As 2005 draws to a close, it is that time of the year to make resolutions (and hopefully keep them). Here are my financial resolutions for the New Year:
- Fully fund our RRSP accounts. I have to admit that money has been a bit tight this year (spouse on maternity leave) and we have only contributed 78% of our eligibility for 2005.
- Pay down consumer debt. Unfortunately, we had to use our secured line of credit to purchase a family van. Now, I would like to pay it off as soon as possible.
- Reduce mortgage debt. Since, money will also be tight in 2006, I don’t see how we will be able to make a lump sum pre-payment on our mortgage. We will continue to pay about $200 more towards our mortgage every month.
- Continue to invest wisely. In 2005, my portfolio returned 13.5%. I initiated a small position in a bond index fund and increased my exposure to international markets (by buying EFA). I’ll be looking to initiate exposure to REITs and emerging markets.
- Reduce expenses. Despite our decreased cash flow, we plan to spend far less than we earn.
- Start and fund an education savings plan (RESP) for our kids.
- Increase our net worth by 15%.
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2 responses so far ↓
1 Karl // Dec 31, 2005 at 6:28 pm
Why choose EFA over XIN? Is it purely the lower MER (but at a risk of currency exposure)?
2 Canadian Capitalist // Jan 1, 2006 at 8:47 am
Karl: It is purely the lower MER. I am investing for 30 years or more and I am hoping the 0.15% MER difference will add up. Over such a long term, I am willing to risk currency exposure.
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