good, but that does not mean the future will be the same. 


Ok, I don't understand the 20% loss you are saying on your TFSA...did you invest your money on your own?..or did you follow the advice of your financial manager? 

This was all me, actually my advisor told me not to do it, hence why I still needed an advisor. I should have listened. 

In the past year, have you had any correspondences with your financial manager? 
We have a two or three calls a year, unofficially. 

Does he provide periodic feedback on your investments as he should to earn his fees. 
He does this once a year officially 


Do you get an annual report on how your investments in your RRSP/TFSA are doing, and what the
trends are in the current investment climate?
Yes, almost too often I ask my advisor to sum it up for me. 


I used to have an RRSP with Altimira that was no load (no upfront fees), and did very well with them. I would get 6 month reports and prospectus literature from Altimira and how my funds were doing short term..+ or -, since these were Mutual funds by they did a very good job managing them for me..I just had my say in whether I wanted to move from saY "PRECIOUS METALS FUND" TO "EQUITY' etc. 
These were all NO Load FUNDS with the management team taking a small service fee each year.
I cashed in my RRSP fund back in 2000, when I bought my existing home (after divorce), since I didn't want to carry a mortgage on a pension. I don't see them around any more, so they may have merged with some other bank or trust company. 

Altamira is still around, that who I used to be with. 

but, here is some friendly advice from the Toronto Star..
*5. Watch the fees*


Here is the link to the above. 
http://www.thestar.com/business/personal_finance/2012/01/15/5_ways_to_make_better_rrsp_choices.html[/QUOTE]

That was my reason for switching my strategy is the high percentage of fees.


----------



## carverman

Plugging Along said:


> That was my reason for switching my strategy is the high percentage of fees.


ok, I'm seeing your problem. Your gains are being eroded by higher "upfront costs" and fees. Unless you are in a hot stock market or blue chip equities that return substantial dividends and there sufficient growth in the funds to compensate for the management fees..you may be gaining only slightly. This is the price you pay for somebody looking after your investments ...unless you are willing to do some analysis and paperwork yourself. 

When I had my RRSP with Altamira Equity Funds, the growth was there and I did very well. There was no upfront "load" fees, only a small yearly management fee for their overall fund management . 

I refused to get into any upfront fees, so only considered *no load funds*. Still had the option of switching from one fund to another partially or completely based on the performance of each fund, and the yearly report they issued. You don't need to be a stock/fund analyst but you need to understand the numbers printed in each fund report hat tell you how well each fund did each year. ie: Growth over X years. 

From what I remember, I got the fund statement and fund performance report with the amount of my mutal shares in each fund at time of investment and the growth (or loss) . 
Anticipating trends in stock markets is more difficult, but I stuck to their Equity Fund /Bond Funds ,and did very well because of their selections of stocks and bonds each fund. The fund prospectus you get at the beginning can help you select the fund with the best average overall performance over time..even with slight declines from
time to time, as the market and investment climate fluctuates.


I chose 3 funds on my own, nobody advised me., just interpreted the numbers based on past performance from the fund prospectus they sent me when I was interested in investing with them.
The fund prospectus is usually a good indicator on past performance, and I wouldn't trust anyone completely as "advisor" anyway, never mind paying them a fee for the advice..good or bad.:biggrin:

So yes, there is a bit of "paperwork" but not that much..and if you don't jump around from one thing to another and 'stick
with the program", the law of averages comes into play. I just monitored the funds performance and did my own subjective
analysis of whether to stay in the fund or move the current value of the entire fund to another fund, which I could do
on a periodic basis without any fees incurred. I just filled in the forms with my requests and mailed them in.
Today, I would do that all on line with my account, but this was in the 80s and 90s.

I guess in summary, there is a price to pay for someone to manage your investments and if you choose carefully you
can avoid excessive management fees, but there will always be a some management fees unless you select a self directed
RRSP..and that requires more monitoring of fund performance and more paperwork in some cases. 



> A self directed RRSP is just that. It’s where the account holder is responsible for the investments within the RRSP, thus the reason why it’s called “self-directed”.
> Read more at http://www.milliondollarjourney.com...f-directed-rrsps-work.htm#FdkVSgogjTmVhClE.99





> Before choosing your investments however, *your risk tolerance should be factored into the equation*. This will help determine your equity/bond allocation. The higher your bond allocation, the more resistant your portfolio will be to the wild swings of the market. This protection comes at a cost however, as it will also reduce your long term gains


This is a good rule of thumb for investing:the amount allocated to equities should be around* 100 (or 110) minus your age*. 

So if you’re 30, then approximately 70% of your portfolio should be in *diversified equities*. 

And as they always say..diversify..never put ALLyour eggs into one basket.:biggrin:


----------



## Plugging Along

Carve.... All my fund are no load, however, I am not sure if you knew that there are still high MER (management expense ratios) in most mutual funds. I am not sure if you understood my whole posts, which is okay as it was long and mostly for me to 'talk' things out.

Essentially, I am trying to get out of the high high mers associated with an advisor. In my case they are about 2% a year, which is pretty common for mutual funds even if they are no load. By going self directed, I could be at about 0.6% a year. At the size of my portfolio that is substantial savings. 

I 'know' what I need to do, as even with my advisor, I always went through each investment. I also know what my risk tolerance 'should' be. I am having problems with being disciplined enough to follow it. In the past when I invest my own fund such as my TFSA, I am extremely aggressive. 

My overly aggressive nature coupled with my disdain for paper work, I literally will just not do it or postpone in is the reason I need a strategy to move my money. I also need some initial help allocating my funds in the most efficient manner, as we have several funds, registered and non registered, with different time and tax implications, so I need that initial advice. I know one the paperwork is finished and my funds are moved in the appropriate couch potatoe, I will be able to watch and balance my portfolio in the long term. That is really my question is what is the cheapest ways to egg that initial advice, or perhaps is there a better advisor for less money if your assets are high enough.


----------



## carverman

Plugging Along said:


> Carve.... All my fund are no load, however, I am not sure if you knew that there are still high MER (management expense ratios) in most mutual funds. I am not sure if you understood my whole posts, which is okay as it was long and mostly for me to 'talk' things out.
> 
> 
> I 'know' what I need to do, as even with my advisor, I always went through each investment. I also know what my risk tolerance 'should' be. * I am having problems with being disciplined enough to follow it.* I*n the past when I invest my own fund such as my TFSA, I am extremely aggressive.*


You have to develop a strategy and maintain discipline to monitor and manage funds on your own. That requires some up front work, once you have a strategy, discipline as you refer to it comes a lot easier. If you have too many funds and confused over what each one 
is supposed to be doing for you, then go at it aggressively...well...I think you may know what can happen.



> My overly aggressive nature coupled with my disdain for paper work, I literally will just not do it or postpone in is the reason I need a strategy to move my money.


Yes, as I mentioned , YOU DO NEED your own strategy..and what the limits are supposed to be..
because...to go at it willy-nilly without having some plan or "template" to follow... is just inviting problems down the road.

The other thing I do is keep any investment money *(RRSP mutual funds) separate from savings plans. You should never take money
from a savings plan for investments even if the investments seem at the beginning to sound like a better place to "park your money"
for more interest growth...i
If something happens in the economic investment climate..those funds can go down just as easily as they appreciate and just as fast too. 

If your" little one" needs dental braces etc, or some other monetary emergency, you don't take a tax hit by being forced to cash in your RRSP ,
just because you need emergency money, so having some money in non registered is a must. 



> I also need some initial help allocating my funds in the most efficient manner, as we have several funds, registered and non registered, with different time and tax implications,
> so I need that initial advice.


If you need professional advice on how to administer your funds, it is going to cost you up front. Maybe there is an investment type out there that will give you free advice on
what to do, based on their opinion, BUT how can you be sure that that is sound advice for your "nest egg"..funds that from the sounds of what you are saying..you really can't afford to lose any of it. 




> I know one the paperwork is finished and my funds are moved in the appropriate couch potatoe, I will be able to watch and balance my portfolio in the long term.


Why are you using the term "couch potato"? for managing your money. 

Your money, just like your health needs to be constantly monitored and working for you to avoid potential problems 
such as changes in the investment market, bond funds, money funds, etc etc..that sort of thing"

You can't just "park it" an investment vehicle couch potato, if you want to call it that, and forget about it for a few years because
you don't want to get involved on a periodic basis.

It's a bit like having a fox in charge of YOUR henhouse...yes the fox will do it for you....that is..
until your "back" is turned, and shouild you forget about the fox and henhouse...until you need some eggs from the nest egg..well
any of the eggs left may be rather disappointing. 



> That is really my question is what is the cheapest ways to egg that initial advice, or perhaps is there a better advisor for less money if your assets are high enough.


You are looking for freebies..and that could be a mistake in the long run...b*ecause free advice is just what it is...and nobody is
responsible for the consequences of their free advice.*

IMO; Here's what you need to do.
Sit down and develop a strategic plan for your current investments.

List your current investments on paper, or better still on a computer file that you can constantly update easily with new information as it becomes available.

*Determine your investment goals and what you want your registered investments to do for you AND what your non-registered
investments to do for you.*

Balance them in terms of potential growth and return on investent to determine if it's still a good plan for you.

Develop a re-allocation strategy...But ask yourself..."Is it safer to keep your money in a lower yield investment vs taking a big risk on a more
volatile investment.?" Can you afford to lose your principle, if the strategy turns out wrong?

How much of your money should be left as "play it safe" money and how much can you afford to invest at higher risk..

That's what I would do..I don't need anyone telling me how to manage my money...I want FULL CONTROL because I cannot
afford to lose any of it at this point in my life...


----------



## Plugging Along

Carve.... Thanks for the advice...

