its pretty cool when you can get to be arrogant enough to tell the boss you don't really need his job but lets give er and make a success of this
How much do you know about financial independence?
I was going to reply with my entire financial plan and statement, but it's still a work in progress. I'm about 10% implemented to a tax efficient, buy and hold indefinitely, extremely low MER, growth allocated portfolio. All based on internet learning in the past 6 months.
Until now, we've been frittering away our savings with work sponsored RSP (5% match, so I contributed 5% to Nesbit Burns, who took away 6% in "architect" fees) and a personal RSP in mutual funds with 2.8% MER, 6% DSC/5%FEL (read that as - the mutual fund company takes 8% of any return if you don't hold their funds for at least 10 years). No more!!!!! I'm pissed and am doing something about it!
First, know about asset allocation and more importantly, location.
http://canadiancouchpotato.com/2010/03/05/put-your-assets-in-their-place/
Then learn about asset location and tax implications.
http://canadiancouchpotato.com/2012/09/17/foreign-withholding-tax-explained/
Then figure out what currency hedging means. I'm still working on understanding the full implications.
http://canadiancouchpotato.com/2014/01/16/currency-exposure-in-international-equity-etfs/
http://canadiancouchpotato.com/2014/03/06/why-currency-hedging-doesnt-work-in-canada/Then make a tax efficient allocation and location plan for your accounts. Back to:
http://canadiancouchpotato.com/2012/09/17/foreign-withholding-tax-explained/Then learn how to buy US listed funds at a low cost. (I haven't done this yet, and am not yet sold on buying VTI over VUN).
http://canadiancouchpotato.com/2013/12/03/norberts-gambit-the-complete-guide/
I think I'm now at the point of your question Bondo - whether to buy VUN, VUS or VTI.
To date, I've only bought 6% of my funds in VUN - the TSX listed unhedged version of total US market. I'm not 100% sold yet on committing to VUN and am looking into buying VTI (the US listed version) via Norberts Gambit.
The plan is to be transfered to 30% VAB, 25% VUN/VUS/VTI (not sure which one yet), 25% VCN and 20% of a undetermined international index in the next 3 months.
Good overview heckler, this is exactly the process I'm going through right now. I have read many of the articles you've posted and was working towards this in the fall but a little thing called an election put that on hold. All of my investment capital is tied up in rental properties at the moment, but my wife and I have finally completed our 3 year plan to pay of all our personal debt(student loans, etc) and can now put a significant chunk or our take home income towards savings and investment.
yeah, i mean Pedro was bound to be right and housing prices in greater vancouver were going to crash eventually.
what's that? oh, housing prices are expected to climb again next year and the rates are staying low? really, i had no idea. alrighty then, never mind.
re playing it safe, but at least your current mortgage will get paid off faster though and even faster yet if you're hopefully upping your payments or making lump sum payments. you can do this as long as you're not blowing all that extra cash on toys like new vehicles, snow mobiles, dirt bikes etc.
what's that? oh wait, nevermind…
;)
Nothing that Pedro said was wrong, its like betting on red and getting black 12 times in a row. Anything is possible, its been the same with Van RE.
Everyone has that regret here, I should of bought a $600,000 teardown in EastVan in 09, but I was too chicken to spend that much on a dump. The odds of it being $399,000 today were in my eyes, as good as it being $1000000. But here we are Should of made that $400,000 tax free.
And the same rings true today. Everyone I know who is very bullish on Van RE says the same thing Its going straight up. Most these people have owned for years, why not withdraw all that equity and double down? Seems fool proof if the last 10 years is any indication?
Otherwise some really solid advice in this thread.
Mr. Money Moustache would be proud!
there have been a few mentions by me and others of plans to get away from a full-time 9-5 job, and i just wonder if that day comes, or just gets pushed back because of a new house, new kid, etc…not doubting anyone's personal goals, i am just curious if they are stories of people actually pulling this off, or are we just fooling ourselves while trail worker is the only one who figured it out
there have been a few mentions by me and others of plans to get away from a full-time 9-5 job, and i just wonder if that day comes, or just gets pushed back because of a new house, new kid, etc…not doubting anyone's personal goals, i am just curious if they are stories of people actually pulling this off, or are we just fooling ourselves while trail worker is the only one who figured it out
Easier to do when you do not have this thing called a child or multiples of that.
totally, and i've sorta been through it…we had no kids, fully paid off the mortgage, no debt, fast forward six years later, we are still in a good place, but things like over $600 to resps a month kinda change things…in like i'm not living the "good" life exactly as planned. not really complaining, just reality
Nothing that Pedro said was wrong, its like betting on red and getting black 12 times in a row. Anything is possible, its been the same with Van RE.
yeah i know. it's just quite a few years on and we're still seeing the same thing. at the time one of the things i said was helping move vancouver market up was demographics and the number of people moving in to the region. that's still a strong indicator of where this market is going. as the population goes up we need somewhere to house people, that fact can't be escaped.
ps - that needed to be read with a dose of sarcasm as well.
