My Current Financial Position and Advice Needed

[iwanttoretireplease]

Hello everybody,

I would like to introduce myself and my financial situation. I am looking for advice on what to do next to better myself and my financial situation. I feel like I am doing pretty well but there is always ways for improvement. Currently I sit at

Im 29
TFSA 61k mostly sp500 etf, vtsax, reit, bank stock
RRSP 25k 3 mutual funds
Cash 88k
Truck worth 6k paid off
Muscle car 20K paid off

I am a Business Administration Finance Major, but work in the oil industry making good money when I am working. I also did my TESL course so that's an option also. In past years I have traveled to inexpensive countries between oil jobs. Do you guys have any ideas for a job/business I can do from the computer? Any career tips?

I have been pretty religious putting 1k into my tfsa a month. I know I am over weight cash but I live in a very expensive city and am renting currently and work out of town. A condo is high 200 to 300k and a house would be 500k plus in my city. I would really like a shop to work on cars and store my vehicles. If real estate was better priced I would buy some rental property. I feel the real estate market in my area and stock market is over valued.

So what should I do? Career path? With extra cash? Buy house anyway? Business? Rental? Rental far away? More VTSAX? More of the same? Any advice is great in any part of my story. I would like to be FI or very close by 40.

Thanks,

Anon

[Goldielocks]

What is your priority?

Your start indicates that you want to retire, then you list that you want to change careers, then you mention expensive hobby (cars / working on cars), international travel,  then that you want to own a home to work on cars.

Despite all of this, there is no mention about a significant other or a plan to get one eventually, kids ever?


Eventually, all of this possible, but what do you want to achieve first?

Also - what is your current income... that impacts timeline and alternative career options, both?

[iwanttoretireplease]

Thanks for the reply,

I am torn between what I want first. I do have a new girlfriend that wants kids badly. I am undecided, what a surprise, about the idea. It would be nice to have a legacy but my job would be bad with the traveling and being away. Also its a lot of work although worth it I'm sure. I clear between 2 and 3k a week as well as like an a good tax return each yr. Last year I only worked 4 months so I picked up some side jobs. Years prior I've worked 9 months plus so some years are better than others.

[Goldielocks]

Okay, I will be honest here,  $40k to $80k per year  (net) is decent, but not a huge amount, especially with your list of items you would like to accomplish, and desire for some spendy hobbies (travel and cars), with potentially a family in your future eventually.

Your first task is to get clear on what your top 3 priorities are, and the timeline (ideal ) to achieve each (if you don't want to be all in for one at a time until obtained).

[marty998]

I feel the real estate market in my area and stock market is over valued.

Does the rest of your city think your market is overvalued?

Markets work as a herd. Individual thoughts don't matter until you add them all up with everyone else.

[jlcnuke]

Thanks for the reply,

I am torn between what I want first. I do have a new girlfriend that wants kids badly. I am undecided, what a surprise, about the idea. It would be nice to have a legacy but my job would be bad with the traveling and being away. Also its a lot of work although worth it I'm sure. I clear between 2 and 3k a week as well as like an a good tax return each yr. Last year I only worked 4 months so I picked up some side jobs. Years prior I've worked 9 months plus so some years are better than others.

Being FI is about how much you spend, not how much you earn 'some weeks' of 'some months' in a given year.

IF you want to be FI at 40, you'll need at least 25x your annual spending in investments (preferably closer to 30x imo, but plenty here are optimists who go with 4% as good forever). One way to make that REALLY REALLY hard to achieve is to leave most of your money sitting around in cash, becoming less and less valuable as time goes by.  Figure out how much you'll need (based on your spending), then you can figure out how much you need to invest with your asset allocation to get there.

[FIRE Artist]

Being FI is about how much you spend, not how much you earn 'some weeks' of 'some months' in a given year.

IF you want to be FI at 40, you'll need at least 25x your annual spending in investments (preferably closer to 30x imo, but plenty here are optimists who go with 4% as good forever). One way to make that REALLY REALLY hard to achieve is to leave most of your money sitting around in cash, becoming less and less valuable as time goes by.  Figure out how much you'll need (based on your spending), then you can figure out how much you need to invest with your asset allocation to get there.

OP is Canadian, and therefore 25 x's is likely good enough, we don't have the healthcare cost uncertainty.

I think OP needs to first focus on earning more and consistent money by getting a full time job out of the oil patch (if necessary), then start making plans. 

[MilesTeg]

Hello everybody,

I would like to introduce myself and my financial situation. I am looking for advice on what to do next to better myself and my financial situation. I feel like I am doing pretty well but there is always ways for improvement. Currently I sit at

Im 29
TFSA 61k mostly sp500 etf, vtsax, reit, bank stock
RRSP 25k 3 mutual funds
Cash 88k
Truck worth 6k paid off
Muscle car 20K paid off

I am a Business Administration Finance Major, but work in the oil industry making good money when I am working. I also did my TESL course so that's an option also. In past years I have traveled to inexpensive countries between oil jobs. Do you guys have any ideas for a job/business I can do from the computer? Any career tips?

I have been pretty religious putting 1k into my tfsa a month. I know I am over weight cash but I live in a very expensive city and am renting currently and work out of town. A condo is high 200 to 300k and a house would be 500k plus in my city. I would really like a shop to work on cars and store my vehicles. If real estate was better priced I would buy some rental property. I feel the real estate market in my area and stock market is over valued.

So what should I do? Career path? With extra cash? Buy house anyway? Business? Rental? Rental far away? More VTSAX? More of the same? Any advice is great in any part of my story. I would like to be FI or very close by 40.

Thanks,

Anon

Just a heads up, you'll probably get several folks calling/implying/challenging you a "car clown" for daring to enjoy cars, working on cars, etc. Don't let that get in the way of the solid advice you can receive here.

[Goldielocks]

MilesTeg -- would you accept the term "Hobby clown?" instead of "car clown"?

  :-)

[myrrh]

I would caution against kids until you have a bit more stability and know you are in a long term relationship (you mentioned a "new" girlfriend). Kids may not be incompatible with working away from a home city and international travel, but it does make things a lot more difficult, especially on the main caretaker.

I would say working away from a home city and international travel are fairly incompatible with landlording, too.

Agree with Goldielocks that you need to figure out your priorities first.

[plainjane]

The 1k per month into tfsa - make sure you don't go over the limit and over contribute. The penalty is pretty high.