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How much do you know about financial independence?

Nov. 12, 2023, 10:04 p.m.
Posts: 828
Joined: June 17, 2016

Posted by: heckler

Posted by: [email protected]

I have $8000 ready to go into FHSA but my broker still hasn't implemented it yet... Prefer to keep everything in one place but worst case I'll open the FHSA at another broker to get this year's deduction.

I've read online theories about the reason many brokers haven't implemented an FHSA yet - the brokerage will be losing more in administration costs than they'll be making on low-value accounts.

On the flip side - TFSA annual contribution room is calculated to be going up to $7,000 in 2024 due to the latest inflation numbers. Not yet published on CRA site, but found on many others.

I do find it quite ironic - costs have skyrocketed due to inflation, so we're going to let you save more tax-free (as if those struggling with high costs could do so).

I ended up opening a self-directed FHSA at Wealthsimple. So far so good. No fees for anything. For simple CAD-listed index ETF buy-and-hold investing it seems perfectly fine.

My other accounts are at TD DI, the risk for TD is that I like paying no fees at Wealthsimple so much that I end up transferring my other accounts over as well.

Yes all the tax breaks on savings only benefit those who make enough to be able save in the first place.

On the other hand, there is an article with video on CBC today about a lady in Newfoundland who apparently has to work 70 hours / 2 jobs to afford life. The video shows her driving a recent SUV through the McDonalds drive-through. Could have been straight out of Mr Money Mustache.

Nov. 13, 2023, 8:22 a.m.
Posts: 18790
Joined: Oct. 28, 2003

The music therapist working three jobs turned 9-5 office work I just watched was driving her guitars around in a cheap Camry LE.  Must be a different “in this economy” article you’re referencing. 

https://www.cbc.ca/news/canada/newfoundland-labrador/arsenault-dreams-versus-reality-1.7023398

Nov. 13, 2023, 10:37 a.m.
Posts: 828
Joined: June 17, 2016

This is the one I was referring to:

https://www.cbc.ca/news/canada/newfoundland-labrador/kelly-young-the-grind-1.7012745

Nov. 13, 2023, 12:50 p.m.
Posts: 18790
Joined: Oct. 28, 2003

We’ve been freezing hamburger meat for 25+ years.   

Do like the occasional top sirloin though, not so often any more.

Nov. 13, 2023, 4:12 p.m.
Posts: 3154
Joined: Nov. 23, 2002

Steak and caviar 3x/day for me.

Nov. 14, 2023, 1:41 a.m.
Posts: 18790
Joined: Oct. 28, 2003

Baller.

Nov. 14, 2023, 8:47 a.m.
Posts: 14922
Joined: Feb. 19, 2003

https://www.youtube.com/watch?v=8is20zlIb38

Dave Ramsey thinks a couple of you guys are stupid goobers.

Nov. 14, 2023, 9:32 a.m.
Posts: 3154
Joined: Nov. 23, 2002

Just like real estate, the stock market only ever goes up!

Nov. 14, 2023, 10:08 a.m.
Posts: 14922
Joined: Feb. 19, 2003

^^ yeah - it's a surprisingly bad take

Nov. 15, 2023, 2:11 p.m.
Posts: 18790
Joined: Oct. 28, 2003

For the goobers. Google Trinity Study if you crave more graphs.

https://portfoliocharts.com/charts/withdrawal-rates/

Caveat: I have not used it more than one cursory glance a few years ago.


 Last edited by: heckler on Nov. 15, 2023, 2:11 p.m., edited 1 time in total.
Nov. 15, 2023, 10:39 p.m.
Posts: 828
Joined: June 17, 2016

cFIREsim is the ultimate nerd tool for "goobers" who want to play with withdrawal rates/strategies using real (US) data.

You can also add additional income that kicks in at a certain age like pension, CPP, etc.

One thing I found is a higher bonds allocation generally results in a worse success rate of not going broke. Around 80-90% stocks seems optimal.

There's a nerdy article about that here: https://www.gocurrycracker.com/path-100-equities/

Nov. 15, 2023, 11:05 p.m.
Posts: 18790
Joined: Oct. 28, 2003

Posted by: [email protected]

cFIREsim is the ultimate nerd tool for "goobers" who want to play with withdrawal rates/strategies using real (US) data.

80-90% stocks seems optimal.

There's a nerdy article about that here: https://www.gocurrycracker.com/path-100-equities/

Added to post #1, thanks!

Dec. 21, 2023, 12:36 p.m.
Posts: 18790
Joined: Oct. 28, 2003

Dave Ramsey did put out an interesting survey

https://www.ramseysolutions.com/retirement/the-national-study-of-millionaires-research

America may be called the land of opportunity, but few Americans today really believe they have what it takes to become wealthy. They’ve fallen for the myth that in order to be a millionaire, they need a big income or a rich family.

But The National Study of Millionaires by Ramsey Solutions proves that these beliefs about how millionaires got their money are wrong. Flat wrong.

So, how did all of these people hit the million-dollar mark? Most of them did it through consistent investing, avoiding debt like the plague, and smart spending. No lottery tickets. No inheritances. No six-figure incomes. Really.

Ramsey Solutions conducted the largest survey of millionaires ever with 10,000 participants.

Eight out of 10 millionaires invested in their company’s 401(k) plan.

The top five careers for millionaires include engineer, accountant, teacher, management and attorney.

79% of millionaires did not receive any inheritance at all from their parents or other family members.


 Last edited by: heckler on Dec. 21, 2023, 12:37 p.m., edited 1 time in total.
Dec. 21, 2023, 12:48 p.m.
Posts: 18790
Joined: Oct. 28, 2003

Posted by: heckler

On the flip side - TFSA annual contribution room is calculated to be going up to $7,000 in 2024 due to the latest inflation numbers. Not yet published on CRA site, but found on many others.

I do find it quite ironic - costs have skyrocketed due to inflation, so we're going to let you save more tax-free (as if those struggling with high costs could do so).

7K is official now.

https://www.canada.ca/en/revenue-agency/services/tax/registered-plans-administrators/pspa/mp-rrsp-dpsp-tfsa-limits-ympe.html


 Last edited by: heckler on Dec. 21, 2023, 12:48 p.m., edited 1 time in total.
Dec. 21, 2023, 1:06 p.m.
Posts: 468
Joined: Feb. 24, 2017

Posted by: heckler

Dave Ramsey did put out an interesting survey

https://www.ramseysolutions.com/retirement/the-national-study-of-millionaires-research

America may be called the land of opportunity, but few Americans today really believe they have what it takes to become wealthy. They’ve fallen for the myth that in order to be a millionaire, they need a big income or a rich family.

But The National Study of Millionaires by Ramsey Solutions proves that these beliefs about how millionaires got their money are wrong. Flat wrong.

So, how did all of these people hit the million-dollar mark? Most of them did it through consistent investing, avoiding debt like the plague, and smart spending. No lottery tickets. No inheritances. No six-figure incomes. Really.

Ramsey Solutions conducted the largest survey of millionaires ever with 10,000 participants.

Eight out of 10 millionaires invested in their company’s 401(k) plan.

The top five careers for millionaires include engineer, accountant, teacher, management and attorney.

79% of millionaires did not receive any inheritance at all from their parents or other family members.

Engineer here, and can confirm this strategy works.

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