2022 Financial Goals
Well, wasn’t 2021 interesting???
Welcome to my 2022 financial goals, a countdown to semi-retirement edition. Maybe. Hopefully!
I certainly can’t say if 2022 will be better than 2021, and even 2020 in our pandemic context, but it is my hope. Like you maybe, I’m a bit “done” with the pandemic and looking for optimism. I’m using this post for some personal inspiration because the reality is: I need it!
2022 Financial Goals – Looking back to 2021
A reminder to readers we designed our financial goals in the last year or so around these larger goals as part of My Financial Independence Plan here.
To realize my financial independence (which means work on my own terms), in 2021 we had expectations of fulfilling the following:
- Max out contributions to our Tax Free Savings Accounts (TFSAs).
- Max out contributions to our Registered Retirement Savings Plans (RRSPs).
- Continue to pay off our mortgage.
- Initiate a larger emergency fund to start semi-retirement with.
Well, since our last update in 2021, we put the pedal down on items #1-3 and started to re-think #4 that I’ll share more about in a bit.
In 2021:
- TFSA and RRSP contributions were maxed out,
- We paid down thousands on our mortgage (now just in the mid-5-figures to go), and
- We increased our cash position slightly for the years to come.
2022 Financial Goals – Looking ahead
Looking ahead, here are some financial goals for 2022.
Max out our TFSAs
You probably already know but it’s worth mentioning anyhow I think: the 2022 TFSA contribution limit is $6,000 per adult. Here’s the total TFSA contribution room to date: $81,500.
Using your TFSA as an investment account is one of the best things you can do with your TFSA, although other ideas exist as well.
In 2022, we already moved cash savings from our non-registered savings account to our TFSAs – so effectively this goal is nailed already. I’ll share what I bought and intend to buy more of in 2022, in future posts.
Max out our RRSPs
While I don’t yet know what my (nor my wife’s) RRSP contribution room is for this year, exactly, I know I’ll get those updates via our respective CRA Notice of Assessments – after tax filing work is completed. I figure our RRSP contribution room will be in the range of about $8,000 each for the 2022 tax year.
Increase our cash wedge for semi-retirement
Some readers will recall I made the decision to incorporate in 2020, for many good reasons many folks decide to incorporate as well.
I wrote about my thoughts on whether I would take a salary or dividends from my corporation eventually. In the near-term however, I will do neither.
Instead, I will see if I can increase our corporation income in 2022 and keep our increased cash savings there for the time-being as I approach semi-retirement, potentially around the end of 2024.
I will use my personal cash position to invest in my taxable account and build up investments there over the coming years.
How much cash do you intend to keep? Why?
Surpass $27,000 per year in 2022 from TFSAs and taxable income per year
Last year, was a HUGE year for us with dividend increases. I suspect if we get more dividend hikes in 2022, we should surpass this goal rather easily. Here is my chart from my dedicated Dividends page whereby I update my stock and ETFs holdings and share what I own for income and growth.
Check it out and let me know if you have any questions, including how to improve or my blind spots!
For now, I will continue to invest in my hybrid approach as I’ve done for the last 11+ years, for the coming years:
Approach #1 – we own a number of Canadian dividend paying stocks for income and growth.
We own these stocks inside our non-registered account and within our Tax Free Savings Accounts (TFSAs). My monthly dividend income updates focus on that.
Approach #2 – we own a number of U.S. dividend paying stocks for income and growth AND we’re owning more units of low-cost U.S. Exchange Traded Funds (ETFs) inside our RRSPs over time.
2022 personal resolutions
I’ll keep this list very short but I’m going to deviate a bit from my 2022 financial resolutions to share a few personal improvement items…
- Increase physical fitness. I’ve made improvements over the last year but I’m not where I want to be. I have commited to getting into a mix of walking, stretching, yoga, and some weights three times per week.
- Being more mindful of my time and energy. Less can be more. I think we can think of binge watching Netflix and drinking wine or craft beer during it as a form of rest, but it’s a bit flawed. Aligned to my personal goal above I believe physical activity is more restful than we might expect, and mental rest is more active than we realize. As such, I’m going to work a bit more in 2022 on my time, listening to my body, my mind, and what I need. Being busy and being effective are two different things. I’m going to work on what moves me, what doesn’t and focus on energy on the former more in 2022.
I wish you well in your financial or personal goals this year and I would appreciate any comments on mine. I read every comment.
What are some of your personal finance resolutions?
Do you have any personal goals to share in 2022?
Further Reading:
I’ve maxed out my TFSA and RRSP. Now what to invest in???
These are the 5 stocks I bought more of in 2021.
This was my financial independence update from a few months ago.
Mark
Mark
My name is Mark Seed - the founder, editor and owner of My Own Advisor. As my own DIY financial advisor, I'm looking to start semi-retirement soon, sooner than most. Find out how, what I did, and what you can learn to tailor your own financial independence path. Join the newsletter read by thousands each day, always FREE.