Couch Potatoe IS a strategy, it is based on index investing, and there a lot of talk about it here in the other parts of the forum. Google Canadian couch potatoe and you may have a better understanding. I think it answers most of your questions. I just the best way to move out a large portfolio into a couch potatoe portfolio which is a DIY indexing strategy. 

I know you are trying to be helpful, and I appreciate that. However, I consider myself not too bad in personal finance. I am not looking for free advice, but rather the lowest cost while still getting sound advice. I want someone to be able to bounce my strategy off of, and be able to tell me specifics for my situation and goals. I am 80% sure how to get there! but just want someone to help me make that initial leap. 


I don't need advice on the basics, such as not taking money out of my retirement for non retirement issues. I have discipline in my personal finances, just am not quite there in my investments and want to pay someone to do my paper work for me. I can be the only one here that doesn't want to do the paper work. Or maybe not...


----------



## carverman

Plugging Along said:


> Carve.... Thanks for the advice...
> 
> Couch Potatoe IS a strategy, it is based on index investing, and there a lot of talk about it here in the other parts of the forum.
> 
> I don't need advice on the basics, such as not taking money out of my retirement for non retirement issues. I have discipline in my personal finances, just am not quite there in my investments and want to pay someone to do my paper work for me. *I can be the only one here that doesn't want to do the paper work. Or maybe not...*


Ok, it was just part of the discussion, since I thought, from your postings you seemed to be at a crossroads. 
I am not a financial advisor nor do I play one on TV...just my opinions strictly
and I wish you good luck with your strategy...just remember that there is no free lunch and we must take
control of our destiny (financial) ..and...sooner or later, we have to pay someone...even if it is the "piper" at the end. :biggrin:


----------



## Plugging Along

The areas where I was looking for some opinions was really...

1. Paperwork how to get this done for me PROPERLY at the lowest cost, without me doing it, which I know is the lowest cost.
2. Best way to get some initial PROFESSIONAL investment advice for my situation. I already pay for professional advice, but think that going with fee based is the way yo go.

I have a pretty good idea of what I should invest in and have my strategy there, I just need someone to help me fine tune it. Though the CMFers here are great, getting generic advice does me little good. Without me providing specifics which I will not do on a public forum, I cannot expect to get more than generic advice. 

I did get a get pm from someone here, and will pursue that direction. I will post again another time with what happens. but it will be a while be before I really move things around.


----------



## Plugging Along

Just a little update, wow, the most updates in such a short time. 

I decided not to go with TD private wealth as it was one advisor to another. 

Thanks to a pm from someone, it gave me encouragement and also pointed me to Canadian Capitalist blog, which I hadn't read on a while. Some great advice, that was a step by step that made it seem a little less over whelming for the paper work.

I decided to call TD water house, and do some more fact finding. I called their 1800 number and explained I am considering moving all my accounts over but want to know what I needed to do, and what they were willing to do for me. Based on our portfolio and the current holdings we already have at TD they are willing to do all my paper for the transfers, all I have to do is sign the forms, and they are willing to pay the transfer fees for each account, and are confirming about waiving the yearly admin fees. They were also willing to have someone meet with us, and I told them I am planning to do self directed, and they said that was okay, and I could ask any a questions we had. 

That answers my question on which option we are going to choose. I am just putting all the plans in place so it is a quick move. Ironically, my advisor called me today just to go over my portfolio, and it is doing the best it's done in a few years, so I may stick with my original plan and wait until the end of the year.


----------



## carverman

Plugging Along said:


> Just a little update, wow, the most updates in such a short time.
> 
> 
> I decided to call TD water house, and do some more fact finding. I called their 1800 number and explained I am considering moving all my accounts over but want to know what I needed to do, and what they were willing to do for me. * Based on our portfolio and the current holdings we already have at TD they are willing to do all my paper for the transfers, all I have to do is sign the forms, and they are willing to pay the transfer fees for each account, and are confirming about waiving the yearly admin fees.* They were also willing to have someone meet with us, and I told them I am planning to do self directed, and they said that was okay, and I could ask any a questions we had.


Sounds like you made the right choices for a (possible) complete move..they do all the paperwork and there is no upfront fees. :encouragement:



> That answers my question on which option we are going to choose. I am just putting all the plans in place so it is a quick move. Ironically, my advisor called me today just to go over my portfolio, and it is doing the best it's done in a few years, so I may stick with my original plan and wait until the end of the year.


Makes sense to me..I would do the same thing...if your investments are doing ok with your current advisor, stay with the program until at least the end of the year like you mention, then make a decision early next year, if you
STILL feel it's worthwhile to switch and want to switch over to TD Waterhouse.

Gives you more time to mull over the pros and cons of switching, although if TD is willing to waive the yearly admin fees (and you need to confirm this in writing) that sounds like a pretty good deal to me too. 

Is there any "backend"fees (closing existing accounts) that your current advisor may charge to make a complete switchover to a different institution?

The main thing you need to do, is evaluate yourself, whether there will be more growth in the TD Waterhouse portfolio than your current portfolio growth with your current advisor. T

This is something you need to sit down (over time) , and examine yourself..look at what TD has to offer in their prospectus... and compare to what you know about the current investments strategy, and THEN make an informed decision that will benefit you in the long run.


----------



## Spudd

There should be no yearly admin fees as long as your RRSP accounts are each over 25k. I believe that's the cutoff where they start charging fees (below that).


----------



## Plugging Along

carverman said:


> Is there any "backend"fees (closing existing accounts) that your current advisor may charge to make a complete switchover to a different institution?
> 
> The main thing you need to do, is evaluate yourself, whether there will be more growth in the TD Waterhouse portfolio than your current portfolio growth with your current advisor.


That was the great part, TD is willing to pay for the close out fees that the other place has. Most places have close out fees. 




Spudd said:


> There should be no yearly admin fees as long as your RRSP accounts are each over 25k. I believe that's the cutoff where they start charging fees (below that).


Yes, you are correct. It was also the admin fee for the resp. There was no min, and they charge $50/ year regardless. Also, they will cover transfer/close out from the other institution. I know that is peanuts, but just on principle I hate the fees.

Maybe everyone knew this already, but i thought with a discount broker, there was very little assistance or room for negotiation.


----------



## Spudd

Oh, I never had an RESP so I didn't realize they have fees for that. That's a pain - hopefully they will agree to cover that for you.


----------



## My Own Advisor

Yeah, based on (all the) accounts you are moving to them, they should waive the fees. If they don't, ask a supervisor. It's worked for others it can likely work for you.


----------



## Plugging Along

Thought I would do a little update, and this may be my mini blog for a while. I am using this to log my thoughts and keep my sanity while supporting and keeping my family together. 

Big changes recently happened and I am proof that the best laid don't always happen. We have become a casualty of the low oil and gas price. My spouse was just laid off a couple of weeks ago. A LARGE chunk of our investments are in O&G with one of them a being a private company. So that's a little lesson on putting all you eggs on one basket. He got a very small severance because he was only there for two years. 

We are just adjusting to one income, and know it will be difficult on oil country so my spouse is looking for other options. In the meantime, we have shut down most of our discretionary spending. I am cutting the groceries to strict meal planning and shopping only on sale, which takes a lot of time, but doable. I will not sacrifice the health and nutrition of my family for a cheap food though. We don't do a lot of processed, or high fat, and look for good quality ingredients on sale. The key changes I have made so far are:
More cooking from scratch
Buying only on sale of possible, including eating in season fruits and vegs, so no more berries for now
Always have bought in bulk, now I am finding cheaper sources of food such as dried beans. 
No eating out at all
We are trying to not throw out anything, so no wasting. 
Stopped buying bottled water, I know it's cheaper to just have refillable water bottles in the fridge. I drink 10 cups of water days, so this will help
The good thing about this part it is it keeps me challenged in finding creative, cheap healthy recipes, that still meet the foodie in me. 

For our bills. We didn't have cable or satelite. We do Netflix, so will continue with that for the $10 a month. My phone is a worm phone, and our house phone is free through VoIP
Gas, I am trying to use the smaller car when possible. I guess on good thing with lower oil and gas, is cheaper to fill my tank. To be honest though, I would rather have $100 oil and no lay offs
We are now on a no lights or electricity on unless we need to. So this is just reaching my kids a spouse a good habit of turning off the lights when we leave a room. We are also spending more time together it's we try to be in the same room so we don't have all the lights on. 

For entertainment, we have being doing cheap or free things. However this is one area I will not cut too much in, as last time my spouse was laid off, I feel that my kids got the crappy end of the stick.
For now, they are still in their two activities piano, and a local after school program
We need to keep our nanny as she drives, and it's really hard to find out that does. I will look at this again the summer if my spouse is still not working, but for now, the nanny is are largest expense
We have decided not to enroll our kids in anything new until this all gets better. The thing that broke my heart was not enrolling for the private school we had planned. We were having problems with the public, but I will just front is my work and fight with the public system. 

I am really glad that I do not rely on a lot for my emergency fund. I have calculated we will be at a deficit even being this lean, but can float it with our cash emergency fund for up to two years. That is a huge relief. The last time my spouse was laid off, I was on mat leave, so I learned a lot living on 18% of our normal income We paid off our mortgage for our house and vacation place, so it's a huge relief this time. 

We have decided to continue with investing for the kids RESP to get the grant, but not their in trust funds. I have stopped all of our RRSP contributions (mine is low anyways because I have a db), no TSFA for now, it's sitting as part of our emergency fund. 

The good new is, I am working this time, and have a really stable position. My kids are learning the value of money and they are trying really hard not to waste food and understand that that we have all our needs, and just less of our wants, and they get that which is invaluable.

Let's hope this diary section doesn't last long but I will use it to keep my spirits up, and it may become the next extreme frugality thread. I look at this as just another challenge to overcome.


