Comments on: The First $100K of Investments http://blog.canadian-dream-free-at-45.com/2010/01/06/the-first-100k-of-investments/ Wed, 08 Feb 2012 17:31:40 +0000 hourly 1 http://wordpress.org/?v=3.1 By: Dogs of the Dow, Diapers, Debt and More | Finance Blog http://blog.canadian-dream-free-at-45.com/2010/01/06/the-first-100k-of-investments/comment-page-1/#comment-38388 Dogs of the Dow, Diapers, Debt and More | Finance Blog Fri, 08 Jan 2010 14:46:32 +0000 http://blog.canadian-dream-free-at-45.com/?p=1279#comment-38388 [...] The First $100K of Investments @ Canadian Dream [...] [...] The First $100K of Investments @ Canadian Dream [...]

]]> By: Canadian Dream http://blog.canadian-dream-free-at-45.com/2010/01/06/the-first-100k-of-investments/comment-page-1/#comment-38381 Canadian Dream Fri, 08 Jan 2010 12:13:59 +0000 http://blog.canadian-dream-free-at-45.com/?p=1279#comment-38381 TD, Sure. I’ve mentioned it before, but they are: AQN, EIT.UN, REI.UN. Tim TD,

Sure. I’ve mentioned it before, but they are: AQN, EIT.UN, REI.UN.

Tim

]]> By: Dogs of the Dow, Diapers, Debt and More | Million Dollar Journey http://blog.canadian-dream-free-at-45.com/2010/01/06/the-first-100k-of-investments/comment-page-1/#comment-38375 Dogs of the Dow, Diapers, Debt and More | Million Dollar Journey Fri, 08 Jan 2010 10:30:51 +0000 http://blog.canadian-dream-free-at-45.com/?p=1279#comment-38375 [...] The First $100K of Investments @ Canadian Dream [...] [...] The First $100K of Investments @ Canadian Dream [...]

]]> By: Think Dividends http://blog.canadian-dream-free-at-45.com/2010/01/06/the-first-100k-of-investments/comment-page-1/#comment-38349 Think Dividends Thu, 07 Jan 2010 16:47:17 +0000 http://blog.canadian-dream-free-at-45.com/?p=1279#comment-38349 What 3 stocks did you buy for your TFSA? What 3 stocks did you buy for your TFSA?

]]> By: Canadian Dream http://blog.canadian-dream-free-at-45.com/2010/01/06/the-first-100k-of-investments/comment-page-1/#comment-38338 Canadian Dream Thu, 07 Jan 2010 12:12:01 +0000 http://blog.canadian-dream-free-at-45.com/?p=1279#comment-38338 Robert, Good point. I think a lot of people are too worried about investment choices at the start when it really doesn't matter that much until later on. I know I made some awful ones over the years. Deegee, Actually your story is similar to mine. My first $32,000 took 6 years to get to, so in total it took me 9 years to reach $100,000. I was also buying the car, house, paying back student loans and getting married during that time. Now I'm predicting if I wasn't paying off the mortgage I could reach $200,000 in 2 years. Yet once the mortgage is gone I should be able to do it in 1.5 years. It's amazing to see that compounding start to take affect along with getting to the point in your life when you have more income to save. Tim Robert,

Good point. I think a lot of people are too worried about investment choices at the start when it really doesn’t matter that much until later on. I know I made some awful ones over the years.

Deegee,

Actually your story is similar to mine. My first $32,000 took 6 years to get to, so in total it took me 9 years to reach $100,000. I was also buying the car, house, paying back student loans and getting married during that time.

Now I’m predicting if I wasn’t paying off the mortgage I could reach $200,000 in 2 years. Yet once the mortgage is gone I should be able to do it in 1.5 years.

It’s amazing to see that compounding start to take affect along with getting to the point in your life when you have more income to save.