We don't know what our limits are, so to start something with the idea of being limited actually ends up limiting us.
Ellen Langer
there have been a few mentions by me and others of plans to get away from a full-time 9-5 job, and i just wonder if that day comes, or just gets pushed back because of a new house, new kid, etc…not doubting anyone's personal goals, i am just curious if they are stories of people actually pulling this off, or are we just fooling ourselves while trail worker is the only one who figured it out
I know a guy.
It's just a matter of ignoring the noise, and putting your passions first. Then literally follow your dreams Colin.
Merry Christmas.
totally, and i've sorta been through it…we had no kids, fully paid off the mortgage, no debt, fast forward six years later, we are still in a good place, but things like over $600 to resps a month kinda change things…in like i'm not living the "good" life exactly as planned. not really complaining, just reality
In line with Trail workers original post. One thing we noticed when it came to child care with one child when we where both working full time was how much money was wasted. When we calculated how much we paid in child care per month it was pretty much what I was making per month. What the fuck is the point of killing myself working to only use the entire pay cheque to pay childcare and have no money?
Scrapped that idea and became the full time stay at home. And in doing that we also pretty much saved a lot of extra expenses. And with Joely's coaching schedule during varsity season we don't have to pay out for after school care and such. Sometimes if things workout I will do some part time work but Joely and I both understand that if it starts to cost money to do that I will hand in my notice. And only just did that after 4 years.
Easier to do when you do not have this thing called a child or multiples of that.
Definitely, but you can't put a price on having kids.
It is easy to dodge our responsibilities, but we cannot dodge the consequences of dodging our responsibilities.
- Josiah Stamp
Every time I see an adult on a bicycle, I no longer despair for the future of the human race.
- H.G. Wells
Definitely, but you can't put a price on having kids.
for everything else, there's mastercard.
We don't know what our limits are, so to start something with the idea of being limited actually ends up limiting us.
Ellen Langer
i am just curious if they are stories of people actually pulling this off, or are we just fooling ourselves while trail worker is the only one who figured it out
They even have time to blog about it.
http://www.leelau.net/sharonandlee/
The no kids thing really helps. We could sell everything and check out too today, but I don't believe in the long term viability of it. Stashe isn't large enough to be sustainable.
They even have time to blog about it.
http://www.leelau.net/sharonandlee/
The no kids thing really helps. We could sell everything and check out too today, but I don't believe in the long term viability of it. Stashe isn't large enough to be sustainable.
Our 2 girls both have had to get braces this year. Just like that 10k gone in the blink of an eye. Lets hope the rest of our kids do not need braces.
No way to put extra in the bank when things like that are always coming out of left field.
Girls are expensive.
Then if they go to university and you have to foot the bill…
It is easy to dodge our responsibilities, but we cannot dodge the consequences of dodging our responsibilities.
- Josiah Stamp
Every time I see an adult on a bicycle, I no longer despair for the future of the human race.
- H.G. Wells
Our 2 girls both have had to get braces this year. Just like that 10k gone in the blink of an eye. Lets hope the rest of our kids do not need braces.
No way to put extra in the bank when things like that are always coming out of left field.
I'm not saying that getting braces for your kids is bad, but implying that everything is coming out of left field suggests that there might be another perspective to hold when it comes to financial independence. I "needed" braces when I was a child but my parents couldn't afford them, so I got mine as a adult. Even then it was only out of a purely selfish need to appear aesthetically more pleasing to the public. It really boosted my own vanity.
Perceived haves and needs are a really easy way to keep paddling your canoe upriver. You don't need to buy coffee every day, you don't have to own a car in the city. These are choices that everyone makes.
So the next time something comes at you, shift your perspective to one that serves your goal or dream of financial independence. Or not. The choice is yours.
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