----------



## peterk

Gah. Sorry to hear that PA! I am very glad that it appears you have your house in order though. Even when times are tough like this you can still rest easy knowing you can keep the roof over your head and your family fed. A setback and major annoyance for sure, but in the grand scheme of things 10 years from now you guys won't be very far off from where you'd have been otherwise. A distant memory. Or perhaps a new opportunity will arise out of this for your husband that will take your family in an exciting direction that you never thought of previously


----------



## Jon_Snow

I've always enjoyed following your story PA...I always viewed it as a version of what my own life might look like had I chosen to to the whole house/kids thing...

I am sorry about news of your husbands job loss...but you have your s*** together in a lot of aspects so you will get through it I'm sure.


----------



## Plugging Along

Thanks for the thoughts. I know we will get through it, but sometimes it just helps dumping everything down to look at it more objectively, and it keeps me positive. Having been through worse, I also know that experiences like this make us stronger, and there is always a lesson to be learned. 

We are still trying new things, just things that don't cost as much.


----------



## Plugging Along

Jon_Snow said:


> I've always enjoyed following your story PA...I always viewed it as a version of what my own life might look like had I chosen to to the whole house/kids thing...
> 
> I am sorry about news of your husbands job loss...but you have your s*** together in a lot of aspects so you will get through it I'm sure.


Thats really funny, I always read your posts and think, 'hey, I could be retired by now if I didn't have the kids'. Except I would have gotten the Audi.


----------



## Jon_Snow

Not ruling out the Audi...it just may take a few years. Had to sort out my priorities.


----------



## Plugging Along

Looking for some opinions....

Prior to my spouse getting laid off, we had made sure we had cash for our 2015 TFSA $11000 and my rrsp contribution $~6000.

I decided not to invest it because of the job loss. However, now I am reconsidering.

I am in a high tax bracket, and last year it was slightly higher than normal because of an unexpected bonus. I was thinking with the markets a little lower right now, maybe I should put in the rrsp contribution to get the tax return. 

I was also thinking that I could also put the other $11000 into our TSFA. It would b invested in equities. If things got really bad, I could just with draw the TSFA at a later time. 

Right now, we have low enough sitting in straight cash to cover our monthly deficit for well over a year. if I factor in my spouse ei, and if we go really lean. Assuming I don't get payed off (which is pretty safe that I wont). 

If we invest, then it will take us a down a few months, and then we would need to liquidate some investments. We also have lots of support from family whom have already told us they will help, but for me it would have to be pretty bad, as I am pretty self sufficient. 

Last time my spouse was laid off, it was for about 6 months, and he ended up working in the US. That is always an option for him this time too, and then he will go again.

Part of me says just to invest it, take advantage of the dip, and we will be fine. The other part, says to be conservative and not invest if we think we may need the money in the next year or two.

Any thoughts?


----------



## nahc

> The thing that broke my heart was not enrolling for the private school we had planned. We were having problems with the public, but I will just front is my work and fight with the public system


I wouldn't worry about it too much. As I recall from Freakeconomics/Super-freakeconomics, the simple decision that you wanted to move your kids to a better school (ie you cared about education) was all that it took (they compared the standardized exam results and college entrance rates of kids that went to a "good" school -- done by lottery -- and the kids that wanted to go to the same school but didn't get in by lottery and found it was the same). I went to crappy 5/10 fraser schools all my life (and I think I am fine). I am wrangling with the public system too!



> Part of me says just to invest it, take advantage of the dip, and we will be fine. The other part, says to be conservative and not invest if we think we may need the money in the next year or two.


I was cautioned by my betters to think of money invested as money thrown away. You should never count on getting it back. It may be ultraconservative by when it crashes, I am nonplussed and my standard of life does not change. I think it was Buffet who said the trick of investing is not fearing to miss the good opportunities as there also is another good opportunity but avoiding the really bad ones.

Best of luck to you.


----------



## Plugging Along

I feel the same about my some of my investments.

With my RRSPs they tend to be for long term, so I consider them not really accessible. But I thought with the higher refund it might be worth it, because I don't need that money this year (maybe next year, but hopefully not)

The TSFA, I was just remembering that I went though the exact same thing but worse in 2009, my spouse was laid off then. I took a conservative approach and left all money in cash, but we didn't need much of it, so I thought if invest it this time, it would do better.

Any thoughts from others? Should I invest part of cash funds, with the uncertainty that may spouse is laid off, but we have a pretty hefty emergency fund?


----------



## 1980z28

I am 54 will retire in 2 years

I have no pension ,only what I have

I invest every month for the last 34 years,just keep buying the same large cap stocks,my largest is FTS @ almost 3k shares

You can always buy the banks or utility,I believe that is safe and will grow,also easy to get out of

Growth stocks over the long run is my way to go,that is why I am able to retire

I believe a large cap growth stock is most times a winner(I got killed on Nortel) 68k down and RIM also maybe 27k,but the rest has been great 

Bottom line is pick a couple sectors,a couple of large caps,keep adding

Mine is FTS and JNJ from the early 80`s close to 200k invested in both


----------



## Spudd

I think it's all up to your comfort level. Personally, I think the possible missed gains from keeping it in cash until your husband gets a new job are relatively minor in comparison to the pain you would feel if you invested it and then the market crashed and you needed the money. 

If it were me, I would most likely keep it in cash just because I'm conservative like that.


----------



## Plugging Along

1980z28 said:


> I am 54 will retire in 2 years
> 
> I have no pension ,only what I have
> 
> I invest every month for the last 34 years,just keep buying the same large cap stocks,my largest is FTS @ almost 3k shares
> 
> You can always buy the banks or utility,I believe that is safe and will grow,also easy to get out of
> 
> Growth stocks over the long run is my way to go,that is why I am able to retire
> 
> I believe a large cap growth stock is most times a winner(I got killed on Nortel) 68k down and RIM also maybe 27k,but the rest has been great
> 
> Bottom line is pick a couple sectors,a couple of large caps,keep adding
> 
> Mine is FTS and JNJ from the early 80`s close to 200k invested in both


Just confirming if this was in the right thread. 


Are you suggesting that I invest part of my emergency fund when my spouse is laid off? And what you posted is what I should invest in? 

I do know what I will invest in if I decide to go that way. I am just not sure IF I should right now with my spouse just getting laid off.


----------



## humble_pie

plugging you are a brave & plucky girl, this period of 6s & 7s will be over in no time i'm sure. I imagine the day will even come when you'll look back & see how it made you & your family stronger than ever.

if your little girls are helping you in the kitchen, they'll be learning new chapters about economical food security planning & cooking. These will be the stories they'll tell their own children, years from now!

with respect to your RRSP, if it were myself i'd invest the full amount possible as usual, benefiting from both the refund in the short term & the increased retirement value in the long term. If i had an aggressive equity ETF or position in the RRSP, though, i'd avoid topping up that number at the present moment.

with respect to the TFSA, IIWM i'd invest the full amount but *not* in equities. I'd park/invest the new contribution in the highest paying HISAs i could find, even if this meant opening new accounts at people's or oaken or wherever.

later, when better times roll again, will be plenty of time to deploy the 2015 TFSA contributions into more permanent type investments. In the meantime, they will be the fall-back position in the emergency fund strategy.


----------



## Plugging Along

Thanks HP for the words of encouragement. We are still staying positive, our big thing is trying to balance being honest with the kids (this is life) but making sure it doesn't impact them negatively too much. We have been involving them in the money saving adventures in looking for free family activities and ideas. I was impressed when the girls both offered not to have their school birthday Parties (which we we booked prior to the lay off and had already sent out invites). They came up with great inexpensive loot bags. I hope they will learn from this too.

I think I am going to invest in my rrsp for the tax refund. I also didn't even think about putting money into an TSFA just for the interest. I may just open up a seperate account to this. 

Do you think it makes senses to put the RRSP contribution for my spouse (he was in high tax rate too last year and has unused room) so he can get the tax refund, but then we could with draw if needed in cash? Your suggestion made me think of this too.


----------



## humble_pie

Plugging Along said:


> ... Do you think it makes senses to put the RRSP contribution for my spouse (he was in high tax rate too last year and has unused room) so he can get the tax refund, but then we could with draw if needed in cash?



Plugging, this might be a value judgment that only you can make in the end, i imagine it boils down to something like, Will emergency cash will be sufficient if husband's RRSP is topped up & refund is claimed?

ie will [(emergency cash - rrsp contribution) + refund] = adequate emergency cash? if the numbers suggest yes, i believe i'd lean towards contributing to husband's rrsp as well.

however, i don't believe you can WD from RRSP without unpleasant tax consequences, though. Remember also that WDs from RRSP, other than for home purchase or further education, cannot be replaced later.

the TFSA contributions are a different story, they can be withdrawn at any time with no tax or penalty, also easily replaced later.

very best wishes. You are going about everything in such a sensible way that i totally believe your daughters' memories - when they are grown up & telling the stories to their own children & grandchildren - will be all about how they loved the opportunities to be closer to their Mom & Dad & to each other.


----------



## RBull

Plugging Along said:


> Thanks HP for the words of encouragement. We are still staying positive, our big thing is trying to balance being honest with the kids (this is life) but making sure it doesn't impact them negatively too much. We have been involving them in the money saving adventures in looking for free family activities and ideas. I was impressed when the girls both offered not to have their school birthday Parties (which we we booked prior to the lay off and had already sent out invites). They came up with great inexpensive loot bags. I hope they will learn from this too.
> 
> I think I am going to invest in my rrsp for the tax refund. I also didn't even think about putting money into an TSFA just for the interest. I may just open up a seperate account to this.
> 
> *Do you think it makes senses to put the RRSP contribution for my spouse (he was in high tax rate too last year and has unused room) so he can get the tax refund, but then we could with draw if needed in cash?* Your suggestion made me think of this too.


Sorry to read about your current situation. Good luck to you and family. 

