Category Archives: Goals

Build Wealth in 2017: Our Financial Goals

By: GenXinvestor

Ways to build Wealth in 2017Welcome to our ways to build wealth in 2017.  Happy New Year everyone!  Welcome to my 2017 financial goals post.  As I do every year, I’ve been thinking about how we fared this past year in terms of our financial goals and about where I’d like us to be in 2017.

2016 Financial Goals in Review

Last year, we laid out 7 financial goals.  So let’s see how we fared.

1.  Pay off HELOC.  At the start of 2016, we had a large balance on our HELOC that we used to buy a rental property and for our home renos.  It was a big priority to pay this debt off so we focused for the first half of the year on paying it off completely.  We achieved this by mid-May, only to draw on it again for another rental property.  

2.  Grow our net worth above 800k.  When I wrote this goal down, the markets were the lowest they’d been in years and we had a massive line of credit to pay off.  I really thought that it was a realistic goal given where we were financially and how I thought our finances would progress throughout the year.  This is precisely the problem that we humans have with “short-term thinking.”  Things rarely turn out the way we “think” they will.  I’m pleasantly surprised that we crossed the 900k mark in our November 2016 net worth report.  Not only did we manage to meet the 800k goal, but we exceeded it by about 125k!    

3.  Max out RESPs.  This we managed to do by mid-year.  

4.  Max out my RRSP and resume $500/month contributions to my wife’s.  My RRSP is maxed out which will help us on our taxes.  We did not manage to resume monthly contributions into my wife’s RRSP.  We’ll try to make  a lump sum payment early in the new year to help with taxes.  

5.  Transfer more of our non-registered investments into our TFSAs.  I’m happy to say that we managed to take advantage of the big market correction early in the year to move some of our dividend stocks to a tax-sheltered account like the TFSA.  All of our cash was going towards paying the HELOC so it made sense to move our shares at a loss so we don’t have to pay taxes on them.  This move also sheltered some of our dividend income from the tax man.  

6.  Pay at least $10k off our mortgage principal with lump sum payments.  Well on this goal we fell short.  We managed to pay about 6k in extra payments this year.  

7.  Grow our Passive Income to over 10k.  I thought I was being a little ambitious with this goal, but the rental properties added quite a bit to the monthly investment income.  Our total passive income came in at over 16k!

Our Plan to Build Wealth in 2017

Well we’ve experienced our share of setbacks this year, but I’m very pleased with how things turned out.  I feel like we’re in a great position to start off 2017.  So here are our financial goals for 2017.

1.  Continue saving, investing and paying down debt so that we become millionaires in 2017!  I expect that with our investing plan,  we’ll cross the $1 million mark in net worth, which means we’ll be paper millionaires.  For many people, this is an important financial milestone and I’ll be happy to reach it before we turn 40.  But net worth alone doesn’t equate to financial freedom.  To reach that goal, we need to continue to focus  on building up our passive investment income.  

2.  Earn 25k in passive income.  This should be achievable if we invest in our registered accounts, continue to re-invest our dividend income and the profit from our rentals, as well as get some nice dividend increases.

3.  Max out RESPs.  Our children’s future education is important to us so we will continue to save towards it.  

4.  Max out our registered accounts.  Our retirement accounts and other tax-free accounts will be maxed out this year.

5.  Pay down 35k on our mortgage so that it goes below the 400k mark.  Sooner or later interest rates will rise and I don’t want to be caught with a monster mortgage.  

Those are our 2017 financial goals and our financial plan for the year.  Do you have any financial goals or resolutions for 2017?

Thanks for reading our build wealth in 2017 post.

Image Credit: Stuart Miles / Freedigitalphotos.net

Building Wealth: My 2016 Financial Goals

By: GenXinvestor

Goodbye 2015 and Hello 2016!  Happy New Year everyone!  Welcome to my 2016 financial goals post.  As I do every year, I’ve been thinking about how we fared this past year in terms of our financial goals and about where I’d like us to be in 2016.

Last year, I laid out 6 financial goals.  So let’s see how I fared.

1.  Net Worth goal of $725k.  My first goal was to achieve $725k in net worth by the end of 2015.  Initially, I thought this was a rather modest goal but with expensive home renovations, the purchase of a rental property and a really tough year for financial investments, it proved to be quite the challenge!  I was very pleased that we exceeded this goal coming in at nearly $745k.

2.  Pay $30k off my home mortgage.  We didn’t even come close to meeting this goal.  By making our regular, weekly mortgage payments we managed to pay down a little over $12k on our principal.  The main reason was that our home renos ended up costing a lot more than we anticipated.

3.  Make $7,500 in passive dividend income.  I’m happy to say that we made over $8,200 in passive investment income in 2015.  Despite having taken on a lot of debt, I still made saving and investing a priority and it showed as my monthly dividend income reports illustrate.

4.  Max out RRSPs.  I managed to max out my RRSP for 2015 but we didn’t contribute anything to my wife’s as she took a mat leave.

5.  Max out TFSAs.  We came close to meeting this goal but fell short.  I was about 3k away from filling mine and I managed to transfer $30k of non-registered investments into my wife’s, but was unable to completely max hers out.

6.  Max out RESPs. This we did achieve.

The main reason we fell short of our 2015 goals was the home renos that we did to fix up our new home.  There’s no question that 2015 was one of the most difficult years for us, financially, as I can remember.

On the bright side, the big renos are complete, our home is as energy efficient as it’s going to get, and we don’t have to worry about any more updating for a very long time.  We also bought our first rental property and did some updates on it as well.

Given all we’ve done in 2015, I feel that we’re well positioned for 2016.  So here are our financial goals for 2016:

  1. Pay off HELOC – our main focus for the first half of 2016 will be to pay off approximately $50k that’s on our HELOC.  We used it to buy our rental property and for our home renos.  I’m a little uncomfortable carrying that much debt outside of a mortgage so it will be the big priority.
  2. Grow our net worth beyond the 800k mark.  Paying off the HELOC will be a big help in that regard.  Hopefully our finances will be firing on all cylinders this year and we’ll make it.
  3. Max out RESPs.
  4. Max out my RRSP and resume $500/month contributions to my wife’s.
  5. Transfer more of our non-registered investments into our TFSAs.
  6. Pay at least $10k off our mortgage principal with lump sum payments.
  7. Grow our Passive Income to over 10k!

Those are our 2016 financial goals.  Do you have any financial goals or resolutions for 2016?