Monday 25 June 2018

Goals . . . Simplified

Here are my goals as they stand now . . . 

I had originally planned to just keep the $5000.00 that I had in my Mid-Term Savings Account now, but that never felt right.

My Mid-Term Account is my Personal Line Of Credit, meaning that I can draw on it at anytime that I need. I can transfer money in and out of that account instantly. 

Yet, the downside is that account only pays me 0.5% interest and only on balances of 5000.00 or more. 

If you think that’s bad, my Main Account pays me 0% and I have to pay the bank to do business with them . . . don’t get me started.

My Long-Term Account has always been my TFSA; and in there I just put my money into a “High Interest Savings Account.” 

That HISA is a pseudo-mutual fund (kinda). What I mean is that I buy and sell it like a Mutual Fund and it pays me a “whopping” 1.1%. 

(Retirement in Tahiti here I come! *sigh*)

Today I have added another account to my Long-Term Account: a regular (Non-TFSA/RRSP) Investment Account.

Once I have filled up my TFSA up to my contribution limit I will then stuff my money into that Investment Account and yet another HISA.

I could go with multiple institutions by just buying a HISA from some other institution if I want, but it doesn’t make much sense.

You see, for one the CDIC or Canadian Depositors Insurance Corporation which is a government agency which insures bank deposits, does not insure HISA’s like mine (joy).

So, unless I want to make less than half of the interest, I have to take this risk (as far as I understand it now).

I am certainly not going to play the stock market or other mutual funds because I need my balances (as in what I put in there) to be secure and stable.

Modest growth is okay, as long as it will never go down (fiscal collapse notwithstanding). 

So, between my Mid-Term Account, my TFSA and my Investment Account (which I will start using sometime late next year (I hope) I will build my savings to that glorious savings target of $150,000.00.

After I have that in my accounts, I will quit my job and then head off into the sunset in order to find the right land to start that town of mine. 

Wish me luck . . . or better yet, send me a contribution ;-D!

As always: Keep your head up, your attitude positive, and keep moving forward!

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