I would say yes to your question. If a withdrawal was needed your husband would be paying withholding tax which would be recalculated/adjusted as required at tax time. Although RRSP withdrawals create lost contribution room an emergency such as employment loss and low or no income is the perfect (although not welcome) opportunity to maximize the benefit. 

Here are the rates if you don't already know. http://canadianfinanceblog.com/withholding-tax-on-rrsp-withdrawals/


----------



## Plugging Along

Okay third time a charm to post, I keep losing my post


First, thanks for the suggestions, here are my initial thoughts on what we are going to do:
- invest in my RRSP as usual,it's a small amount but last year I was in a higher tax bracket than normal
- max the TFSA for both of us, but put it in HISA, 
- calculate how much of a deficit we will run for 2015 with my spouse not working, keep this in cash
- extra amounts, after the above three, we will put in spouses rrsp for the tax trend, as he was in a high tax bracket last year
- if in 2016, spouse isn't working, then :
-we may have to lay off the nanny
- with draw part of the rrsp for spouse as he wont have any employment in one, nor EI any more, so he will be in the lowest oncome year that he will have in his whole life, including in retirement (I hope that's the case at least)

Once he is stable again, we will redeploy all funds in investments, I will not invest other than my rrsp for now and the kids resp remain as planned, their in trust account is currently on hold. At least I won't go and do risky investment like I normally would, so no market Chasing or timing for us, I may consider investing some of my spouse rrsp outside of cash, but I need to figure out what amounts I am working with. 

We are okay losing some of the rrsp contribution growth, as we also have a corporation we have funds that we can withdraw on during retirement. 
There, I wrote it down, and it makes me feel better . This was more for me, and if any one has feedback, I totally appreciate it


----------



## Plugging Along

A few more updates.... some good news, spouse has taken a short term contract, it is renewable after 3 months (assuming its working for everyone). However, it will take him away from the family a lot (a lot of travel) We have done this before, but its important for us to have him with the kids too, but we have the nanny to keep things going in the day and extra help at night (hence why we have always kept a nanny even in bad times) I don't feel we are stable yet, as this is contract, and though he has been on contract many times in our lives, not in such an economy with kids. 

For our finances, we did the following:
Invested in my RRSP as normal
Will not invest in Spouses as when I did his calculations, with his contributions last year, it would take him down to a lower bracket.
We will just use he severance as part of the emergency fund

Now with him contracting:
we have to figure out the most tax efficient way to draw out the funds, in the mean time, we will live off of my income at a slight deficit knowing our corporate funds are growing
Have to decide if we change our childcare structure as the kids are getting alittle older, and less of a deductions to put the nanny under our corporate payroll
We will work these out from our accountant.

For our spending:
I have relaxed a bit, and loosened the purse strings a tad
We have stopped recycled our water for the toilets (it wasn't worth the savings) but I do it a little to feel more environmentally friendly
We actually bought some more expensive groceries the other day - to celebrate my spouses contract and to have a little going away for him
I will put the girls into some summer camps (have to register now), as I don't want them to totally suffer, but only half the normal, and the less expensive ones
I bought a well desired outfit that I was looking at for months, that went on a close out sale. Not a need, so I am feeling a little like I shouldn't have done this.
I did buy some artisian bread from the college bakery, it was the same price as regular bread, but more than baking it myself.


I have to admit I am still trying to find the right balance between being frugal and not going into extremes and denying my family (and me) some little pleasures. 

Should I be staying super frugal because my spouses situation is not stable, or should I relax a bit because he does have a well paying contract. I still have some regrets that we didn't put our kids in the private school


----------



## Plugging Along

Its been a while since I have had an update. So thought I would post where we are at. So as usual for me this will be my random thoughts for the year:

Employment 
it's still really dry in terms of full time employment in our province. Fortunately, my spouse has been on the same contract as previously mentioned. It is really different in the consulting area right now, because his contract only gets renewed two or three months at a time. This usually means that as soon as they find someone that is capable, his contract will end. He is getting paid in U.S. Funds, so the is good, but we are thong to figure out how to plan with such short term contracts, and take advantage of the higher U.S. Dollar. Also, all the funds are in our corporations so we need to figure that out too.

For myself, for the first time In a very long time, I no longer enjoy my working environment, and for the first time, just going somewhere else is not as easy due to market conditions. It's not a bad place, but I am no longer happy at work. I had always planned around this time to go into consulting, but wonder if it's a good idea to do so when my spouses work is so unstable and the economy is not very good. This has been my area that I know I need to change. I am in place I no longer feel I can add much value, but it is stable and gives me the flexibility I need for my family. 

Savings and Finances:
This feels like a big fail for me. I have still maxed my rrsps, and still need to catch up on TSFA, it merely transferring funds but I have been a little lazy, and didn't want to do so as it would be taking out of my emergency float reserves. We are not maxing my spouses because he has no employment income, but I feel that we should, even though it downs make sense, and the funds are on the corporation. I am looking in investing within the corporation as now we will have larger amounts sitting In there, whereas before it was just operating funds.

The biggest change I did make this year was leaving my financial advisor and getting a new one. I,over my old one u til he transferred my account to his brother within his firm when he retired. We gave him a chance, but he didn't have our best interests in mind. So we pulled the plugged. We did go with another advisor that we were looking into before who has also a long relationship with my extended family. I know people don't like advisors here, but I needed him to Naples unravel what the last guy did. This advisor is much more experienced and older, and we were very clear that when he retires which isn't that long from now, we will be doing it on our own. He has been rebuilding the portfolio and given me the advice our previous previous advisor used to. 

In terms of savings, this year with going down to one income, was not very much. 

Spending:
Ironically, I think I loosened the purse strings more this year. Partially because of my spouse making US dollars, and we realize that there is never a good time to spend money. We went on a bigger family vacation, and it really didn't make a dent in our savings, and the kids loved it. I think this is the area where I will just have to keep adjusting. My spouse is more of a spend thrift than me, so he already wants to get the large house when the prices dropped. I don't know how I fell with the economic instability. I see his point though, when the economy is good, things are higher priced, when the prices go down, it's usually because of a tough economy. We both agree not get another mortgage, as we haven't had one for a whole, but it seems like a set back to spend extra $200 - 300k on a house when we have one already paid for. 

So these are my decisions for the next year or so. 

1. Come up with a plan for converting the U.S. And taking money out of the corporation.
2. Decide what to do about my work. How to balance family vs. career fulfillment 
3. Transfer my non registered funds to max my TFSA
4. max spouses TSFA
5. start investing using the corporate fund or pull it our for spouses RRSP. 
6. Decide to renovate, move or do nothing for the house.


----------



## Plugging Along

Time for another update. Looking at previous goals

1. Come up with a plan for converting the U.S. And taking money out of the corporation. In progress, but I think I need a revised plan on how to invest with in the corporation, or maybe something different based on the proposed changes in PSC

2. Decide what to do about my work. How to balance family vs. career fulfillment. done. Sort of. Made a big change, I will update in my other thread
3. Transfer my non registered funds to max my TFSA. DONE 
4. max spouses TSFA - did not do as it it part my my over strategy for 2018 
5. start investing using the corporate fund or pull it our for spouses RRSP. In progress, there was a lot to max out so I am hoping to have complete by 2018
6. Decide to renovate, move or do nothing for the house. Still a hot point of conversation.

The last has been interesting and has had its ups and downs. Most of it focused on the decision for my career and work. We didn't have anything exciting for personal investments. 

My spouse has just started a full time job (no longer consulting). With this we will be focusing on moving money out of our corporation. The income will be more stable, but there is less flexibility in work. We are jus making adjustments to see how this works in our financial plans. I was planning to invest the money within the corp (it is doing NOTHING ) in there, but need to understand if and how the proposed tax changes could impact this. With his more stable employment income we have decided to try and save a large chunk of it. The plans are to max all the rrsp, TSFA, and get started heavily on our non registered accounts by the end of 2018. 

The house is still major hot topic in our house. There was talks about his parents wanting to move in, we agreed under that circumstance we should get a bigger and different house. I had worked out a plan with some advice from our accountant. However, i finding his parents are unwilling to commit, and keep going back and forth for what they want. This is fine, but it is not solid enough to buy a much larger house than we need. My spouse still wants a large house, and I can't see the reason for it. After my year at work last year, I have come to the realization that I may not always want to work, and may just want to retire a little earlier. Buying a much larger house will go against that. He wants to both, but is i emotional when it comes to things like this. So we are at constant negotiations. I am trying to figure out a way to do both, but can't see it. Right now, i am thinking a mid size renovation $100k ish I would be happy with with, but he wants to, as always go big, and make start knocking down foundation walls. I think this An AWFUL idea. There are always surprises, so our $200k renvo, could be $400k. Then I should have bought the larger house without aggregation. I will update that more as I go. 

We had also decided to run to go with out a full time nanny for the year. She will come once a week t help us ctody and see the kids. We will see how this works when school starts. If it works okay, this will be a saving of close to $30k a year. That being said, we have another decision to make and that is with our vehicles. My spouse vehicle got totalled (he's okay). We got a payout for it of less than the vehicle of course. Now he want another vehicles. We have the anny's car which no one is really using, but neither of us like the vehicle that much. The frugal thing is to just that vehicle. However, my spouse wants to another one. The payout was about $20k, I was Thinking we could go up to $40 but ideally $30k however, he wants new and the prices keep going up, now we are at $50k. Sigh. If we sell the nanny vehicle then it would probably make up the difference. However, there is a chance we could I'll end up with another nanny. Still trying to figure out what to do. 

