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Goals for the New Year (2007)!

With 2007 fast approaching, it is soon time to discuss and plan out my goals for the new year. I’ve never been one to set goals at a beginning of the year but maybe I will start now.

Here are my goals for 2007:

Goal #1:

Increase our passive income to at least $500/month. Right now, our only passive income is from the rental unit which gives us about $250/month cashflow. Perhaps i’ll purchase another rental property? Perhaps increase my internet income? I hope that AGLOCO comes through as I have started to build a network. My ultimate goal is to have my passive income exceed my monthly expenses.

Goal #2:

Become better at my job. I always seem to be distracted at work thinking that things are better somewhere else. I think it’s time to focus on my daytime work a little more, perhaps it can become more rewarding.

Goal #3:

With our combined income increasing to around $110 000 in the new year, I hope that we maintain our 15-20% savings rate on our gross income. So, if we are to save 20% ($22000), we will have to save $1834/month. As I mentioned before, paying yourself first using automatic withdrawals should do the trick. Can’t spend what you don’t have in your spending account right? We are currently saving per year:

Pension: $4000
RRSP: $6000
Emergency/Vacation/Misc: $9360
Non Registered: $2600
Total / year: $21960 ($1830/month) ~ 21% of our gross income.

Goal #4:

As I wrote on an earlier post, I want to increase our charitable giving. This year, I believe we donated around $500 and i’m hoping to donate closer to $1000 – $1200 this year. Perhaps i’ll increase our monthly pre-authorized donations.

Goal #5:

Regardless of how the market does in 2007 (indicators show a US market correction), I want a 12%-15% return on my investments. I plan to do this through continuing to invest in dividend paying stocks in my RRSP and through stock trading in my non-registered account. Perhaps i’ll start a portfolio category here to keep track of my investments.

There you have it, 5 financial goals for 2007. None of the goals are too aggressive except for Goal #5 where i’m aiming for a 12-15% annual return for the year.

Happy Holidays everyone! Be safe and take care.

24 Comments, Comment or Ping

  1. 1. Traciatim

    Shouldn’t you move only interest bearing investments inside your RRSP and then keep your capital gains and dividends outside for the best tax advantages?

  2. Hi Traciatim,

    Yes, you are right, you can’t take advantage of the dividend tax credit if you invest your dividends inside an RRSP. However, if you work out the numbers, investing dividends inside an RRSP or outside work out to be very close at retirement. My rationale for investing in dividends inside an RRSP is so that when I reinvest the dividends I don’t need to keep track of the ACB. Probably a bad reason, but i’m lazy. :)

    Also, with interest bearing investments, what’s the max return you can get for your money? With dividend stocks, you get the opportunity to grow your portfolio much faster.

  3. 3. Q Cash


    Have a very, Merry Xmas and a Happy New Year.

    Just started reading some of the guys you have linked to and I am enjoying Canadian Dream. I haven’t read through all the others just yet.

    Regarding dividend tax credits, Derek Foster uses this as the basis for his whole program. With the dividend tax credit, someone who has no other income can almost gain $30,000 tax free (or something like that, I would have to read it all through again). I don’t know how it breaks down when you have other employment income.


  4. Q Cash!

    Merry Christmas to you also! Don’t spend all your money on xmas gifts ! :)

    Oh yes, i’m very aware of the Derek Foster game plan. You are right, someone can receive up to around 30k in dividends and pay no tax. However, this does NOT apply if you have other employment income. I live in Eastern Canada, so the taxes are higher than other parts of Canada, so dividends are taxed at around 18% in my bracket. Check out, they give a list of taxes for dividends for each tax bracket.

    Also, remember that when you receive dividend income, they are GROSSED UP which can affect your ability to receive OAS when you turn 65. Just another factor to plug into the equation. :)


  5. 5. Harrison

    I like your goal #4 – increase your contribution on charities. I think I should add another goal on charities in my 2007 to do list.

  6. Hey Harrison!

    Great blog that you have.


  7. I’m also a fan of increasing passive income in 2007. It is something we really need to get a handle on and start producing. The closest thing we have right now is ebay selling, which isn’t passive, but is something done in the free moments of the evening.

  8. Hi Donna,

    How do you find selling on eBay? Do you have a system in place? Or just selling a few items at a time? I’ve sold a few items on eBay but nothing worth mentioning. What kind of items are you selling?


  9. 11. donna jean

    Ebay is actually the partner’s domain. He has a system and it all seems overly complicated and time consuming, to me, but he’ll maintain at least 10 auctions at all times — when life doesn’t get in the way. Seeing as how the man has warehouse volumes of stuff and the stuff moving out the door is more like pebbles on the beach (versus furniture from the beach house), it’ll be a very long, slow, never ending process. He sales mostly metal working and various obscure technical items that I would look at and throw out without realizing that it might be worth $500. I’ll prolly start assisting him soon just to move the process along (and to help build up monthly income).

  10. Hi Donna,

    Stay motivated and keep working on increasing your income.

    Blogs are a great way to stay motivated hey?

    All the best,

  11. 13. fin_indie

    Great blog you have here and those are some great goals. One thing that could probably use a bit more definition is how you plan on achieving 12-15% return if the market goes south. It’s not predicted to, but it may be worth thinking through some defensive strategies and risk mitigations to ensure you hit your goal, should the market drop.

    BTW, I also really like your goal of becoming better at your job. “Be in the here and now” sort of thing. Nice!

  12. Hi Fin_Indie,

    Thanks for stopping by.

    I believe that with technical trading, value investing and purchasing defensive type dividend stocks, over achieving returns can be obtained. Just check out this article
    By using Graham criteria, Canadian business magazine author Mr. Rothery returned 20% where the S&P returned -20% in the bear year 2000.
    With that being said, i’ve never traded through a down market, so we’ll have to wait and see what happens. :)


  13. 18. LB


    Regarding Goal #3, does that 20% savings include RRSP contributions?

  14. Hey LB,

    Yes, the 20% savings does include RRSP contributions.



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