Financial Planning Help?

[90_Shelby]

If a person is married do you take equity/assets and divide by 2? What if the couple isn’t the same age? Average age or who ever is younger?

[lasimmon]

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Is it even that rare though. A million bucks in equity just means you've got a decent amount on equity in your house and you are on track with your retirement and savings. You aren't exactly buying 100K cars at that level.

Rare having a million by 30?

Extremely rare I would say.

[dirtsniffer]

Nvn

[Sugarphreak]

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[lasimmon]

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I'd agree that you need to make some modest gains outside of your regular income somewhere along the way to do it. Or rich parents I guess, haha.

I don't think it is that hard though if you have two income earners and somebody paying attention to the finances.



To be honest, most professional couples without kids that I know that really have their shit together are easily around the 1M mark in equity (assets minus liability) by around 30

That may be the people you know but it’s incredibly not normal.

[Sugarphreak]

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[tonytiger55]

OP.
I was trying to run the numbers but there is insufficient info. There is a lot of information that is needed. But lets just go with what you have listed.

It looks like you have 209k, but you actually dont. If you break it down, your money is in different vehicles and it can be very deceiving.
For example , your RRSP money is $96k (11k is through employer and not counting LIRA). But its not $96k, thats the amount prior to tax. When you hit 71, your RSP will convert to a RIF. You WILL have to withdraw a present amount each year.
How is your GIC structured..? Is it 3.5% after three years..? How is it balanced in relation to the rest of your portfolio..? You could be loosing money to inflation.

Depending on how you or your advisor has layered them up. What problems are the investments is he/you you solving? You should be asking this. Thats the basic premise of it.

For example. At each life stage you will have certain events, problems that come up. These are various. For example, if you buy cars, they generally they have a lifespan of say 10-12 years. At those junctures do you have funds available for another vehicle..?
Home maintenance for example. Do you plan to live in your home for the rest of your life..? or downsize..? How old is the home..? Your roof, boiler(or whatever its called here.. furnace), have lifespans and will need to be replaced at some point. You need funds for this.

How liquid is your emergency fund..? How stable is your career..? What would you do, if your partner did not come home one night..? That being said, people don't just die, they die of something. How would you manage critical illness..? How does your employers benefits work vs having your own. Don't just sit there and say they are great.. what are the numbers vs your actual lifestyle...?

You are the breadwinner here as your wife is in school. So how have you protected the main asset that is you..? Don't just say you got savings, run the actual numbers and scenarios. Your advisor should be able to do this.

What type of lifestyle do you want when you retire..?
You have to count your TFSA in relation to this. These are all tools to manage and create your wealth and there are others to preserve it.

Your RBC advisor is not in contact because he probably hit his 'Volume' target to bring the money into the bank. His job is done.

One of the things you need to realise is your advisor needs to be able to tell you what is normal within that income and lifestyle range. For example, if your advisor is seeing x amount of clients accounts per day/month and year. He/She will get to see average variances of incomes, age brackets and life events. Within your assets, income range, age... are you being the best you can be...? The big numbers look great vs someone like me. But take those variables and compare it to something comparable. It may not be that good.
Your advisor will be able to bitchslap you and tell you what you need to be doing rather taking your order and saying 'I can do that'.
Your advisor has tools that can calculate all ive listed above. Thats his bloody job.

For example I had a client yesterday that wanted to do investments. He thought he was in a good position in life. He thought $3k credit card debit at 19.99% was not that much. I calculated that he has actually debit of $28k and no assets. Fuuuuck that. I cussed his arse and spent the whole hour telling him at 38 that shit is not normal and need to clear his debit asap. The poor bugger got a reality check as he had nothing else to compare to.

Now thats a lot to take in. Get a advisor that can think of all this shit for you. Thats his dam job. Or have this at the back of your head so at least when you are talking to a advisor you know if they are just acting like a big time Charlie. Believe me.. Calgary is full of them.

But just based on the info listed, I'd say your financial situation for that level is not good. But again.. insufficient data.

[max_boost]

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Most people on Beyond as well I thought as well?

Everybody on here has a 100K AMG, GTR, M-Whatever, or something equally as impressive. I don't think people are blowing like 20% of their entire equity on depreciating assets... but who knows, haha.


I suppose the other thing is a lot of people have golden parachutes coming from their parents at some point so they don't worry about this stuff. Bought and paid for houses, or businesses like restaurants. I guess you can afford to just be a little lax if that is the case. Must be nice.

Right. Or be a pretend baller living off the heloc etc. lol

[Sugarphreak]

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[Misterman]

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That may be the people you know but it’s incredibly not normal.

People tend to use weird metrics for this sort of stuff. Of course having a million is rare, most people are idiots and care more about driving a financed BMW to impress their "friends" than having money in the bank. It's rarity has no bearing whatsoever on how easy or hard it is for a person to achieve.

That's the real question for context. How many people who put real focus on it, get it?

I read an article a long time ago about people who retired around 30. I like reading those stories, seeing what people did to achieve such a great lifestyle. It was actually rather disappointing. It was all people that just got some type of basic bitch degree, lived like poor people, hammered down on their student loans and then proceeded to continue living poor and save every nickel. By 30 they had a million bucks, left it in some 3-4% investment, and lived off of 30-40k$/yr.

