Best Comment Entry
As promised, there is 1 book made available to what I thought was the best comment entry. After reviewing the comments, it was really tough picking just ONE best comment as there were many that deserved to win. Alas, there is only one winner.
The best comment was made by: Aaron.
Here it is again:
Since my (financial) life includes my husband, I’ll include his RRSP plan too. His RRSP plan was actually designed by me.
Amount of contributions
We are both contributing more than 18% of our wage. As we both have extra contribution room, I divided that extra in 36 parts to pay it off in 3 years. (In some strange way, I kind of think of it as a loan that we have to pay off.) This works out to be for me: 18% wage + $500/month. And for my husband: 18% wage + $700/month. Our workplaces do not provide pensions nor RRSP benefits of any kind.
Because the total value of my RRSP investments are < $100,000, I am do a bi-weekly contribution into TD efunds. My split is: 30% Canadian Index, 20% bond index, 25% US index, and 25% international index.
My husband has more than $100,000 in his RRSP so he does a monthly contribution into his eTrade account. His allocation is in ETFs:
20% Canadian Index
25% American Index
30% Bond Index (with a split between real and long term bonds)
5% emerging markets index
20% international index
He recently switched away from iShares ETFs.
We have both completed T1213 forms to reduce income tax from our pay cheques.
(1) By paying off our mortgage faster, we have reduced the amortization from 30 years to 10 years.
(2) In 10 years, our total net worth will be enough to sustain us so we don’t have to work! (We will have to sell our house and downsize to apartment …. not a problem.)
(3) I’m 31 and my husband is 36. Retire in 10 years!
Stories like this always inspire me. Congrats on your financial success Aaron!
3 Random Winners
The next 3 books were drawn at random, the winners are…
- Michelle Dawn (comment #2)
- Kenny (comment #25)
- mike (comment # 71)
Win the Last Book
The last book is made available to the "top commentator" of Feb 2008. The current score is on the right sidebar of the main page. Looks like George has a healthy lead but there's still lots of February left!
Congrats to the winners and stay tuned for more giveaways coming soon!If you would like to read more articles like this, you can sign up for my free weekly money tips newsletter below (we will never spam you).