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(Cross post from r/personalfinancecanada as I don’t think this should have been in there.)
Ooo, alliteration was not bad there.
Hi! I’ve been browsing a few Reddit subs and am looking for some assistance with how I’m allocating funds into these accounts. I’m turning 40 this year and I’ve realized I’ve spent my life not saving and living too much in the moment. And this moment has revealed knee pain and the understanding I’m not going to live forever. I haven’t made the best choices in life, and I understand that now. So I need to get myself sorted. I’ve had to move back from Toronto to my hometown, and because of serious debts I haven’t been able to move out. By the end of the month, I will be debt free with the final payments on my vehicle. This should free up about 440$ a month that I’d like to end up investing.
I’m realizing, my income is abysmal and I want to allocate this to my accounts. This year is a rebuilding year, so even if I’m not making an incredible amount or slow growth, I want to stick it out.
I’m going to continue to invest in everything g for as long as I can. My RRSP timeline is about 25 years or more if needed.
FHSA is to use within 5-15 years, or if not then it just rolls into theRRSP.
TFSA I want to be able to continually grow; my hope is that I only dip into the dividends if I absolutely have to, and then supplement/replace my income for the foreseeable future. For the sake of timeline, let’s say 5 years is when I could use the dividends if needed for something other than reinvesting.
My current accounts are laid out like this:
TFSA -> Income supplement/small growth. I’m hoping to use this to grow XEQT and supplement that with some ETFs because I can’t always add more. my current expenses are very minimal. I’m helping my folks with bills, but my take home still not enough to actually live on my own. I’m making about $2000 monthly after taxes. My hope is to a) redirect dividends into everything (50%ish into XEQT) b) eventually just utilize my dividends for income. I have very small positions in CWIN, HDIV, and UTES. My goal is to build these ETFS enough that I can support XEQT or actually use the dividends. I’d LOVE to replace my income completely, but this is where we are. I’m using CASH to park my money I want to use to buy things. Example: That new steam machine? I’ll put into CASH until it’s either here or more affordable. Ideally, I just save into this and the pull out the funds for christmas.
I’ve also just invested about 10-15$ in a few Canadian banks each (RY, NA,BMO, BNS, CM, TD).
I understand the general sentiment of don’t chase dividends. Frankly, I don’t have the time to wait. Im mostly worried that my body will give out before I’m able to have this investing built.I feel like I need to be a somewhat active participant. I don’t want to be making daily or weekly adjustments, but I do want to just make sure I’m allocated correctly.
FHSA-> That house I may or may not actually end up buying because economics.
I have 100% XEQT. Could I consider others or anything else for this? I’d LOVE to own a home within the next 5-10 years but I don’t actually think that’ll be possible here. If it WAS, is XEQT the right vehicle for that? If not, my understanding is it just rolls into my RRSP.
RRSP-> What’s retirement? XEQT is what I primarily invest in, but I do have SWIN, FTS and UTES (very small positions). Again, my aim is to contribute what I can monthly (at the moment it’s about $25/ paycheck) , and also have the dividends support the growth of XEQT.
So that’s how I’ve planned to build this out. I’m open to any insight or considerations I should take into account. Thank you!