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Helping Canadians with Personal Finance Since 2006

13 Comments

  1. FrugalTrader on September 4, 2008 at 10:59 am

    Great post QCash, thanks for sharing. I like how you look at all your accounts as a single portfolio. That is something that I need to look into as I sometimes tend to look at individual accounts on their own.

  2. Dividend Growth Investor on September 4, 2008 at 11:02 am

    QCash,

    I am looking forward to reading about your income investments, method of selection, specific stocks in your portfolio.

    I can only dream I could retire at 36.

  3. cannon_fodder on September 4, 2008 at 2:05 pm

    Qcash,

    We have 4 RRSP accounts – 1 each through work, and 1 each that are self-directed (currently moving them back from RBC DS to E*Trade). My wife’s are both spousal.

    We have 1 non-registered account at IB (because of the low margin interest).

    We have 2 RESP accounts (also moving them from RBC DS to E*Trade). One is for my daughter and the other is a family one for my wife’s children.

    We have 3 chequing accounts – one joint and the others are our own. Partly due to legacy (I’ve had my TD account for almost 20 years) and partly due to a desire for some independence.

    We have had some high interest savings accounts but that was only until we could take that money and apply it to the mortgage (there were annual maximums that we reached). Now that we have a readvanceable mortgage with BMO, if we ever find ourselves in that fortunate position, we can just pay down the mortgage without worry of hitting the limit.

    We have various credit cards – primarily a CIBC Aerogold (because of the points), an Amex Airmiles (because of Costco and Airmiles) and a temporary Citibank M/C because of a 0% balance transfer promotion which we tapped into to pay down the mortgage balance until the term ends.

    Our kids have their own bank accounts but we did take one child’s savings that were in normal savings account and invested it in a balanced equity fund. Fortunately, even as she has gotten older, she has resisted tapping into it – on the other hand, she has not contributed to it for the last few years. It seems that makeup, clothes, cell phone bills, etc. eat into any money she is given.

    We only have one property, our residence, and our mortgage balance is about 20% of the house value. We’re just beginning the process of tapping into the HELOC to implement the SM.

  4. QCash on September 5, 2008 at 8:49 am

    FT

    I used to look at all my accounts individually and ended up with 8 balanced accounts :-( But I realized that I have to look at all my investments as one big portfolio.

    DGI

    With FTs continued permission, I hope to make regular contributions and let you know what I have where.

    Cannon Fodder

    My kids are only 3 and 5, and I think it is possible that they could have a sizeable amount in their account by the time they turn 18.

    My wife and I are constantly talking about ways to instill as sense of financial responsibility in them as they grow older to ensure they don’t tap into these accounts on a whim (my plan is just not to tell them they have any money :-).

    I have never been a fan of leverage investing, but I have used my HELOC (C3) to purchase investments (I2) and I while I have been aggressively paying it down with some of the investment income, it is tempting to use it to buy more (especially with the firesale on stocks this week :-) but my wife is uncomfortable with the idea of debt (one of the many reasons I love her).

    Q

  5. MultifolDream$ on September 5, 2008 at 11:43 pm

    Great reading.
    So far I have much less separation of the investment accounts as I’m still in my first capital accumulation years after my arrival in Canada. The proposed split makes a lot of sence and I guess you have significant benefits in consolidation all these accounts at 2 financial institutions.

  6. Dividend Growth Investor on September 6, 2008 at 6:58 pm

    Qcash,

    That’s exactly what I wanted to hear :-)

  7. Al on September 7, 2008 at 3:21 am

    Nice way of organizing assets.More power to you.

  8. JoshuaSBK on September 25, 2008 at 3:05 pm

    I didn’t see anything in there about an emergency fund. Perhaps if you’re retired it’s not as necessary, but having a nice chunk of liquid cash in a High Yield Savings Account “just in case” may take an additional load of stress off. ShoreBank, who I represent, offers a competitive rate of 3.5%. It’s all online, has no monthly fees and allows easy electronic transfers with up to six other accounts. Check them out at http://shorebankdirect.sbk.com.

  9. financePHI on March 2, 2009 at 8:55 pm

    Great post. Looking at your portfolio tells me that I’m unfortunately on the wrong path and need to start over. :(

  10. skook on September 13, 2009 at 8:44 am

    Qcash – I am curious if you are really “retired” or just doing a different job? The reason I ask is that you are very young. $1.6million seems like an awful lot of money, however if you expect to live to 80 – another 44 years, how are you going to fund it all? If we assume a bond and stock mix that looks to return 8% per year and inflation is 3% (real inflation I think is MUCH higher), and you are raising a family and paying taxes? The numbers dont add up…unless I am missing something

  11. FrugalTrader on September 13, 2009 at 9:12 am

    skook, if QCash had a $1 million portfolio invested in growing dividend paying stocks that averaged today 4% dividend, he could withdraw $40,000/year from his portfolio without touching his capital. As well, the increasing dividends would be completely tax free income (split between him and his spouse).

    Combining the dividends, rental income, along with his relatively frugal nature, his 1.6 million should last him a lifetime, if not more.

  12. DocB on September 14, 2010 at 3:35 am

    Cannon_fodder, I have some questions about your excel spreadsheet. In particular, the “house value growth rate”does not appear to impact the calculations…is this a feature you are considering in version 3?
    Regards

  13. burke on September 14, 2010 at 11:35 am

    I tend to agree with Skook. $1.6million is a lot of money – IF you are 60 or 65 now. How do you support a family with 2 kids on $40,000 – $60,000 per year pre tax? Is this assuming no mortgage payments and no travel at all? With inflation and stock corrections how do you hope to not dip into principal? I have a lot more than this (40yrs old) and am nowhere near retiring – the numbers dont add up.

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