Yes today is my birthday and yes I am now 30.
Are things different? No.
Does something feel different? Yes!
Up to this point I’ve just been watching my expenses and saving/investing without a clear plan. It’s never concerned me before because of where I stood financially in comparison to other people in my age range (see the money sense article) . I had no debt, plenty of savings and rrsps, and a pretty expensive condo with tons of equity in it. This put me ahead of a large portion of people in their 20′s. In the 30′s I’m not so far ahead and it leaves me with an uneasy feeling. I have to ask myself, has the game changed? Am I playing baseball with a golf club?
I’m the type of person that needs to be able to see as far into the future as possible to feel comfortable. Right now the path is foggy and I feel that I’ve run out of time to make a clear path.
What can I do?
I need to take action. I need look at what I know and what I don’t know. Once I have that then I need to make sure I’m clear on what I know and answer what I don’t know. So lets start now…
What I know?
- I know I plan to contribute $15,000 a year to my RRSP(401K) until I retire. With a conservative growth of 5% I believe it will give me plenty of funds to act as a corner stone to my retirement.
- I’m currently implementing a version of Canadian Capitalist’s Sleepy Portfolio in my RRSP (401K). I intend to follow this strategy for the next 10 years.
- I know in 3 years we want to sell this condo and move into a house no more than $500k
- I know I want to max out RESPs (education fund) when we have kids
What I don’t know?
- I don’t know how many children we will have and how much they will cost
- I don’t know how maternity leave and child care will impact our finances
- I don’t know the specifics of my fiances pension
- I don’t know how to manage her finances to meet our overall goals.
- I don’t know what I’m going to do with my RRSP (401K) after 10 years
- I don’t know how I plan to utilize the TFSA (Roth IRA)
- I don’t know how I’m going to invest excess funds
- I don’t know how I’m going to structure our finances when we retire at 55
It’s time to get some answers because in my mind the clock is ticking. I need to have my retirement/financial plan.
Do you feel a sense of urgency on milestone birthdays (I hope not cause I can’t handle this every couple of years)?