We have laid out financial goals to have a comfortable retirement. We plan on growing our family and either start a second career or prepare for
a second career in the next several years.The long-term goals we have established are to:
(1) Reach a combined net worth of $2,000,000 in 2047. (Her planned retirement year.)
Our first goal will be enabled primarily through our two defined benefit pensions and one defined contribution pension. We consider this goal our base model retirement with no options.
(2) Supplement our annual income with $25,000 from dividends.
This is the “comfortable” option for our retirement plan. We want to maintain our lifestyle.
At the start of each year, we will set out smaller goals that will help us achieve our longer-term ones.
Our goals for 2021 are as follows:
First goal: Re-establish our emergency fund after we purchase our first house.
We would like this emergency fund to hold three months’ worth of expenses. We each enjoy very good job security; however, we will be addressing any unforeseen situations without using credit, or, at the very least, reimburse the used credit before incurring any interest charges. Our targeted goal amount for our emergency fund is $12,000.
Second goal: Increase our annual dividends to $100.
We had investments held in our RRSP; however, we took advantage of the Home Buyer’s Plan (HBP) for the downpayment on our house. Our future investments will be held in our TFSA until we need to reimburse our HBP (in 2023). We aim to have annual forward-paying dividends of $100 before the end of 2021.
Third goal: Reduce our debt ratio by 3%.
After our marriage, we have consolidated our debt through a 0% balance transfer on one of our credit cards. We plan on reimbursing the full balance before the offer expires then proceed with our plan mortgage payments. This goal will be defined more precisely later in the spring once we have our mortgage.