2018 Financial Goals – May Update
Spring has finally sprung in Ottawa!
That means since my last update here, it’s time for a financial goals update.
Now, as a reminder, here are our two big hairy audacious long-term financial goals:
- Become debt-free before we retire (that’s pretty much a MUST), and
- Own a $1 million investment portfolio to spend in retirement.
Instead of focusing on these goals and thinking they are insurmountable, we break-down our long-term goals into more manageable chunks.
Also, unlike what some bloggers or financial experts suggest, we save and invest, and we pay down debt at the same time. I’ve followed this approach for many years and will continue to do so. On that theme, here’s our financial goals for 2018 and where we are trending to:
- maximizing contributions to our TFSAs (for long-term dividend income and growth), and
- killing debt.
Goal #1 has long since been accomplished. In January 2018 we decided to maximize contributions to our Tax Free Savings Accounts (TFSAs). If you don’t already know, there are many great things you can do with your TFSA here! We decided to buy more Canadian dividend paying stocks inside our TFSA last month – including some of the ones I said I would in this post here (utility stocks) and here (bank stocks).
Our TFSAs are now fully maxed out. Based on recent calculations the investments inside those accounts now churn out close to $7,500 in (tax-free) dividend income per each year – should we want to withdraw that money for something. (You know what I’m going to write though – the thing is – we don’t dare touch that money. For almost a decade we have considered our TFSAs as a retirement account. Investments within our TFSAs will help cover future retirement spending needs when we’re no longer working and/or when we no longer have a decent job.)
Regarding Goal #2 we have more work to do. We took on some debt to make a down payment as part of this final housing dilemma decision but we believe this was the best decision for us and for what our future semi-retirement lifestyle could be in as early as 5-10 years from now. While managing money is an important skill in life…life is definitely not about money.
That’s it for now. We’ll provide more details about Goal #2 in a future update.
How are you doing with your financial goals this year? Did you set any?