Topic: The money thread

[Solstice2006]

Rrocket, you must live very close to my parents.  They recently moved to Lake Erie (from Stoney Creek) about a 1 1/2 year ago.  And upsized once my younger brother moved out.  Makes no sense to me, going from 1200 sq ft house to a 2500 sq ft house for 2.  Now he spends all his time cutting the grass, cleaning the pool.  But with this property he has room for his boat, motorhome, van, and car.  Had to be a big lawn mower, big snow blower.  Well they are retired and have lots of time I guess.  One thing is for sure, I know I would never do that.  Not a fan of motorhomes, don't like boating/fishing, and no pool.  I know I would get a sports car, and a hot tub instead of a pool. 

[Snowman]

Good stories. Mine is that I was kicked out of my house a month after I turned 18 after a...legal entanglement. I left with literally nothing but the clothes I was wearing. I got a union job unloading railway cars and working with a bunch of criminal resentful Teamsters inspired me to go to university. There I took a fancy to marketing, communications, graphic design and became fascinated about the idea of compelling masses of people that I didn't know and would never meet. Turns out I was good at it and started my own crappy business as soon as I left school.  I met a couple guys, started a real ad agency, grew it sold it and then started two more. I think I've learned a lot about the ins and outs of getting/having/blowing money but even more about self-reliance. These days I experiment constantly...with my time, investments, business, staffing, etc. I get to do my own thing so I like work a lot...I have no retirement plans so I have no 'go-date' to save for...so I sort of experiment with money too.

I agree. People say I should slow down and not work as much but to me its not work, its fun.

[rrocket]

Rrocket, you must live very close to my parents.  They recently moved to Lake Erie (from Stoney Creek) about a 1 1/2 year ago.  And upsized once my younger brother moved out.  Makes no sense to me, going from 1200 sq ft house to a 2500 sq ft house for 2.  Now he spends all his time cutting the grass, cleaning the pool.  But with this property he has room for his boat, motorhome, van, and car.  Had to be a big lawn mower, big snow blower.  Well they are retired and have lots of time I guess.  One thing is for sure, I know I would never do that.  Not a fan of motorhomes, don't like boating/fishing, and no pool.  I know I would get a sports car, and a hot tub instead of a pool.

Lake Erie is HUGE!  It stretches from ~Detroit, MI to Buffalo NY!  I doubt we're neighbors.

Although on the upsize thing.  There are people who live nearby who did the same.  They came from TO area.  They sold their small home for $500K+.  Then they bought a home here DOUBLE the size of their TO home for $200K and banked the rest for their retirement.

[Solstice2006]

So I am probably one of the younger ones in this thread.  My wife is a nurse at Sick Kids (for 10 years).  I used to work for Bell Canada (internet tech support in Hamilton).  We were married just over 2 years when 70 of us got laid off after 1.5 years, 1/2 year before getting into the union (outsourced to India).  This was the 4th company I had been laid off from, KDS, General Electric, and HP.  Was really getting sick of working 2 years, laid off, hunting like crazy, happy to get a job, 2 years, laid off again.  So we were expecting when I got laid off from Bell.  We decided I would stay home, as a stay at home Dad.  We were never fans of daycare, and her shift work would make picking up and dropping off difficult.  We don't like our parents taking care of our children, not their job.  On a date or something like that is different.  So it has been 2 years like this so far.  We have reduced our debt in 1/2 over these 2 years.  Pretty amazing I think, considering I work very little.  I do landscaping in the summer, and snow removal in the winter in our neighborhood.  With this money, I do upgrades around the house.  New garage door, new deck, new window in daughters bedroom, add a bathroom to the basement.  My wife was starting to consider changing hospitals, to be closer.  But we are expecting now with baby #2, so that will not happen for awhile.  And my job security at home is good.  Haven't got a raise yet, better talk to management!  To prepare myself when I am ready for the workforce, I take online courses offered at Mohawk College, and work at my own pace from home.  Depends on what car is being reviewed on Autos, and when the baby is napping...

[johngenx]

I was a stay at home Dad, loved it.  Hard work, but great that we had one of us home.  Too bad that's a luxury for many families now, with so many needing to have two incomes just to make ends meet.

[Julie]

Well, I grew up poor and learned what it was like to be 'looked down at' by those with money and who (thought they) had 'class'. 

It actually made me determined to work hard so that I would not be as powerless when I grew up. I worked very hard through school (which lasted a long time) and through the first years of my career. My friends still joke about me being a work-a-holic, but I do feel a responsibility to 'get things done and done right' for my work, so I really don't count hours.