So if you're honestly focused on it and have a goal with a plan in mind, it doesn't seem that difficult to earn a million dollars by your 30's. I know I would have it 3 times over by now if I wasn't so wasteful with money when I was younger.

[lasimmon]

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People tend to use weird metrics for this sort of stuff. Of course having a million is rare, most people are idiots and care more about driving a financed BMW to impress their "friends" than having money in the bank. It's rarity has no bearing whatsoever on how easy or hard it is for a person to achieve.

That's the real question for context. How many people who put real focus on it, get it?

I read an article a long time ago about people who retired around 30. I like reading those stories, seeing what people did to achieve such a great lifestyle. It was actually rather disappointing. It was all people that just got some type of basic bitch degree, lived like poor people, hammered down on their student loans and then proceeded to continue living poor and save every nickel. By 30 they had a million bucks, left it in some 3-4% investment, and lived off of 30-40k$/yr.

So if you're honestly focused on it and have a goal with a plan in mind, it doesn't seem that difficult to earn a million dollars by your 30's. I know I would have it 3 times over by now if I wasn't so wasteful with money when I was younger.

I mean in Calgary the median FAMILY income in 2016 was $98,620. That is all ages.

Its incredibly rare to have a million in equity by 30 without family money or some sort of lottery win.

[Misterman]

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I mean in Calgary the median FAMILY income in 2016 was $98,620. That is all ages.

Its incredibly rare to have a million in equity by 30 without family money or some sort of lottery win.

Yes it's rare. As has just been discussed........

[rx7boi]

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People tend to use weird metrics for this sort of stuff. Of course having a million is rare, most people are idiots and care more about driving a financed BMW to impress their "friends" than having money in the bank. It's rarity has no bearing whatsoever on how easy or hard it is for a person to achieve.

That's the real question for context. How many people who put real focus on it, get it?

I read an article a long time ago about people who retired around 30. I like reading those stories, seeing what people did to achieve such a great lifestyle. It was actually rather disappointing. It was all people that just got some type of basic bitch degree, lived like poor people, hammered down on their student loans and then proceeded to continue living poor and save every nickel. By 30 they had a million bucks, left it in some 3-4% investment, and lived off of 30-40k$/yr.

So if you're honestly focused on it and have a goal with a plan in mind, it doesn't seem that difficult to earn a million dollars by your 30's. I know I would have it 3 times over by now if I wasn't so wasteful with money when I was younger.

Agreed. I also enjoy reading articles like that. I also like reading about what keeps people in their social class, how the rich manage their wealth and what each class typically spend money on. Buying cars they can't afford is definitely one of the ways that keep people from building wealth.

Like you said, most people who become millionaires early live relatively boring lives pinching pennies where they can. I wouldn't say it's disappointing per se. You don't become rich by accident; it's an execution of a methodical and consistent approach over time and most people just don't have the stomach for that kind if discipline. That in itself makes for an extraordinary case study.

That said, this is Beyond, where people don't think a million bucks is impressive.

[Strider]

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debit [...] debit [...] debit

Debt. The word you're looking for is 'debt'.

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But just based on the info listed, I'd say your financial situation for that level is not good. But again.. insufficient data.

Agree with @G... thought OP was doing better based on the humble bragging, but 36 with house paid off and ~$280k in savings and ability to save $6k/month is a far cry from "not good".

[Buster]

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Debt. The word you're looking for is 'debt'.


Agree with @G... thought OP was doing better based on the humble bragging, but 36 with house paid off and ~$280k in savings and ability to save $6k/month is a far cry from "not good".

That's an aluminum/aluminium thing.

"debit" can be both a noun and a verb.

[Strider]

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That's an aluminum/aluminium thing.
"debit" can be both a noun and a verb.

I know debit can be a noun or a verb, but debit is a transaction (or amount charged) whereas debt is a balance owed.

[Buster]

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I know debit can be a noun or a verb, but debit is a transaction (or amount charged) whereas debt is a balance owed.

an amount owed can be referred to as a debit in the ledger.

I think this is just a regional terminology thing.

[jwslam]

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Has anyone hit their “millionaire by 30”? Without win fall (lotto) or trust funds, which without a doubt is still impressive and I’m very jelly of them trust fund babies.

Millionaire in assets isn't difficult if you're also a million in liabilities...
I'm probably in that ballpark at 30. Net zero is the rave nowadays right? Oh shit, that's energy net zero. Fuuuu

[A790]

lol this thread.

OP is pwning most people posting here in terms of real assets. Tons of liquidity. No mortgage/rent. Naturally, let's talk about how he's not doing as well as he should be.

Nice work, OP. You may not be a beyond millionaire, but you are well off by most other measures.

[Buster]

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lol this thread.

OP is pwning most people posting here in terms of real assets. Tons of liquidity. No mortgage/rent. Naturally, let's talk about how he's not doing as well as he should be.

Nice work, OP. You may not be a beyond millionaire, but you are well off by most other measures.

It's really hard to compare people with no kids to people with kids.

I almost stop reading when people say they have no kids.

Kids don't just burn cash... They create a psychological environment where you are concerned about providing for the little poopers. I'm way way more concerned about rainy day contingencies than I would be if I had no kids.

My life would look dramatically different if I didn't have the slow drip of the provider instinct constantly nagging me.