Tim

]]> By: deegee http://blog.canadian-dream-free-at-45.com/2010/01/06/the-first-100k-of-investments/comment-page-1/#comment-38310 deegee Wed, 06 Jan 2010 14:42:09 +0000 http://blog.canadian-dream-free-at-45.com/?p=1279#comment-38310 It took me nearly 10 years of working, saving, and investing to get to the $100k mark (retirement and non-retirement combined) in 1995. In those 10 years (1985-1995), I was buying some big-ticket items such as cars twice and my co-op apartment. I also refinanced the mortgage on the apartment but had not begun paying off large chunks of principal. The refi in 1992 did accelerate my savings, though. The stock market had its big crash in 1987 but I was just getting started so I had very little in stocks at the time. In 1995, the market was just beginning to take off. My company was still non-profit so there was no ESOP (Employee Stock Ownership Program), the thing which would end up being my ticket to retirement last year. After 1995, it took me only about 2 years to add each $100k to get to $500k in 2003, and about one year for the next $100 to get to $900k in 2006. I had the booming ESOP, a booming market most years, and some peak wage earnings until 2001 (when I switched to P/T) to offset paying off the mortgage in 1997-98. But the last 3 years have had me treading water, like you have. Paying the taxes on the cashed-out ESOP set me back when I retired in 2008. I would have hit the $1M mark otherwise. I should be able to hit $1M in 2010. I agree that trying to build a portfolio the last 3 years has been tough. I am glad you reached the $100k mark. It took me nearly 10 years of working, saving, and investing to get to the $100k mark (retirement and non-retirement combined) in 1995.

In those 10 years (1985-1995), I was buying some big-ticket items such as cars twice and my co-op apartment. I also refinanced the mortgage on the apartment but had not begun paying off large chunks of principal. The refi in 1992 did accelerate my savings, though.

The stock market had its big crash in 1987 but I was just getting started so I had very little in stocks at the time. In 1995, the market was just beginning to take off.

My company was still non-profit so there was no ESOP (Employee Stock Ownership Program), the thing which would end up being my ticket to retirement last year.

After 1995, it took me only about 2 years to add each $100k to get to $500k in 2003, and about one year for the next $100 to get to $900k in 2006. I had the booming ESOP, a booming market most years, and some peak wage earnings until 2001 (when I switched to P/T) to offset paying off the mortgage in 1997-98.

But the last 3 years have had me treading water, like you have. Paying the taxes on the cashed-out ESOP set me back when I retired in 2008. I would have hit the $1M mark otherwise. I should be able to hit $1M in 2010.

I agree that trying to build a portfolio the last 3 years has been tough. I am glad you reached the $100k mark.

]]> By: Robert http://blog.canadian-dream-free-at-45.com/2010/01/06/the-first-100k-of-investments/comment-page-1/#comment-38308 Robert Wed, 06 Jan 2010 13:24:39 +0000 http://blog.canadian-dream-free-at-45.com/?p=1279#comment-38308 I have to agree with your assessment. Luck definitely helps. And timing does make a difference, no matter what anyone tells you. We committed all our cash when we saw that a stock we follow had fallen to an unreasonably low level a year ago. It rebounded, then we bought another, which also rebounded. That's made all the difference. It was mostly luck and timing, but also the willingness to act. The other thing you mentioned that's really important is your goal of adding cash. That's probably why the first $100,000 is apparently so difficult: early on, investment returns play less of a role compared to deposits. You can see my thoughts on this: http://robert.hurdman.com/blog/2009/11/investment-choices-may-not-matter/ I have to agree with your assessment. Luck definitely helps. And timing does make a difference, no matter what anyone tells you. We committed all our cash when we saw that a stock we follow had fallen to an unreasonably low level a year ago. It rebounded, then we bought another, which also rebounded. That’s made all the difference. It was mostly luck and timing, but also the willingness to act.

The other thing you mentioned that’s really important is your goal of adding cash. That’s probably why the first $100,000 is apparently so difficult: early on, investment returns play less of a role compared to deposits. You can see my thoughts on this: http://robert.hurdman.com/blog/2009/11/investment-choices-may-not-matter/

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