Always enjoy reading your blogs Mark. They’re a great source of information and have helped me and my husband tremendously in our investing journey.
That’s awesome Christine and thanks very much!!
Best to you and your husband in 2022!
Mark
Great goals! Not to mention the all-time greatest picture of a goal!
Ha, yes, I love that pic 🙂
All the best Mikey!
Mark
You have some great goals Mark, I’m sure you’ll make good progress in that regard.
There’s not much that we can do on the financial front as we’re now executing on our retirement income plan. On the non-financial side, COVID is the limiting factor for travel outside Canada, so perhaps getting in better shape, as per your goal, is something we can add to our list. First, we need to finish off the tins of candy and cookies we were given for Christmas; my wife won’t let me throw them away!
Ha, cookie tins 🙂
“There’s not much that we can do on the financial front as we’re now executing on our retirement income plan.”
Outstanding Bob. Health is wealth for sure!!
I wish you well in 2022 and I thank you for your insightful comments.
Mark
Hi Mark,
I don’t have extra cash to invest in my TFSA this year but I do have investments within my non-registered account that I could transfer in-kind to my TFSA. My only problem is deciding on which funds I should transfer into my TFSA. Hoping that you can shed some light on how to decide. Is it better to transfer the investments that are down? That way it reduces my tax liability?
If I transfer investments that are up, then I would incur capital gains tax.
Thank you for your thoughts on this. Happy New Year!
Thanks for your readership Tony. Interesting question and I outlined what I did a while back here:
https://www.myownadvisor.ca/should-i-transfer-stocks-into-my-tfsa/
A consideration is to only tranfer those assets from non-reg. to TFSA, whereby you have a very small gain to incur. Capital gains are an efficient form of taxation for long-term wealth-building.
Any stocks or ETFs you have your eye on in 2022?
Best wishes back!
Mark
Thanks Mark. That helped me out tremendously. I really learned a lot especially this part you wrote:
“If your non-registered investment is in a loss position, making an ‘in-kind’ transfer directly into your TFSA, you will lose the loss.”
As for my investments I just stick with the indexes VCN/VDY,VUN,VEE,VIU.
Thanks again!
Excellent stuff TT 🙂
Mark
I think you will exceed your goals again this year, Mark.
Already maxed out TFSAs and RESPs for 2022. Hesitating what to do with RRSP. Already maxed out for previous year. Normally would max out for current year too. But this year I want to give myself a little bit more time to decide on this one. Of course still contributing to company’s group RRSP for the match. Other than that, I need to do some calculations to decide which is the better way. Yeah, there might be a good problem for us to have: too much RRSPs.
Kind words, May, I hope so 🙂 Growing tired of work some days – feels like a grind pushing boulders uphill. I enjoy my job, my role, but with all the turmoil that is COVID-19 and the work climate these days, I know it’s time to strive for part-time/semi-retirement work. End of 2024 is a tentative target date if all goes well and I will be updating my financial independence plan on that, this year, more publicly.
TFSAs and RESPs maxed for you is outstanding.
Having an RRSP-problem would be great. I hope you get there 🙂
Best wishes in 2022 and see you on the site. Always appreciate your comments.
Mark
I know what you mean about working. Pretty amazing for me, every time when I was tired of work and wanted to retire, things change and my working environment becomes better and less stressful. Then I don’t mind to work a few more years. Right now it’s the best time for me career wise, considering stress level, pay scale and working climate. Have you ever considered to change a job? Sometimes a new job can do that too.
But of course, a job will still be tiring when one gets older no matter what. So end of 2024, three years from now, is also my new target for retirement. Let’s see what would happen then. Maybe both of us will begin a new page of our life.
Oh, I like my job overall, I’ve been in a newer one for the last 2.5 years but I sense my emotional state for semi-retirement readiness is getting stronger by the month. I think I see the light at the end of the proverbial tunnel for financial independence. 🙂
It’s exciting, scary but also challenging since I’m both emotionally and financially close.
I’ll still be working in 2025, likely this blog, and other online ventures and maybe some contract work but it will be almost 100% on my own terms. It will be interesting to see where you also end up (at the same time = end of 2024). Keep me posted!!
Hi, Mike,
Your personal and financial goals are encouraging. We actually customer ordered aprons with words like “H&W” on it, meaning “health and Wealth/Wellness”. So every time I put on them working in the kitchen, I am reminded that these are foundations in life, without health/wealth/wellness, nothing can be built on it.
I have been hiking daily for 1.5 hours in the forest (forest bathing), the old growth trees release essential oils which stays within you for up to 30 days, (we live next to the mountain trail), doing 1-2 hours gardening work in the spring and summer, yoga daily, and regular meditation group sitting. Helping local communities in whatever way we can (time and money). I experienced that if I balance my life energy on these things, it brings calmness, peace, inner joy and tranquility. For 2022, I would like to start resuming my golf game, practise and play on the course. Vancouver Island has some nice golf courses, would like to play more. If you happen to travel to Vancouver Island, please let us know, we can meet for a round of golf.
