# Break Me Down, Build Me Up - Financial Diary



## R. Austin (May 16, 2020)

Starting this Diary to help further hold myself accountable but also to hear input and other points of view/ideas when it comes to my situation and where I can improve. Let the games begin...

Age: 27
Location: GTA, Ontario
Martial Status: Engaged, no kids
Education: 4yr Bachelors Degree Kinesiology w/ Business Minor + 2yr Graduate Cert. Financial Services

*Income: *
$45k base salary + year-end bonus ($3,000.00 - 5,000.00); working in Banking
Equates to $2,600.00 per month // $2,000.00 after Employer Pension deductions

*Assets:*
Chq Accts = $504.13
Sav Accts = $2436.44
TFSA = $10,898.83
RRSP = $12,297.61
Employer Pension Program = $2,285.91
Other Investments (Crypto) = $4,199.55
Est. Vehicle Value (2018 Mazda 3) = $19,200.00

*Liabilities:*
None; debt free.

*Approx. Net Worth = $51,800.00


Expenses (Monthly):*
Rent + Utilities = $900.00
Internet = $50.00
Phone = $77.00
Transportation = $200.00 (Insurance $108.00 + Fuel $82.00)
Groceries/Personal/Home Supplies = $200.00
Entertainment/Dining Out = $80.00
Other/Misc. = $100.00
Travel = $0.00 (COVID)
*TOTAL = $1,607.00 (approx. 62% of income)

Savings (Monthly):*
TFSA = $100.00
RRSP = $100.00
Employer Pension Program = Maxed at 18% of salary (Approx. $595.00)
*TOTAL = $795.00 (approx. 30% of income)


Milestone Goals:*
1. First home by age 30 (3 years)
2. Wedding in 2-3 years
3. Kids in 4-5 years
4. Porsche sports car by age 40 (mid-life crisis toy)
5. Retire comfortably around 55-60

*Other Goals:*

Maintain maximum contributions for Employer Pension Program (18%) for as long as Cash Flow possibly allows
Vacation once every 2 years ($1,000.00 - 2,000.00)
Completion of Certified Financial Planner education pathway in 3-4 years ($1,500.00 - 2,000.00)

*Comments, Concerns, Thoughts:*

I should take time to build a more numbers-based goal system, dollar amounts by certain years to keep goals tangible.
I already actively look for ways to save on costs; shop during sales, avoid 'luxury' items, purchase on sale or bulk groceries, shop around for insurance/phone/home costs.
I may look to simplify Portfolio, reduce 'fun / speculative' purchases and just double down on Index solutions.


*Portfolio Breakdown:*
_Employer Pension not included; split between Global Index Fund (80%) and Employer Stock (20%)_











*Open to all feedback, opinions, and criticisms. *


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## MrBlackhill (Jun 10, 2020)

R. Austin said:


> I should take time to build a more numbers-based goal system, dollar amounts by certain years to keep goals tangible.


Yes, that would be a great idea. Otherwise, if I estimate a $400,000 house with 5% down payment + fees, I guess you'd need $25,000. About the wedding, once you've paid for the ring, dress, food, alcohol, music, reception, wedding, etc., do you estimate it to $15,000 or more or less? That's $40,000 in 3 years. Will you take out all of your TFSA and RRSP to pay that? Will your partner be able to help paying a part of this? You currently contribute $100/month in TFSA and $100/month in RRSP. That's $7,200 in 3 years. If your current TFSA & RRSP + contributions have a great performance, you'll have maybe about $36,000 to $39,000 in 3 years.

(I skipped your crypto which could be somewhere between $1,000 and $50,000 in 3 years, taxable)


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## milhouse (Nov 16, 2016)

R. Austin said:


> 4. Porsche sports car by age 40 (mid-life crisis toy)


I'm still working on this midlife crisis goal but I suspect it'll end up being achieved duing late-life crisis anxiety! 



R. Austin said:


> I already actively look for ways to save on costs; shop during sales, avoid 'luxury' items, purchase on sale or bulk groceries, shop around for insurance/phone/home costs.


+1 We regularly try to be more efficient with our dollars/spend but also have to be careful to sometimes take a step back in order to not lose situational awareness.


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## mattw (May 14, 2013)

You can typically move up quickly in banking so should see income increasing. 
Also, suggestion is get your employer to pay for your CFP. 
Are you contributing additional to your pension plan above company matching? Switching that to your RRSP so can take advantage of home buyers plan may be more advantageous.


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## peterk (May 16, 2010)

Nice diary! I'd be weary of using the RRSP for the next couple years, wait till your income is higher, if you do anticipate that it will be higher... (hopefully!)

Is the girl good? If so skip the wait, skip the expensive wedding, and hunker down to buy the house sooner and have kids sooner. Any perceived benefit of waiting "a few more years" is just an illusion. Whatever is going to happen is going to happen either way, and the money will still be made and spent...the only difference is you'll just be older and more tired than you needed to be before starting the life that you eventually want anyways.


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## m3s (Apr 3, 2010)

Since VGRO is already 20% bonds you could drop those TD Bond indexes. When you put 18% into a pension and 15% into crypto you already diversified from equities imo. Bonds are just so boring when money printing makes them negative real returns even before tax. Maybe consider VEQT and 20% alternatives like RE and crypto?

Maybe replace HBLK with one or two of its Canadian holdings? I think BITF/HUT are just all around better than the US miners. BIGG could be interesting Canadian play on incoming crypto regulations. Never heard of NVEI but it's apparently Canadian. I'm a VYGR fanboy so hopefully they start onboarding Canadians soon


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## My Own Advisor (Sep 24, 2012)

Congrats on starting your financial journey. Your future self with thank you 

A few things/observations:

1. If you own VGRO, get rid of most other funds/mutual funds. You don't need them with this all-in-one.

2. Keep your individual stocks, and continue to add to them over time (e.g., BCE, TD, ENB and others). Again, you'll find doing so should deliver ever growing income. 

3. Keep crypto to < 5-10% of overall portfolio. That's a good rule of thumb for any individual stock (<5% or max 10%) to avoid getting wiped out.

4. If you keep a high, sustained savings rate (e.g., > 30-40% for the coming decade) you can buy your Porsche and likely have a mid-6-figure investment portfolio as well by age 40.

5. Retirement is "no problem" with >30-40% savings rate for 20+ years. The math proves it assuming you don't trade, minimize investing mistakes and stay invested throughout. 

Good luck!!!


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