We don't actually have a lot of things either, but I do love cars and I obviously spend too much money on them . But I don't like borrowing very much, so that helps keep me in check.

I actually don't know much about finances at all. Although I dabbled in stocks for a bit because I wanted to learn. That was fun. I hate budgeting, so there is really only one rule we use and it's worked better than expected(!): "Pay yourself first."

And finally, I feel tremendously lucky that I live in Canada.

[rrocket]

Well, I grew up poor and learned what it was like to be 'looked down at' by those with money and who (thought they) had 'class'. 

It actually made me determined to work hard so that I would not be as powerless when I grew up. I worked very hard through school (which lasted a long time) and through the first years of my career. My friends still joke about me being a work-a-holic, but I do feel a responsibility to 'get things done and done right' for my work, so I really don't count hours.

We don't actually have a lot of things either, but I do love cars and I obviously spend too much money on them . But I don't like borrowing very much, so that helps keep me in check.

I actually don't know much about finances at all. Although I dabbled in stocks for a bit because I wanted to learn. That was fun. I hate budgeting, so there is really only one rule we use and it's worked better than expected(!): "Pay yourself first."

And finally, I feel tremendously lucky that I live in Canada.

Me too.  Big time.

[rrocket]

I was a stay at home Dad, loved it.  Hard work, but great that we had one of us home.  Too bad that's a luxury for many families now, with so many needing to have two incomes just to make ends meet.

Awesome!!

At various times, IQ or I have had to become the "stay at home" parent.  We both agree that being a stay at home parent (in our case) was much, much easier than our full time jobs.  I actually found being the stay at home parent more like a vacation than work.

[Northernridge]

Not sure if I mentioned this before...

IQ and I decided to "semi-retire" about 2 years ago.  I was about 40, she was 35.  She's a nurse, I'm an engineer.  We both only work 4 days a week (Mon-Thurs).  Her ~32 hours, me less than 40...though if the community needs her, she'll do some nursing a couple times a month on Fridays.  We talked about it and knew we'd be leavings TONS of money on the table if we did this.  We're in prime earning years and in our trades you makes TONS of money when you work overtime.  But we just didn't want to do it anymore, nor do we care about the money.  I finally understand that "money isn't everything".  Better late than never I suppose.  And we couldn't be happier.  Yea, we need to be a bit more conscious of our budget now (never needed to before) and we will make sacrifices about buying certain luxury items.  These are not things that we NEED, so it's no biggie.  We've had to change a few things in our lifestyle...but really not too many.  We're fortunate out jobs pay well for the hours we work and that we live in an area where housing is ridiculously cheap.  Many here would throw up if you knew how little our house cost just steps from Lake Erie..with a boat launch and a beach.  Our groceries are extremely cheap (fresh fruit/veggies stands abound here just steps from our house) and we now shop in the USA for our dry goods.  I saved $82 in coupons our last shopping outing!   Overall, we're very fortunate.  I feel lucky.  If something happens and we need to ramp up hours again, we can do so.  Such is the luxury of our trades.

Overall, I love not worrying about money, the hours and just focusing on living and loving life.  We both feel fortunate and don't regret making this decision.

Apart from a few details, we are in a very similar situation and outlook.

Good on you both!! My wife and I are in a similar situation, but not by choice.  My wife lost her job of 22 years last year due to downsizing.  As you can imagine she was quite upset and we were a little worried at first, but without a mortgage and a relatively small line of credit, we soon realized that it wont be that bad at all.  Like you we made the obvious adjustments to our lifestyle and realized a lot of our "gratuitous" spending was due stress issues of a working couple.  Too busy to make supper, "well lets go out", and "how bout spending next weekend at that B&B on the coast" and that type of thing!  Cut out that stuff alone and we saved a pile! Also, why do we need that commuter car anymore?  Sold!  Also, we are somewhat lucky that my job is such that i can basically work as much OT as i want and as I love my job, i work a lot more without getting stressed out about it.  My wife makes me a nice lunch everyday and bfast every morning and supper when i get home to a clean stress free house!  I can essentially make my own hours, have a corporate vehicle that i take home everyday, so never have to pay for commuting and i can bring my wife along when i go somewhere interesting. 

I have many friends that are so mired in debt with their 6000 sq ft houses and all the other shaz they think they need, but have a hard time sleeping at night worrying about money issues.  It's been a year now since my wife has not worked and we have never been happier!

