Sunday, January 11, 2009

the moneygardener 2009 financial goals

In my recent post, 2009, a new financial year, I talked about how I believe it is important to have a vision for what the upcoming year will look like for us financially and to write it down. Well we might not all have a blog, but I do, so conveniently I can write my 2009 financial vision/goals right here.

Current Situation
We are quickly approaching 30 years of age and over the last 4 years we've carried out some important financial steps toward building a secure, prosperous future.

Financial Vision For 2009

1. First and foremost, in keeping with my stated goal #1, in 2009 we want to continue to save at least $1,000 average per month for our non-registered portfolio. Ideally I'd like to save much more than this, considering that last year we managed to save an average of $1,395/month. This will enable us to be well on our way toward our goal of the portfolio being worth $175,000 (net value after any debt) in February of 2014.

2. 2009 will see us spend a good amount of money on home-related items. We will also spend some serious money on a vacation.

3. We will start 2 TFSAs (Tax Free Savings Accounts) in 2009 and contribute the maximum amount to both.

4. Over the past 3 months I've been using borrowed money to invest in our non-registered portfolio and paying it off in large chunks with saved money. I am expecting that this buying activity is largely completed and I will slow purchases now and concentrate on using saved money to pay back the line of credit. I am happy with the fact that I have now bought a good chunk of my portfolio at much lower prices and higher yields. This obviously depends on the market, but unless we breach the S&P 500 lows of the last few months I don't think I'll get excited about the opportunity to invest as often.

5. Our dividend income within our non-registered portfolio has grown from $1,523 one year ago to it's current level of $3,524. Savings and borrowed funds over the last year have really juiced our dividend growth. Over the next year I expect that this rate of growth will slow down dramatically as we rely on companies raising dividends for growth instead of mainly new funds coming in.

What I won't Aspire To Do:

Grow Net Worth By X% - This is a pointless exercise for me because I rely heavily on the stock market for net worth gains. The market is out of my control.

Accelerate Mortgage Payments - This just ain't how the moneygardener rolls. I've chosen sides already. Having a low interest mortgage and an interest in the long term prospects of investing I've set my mortgage payments on cruise control, and I like it that way.

Follow The Crowd - I'll march to my own drummer again in 2009 like I've always done. I don't care what the majority of people are doing and why. I'm sticking to our long term plan.

What does your financial 2009 look like?


Dividend Tree said...

MG: I like the last one, do not follow the crowd. Contrary to belief, it is one the difficult things to do. However, I think 2009 will be one the best buying opportunity for dividend investors. I will continue to buy as much I can depending upon availability of funds.

Paul (aka augustabound) said...

Do you have an RESP for the little one as a part of your investment goals?

Anonymous said...

I am fairly new to the blog and was curious to know where you find your information when researching a new stock? Thanks

MG (moneygardener) said...

Hi Paul, Yes, I do. I didn't really include it as part of any goal because it is kind of automatic, like a bill. I will contribute the maximum to get the maximum grant in 2009. Each $100 from the Canadian goverment, plus our own savings.

Anon, I find my information all over the place, and mainly on the internet. Online brokers like BMO InvestorLine offer great research tools and so do sites like Google Finance, MSN money, Yahoo finance, Globeinvestor,financial webring, and countless others.

Anonymous said...


Thanks for spelling your goals out. I am on a similar journey and I like seeing what others are thinking.

A quick question: One of your goal is to have a portfolio worth $175,000 by Feb 2014. On the other hand, you do not want to target a net worth growth % for 2009 because you do not control the market. I realize there is something to be said about short term versus medium term but isn't this somewhat inconsistent.


MG (moneygardener) said...

anon, Good point. You are correct, it is somewhat inconsistent. The way I rationalize it is that 2014 was looking out on a 6 year time horizon when I set the goal. I figured that medium term I would get a market return (6-8%). I feel even stronger now that I will get a return of at least that, with the majority of my money since most of it will end up being put in post 2008 (Sept.).