Hi guys,
I'm a 25 year old female (soon to be 26 in a few months) working in the Federal government, making around $63,000 annually.
I've been really interested in saving for the past year or so and have recently been reading a lot about Personal Finance on Mr. Money Mustache, Canadian Couch Potato and doing some lurking around here (this is my first post!). I'd like some advice on what to do.
CURRENT FINANCES:
I know that having cash just sitting in my bank without investing it is not very smart, but I'm not confident in my strategy. I'm thinking about maxing out my RRSP contributions this year and putting around $10k in the Tangerine RSP Investment Fund in their highest risk (all equity) portfolio, but a bit scared to take the leap without perhaps considering other options. I'm thinking about also opening another Tangerine Investment Account (non RSP) for mutual funds (same risk and portfolio) for another $10k since I don't want to be penalized by CRA for going over my RRSP limit. Does that make sense to do?
GOALS/FUTURE:
Thanks for taking time to read all this if you did... even more so if you respond!
I'm a 25 year old female (soon to be 26 in a few months) working in the Federal government, making around $63,000 annually.
I've been really interested in saving for the past year or so and have recently been reading a lot about Personal Finance on Mr. Money Mustache, Canadian Couch Potato and doing some lurking around here (this is my first post!). I'd like some advice on what to do.
CURRENT FINANCES:
- No Debt
- 25k in cash in a TFSA savings account with PC Financial, not invested in anything. Basically just earning a little bit in interest each month
- 10k in a RRSP 1-year GIC that I purchased without much thought in February 2016 (wanted the tax return and was not sure how to invest my money)
- $63,000 annually
- Approx $3300 after-tax per month (A lot of deductions due to our pension plan)
- Rent - $1000 (Toronto)
- Cell phone - $55
- Car insurance - $100
- Gas - $50
- Public Transit - $130
- Food, Dining, Entertainment, Shopping $200-400
I know that having cash just sitting in my bank without investing it is not very smart, but I'm not confident in my strategy. I'm thinking about maxing out my RRSP contributions this year and putting around $10k in the Tangerine RSP Investment Fund in their highest risk (all equity) portfolio, but a bit scared to take the leap without perhaps considering other options. I'm thinking about also opening another Tangerine Investment Account (non RSP) for mutual funds (same risk and portfolio) for another $10k since I don't want to be penalized by CRA for going over my RRSP limit. Does that make sense to do?
GOALS/FUTURE:
- I'd like to put $20k in a mutual fund or some sort of financial vehicle and have it generate as much money as possible. Not planning on touching the principal or earnings until I take out everything in 15-20 years or so. I plan on contributing at least $1k per month to this. Not sure what I'll use this for in the future, maybe my (future) kids' University education or maybe to have some financial independence and only work part-time when I'm older.
- I'm undecided on if I want to save for down payment on a house or condo in Toronto. I plan on being here long-term but I've read a lot about how renting for life may the smarter investment, although it is an unpopular opinion. Anyone have any thoughts on this?
Thanks for taking time to read all this if you did... even more so if you respond!