So for the next year or so our goals are

1. Execute plan to max out rrsps and TSFA
2. Figure out what to do with nanny
3. Try to go further with the house renovation decision
4. Figure out the vehicle situation


----------



## humble_pie

Plug i thought it was your parents who were thinking of moving in at one point? surely you don't want 2 live-in sets of aging parents & in-laws, you'd need an elder-nanny for sure.

re the USD conversion, i'm wondering what's to plan though. You could gambit the currencies if you were exchanging a smallish amount at a time - up to 50k or 100k - but for a larger amount a currency converter should get a quote from knightsbridge imho. Starting around 100k knightsbridge can reportedly deliver spot rates. Certainly worth asking them.


----------



## Plugging Along

HP. It was my spouses parents that we were planning to move in with. Actually, my parents would want to also, but that wouldn't be a good even with an elder nanny. My parents tend to be very high maintenance and demenadin so living together would not work. so now it looks like no parents living with us.... for now.... until my in laws change their mind again. That being said, I think we have to get the house which is right for us through either renovation or purchase. 

We have been converting us funds slowly, usually $20 to $50 k at a time. My older sibling gets very good rates as he converts very large amounts, so we may piggy back on with him. I have followed James reverse gambit, and have not done it yet. Chicken on my part, and also because it's in our corporation so we have to open another account. I know that sounds lazy, but as I said in my career thread, I no time for anything outside work, so the thought of anything I didn't absolutely have to do was daunting. Now, I will be getting my financial house in better order and possibly my physical one too. 

Thanks for the reminder to look at the gambit again.


----------



## humble_pie

Plugging Along said:


> I have followed James reverse gambit, and have not done it yet. Chicken on my part, and also because it's in our corporation so we have to open another account.



don't do jas4's exotic shogam, just do a regular gambit. Buy an interlisted stock first, then sell it seconds later in the opposite currency. Old-fashioned arbitrage.

the TD has settled down on a flat $43 fee for the sell side of a gambit pair strategy, since the client has to phone in the sell order. Most of the agents are well trained & will walk a client through. Nothing could be easier.


----------



## Plugging Along

Does it work the same going fro. US To CDN in a corporate account? Also, what if it's with RBC. 

Sorry, I should research it more but haven't.


----------



## Plugging Along

So time for my reflection on my 2018 goals

So for the next year or so our goals fr9m above 

1. Execute plan to max out rrsps and TSFA
ME. -rrsp will be maxed as I have low contribution room due to DB pension, 
TFSA, will transfer my non registered stock and top up. I need to figure out what invest in, and if i should get rid of my duds, SGY and G which have huge loses in my TSFA

SPOUSE 
RRSP and TFSA we have been investing in our Corp, so not contributing to RRSPs or TSFA. I need to work with accountant to pull out funds. In the mean time, we have finally starting to invest money with in the Corp. so I just need to work out the best strategy. 

2. Figure out what to do with nanny
She has been working part time, whenever her schedule permits. She has also has Been helping out with my parents, we will just continue this arrangement until something changes with her. I don’t see us going back to a full time person, but do need house help. I will tackle this if the need arises. 

3. Try to go further with the house renovation decision
We will do small Reno’s that have been required for a while. Money isn’t an issue, but we aren’t going throw everything into the Reno’s. I have hit a realization that my oldest could be moved out in 6 years and things change again. Wow time flies. 

4. Figure out the vehicle situation.
Spouse is much more impulsive than I am, and bought NEW big *** truck that doesn’t fit in our garage. ‘Serenty now’. I remind myself that money is meant for spending and even though I don’t Agree with the purchases, he is happy. Also, it cheaper than divorce. I will need to replace my 11 year vehicle, but I want to see if I can get another few years. 

NEW

5. Max out RESPs, we put inenough for the grants now I want to top it off to get the $50 K max. We have the money in trust sitting around. 

6. Reign in spending. I feel we have been soft eating out, spending more than we need to. We have used money to buy time, so now, I want to get back into frugal habits. Back to my frugal cooking. I have a new Instant pot, so will post there soon. 

7. Not too frugal, we have a large overseas extended family vacation. It will not be cheap, but that’s why i have number 6 to cut in other areas where we can.


----------



## peterk

Plugging Along said:


> 6. Reign in spending. I feel we have been soft eating out, spending more than we need to. We have used money to buy time, so now, I want to get back into frugal habits. Back to my frugal cooking. *I have a new Instant pot*, so will post there soon.


What is this? A pressure cooker?

I bought a new 9L stock pot at Christmas, only had 5L regular large pots from sets until now. Makes a world of difference for soups and bulk sauces. I simmered a big beef bone stock for 60 hours over the holidays, and made a bolognaise with 4lbs of meat and 8lbs of canned tomatoes in it new years day.


----------



## m3s

peterk said:


> What is this? A pressure cooker?


It's a smart pressure cooker from a Canadian startup I believe, an amazon best seller. I got a 6 quart on a amazon sale earlier this year and a 3 quart during black whatever deals. I'm not a fan of owning a million appliances but these are simplifying cooking for me

They're pretty fantastic. I'm still learning what all to use them for but I pretty much use at least one for every meal to steam a side of veggies or make rice etc. If I get around to it I'd like to prep/freeze zip locks of meals for easy slow cooking

'Cult-like worshippers' turn Canadian-invented Instant Pot into a phenomenon



Plugging Along said:


> 4. Figure out the vehicle situation.
> Spouse is much more impulsive than I am, and bought NEW big *** truck that doesn’t fit in our garage. ‘Serenty now’. I remind myself that money is meant for spending and even though I don’t Agree with the purchases, he is happy. Also, it cheaper than divorce. I will need to replace my 11 year vehicle, but I want to see if I can get another few years.


The struggle is real. I've been trying to avoid buying a new truck all my life. They are pretty functional and I'm sure he'll be popular with anyone who needs something moved. Also with all the natural disasters nowadays, it could come very handy in an evacuation situation


----------



## Plugging Along

peterk said:


> What is this? A pressure cooker?
> 
> I bought a new 9L stock pot at Christmas, only had 5L regular large pots from sets until now. Makes a world of difference for soups and bulk sauces. I simmered a big beef bone stock for 60 hours over the holidays, and made a bolognaise with 4lbs of meat and 8lbs of canned tomatoes in it new years day.


It’s an all in one. I love appliances, and have to admit this has so far replaced many of them. It’s a pressure cooker, slow cooker, yogurt maker (haven’t tried this yet),rice cooker, popcorn market, and can sauté right in the pot, so no browning then slow cooking.

I finally broke down and bought one on Black friday, I liked it so much I bought a second one for my cabin on Boxing Day. I can cook chilli with a frozen ground beef and dried beans in under an hour, I made a ‘whole roasted’ chicken In 35minutes and it made the best chicken stock in under An hour. I make eggs in it every morning (sounds stupid,but 8 love it because my 9 year can make perfecthard boiled eggs in it). My 12 year can help me cook a meal, and 8 don’t have to worry about her forgetting to turn off the stove or burning herself. Tonight i am making roasted potatoes and roasted lamb in it. 

It’s super easy to clean up. I will posting in my frugal cooking thread again because of my instant pot. 



m3s said:


> The struggle is real. I've been trying to avoid buying a new truck all my life. They are pretty functional and I'm sure he'll be popular with anyone who needs something moved. Also with all the natural disasters nowadays, it could come very handy in an evacuation situation


We actually have a lot of friends with trucks, so don’t get asked very often. It was an expensive truck that we use to our cabin, which is handy, but it’s a real gas guzzler too. I can’t imagine what natural disaster I would have to evacuate for in our City but I suppose it could always happen. The only good thing is it’s paid for, but 8 wish we paid less even though he got a great deal.


----------



## humble_pie

Plugging Along said:


> I love appliances ... I will posting in my frugal cooking thread again because of my instant pot.




i shall look for your post!

i'm an anti-appliance cook. A food processor, a toaster, that's it. I'm planning to get a heavier-duty grinder though, since i used to go through blender motors like crazy.

in a skeptical mood i checked out instaPot prices on amazon dot ca. The prices don't look too bad, although they seem to want close to $100 extra for the bluetooth models, which only work within 30 feet (that's less than 10 metres, as in the next room) (whatsa matta, cook can't walk from dining room or home office back to kitchen?)

what turned me off were the accessory prices. The instaPot steamer is $80 not including tax, so nearly $100 for a stainless steel fanlet that you can still pick up at garage sales for $2 (i know, i know, not necessarily the right size, but otherwise the exact same design)

a plain plastic lid for a smaller instaPot is $32 before tax. Gosh, another $10 & one could buy a decent ordinary stainless steel pot w heavy copper-layered bottom plus a lid of its own.

i wish "brad" were still a cmf member, with his amazing cooking thread. Brad was a _ne plus ultra_ gourmet cook who focused on heavenly scrumptious dishes in small ultra-fresh single-meal-sized quantities. None of this bulk cooking & storing (isn't an instaPot supposed to be the reason for not storing?) (because it makes single-meal prep so easy that everything can be cooked fresh each day?)

brad used to say he had 2 favourite pots, both plain old-fashioned vessels. He didn't go in for appliances.

let's wait 5 years. InstaPots could end up in storage cupboards or garage sales, just like breadmaking machines.


----------



## hboy54

Ha ha. Re breadmaking machines, I'd still be using them but for the unfortunate fact that I would have sent 2 dozen of them to the landfill if I had. I would happily pay $500 for one that could survive say 10,000 usages, but to the best of my knowledge such a product does not exist.

Hboy54


----------



## m3s

humble_pie said:


> in a skeptical mood i checked out instaPot prices on amazon dot ca. The prices don't look too bad, although they seem to want close to $100 extra for the bluetooth models, which only work within 30 feet (that's less than 10 metres, as in the next room) (whatsa matta, cook can't walk from dining room or home office back to kitchen?)
> 
> what turned me off were the accessory prices. The instaPot steamer is $80 not including tax, so nearly $100 for a stainless steel fanlet that you can still pick up at garage sales for $2 (i know, i know, not necessarily the right size, but otherwise the exact same design)
> 
> a plain plastic lid for a smaller instaPot is $32 before tax. Gosh, another $10 & one could buy a decent ordinary stainless steel pot w heavy copper-layered bottom plus a lid of its own.
> 
> let's wait 5 years. InstaPots could end up in storage cupboards or garage sales, just like breadmaking machines.


