Hey there,
I am a new Mustachian although I have been very interested in money from a young age. I am starting a new job in two weeks after almost a year of being unemployed. I am also in a newish stable relationship. I'd like to make some wise choices and start with a good foundation moving forward. I'd appreciate any thoughts and advice that more experienced Mustachians can give to me. I've given a lot of detail (hopefully not too much) but if you have questions, please let me know.
Relevant information:
Located in Canada
New job will pay between $55K-$60K annually (currently negotiating for an increase, $55K is what the current offer is)
After federal and provincial tax, plus CPP & EI deductions, this should result in a take home pay of $1607 every 2 weeks.
There will be a benefits package that I need to pay into - I don't know what the deduction will be for this
In one year's time I will be eligible for the company pension plan
New job is a 45 minute commute away. Partner works 8 minutes away from that so we will look into commuting together. She is in an 8 month lease; I currently pay $500/mth in rent including all utilities. Homes within walking distance of our jobs are between $500,000 and $1,000,000. (Location - South end of Guelph and Aberfoyle, ON). We would like to save up for a downpayment; it is likely that we can find something less expensive further away. Small is better.
Current Assets: Overall $46,000 in cash and cash substitutes. $29K is locked in RRSPs.
Current Expenses: Car loan at $14,114.86 at 5.99% interest rate, plus monthly expenses at $1040. No house.
My partner and I have not combined finances and live separately. She is paid slightly above minimum wage. We will likely be moving in together at the end of the 8 month lease.
Full details:
CIBC
Checking account: $500
RSP: CIBC Balanced Fund $8035.20
RRSP: CIBC U.S. Index Fund $1,877.32
MER of 2% plus 1% trailing fee for Balanced fund; unknown for the US Index fund
Tangerine:
RRSP: Tangerine Balanced Growth Portfolio $11,973.80
TFSA: Tangerine 0.8% interest rate $1,674.55
Emergency fund: Tangerine 0.8% interest rate $4079
MER 1.07% for Trangerine Balanced Growth portfolio
Scotia iTrade:
Stocks, Proctor & Gamble - $1700 USD - charges $25 inactivity fee every 3 months; have a capital loss for this year due to selling blackberry stocks for -1,324.21 CAD
Assante:
RRSP: $16045.20
Don't know what the MER is
Overall current assets: ~ $
46,000 of which $29,296 is tied up in RRSPs.
Current Expenses:
Car loan payment: $131.70
Car insurance: (this will increase as I'm going from 0km commute to 35km each way) $92.13
Rent: $500
Netflix: $7.99
Cell Phone - WIND: $55.00
Groceries - unsure, about $75 per week
Eating out - ~$35 per week
Monthly bank fee - $14.95
Roller derby fee: $45
Miscellaneous: $60
Overall current expenses (monthly): $1040
Zero credit card debt
Outstanding balance on car loan (2012 Ford Fiesta, bought used): $14,114.86 at 5.99% interest rate
MER on CIBC Balanced fund is 2% plus a 1% trailing fee? I also automatically purchase $25 every two weeks. Am I being stupid?
Rates of return for US index: 3 months -1.4, 6 months -3.8 1 year 6.0. If the US market is doing so well, why is my indexed return doing so poorly? Also, I honestly can not figure out what kind of fees I am paying for this account. It's page 107 of this simplified prospectus..
https://www.cibc.com/ca/pdf/mutual-funds/cibc-sp-en.pdfI could really use any advice that more experienced Mustachians can give. At this point it seems clear that I should transfer some of the funds I have into paying down the car loan, but I'm not sure which ones I should cash out. Also, it seems apparent that I am paying too much in fees but I don't know what I should clear out and where I should move my funds to. I've heard VanGuard is good but I don't think another fund on top of the ones I already have is the right plan... please, if there is any advice you can give me, I'd highly appreciate it.