# Next Chapter - 30+



## mattw (May 14, 2013)

Its been a great year and will be exiting the 20's soon. Always had hoped to hit $300,000 by age 30, and million by 40 and am on track to far surpass. Who knows what the future will entail but don't want needing a pay-cheque to make my future decisions. My income has been much higher then expected this year and likely will continue for another 2 years until levels off.


Bank Accounts: $2,500
TFSA: $104,000
RRSP: $127,000
Non-Reg: $244,000
Vehicle: $10,000

Net Worth: $487,500

My TFSA consists of my stock picks ATD, BPF, DEO, DFS, EXPE, MSFT, SCI, T and last week added WBA, CVS. Non-Reg follows Couch Potato - apart from $50,000 for a house down payment. RRSP is primarily couch potato but US held ETFs and Mawer fund. Overall been averaging about 20% in cash so am prepared in case mass opportunities present themselves. Apart from that its almost entirely equities. 

Previous thread:

https://www.canadianmoneyforum.com/showthread.php/15703-24-YR-OLD-Could-use-some-input


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## Forebiz (May 31, 2018)

Looking at your numbers made me go back and see how I was doing both at 24 and 30. Our Net Worth at both those stages were similar but 60% of my net was in a house which almost tripled in value from age 22-30. My point being that you are in a much better position then I was at this point. Not to put pressure on you but I'd think you can hit a million by 34 or 35 at the rate you are going.

The first million is the hardest.


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## Eder (Feb 16, 2011)

Awesome job so far! But nothing a wife and 3 kids can't take care of....


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## scorpion_ca (Nov 3, 2014)

We both started our journeys in 2013. My NW is $482K at the end of June, 2018. However, I don't add vehicle as part of my NW.

I follow old couch potato and have been buying ETFs. Would you care to share your yearly income?


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## nobleea (Oct 11, 2013)

As mentioned earlier, I'd think you can hit that million mark well before 40.
My NW at 30 was around 160K and we just passed 1mil at 40. Our NW was the same as yours when I was 35.

Someone mentioned that wife and kids can throw a wrench in the plans. Certainly kids could, but I've found that a spouse has a positive impact on the NW. Especially if they have a solid income and the same state of mind as you do.


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## mattw (May 14, 2013)

My income in 2016 was $80,000, last year was $200,000 and this year should much higher so that has obviously significantly helped growing NW. However, I don't see the current income being sustainable but definitely will help create a solid base for rest of my life.


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## mattw (May 14, 2013)

Great year, as managed to grow net worth from around 380k to 540k - even with the market drop. Have invested some cash the past week, but still have around 15% should the market continue to drop.

Bank Accounts: $1,500
TFSA: $104,500
RRSP: $119,000
Non-Reg: $306,000
Vehicle: $9,000

Net Worth: $540,000

Ideally repeating this in 2019 would be perfect, along with some actual returns!


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## mattw (May 14, 2013)

Been an excellent start to the year with a large tax return and market returns. I have reached a point now with 4% withdrawal rate could match spending if quit. Now I have zero intentions as enjoy working and leaves little margin of error. But nice to have the peace of mind that have reached that point at age 30. 

Bank Accounts: $500
TFSA: $126,000
RRSP: $149,000
Non-Reg: $393,000
Vehicle: $7,000

Net Worth: $675,000

Goal would be to triple net worth by 40.


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## peterk (May 16, 2010)

Very nice. And you've resisted a lot of lifestyle inflation I see, with <$30k spending and some $200k+ income??

Not to be the devil whispering in your ear... but I think you might be at the point where spending 50k/year instead of 30k might significantly enrich your well-being and life satisfaction while having minimal impact on your financial position... If you keep at it, you might be sitting at 40 with $1.5M and regrets, instead of $1.3M and no regrets.


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## mattw (May 14, 2013)

Yes, spending is around $1,000 per month, and income has been 200k+ the past two years. 

Its difficult to increase spending as have upgraded most things own or wanted the past two years and went on 4 trips last year, with 3 already this year. Outside of spending to spend don't see much reason to increase. However, once own a house expenses will increase quite a bit. Between reward programs had an extra $3,500+ income too and that's helped pay for a trip and some new furniture!


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## redsgomarching (Mar 6, 2016)

wow nicely done! great work on saving! even more so career and earnings wise! What do you do for work?