Yea they could be yet another trend but I've been cooking rice on stovetop refusing to buy an appliance that does 1 thing. This didn't replace anything I owned but it could probably replace my stovetop.. Reviews said there were issues with the first bluetooth ones when I bought but blutooth would just be a nicety really. I got the older standard version at the time price history shows as low as $60 CAD, though I paid $100 CAD. Looks like a newer model is the standard now and sells as low as $80 CAD, but $100 is a more typical sale price

The dirty trick with amazon dot ca is to get a browser add on such as keepa so see the price history and/or set price alerts. Same idea as setting up an alert for cdn tire sales (these things go on regular sales) I got this steamer for $15 CAD (goes on sale for $12CAD..) and it adjusts for any size insta pot and goes in dishwasher. This has increased my veggie intake as they steam perfectly every time and don't get all mushy (I probably overcook as well as Plugging Along's kids pre insta pot) It comes with a cup and marks for cooking rice, couldn't be simpler

For cooking meals I've only really used it like a stovetop so far, except it's faster and I don't burn it or myself like Plugging's 8 year old daughter. The only lacking thing I've found, is that spicy meals discoloured and probably embed flavour in the sealing ring.. I may buy the coloured sealing ring pack which cost about $12 CAD, apparently the idea is red for spicy foods and blue for savoury meals or something. No need for lids and extra pots yet as they practically rinse clean but I imagine those will become available (seem to be way more options in the US so far)

I'd be interested in any frugal healthy insta pot recipes.. the reason I bought it was to assembly line prep healthy frozen meals for slow cooking but I suppose the pressure cooker is so much faster that might not be necessary.


----------



## m3s

Plugging Along said:


> I make eggs in it every morning (sounds stupid,but 8 love it because my 9 year can make perfecthard boiled eggs in it). My 12 year can help me cook a meal, and 8 don’t have to worry about her forgetting to turn off the stove or burning herself. Tonight i am making roasted potatoes and roasted lamb in it.
> 
> It’s super easy to clean up. I will posting in my frugal cooking thread again because of my instant pot.



Just noticed mine lacks the egg button of the fancy dancy newer models. Fortunately eggs are 1 thing I've managed to cook well the ol fashion way!

I'd be interested in any recipes. I haven't tried much new recipes with it I couldn't do before


----------



## Plugging Along

humble_pie said:


> i shall look for your post!
> 
> 
> what turned me off were the accessory prices.
> 
> i wish "brad" were still a cmf member, with his amazing cooking thread. Brad was a _ne plus ultra_ gourmet cook who focused on heavenly scrumptious dishes in small ultra-fresh single-meal-sized quantities. None of this bulk cooking & storing (isn't an instaPot supposed to be the reason for not storing?) (because it makes single-meal prep so easy that everything can be cooked fresh each day?)
> 
> 
> let's wait 5 years. InstaPots could end up in storage cupboards or garage sales, just like breadmaking machines.


Well, I still use my breadmachine, but primarily to knead and rise my dough, but definately not as much. 

As for the instant pot, I have admit I do have a kitchen appliance addiction, so I may not be the best for being non biased. I still look for anything that will save me time. For me I think it will replace my slow cookers, which I have used for decades, so I don’t think it will be a waste. Also, i love the pressure cooker, as my stove top one, I have almost exploded. I think I will always be a bulk cooker, but I can just do it faster. I do have less storage though, but i always try to make enough for the meal and lunch, so not too bad. 

I did buy some of the accessories, but got them much cheaper, and found you don’t have to use the instant pot brand. 




m3s said:


> Just noticed mine lacks the egg button of the fancy dancy newer models. Fortunately eggs are 1 thing I've managed to cook well the ol fashion way!
> 
> I'd be interested in any recipes. I haven't tried much new recipes with it I couldn't do before


I thought the egg function would be the stupideist thing, but I was able to make 24 eggs for devilled eggs in 5minutes after it pressurized. No cracks, and I find them easier to peel. We did a side by side on stove top vs. Instant pot and found it a couple minutes faster, but easier to peel. I (my daughter)also can make perfectly soft boiled eggs in the morning.

If you don’t have the setting, it’s 5 minutes on low pressure. Use cold water and put the eggs on the little rack.


----------



## m3s

Plugging Along said:


> If you don’t have the setting, it’s 5 minutes on low pressure. Use cold water and put the eggs on the little rack.


Indeed it works. Mine weren't noticeably any easier to peel but definitely faster/softer than my stovetop eggs which I've probably been overcooking

Before long we'll have kitchen robots automating this, for those of us who don't already have trained minions


----------



## Plugging Along

Plugging Along said:


> So time for my reflection on my 2018 goals
> 
> So for the next year or so our goals fr9m above
> 
> 1. Execute plan to max out rrsps and TSFA
> ME. -rrsp will be maxed as I have low contribution room due to DB pension,
> TFSA, will transfer my non registered stock and top up. I need to figure out what invest in, and if i should get rid of my duds, SGY and G which have huge loses in my TSFA
> 
> SPOUSE
> RRSP and TFSA we have been investing in our Corp, so not contributing to RRSPs or TSFA. I need to work with accountant to pull out funds. In the mean time, we have finally starting to invest money with in the Corp. so I just need to work out the best strategy.
> 
> 2. Figure out what to do with nanny
> She has been working part time, whenever her schedule permits. She has also has Been helping out with my parents, we will just continue this arrangement until something changes with her. I don’t see us going back to a full time person, but do need house help. I will tackle this if the need arises.
> 
> 3. Try to go further with the house renovation decision
> We will do small Reno’s that have been required for a while. Money isn’t an issue, but we aren’t going throw everything into the Reno’s. I have hit a realization that my oldest could be moved out in 6 years and things change again. Wow time flies.
> 
> 4. Figure out the vehicle situation.
> Spouse is much more impulsive than I am, and bought NEW big *** truck that doesn’t fit in our garage. ‘Serenty now’. I remind myself that money is meant for spending and even though I don’t Agree with the purchases, he is happy. Also, it cheaper than divorce. I will need to replace my 11 year vehicle, but I want to see if I can get another few years.
> 
> NEW
> 
> 5. Max out RESPs, we put inenough for the grants now I want to top it off to get the $50 K max. We have the money in trust sitting around.
> 
> 6. Reign in spending. I feel we have been soft eating out, spending more than we need to. We have used money to buy time, so now, I want to get back into frugal habits. Back to my frugal cooking. I have a new Instant pot, so will post there soon.
> 
> 7. Not too frugal, we have a large overseas extended family vacation. It will not be cheap, but that’s why i have number 6 to cut in other areas where we can.


Things have been a little crazy with my parents, but I always appreciate going back and reflecting. So here's an update of my goals.

1. Execute plan to max out rrsps and TSFA
ME -RRSPs will be maxed out
TFSA - still need to do final transfer and top up. I will stop picking equities and try for a MF maybe MAW, I will keep my duds, SGY and G for this year.

SPOUSE: RRSP's made a large contribution this year, and plan to do the same in 2020, 2021, which will catch him up assuming major job changes don't happen again
TFSA - Need to figure out what to do with this. Too many things going on. I may just put a small amount in, but am waiting to see if we can transfer shares in kind from a company he just left. 

2. Figure out what to do with nanny - she doesn't come very often, so our goal is to learn to adjust to this new reality. The kids are doing more, but the house is still a mess. This is definitely work in progress. My goal is to come up with house/family operating schedule, but we haven't had time. 

3. Try to go further with the house renovation decision - we decided to larger renos, but with everything happening with my parents, I may wait. I haven't had any time to think this through. We will continue with smaller fixes this year. 

4. Figure out the vehicle situation. My poor vehicle died the other day on the way to the hospital. It will be sold this year. My goal is to drive the other vehicle (lousy in the winter and smaller) for the remainder of the year. My gas has been cut by more than half, so I am thinking that I may get a smaller vehicle, but is there one good for winters, hauling things for camps (girl guides), and toting lots of kids around, but still small?

5. Max out RESPS - I think we are almost done with the oldest, I have to just fill in the forms to get the numbers before her final year of contributions.

6. Reign in spending. Doing a little better, as I getting back to my frugal cooking again. 

7. Overseas trip - it was fantastic but so expensive. Well worth it though. We have other trips planned but will wait a year or two for the next big over seas. 

8. NEW: Figure out my parents care and estate. What a nightmare. I don't even want to type right now, but hopefully in a years time I will feel better about it.


----------



## peterk

Plugging Along said:


> 4. Figure out the vehicle situation. My poor vehicle died the other day on the way to the hospital. It will be sold this year. My goal is to drive the other vehicle (lousy in the winter and smaller) for the remainder of the year. My gas has been cut by more than half, so I am thinking that I may get a smaller vehicle, but is there one good for winters, hauling things for camps (girl guides), and toting lots of kids around, but still small?


We like our Hyundai Santa Fe. No kids here, but it could haul kids for sure, has a big trunk, but is not a massive SUV style vehicle, nor a jacked up car-style small SUV either. It's got a 4-cyl so decent on gas, not a V6 like most mid-size SUVs and vans. You can get the extended XL version that has a 3rd row if you really need the extra seats, but give up trunk space.

It seems a pretty good sweet-spot for a Car+Van type of vehicle that is a more capable driver than either (clearance, AWD, bigger tires,) more useful than a car or small-size SUVs (which are really just jacked up hatchbacks) and way more affordable and better on gas that regular size SUVs (Explorer etc.) or trucks, which are overkill even for Alberta city folk.