Financially, the goal is to expand our real estate portfolio both in Canada and US using the profits generated from equity market, and balance the existing portfolio and let the winners grow and trim the weaker one. I am still learning in this regard, but it is so much fun to learn and act on it, the scorecard will show the performance. Steady, stable and growth are the mantra.
Enjoying reading your blogs, Mark, and thanks for sharing always.
H&W – I like it!
Good on you for the hikes…I hope to do more walking in 2022 although I did very well last year overall.
I figure there is no point in any semi-retirement or retirement plan if you are not healthy and well to enjoy it. Sounds like a plan for golf – I’m a big fan!
I think you are smart to revisit the portfolio and re-assess where needed. That’s smart and the sign of a prudent investor!
Best wishes for your goals in 2022!
Mark
Hey Mark, very well done in ’21. Understatement.
Your ’22 financial goals are great and I’m certain you’ll achieve or surpass them.
Your financial stuff is pretty much on auto pilot and the trajectory seems to be exceeding what you would have expected even a few years ago.
I like the personal resolutions. If I read you right I think that’s a sign of maturity, acknowledgement you’re more than good financially and recognizing the truly important things – inner peace, mental and physical health, activities you love, and dedicating even more to them. Nice.
Best wishes to you and yours in ’22.
Thanks for the kind words. A few more years, some luck with the markets, and I figure we’ll be in a solid position to work part-time.
I don’t share my personal resolutions very often but I figured I’d open up a bit 🙂
Best wishes to you back in 2022 and I very much appreciate your contributions to the site discussions.
Mark
You’re welcome. Let’s stay positive for another good one!!
But first I want to get rid of this very nasty head cold. Still testing negative!
Rest up!
Mark
Thanks. Very hard for this guy. Cut my workout back by 1/3 yesterday and limited to a 4k walk!
Hope you a speedy recovery. Take it easy. 4K is lots of walk.
I’d love to see you do an article with strategies for single people with one pay cheque. Not everyone can max their RRSP and TFSA in the same year.
Thanks Sarah. I’ve written a few and happy to do more.
https://www.myownadvisor.ca/can-you-retire-early-on-a-lower-income/
Any specifics?
Cheers,
Mark
I think charity is even better if you do it in person. I applaud you. For me it’s just easier to give funds than volunteer. But people still get help.
Yes, well, I need to do more of it. Hope to volunteer at local Food Bank and other places when I work part-time. We do give money to causes monthly.
All the best,
Mark
Join the Peloton cult, Mark, if you want to improve your physical fitness! My wife and I bought one recently and have been loving it. Convenient, no-excuse exercise. Intense too!
Ha. Nice. My SIL has one and she enjoys it quite a bit!
Some good financial goals!
Hopefully markets will cooperate this year.
Any family goals? I’m focused on family and relaxing in 2022. My two-year entrepreneurial sprint I promised once the pandemic started is over in March 2022!
But oh yeah, I wrote a new book with Portfolio Penguin Random House that is coming on June 28, 2022. I gotta market it since I spent two years writing it! Lol
Might delay semi/retirement until August 1, 2022 then.
Sam
Nice Sam – congrats on the new book! Do share more details when you can.
Is it like How to Engineer Your Layoff or other?
Thanks for the kind words about the goals. We hope our milestones are only 2-3 years away. Would enjoy working for the same company we are now but the future is always uncertain!
Mark
Will share details in March! Doing the final final edits now. Phew, so much work! It is a traditionally published hard cover book unlike my severance negotiation book, which is self-published.
Sam
No doubt! Keep me posted!
Mark
Your almost there. Setting goals and the achieving them is a great feeling. I find it very hard to actually come up with a list of goals and write them down. Travel was going to be on the list during the first 10 – 15 years of retirement, but got only 3 trips in. Now we don’t know when the next one will be.
A cash wedge as you put it has never been on my list but now dividends are piling up and nowhere to spend. (I did spend a lot last year on custom golf clubs) What now? re-invest and wait, or spend on some luxury item like a new car? We already increased our charitable giving considerably as that also has been a goal.
Fitness, need to work on to improve this year. Maybe more cycling once it stops raining in BC. Golf course is open again so that will help.
I’ll reading your blog to get inspiration.
I feel the cash is important (for me) DivInvestors since I have no bonds – taking on a lot of equity risk right now.
As we age, and meet our financial goals, charitable giving is also increasing in our house, although I hope to dedicate more time to causes/my time to causes and volunteer work in the coming years. I simply don’t have it now but I suppose I could always make the time.
More biking for me when the snow is done in Ottawa. More golf in April or May too!
I hope to keep you inspired. 🙂