2020-01 FI My Kids

I will just say this outright. Gaining financial independence as a physician is super easy. If you can not obtain FI as a doctor, you are simply not too sharp with money. There is no nice way to say it. You SHOULD get an advisor because you clearly could not scale this yourself. Enough said.

But attaining FI when you do not make a lot of income is much more interesting. My children may not have reliable and/or large incomes. But I will prove to them that none of this will matter.

They are starting so young.

So much of financial fitness is about prevention. So much is what you do not do.

My son is a rational saver and investor. He has zero interest in managing others’ money but he is quite focused on his own.

One does not need to be amazing when it comes to money. It is about getting enough best practices nailed down. That.is.it.

Live within your means. So simple. Yes, the truth hurts. It does not really matter if you make more but just gorge on more. Either way your results will be meh.

And it is not about community. Many have reached FI without ever reading a blog. The steps to reach FI are really not that challenging.

Both my children want FI.

Their strategies will be slightly different.

My daughter plans to attend university for a good long while. She only needs to open a TFSA which we did on her 19th birthday.

Here are their current portfolios.

Son, 21 years old

Account

ETF

Shares

TFSA

VGRO

1,170

RRSP

VGRO

118

Taxable

VDY

1,551

Networth

90,028

Mailbox Money – YTD

190

Daughter, 19 years old

Account

ETF

Shares

TFSA

VGRO

652

Networth

17,832

Mailbox Money – YTD

68

My son has started working. He is a prodigious saver. He wants to attain FI but has zero plans to retire early. Thank goodness since he is only 21 years old. I tell my children to like what they do. Just like it, you do not have to be “passionate” about it. There is no job charming.

He will be using VDY which is a high dividend ETF. He knows that it is not well diversified. But hey, we only need it to be more reliable than his industry. He will rely on VGRO for his actual retirement funds.

My daughter can keep it simple for now. She can use her TFSA account. I love the tax free status of this account. She loves the fact that there is a limit for contributions each year. She likes to spend the extra. And that is fine as long as she saves for her TFSA first.

They both live at home. I stress to them that this might be their highest savings rate ever. Just wait till life and responsibilities start to catch up with them. Let’s see how much they will be able to save then.

They both know to take advantage of the opportunity now.

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