Hope things go OK with your parents.  Are they local at least or are you dealing with cross-country issues too?


----------



## Plugging Along

Thanks Peterk for the review. I currently have a full size SUV and my spouse a stupidly large truck. I had a CRV before, and think that's a nice size, maybe even a tad smaller. However, I do like the third row seat. I am just trying to decide if I really need it or not. 

As for the parents, my mother is terminal and we are dealing with that, and trying to take care of my father who is trying to take care of my mother. They are in town which is good, but its just a challenging time.


----------



## peterk

Have you ever had an actual mini-van before? I know I know, they are super lame... But they are by far the cheapest and most versatile option for just about everything except tight city parking and country off-roading. Kids, towing, plywood, bikes, whatever, the van does it. Get a 3 year used Dodge grand caravan and be done.

That said, if I'm on here in 10 years talking about which mini-van I'm going to buy, please, for the love of God, somebody stop me!


----------



## Plugging Along

Its time for me take some time to reflect. It has been really horrible year, but these serve me as a little reminder on how things change. Since Feb 2019, so many things have happened on a personal non financial level. We have had the ups and down of finding out my mother is terminal (more to come). My spouse was laid off in November. He decided to go full time in his start up that he was working on... in the travel industry. My child was really struggling and had been hospitalized with mental health issues, then she was severely sports injury with permanent damage, then a whole bunch of other stuff. Covid was an initially a good break for us. That's pretty sad. Finances have been off too.
Here's the update
1. Execute plan to max out rrsps and TSFA - spouse was in a severe car accident and we received the pay out in December just in time to invest before everything crashed at the beginning of January. To be honest, after I watched it initially plummet, I just stopped following, too many other things were going that were more important. 
ME -RRSPs maxed out
TFSA - maxed out, decided to to a TD coach potato

SPOUSE: RRSP's we put were able to almost max out of coarse just before everything dropped but it's been recovering. 
TFSA - Money was set aside by not invested. I took a little break in Feb. We are still deciding what to do with it I need to invest this amount this year. 

2. Figure out what to do with nanny - she doesn't come very often, so our goal is to learn to adjust to this new reality. The kids are doing more, but the house is still a mess. This is definitely work in progress. My goal is to come up with house/family operating schedule, but we haven't had time.
- This was an absolute disaster. I have come to realize that we all hate cleaning, and this is an area of extreme stress and anxiety for the family. Even with more time being home, we are making more messes, and I concluded that it's not worth the negative impacts. Once it's safe to do so, I will be hiring someone to help clean. 
3. Try to go further with the house renovation decision - we did all of the exterior last year along with the windows. We planned to do the inside, but with Covid, have stopped. We will plan for next year to renovate the inside. Being that we are outside more, we are going to do the deck.

3b. We have decided if our rental comes up vacant, we will do some renos there. The guy we found is great. He does good work, is fair and honest, and reasonable in price. This wasn't in the budget, but we have hardly done anything with the place. We may renovate it so it's nice enough we can live there while our house is being reno'd. More planning needed

4. Figure out the vehicle situation. We didn't sell the vehicle because we don't want to see people during Covid. I primary sits in my garage except for large costco shops. At least we were finally able to get the new battery in. Now, I am debating of keeping it, getting winter tires, and having the 3rd vehicle. My kid got her learners license, so it will be a matter of time before she needs a care. 

5. Max out RESPS -
Maxed out the oldest including the now grant amount
Youngest - have it on track to max out, but will do it over the next two years to maximize grants.

6. Reign in spending.- well this is up and down. We were spending more during Covid due to increase in pick up cost, not being able to find things on sale and out of stock items but not buying as much. Now, we are starting to get back to our sale shopping for groceries, but have an increase in costs for items we are stockpiling for wave 2. Also, we have been spending again more on activities as immediate mental health has become more important than catching covid (though we will still many precautions, just out more). We saved from our major trips planned but won't be going, but have replaced the spending with other recreation activities closer to home. 

7. Overseas trip - all trips requiring a plane or going to the US are grounded. We have replaced it with day trips and camping. We will try trailer camping for the first time, but it's almost as expensive as a hotel for for the week. 

8. Figure out my parents care and estate. - Wow, what a rollercoaster. My mother was given up to 2 weeks (but they expect less than 72 hours) last February. She was given a private hospital room for us to say good bye. Then two weeks later, they had to help us make accommodations at the hospice, but we felt she would be more comfortable at her care home. They took her under compassionate grounds because it would only be a few months. Now, it's almost 18 months later, and she is locked down in her home and doing well. I am always amazed. I was able to figure out most of the estate issues, thanks to an idea Mukhang Pera gave me. So my mother's affairs is as stable as can be. We are currently trying to get my dad set up for wave 2 as he has not internet, computer, smart phone or modern tech. 

9. Get my families and mine health in order on all fronts. This is my goal this year. To be more specific, I am finding that our 'go-go' and busyness in our homes has been causing stress I didn't realize (I am naturally high energy) but this stresses out one of my kids. So more balance there. The other front is my health, I am always so busy taking care of the family, that it leaves little time for me. So I will be working on my physical health. There has been a lot of strain on the family due to the medical concerns of my kids, so we will all be working on strategies to manage better. This is a good reminder that the kids are not me.


----------



## Mukhang pera

My goodness PA, it sounds like you have had more than your fair share of challenges in what has turned out to me a most challenging time for most. Annus horribilis for sure. You had a lot on your plate pre-C-19 and that certainly added another layer of complexity/difficulty. 

It also sounds like you have mustered the courage to carry on, adapt as necessary and not adopt an attitude of hopelessness. I think some would buckle under the load you have been carrying, yet you have continued to be able to keep looking to, and planning for, the future for yourself and family. 

I, for one, appreciate your disarmingly candid account and your sharing of what you have done to cope, to adjust and to thrive in the face of adversities, taking all you can from the positives, without focussing on the negatives. I think it will serve as something of an inspiration to others. Admirable, really. 

In the end, you have recognized what is now your goal for this year and I think you have the right attitude and approach to achieve it. I extend best wishes for that.


----------



## Plugging Along

Thank you MP. What I have posted on what has happened to my family especially my kids is not the worst that has happened. We are currently dealing with additional crisis with my child that it is too difficult to even post, that is being made worse due to the pandemic. I cannot currently bare to post it as seeing it typed brings me feelings of hopelessness, fear, and everything other emotion that I cannot take time or energy to deal with right now. 

These past couple of years have taught and reaffirmed a few things: 
My mother - who should have well past by now, has taught me to accept things you cannot control, but never give up hope. We flew the family in over night and pulled out the young kids because the 3 specialist weren't sure if she would make it to the morning, and would most likely not be around more than 72 hours. We planned her funeral, made 80% of the arrangements while we had the kids here. They treated her for comfort only and didn't think it was necessary to treat her other health issues (diabetes, high BP, and a few other things). I made the choice to put her back on all her other medications. It was considered futile, but there was no harm to her other than extra work for the staff and costs. My mother never knew her condition, but said to us in one out of the blue 'I am not dying any time'. I think she just decided that. We have spoken to her doctors and many specialists, no one can explain it, but says that if she wasn't on her meds that would have been the things that killed her with her condition. So through my mother's condition, I remind myself and my kids of hope and to never give up. We are also reminded that if something 'makes sense' and the science may no support it, but there is no harm, then to go with it. We took this view with wearing masks really early and some of the things we have done for pandemic preparation. I think a key lesson we all learned, we can only do our part and hope for the best. 

My kids/family- I have had heartbreak, worry, fear, anxiety, stress that only a parent can understand when your child is in danger and has been hurt physically, emotionally, and mentally. Since we are still going through this and sometimes questions how we will make it through, I rely blindly on hope and my ability and determination to figure things out. A few years ago, I stepped back from a high profile position due to the demands and the amount of time I spent away from the family. I always knew it was the right thing, but deep down it bothered me. Having these things happen to my family, I have a very clear understanding of what is important. I understand that money has allowed us to pay for whatever we need for our family, at the same time, it won't solve everything, but it doesn't bring stress. The flexibility I have with working from home has allowed me to try and help my child more, I already know that when we are required to be back in the office, I will be taking time or alternative arrangements, because again, that's more important. I also see the impacts on isolation on mental health. I was very worried about COVID because of my parents, now I have had to find the balance of completely isolation and finding safe ways for my kids to still be connected. 

My health - I didn't add anything in my goals. I may go an edit. I also found out I have some health conditions. I started taking care of them and they were getting better. Then when all this stress has hit our family, I have given all my energies else where. However, I realize that I am the base and must take care of myself. I just haven't found the strength or time to do so. I will add that here, just as reminder that I need think long term for myself too.

This post was really for me to reflect the big non financial stuff to help me keep perspective.


----------



## kcowan

Plugging Along said:


> TThis post was really for me to reflect the big non financial stuff to help me keep perspective.


I have been away PA, just returning to quorantine last Friday from Mexico. Wife went through a hip replacement surgery in May and was deemed fit to fly by her physio last Tuesday. We flew through Dallas.

But all this pales by comparison to what you have been through. My sympathies with your struggles. But the progress since 2011 is impressive.


----------



## Plugging Along

Welcome 2021! Though we are still in a COVID situation, I reflect back on where were last year in January with child recovering from a head injury, permanent damage, and severe mental health challenges as a result. The only thing I could think about was the well being of my family last year, and I didn't have the energy for finances. This posts is a reflect of positivity and normality.
Financial Stuff: 
1. RRSPS and TSFA - I invested caught up in January and dump a lot of money into the market, only to watch it plummet. I guess a bright side of worrying my family, was I didn't care about what happened financially, so the accounts dropped a lot, and they are above where I started last year. So buy and hold it is. 
ME -RRSPs maxed out, I like my advisor
TFSA - maxed out, I started TD ETF for couch potato. Seems to be a better strategy than my random stock picks. I will just add to the funds this year. 