So Northernridge, based on the above, where should i put my 10k that i always try to invest every year over and above my company defined contribution pension?  I ususally spilt it between rrsp and tfsa.  I am a little leary of the investment strategy of my rrsp guy as he seems to want to open a new account rather than contributing to an existing one.  I have also bought some stock over the years, but not the brightest on that account.  I have about $40k on a line of credit mostly due to rennovations over the last few years, but no other debt.

Here's what I think...Ten thousand dollars doesn't add up to much in anybody's retirement no matter how you slice it. Even if it doubles twice it's still only $40k. So I'd suggest one of two things. If you're feeling conservative put it against your line where you are paying at least prime plus 1 – say 3.5%. So paying off 10k is the same as making 3.5% (or more) with zero risk. If you're feeling aggressive and have time I'd stick it in my TFSA and swing for the bleachers by buying one or two (or maybe a basket) of an out of favour sector (see Snowman) and wait for the inevitable ride up. Because of the relatively low investment limits in TFSAs, they don't really add up to much either with conservative investments. yet it's the only place in Canada (other than primary residence..ok and capital gains exemption) where your growth is tax free. Therefore our TFSAs are where we have our most aggressive investments...which to me means buying good companies in very out of favour sectors and then waiting it out.

Also, I'm a strong advocate of firing your advisor and doing it yourself and avoiding high fee mutual funds. It does take the right mindset but everyone is smart enough to learn what advisors know. If you're paying your advisor for investment advice (vs. financial planning) and also paying mutual fund managers then you're probably better off just following an index on your own.

Others will have their own advice which could work better for you.

[Northernridge]

We are also big believers in having a stay at home parent. This has been my wife's role and we both think our kids have been better off for having a parent at home as the grew up.

[normancw]

Good stories. Mine is that I was kicked out of my house a month after I turned 18 after a...legal entanglement. I left with literally nothing but the clothes I was wearing. I got a union job unloading railway cars and working with a bunch of criminal resentful Teamsters inspired me to go to university. There I took a fancy to marketing, communications, graphic design and became fascinated about the idea of compelling masses of people that I didn't know and would never meet. Turns out I was good at it and started my own crappy business as soon as I left school.  I met a couple guys, started a real ad agency, grew it sold it and then started two more. I think I've learned a lot about the ins and outs of getting/having/blowing money but even more about self-reliance. These days I experiment constantly...with my time, investments, business, staffing, etc. I get to do my own thing so I like work a lot...I have no retirement plans so I have no 'go-date' to save for...so I sort of experiment with money too.

You are very good at it - I especially like your post in Snowy's Now Open thread.  I will save it to read when I get the hots for a Cayman S!

I believe that most people make decisions from the perspective of planning for the worst (e.g. I better not do THAT because what if something goes wrong?). I also observe that most reasonably intelligent and ambitious people don't actually go through the worst case scenario and so usually over play risk management.

Snowman, you strike me as a guy who has his sh!t together and should make decisions as though things will continue to turn out just fine and therefore proceed with confidence and enthusiasm in the purchase of a new 911 of your choice.

Besides, if the worst should happen, wouldn't you like to be able to reflect on the days of menacing Oakville in your Porsche?

[Solstice2006]

I was a stay at home Dad, loved it.  Hard work, but great that we had one of us home.  Too bad that's a luxury for many families now, with so many needing to have two incomes just to make ends meet.

Awesome!!

At various times, IQ or I have had to become the "stay at home" parent.  We both agree that being a stay at home parent (in our case) was much, much easier than our full time jobs.  I actually found being the stay at home parent more like a vacation than work.

I guess it depends on what you used to do before being at stay at home parent.  I have so comments from others parents, that I was able to get our daughter to sleep the whole night at 6 months for 12 hours.  She usually wakes up between 7:30 and 8.  Many friends of mine are jealous, there kids wake up in the middle of the night, or before 6.  But I find it very time consuming.  Preparing the meals, cleaning the house, feedings, going to the parks, laundry, it's like the mail it never ends....Previous jobs, was mostly office work.  Nobody screamed at me, well that's not true, no hitting or crying was involved...

[rrocket]

I was a stay at home Dad, loved it.  Hard work, but great that we had one of us home.  Too bad that's a luxury for many families now, with so many needing to have two incomes just to make ends meet.

Awesome!!

