Retirement Progress Report 2

So things have changed quite a bit since we last looked at the Lowe family retirement strategy. They’ve simplified. Mainly, I realized that it made very little sense to have such a big “Rainy Day” fund ($20k) and not have that money invested and compounding. So now we have $5k ready for emergencies and the rest gets invested.

The last few months we’ve worked hard to spend less frivolously, and to invest more aggressively.

Here are the figures:

TFSA (self-directed TD Waterhouse WebBroker account): $15,194.46

Up $9,127.46 since last report.

This is our main investing account comprised of 3 low MER TD E-Series mutual funds (TDB900, TBD905, TDB902). We’re 1 month ahead of schedule for our goal of $20k invested for the year, averaging $3,042.49 invested every month.

This quarter we invested 42% of our net income. To help free up money for investing, we’ve also been selling thousands of dollars worth of shit we no longer use via Kijiji. Guitars, a motorcycle, electronics, old paintball guns, roller blades, it adds up!

Mortgage: $168,381.87 ($1,496.13 lower than last report)

We haven’t paid down our mortgage any quicker than we had been prior to the last report. Our current interest rate of 2.92% is below what is expected to be earned investing in indexed mutual funds (8%). If we renew in a couple years with a significantly higher interest rate (anything over 8%) it will make far more sense to pay down the mortgage more aggressively and stop purchasing mutual funds altogether.

That’s all for this report, see y’all in October!

 

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