SPOUSE: RRSP's - maxed out this year. He likes our advisor
TFSA - We still have some catch up over the next few years. We just have a lot of cash sitting there. I feel I should just buy some MAW or couch potato again, but I am so scattered. Hence, why I like my advisor. 

2. Max out RESPS -
Youngest - we put in our amount this year, and only have next year to contribute. We will have done the full $50K for both kids then. The oldest is starting to apply to high school programs which means she has to think about universities. We have started the talk about what will will help with, expectations, and they are starting to take more of an interest in the account balances

3. Kid In-Trust Accounts;
- Started couch potato. Still figure out what we should do. Last year, I did TD ETF, this year I added MAW105 for the oldest and the youngest came to me and asked for VFV (well the S&P index). So that's what we did and she asks to see how its doing. 

4. Reign in spending.- well this is up and down. I think being cooped up so long, we just spend what we feel like. If the kids or any of us think there is something that will help being at home, we just buy it. Fortunately, its not too bad, but I don't want our habits to get worst.

5. Vehicle - this sucked. Due to carelessly on my part, we left the vehicle too long with out driving, and it was pretty much worthless. We dumped it for nothing. It is nice just to have two vehicles, I will look at a new one for me when my oldest starts driving. 

6. Rental: Just went went vacant with no notice the day before Xmas. Our poor tenant found out he had stage 4 cancer and move back home with family. We let him off on all money owed and refunded in full the security. The look on his face when we told him. He needed a break and it puts in perspective what is important. We brought in our guy to reno the place, and he will have it done this week. So that was a chunk of our cash. 

7. Retirement; I have been running our numbers a little more closely. This happens when I get frustrated with work. My kids were worried about their post secondary costs. We have committed as long as they are doing their part, we will continue with ours. We both will work to help them fund their post graduate (and possible doctorates). I did my numbers, if we don't count education costs, we could retire in 9 years. Here's hoping they get a lot of scholarships. We have been debating if we will encourage our kids to take part time jobs or not. We are leaning they their time is better used volunteering, extra curricular, getting higher marks and taking care of their mental health. This a very different thinking than what I grew with. 


Life Stuff
1. The house is a mess - this is still a stressor but with COVID we don't want someone in our house, so when this is over, I will look for someone more consistently. Still awful in this area with myself and kids.

2. Try to go further with the house renovation decision - we plan to do it but will wait for COVID to be over. I think the plans will be 2022.

3. Overseas trip - all trips requiring a plane or going to the US are grounded. We will do the same plans this year as last, even if things open up. We have replaced it with day trips and camping.

4. Figure out my parents care and estate. - Wow, is all I can say. I haven't seen my mom in almost a year. She had a 99.99% mortality rate for last year. Now, they say all stats are off. We have stopped trying to plan for her arrangements. She has shown all of us nothing is ever certain, and never give. My dad is bored, but healthy. We got him on the internet (you would not believe the challenges) and he has access to video conferencing now. 

5 . Get my families and mine health in order on all fronts. I still need to work on my health and take better care. I see my kid getting a lot better and handling things better. They said she got the clear for her head injury and very little side effects. Her eyes will be permanently damaged, but she is adjusting and we will monitor. She is managing her mental health better, there are still challenges that weigh on me constantly. 
I still need to figure out my grove my health. I am still working from home, and enjoy it more than I expected, however that won't last. I have also been put on a high profile project which equals high stress which I tried to turn down. My goal is to maintain balance. I have been very clear with my managers that I have personal things and they take precedence. I don't think it helps my career, but they keep asking for me, so I feel that I have this right to set these expectations. I have told them that I will work my butt off as I always do, but if it gets to much I will ask to step back and will take a leave if they keep piling things on. 

It feels like 2020 is a blur and that nothing changed in the year being locked at home. However, when I write this, it does show how much better I am compared to Jan 2020.


----------



## Plugging Along

Hmmmm. I just realized that I didn't update for 2022, so I am either really late for 2022 or early for 2023. So I will do both in this post. I don't post often here, but I do enjoy going back and reflecting my thoughts over the years. 

Financial Stuff:
1. RRSPS and TSFA - I have maxed both my accounts I have been watching our investment plummet this year, but at least I am maxed out. 
TFSA - maxed out, I started TD ETF for couch potato. Seems to be a better strategy than my random stock picks. I will just add to the funds this year. Again, I did the random stock pick, it was okay, it was CP, will do that again. I am sometimes my worst enemy. 

SPOUSE: RRSP's - Spouse ended having an employer that matches a portion. We of course take the free money, however, due to a couple of raises and poor accounting, I accidentally over-contributed in Nov/Dec 2022 for him.maxed out this year.
TFSA - I didn't contribute quite as much as I planned but did put more in. We had some much bigger expenses. I will catch up in 2023 and 2024 should max it out. We just have a lot of cash sitting there. I keep thinking MAW104, but then get cold feet and leave it in cash. 
I really need a better strategy for our TSFA's.

2. Max out RESPS - All max amounts completed in 2021: we just watch it drop as I think hmmmmm.... my kid will be in university in 2024. I follow my advisor.

3. Kid In-Trust Accounts;
- Again I need a better strategy or at least to stick with it. Last year we did a little couch potatoe, with some index funds, and MAW 104. 

This year, my oldest started working. We match 1:1 for up to 50% of her earned income. It goes in a separate trust as it can all be attributed to her. I am working with investments with her. GIC llooksgood for the short term as she will be 18 next year and we will transfer the money for her to manage. It's meant to be long term, she gets that match while she is in school, it needs to be invested, not to be touched, and the moment she makes a withdrawal, no more matching. So far, I am pleased with how she realizes what a great deal this is and since it's her earned money, she is taking interest with investing. 

4. Reign in spending.- well this is up and down. We have gone way too spendy in 2022. I expect the same will be 2023. We have been eating out alot due to being so busy with work and the kids (they have multiple activities) every night, we need to get some new furniture due to it falling apart, and we have been travelling alot primarily because I realize the time is so limited with my oldest before she goes away to school. So I don't mind, but it's odd not seeing the bank account go up very much this year. 

5. Vehicle - Oldest got her license. We ended up getting anew 2009 vehicle, as we are so busy. It's expensive for a new ddriver but the time it saves to have the vehicle has been priceless. Insurance is insane - over $3k for part time.

6. Rental: Wow. We fully renovated our place after it went vacant (my last update). Then found a company who signed a long-term lease to turn it in to an executive say. One month in, the people upstairs flooded our whole place and we had to renovated again. 2023 will we resign with a larger rent. It's been great for our apartment, I was worried as a Air BNB. We may just do the 5 year lease. 

7. Retirement- Steady on course - I have been running our numbers a little more closely. This happens when I get frustrated with work. My kids were worried about their post secondary costs. We have committed as long as they are doing their part, we will continue with ours. We both will work to help them fund their post graduate (and possible doctorates). I did my numbers, if we don't count education costs, we could retire in 7 years. Here's hoping they get a lot of scholarships.
I think because we are on track even with our spending, I haven't worried as much. We decided that will will work up to 12 years to help fund the kids education. 

Life Stuff
1. The house is a mess - this is still a stressor, probably the biggest one. We have tried several cleaners with no luck. 

2. Try to go further with the house renovation decision - We did all of the out door renos, and now are looking for the indoor. But until I get things cleaned up, there is no point. 

3. Overseas trip - planning on Europe or somewhere big over the summer, as I only have two summers with my oldest. This winter we are leaving for our first warm resort over xmas holidays (Leave tomorrow). There are so many places I want to go with my kids that I have decided that I would easily work an extra year to travel with my kids now, than wait until retirement. 

4. Figure out my parents care and estate. - Wow again! My mom was declared terminal for 2019. She had a 99.99% mortality rate for early 2020 before anyone knew of Covid. She is on very borrowed time heading into year 4. She has cognitively deteriorated, much due to not having visitors during COVID. It's really difficult to see as she doesn't always recognize me, barely talks, and doesn't really recognizes my kids. I can tell when she is happy to see me when we bring her favorite treats as she laughs and devours it. I have been coming to terms that we will never have knew memories, and all I hope is I can leave her a feeling that she is loved and cared for. It has really made me think about aging more and the time I spend with my kids. My dad is healthy but you can tell age is getting to him. He can't walk very far, and is out of breath over the a few steps, but again, I call and make sure he is well taken care of. 

5 . Get my families and mine health in order on all fronts. I still need to work on my health and take better care of myself. Seeing my parents, is giving motivated to get active again. I still constantly worry about my oldest and her mental health, she is handling things better, but every so often has a panic attack. Seeing both my kids grow up is really on my mind.
I still need to figure out my grove my health. I am still working from home and asked to WFH 100%, they have granted it so far, but I don't know how long it will last. I keep getting put on a high-profile project, a different one this year. With a reorg, I can't turn it down this. My goal is to maintain balance. I have been very clear with my managers that I have personal things and they take precedence. Not sure my new boss will see it this way. 

This last one is my biggest personal challenge. I have been overwhelmed at so many things, primarily running our household and looking at the well-being of my family, especially the kids. Spouse has stepped it up and working through his stuff, but the majority of keeping us going is on me. I have been in such a flight mode for the last few years and see that things should calm down a bit with the kids getting older. However, teens are not for the faint of heart. This next, I need to find not just balance from work but from the rest of the family. I need to really look at how I put up my boundaries for myself. I am trying to just decide not to do things and see what happens. 

So I think that's it for now. May update more after I pack.


----------



## jlunfirst

Really great, that your eldest daughter is coming along and paying attention to how finances can be healthier with her parents give her a lift and letting go at a better time. I'm sure she will do well and those panic attacks (did we ever get them?) will be less, with your encouragement from time to time.


----------