At various times, IQ or I have had to become the "stay at home" parent.  We both agree that being a stay at home parent (in our case) was much, much easier than our full time jobs.  I actually found being the stay at home parent more like a vacation than work.

I guess it depends on what you used to do before being at stay at home parent.  I have so comments from others parents, that I was able to get our daughter to sleep the whole night at 6 months for 12 hours.  She usually wakes up between 7:30 and 8.  Many friends of mine are jealous, there kids wake up in the middle of the night, or before 6.  But I find it very time consuming.  Preparing the meals, cleaning the house, feedings, going to the parks, laundry, it's like the mail it never ends....Previous jobs, was mostly office work.  Nobody screamed at me, well that's not true, no hitting or crying was involved...

IQ said her trick for the baby (when he was a baby) to sleeping without waking was to make as much noise as possible from the time she came home from hospital.  She would vacuum, have the TV on, radio on while the baby was sleeping.  She would tell people not to tip toe or whisper.  Essentially, she got the baby used to noise...and the baby would sleep through any noise.

[goodsonr]

lets see how much ill-will towards myself I can generate just by giving my work profile and retirement plans

I am a federal civil servant with 35+ years service. 

I like my job a lot

Thank you all for my pension....

[rrocket]

lets see how much ill-will towards myself I can generate just by giving my work profile and retirement plans

I am a federal civil servant with 35+ years service. 

I like my job a lot

Thank you all for my pension....

Ill will?  We all wish we could have a job where we do nothing an get paid...

[revalations]

I'm 35, married with 6 kids. Wife stays at home with them, home schools my oldest Boy who's 14. the rest go to a private school in Calgary.

Five years ago I left my good paying career in Heavy Truck sales to go out on my own. I run a small business buying and selling big trucks (think Kenworth big and not highway stuff either). I love the freedom, 90% of my business is done online so I get to be home quite a bit. I also sell/broker for a few very good friends in the biz who long ago became part of the " 1% " group that are still connected and out there buying, but can't be bothered with the selling. All in all I enjoy what I do to no end.

Being self employed brings some unique financial burdens. I don't have any private funding, and getting any additional small business funds is very difficult. To quote Snowman I never feel I have enough "hay in the barn" for operating my company. Sitting on inventory proves to be stressful. We do always have enough money to live, pay bills, savings. My Mortgage is quite small at just over $100,000, our vehicles are all paid for as well, so our cost of living is not that high. All in all I love the freedom, and making my own money feels much more rewarding to me.

 Lately though, I've been giving some serious thought about going back to work for a few years. Just to be able to save up more, get more stability, and hit this idea again with more financial firepower. Some huge benefits of working is that guaranteed paycheck every month, health/dental coverage, RRSP, etc.......It's going to be hard to work for someone again after 5 yrs on my own. What to do.....I guess I'm just a confused GYPSY!

[rrocket]

^^Unrelated to the post...but which big rig gets the best gas mileage, and what is that gas mileage??

[revalations]

^^Unrelated to the post...but which big rig gets the best gas mileage, and what is that gas mileage??

Volvo- D13 with autoshift 13 speed will get 7 MPG

[rrocket]

^^Unrelated to the post...but which big rig gets the best gas mileage, and what is that gas mileage??

Volvo- D13 with autoshift 13 speed will get 7 MPG

Automatic tranny?  What kind of HP and TQ??

[Fobroader]

You guys have far more interesting stories than I do. Got out of high school, did about 6 months of NAIT, realized that electrical power distribution engineering wasnt my bag, dropped out, applied at about 6 different jobs, had job within 48 hours of dropping out of NAIT, worked at 2 years at a Ford dealer working from lot guy to mechanic/salesman/inventory manager, got bored, decided to work with my dad in aircraft components, thought I would repay this great country for taking our immigrant selves in by going to the air force, did my 5 realized it wasnt for me, got out with huge debt thanks to my idiotic partying ways, woke from an alchoholic haze and decided to become an adult so I took out a large loan and decided to buy into my fathers company and actually make something of myself(luckily my father saw something in me), met my wife, she came down on me like an SS acountant, within a 2 years we bought our own home and we are now basically working towards being debt free so we can travel. Its been quite the journey, I wouldnt change a thing!! Ive made and lost lots of money, I highly recommend finding an intelligent, beautiful woman who will whip your ass into shape and get you down the semi straight and quasi narrow. We both find that work is a necessary evil in order for us to enjoy ourselves, she wants the house paid off by the time Im 40....I want a 911 as a 40th birthday to myself  Conflict of interest!!!