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## scorpion_ca (Nov 3, 2014)

mattw said:


> Yes, spending is around $1,000 per month, and income has been 200k+ the past two years.
> 
> Its difficult to increase spending as have upgraded most things own or wanted the past two years and went on 4 trips last year, with 3 already this year. Outside of spending to spend don't see much reason to increase. However, once own a house expenses will increase quite a bit. Between reward programs had an extra $3,500+ income too and that's helped pay for a trip and some new furniture!


You can donate to charity if you like any cause.


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## murumanie (Aug 4, 2015)

wow great job saving so much.


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## mattw (May 14, 2013)

I should note spending meant bit over $1,000 Bi-Weekly. Not monthly. 

Update:

Bank: $2,000
TFSA: $131,000
RRSP: $158,000
Non Reg: $444,000
Vehicle: $8,000

NW - $743,000

Been starting to look at houses at just bought the "Smith Manoeuvre" book as thinking can possibly write off the interest due to current Non Reg account size.


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## lonewolf :) (Sep 13, 2016)

Forebiz said:


> .
> 
> The first million is the hardest.


 It depends a lot where you are in the cycles i.e., it was a lot harder to make a million in the 1930s then in the 1920s


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## mattw (May 14, 2013)

Year-end update. This year turned out to be a home run that is hard to imagine happening next year or after. As I know my income will begin to drop since is first not sustainable in current bonus role along with compensation changes. However, next year could see potentially hitting a million unless the market is negative. After which savings rate will drastically decrease. Net worth grew $273,000. 

Update:

Bank: $1,000
TFSA: $134,000
RRSP: $162,000
Non Reg: $517,000
Vehicle: $8,000

NW: $822,000


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## TK.61 (Mar 27, 2012)

Curious what you do for work and how your income grew? You always seem to be surprised about how much income you made during the year.


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## mattw (May 14, 2013)

Its a business development role for one of the big 5. Its highly bonus based off business brought into the bank.


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## mattw (May 14, 2013)

Well what a year this has been. This update would have been drastically different two months. I managed to put some of the 20% in cash to play during March & April but obviously no where near would have preferred looking back!

Update:

Bank: $3,000
TFSA: $141,000
RRSP: $159,000
LIRA: $32,000
Non Reg: $587,000
Vehicle: $6,000

NW: $928,000


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## Forebiz (May 31, 2018)

Doubling net worth in two years. Nice job.


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## Walksing (Oct 16, 2012)

mattw said:


> Well what a year this has been. This update would have been drastically different two months. I managed to put some of the 20% in cash to play during March & April but obviously no where near would have preferred looking back!
> 
> Update:
> 
> ...


your tfsa number is amazing, wonder if you can kindly share your investment portfolio?


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## mattw (May 14, 2013)

Walksing said:


> your tfsa number is amazing, wonder if you can kindly share your investment portfolio?


Nothing too crazy. Typically just make a trade or two in the TFSA annually. 

Microsoft - 30% - Long-Term.
Couche Tard - 15% - Long-Term.
Disney - 10% - Last year & March added more.
Telus - 10% - Long-Term.

I've usually kept 20% cash but down to 5% currently. Few other long term holdings in Boston Pizza, Expedia, Discover, Service International (SCI), DEO, CVS. First 3 have had a rough year.

Also, added some McDonalds and Nike in March.

Realize US Dividends aren't ideal but the 15% tax on US dividends will be less tax over RRSP withdrawal decades from now or dividend & cap gains in Non Reg.


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## mattw (May 14, 2013)

Depending on the day have crossed one million just before turning 32. After years of looking finally found a property. It appraised at $475,000 but living in Alberta assume that price will drop. Waiting maybe would have been more beneficial but it was time to move out of a tiny condo and into a house. Expenses have definitely been higher needing to purchase way too much. Expecting decent bonuses for year-end but savings will likely move to $52,000-$75,000 a year moving forward after averaging $175,000+ the past 3 years. Hurts, but the workload has also eased up which has been a change from either working or studying most nights the past 10 years to more activities like coaching or going to the gym. So hopefully means my life expectancy increases to use these funds!

Update:

Bank: $5,000
TFSA: $145,000
RRSP: $167,000
LIRA: $32,000 (Commuted value of pension)
Non Reg: $552,000
Vehicle: $6,000
House: $450,000 (Purchase price)

Mortgage: $360,000 (1.8% rate, 30 Year)

NW - $997,000 

Hoping to grow the Non-Reg account to over a million and have a well-paying Dividend portfolio then can consider what my next goal would be.


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## mattw (May 14, 2013)

Year-end update. Looks like NW will have grown $250,000 for 2020.

Bank: $5,000
TFSA: $158,000
RRSP: $178,000
LIRA: $32,000 (Commuted value of pension)
Non Reg: $614,000
Vehicle: $6,000
House: $450,000 (Purchase price)

Mortgage: $360,000 (1.8% rate, 30 Year)

NW - $1,083,000

Despite financially a great overall year would be nice if life returns to normal and can actually begin to spend money. Although have always saved a high percentage of income its been a depressing year with that savings percentage increasing as life is work and go home.


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## mattw (May 14, 2013)

Mid year-end update. Great start to the year thanks to a crazy market.

Bank: $5,000
TFSA: $174,000
RRSP: $202,000
LIRA: $72,000 (Commuted value of pension)
Non Reg: $685,000
Vehicle: $4,000
House: $450,000 (Purchase price)

Mortgage: $353,000 (1.8% rate, 30 Year)

NW - $1,239,000

Spending has been much higher moving into a new house. Built a nice gym in the garage that was pricey but good overall investment. Essentially just used travel expenses that haven't existed for too long! Goal till 40 is to try and build up Non-Reg to 2 million and being able to generate $60,000 in dividends annually.


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## peterk (May 16, 2010)

Wow fantastic! Glad things are going well.

No Mrs. in the picture yet? I think I see the problem:


mattw said:


> Vehicle: $4,000


Just kidding  - I don't even own a car, I just mooch off of her... never show her all the accounts lol.

Are you thinking about ditching the mortgage and smith maneuvering that unregistered account? As alluded to previously.


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## mattw (May 14, 2013)

peterk said:


> Wow fantastic! Glad things are going well.
> 
> No Mrs. in the picture yet? I think I see the problem:
> 
> ...



I am getting married next year, been together for 8 years. She knows have a decent amount as shared years ago. We keep accounts separate and she has been saving about 20% of her pay-cheque plus has a pension. But realize will not be like me and that is a good thing.

I really could care less about the vehicle. It's been very reliable for the past 5 years and do put on about 20,000km a year although a big portion is work related.

Not at the present time. The interest rate is so low on the mortgage that isn't a overall benefit to smith maneuver on the HELOC especially with potential for rate increases.


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## mattw (May 14, 2013)

Year-end update. Looks like NW grew around $320,000ish for 2021.

Bank: $10,000
TFSA: $196,000
RRSP: $216,000
LIRA: $72,000 (Commuted value of pension)
Non Reg: $800,000
Vehicle: $4,000
House: $450,000 (Purchase price)

Mortgage: $338,000 (1.8% rate, 30 Year)

NW - $1,410,000 

Another amazing year. Hopefully can continue for 2022. Income continued to be high however, also had very high spending due to new house that savings rate took a big hit but booming market easily made up for it. Dividend income for Non Reg was $15,900. Goal would be to grow this significantly over next 5-7 years so a comfortable retirement is an option. Also, did an extra $10,000 onto the mortgage and planning on extra $30,000 for 2022.


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## mattw (May 14, 2013)

Mid-Year update. 

Bank: $4,000
TFSA: $188,00
RRSP: $194,000
LIRA: $74,000 (CV of pension)
Non Reg: $840,000
Vehicle: $4,000
House: $450,000 (Purchase price)

Mortgage: $319,000 (1.8% rate, 30 Year)

NW - $1,435,000

Until last week had no net worth growth on the year which is an odd feeling. But investments gains/losses should start to outpace savings. The plan was to dump $20,000-30,000 on the mortgage each year. However, with GIC rates around 4% - it makes sense to invest and do a large pre-payment in 3 years. Hopefully can still manage a $100,000+ net worth growth for 2022 and keep a 5 year streak going. I have also went from around 18% cash to start 2022 to about 13% - while also contributing $60,000 this year so lets hope that looks good long-term. Have a stack of annual reports to read as the drop actually seems to provide decent value opportunities. Haven't found anything yet and just continuing with ETF purchases though.


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## mattw (May 14, 2013)

2022 update.

Bank: $4,500
TFSA: $182,000
S-TFSA: $16,000
RRSP: $195,000
LIRA: $74,000 (CV of pension)
Non Reg: $910,000
Vehicle: $4,000
House: $450,000 (Purchase price)

Mortgage: $313,000 (1.8% rate, 30 Year)

NW - $1,532,000 

Well not a great year still grew net worth but that was all from saving. Dividend income from Non-Reg went from $15,954 to $26,922. If I can grow around $8,000 per year over next 5 years will be around $70,000 by age 40. Assuming can significantly dent the mortgage will be primed to step back. Been saving $25,000 a year for lump sum mortgage pre-payments - however just have that parked in GICs now due to high rates.


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