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Discussion Starter · #41 ·
So... I met with my accountant today. Apparently eligible corporate dividends paid into our corporate account are received virtually tax free (something about our corp acting like a hold corp for the op corp that gave us the divi??? can anyone explain this better??)....

Plus, which I was not aware until today (scary because I'm essentially the CFO!), with respect to capital gains... 50% of the gain gets taxed at the corporate tax rate (15.5%), the other 50% goes into a 'corporate dividend account' which can be removed tax-free from the corporation.

Looks like the rich get richer.
 

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Discussion Starter · #42 ·
Wow. Have not been around here in a very, very long time. Reading that first post, and the update post, very interesting. Turns out I was being conservative in my estimates. Compound interest really is a wonder of the world. (I'm actually wincing at some of the crap I wrote here. Hope I never offended anyone.) Anyway...

Here introduced to ETFs, Vanguard, and MrMoneyMoustache. So thanks for that. Started lurking in the very beginning. Bore witness (as many of you did) to 'the million dollar journey' as it unfolded. I was 'paper trading' equities and getting out of high priced mutual funds at the time. Bought our first bank stocks in March of 2009, during that trench you can see there related to the '08 housing crisis. Couldn't have been better timed.

Following advice found here was helpful. Lots of wise posts and blog suggestions. Thanks to steve, fourpillars, moneygal, spudd, humblepie, Toronto.gal, atrp2biz, Pluggingalong, James4beach, etc... Even DMoney had an influence... I'm pretty sure he/she pumped some Chinese stock that went to zero though. Wasn't happy about that at the time - greenstar ag or something - lost some money but also learned an early lesson in sticking to the plan. So not all bad.

If you're still reading. Thanks.

I would say it worked out well, so far.

Family is happy and healthy. Been in practice for well over a decade. Still married to the love of my life. Four beautiful healthy children. Eldest in grad school, youngest in grade school. Thanks to MMM's 'shockingly simple math' we've been saving well over 60% of our gross household income for at least a decade... We did it... #FIRE LIFE... It would be hard to spend our nest egg to zero; Unless, of course, we get back on the hedonic treadmill collecting dust in the corner. We've been decently frugal and have enjoyed the journey. Lucky to have the income to keep up with the upper middle class Jones'.

Purchase price value on our real estate (home, cottage, 2 rentals), and market value on our investments, puts our net worth around 7. We passed 5 in 2019. And using current bonkers real estate values it might be even higher.

More importantly, we passed our "10K per month" target for the first time in June 2019, about 9 years ahead of my projection from 2011. Every month in 2021 projected at or above target (With a record of $13,678 in February!!). It appears, this will continue into the future like an unstoppable train. We continue to reinvest and haven't slowed down earning/saving. A large chunk has been in VAB and VXC (With some individual stocks that pay dividends: E.g. still own those RY shares purchased for $32 in 2009!) (I've recently sold a bunch of VXC and increase the proportion in VAB, just cuz it feels like the right thing to do and I'm trying to take on the perspective that once you've won the game, stop playing!)

COVID has been a shock to the system and I'm tired. Wish it was possible to slow down and take a break from clinical medicine, but it's hard, in these unprecedented times. Maybe soon, maybe soon... but I've got promises to keep, and miles to go before I sleep.

Good luck out there.
Stay safe CMF'rs
 

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Wow is right. Quite the journey over the decade! Any highlights or challenges you want to put a spotlight on?
Personally, the missus and I kind of regret not jumping on the Vancouver RE bandwagon in early 2000's with an investment property or doing the pre-sale thing. But it also kind of illustrates the challenges with housing in Canada today.
 

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Discussion Starter · #44 ·
Yep. We've all been lucky in RE, that's for sure. And we've been riding a massive bull market in equities at the same time. I can see how that feels unfair to future generations. We've been blessed.

I don't know? We worked hard. Stayed the course. Bought as much as we could through all the dips. Bought a bit more when things looked really dire. But I wouldn't say we 'timed the market'. I'm living proof that "Time-in" beats "Timing". Never used margin (except the leverage on the rentals I guess). Sold a bunch of "out of the money" puts along the way. Picked up a few extra shares that way; mostly just kept premiums though. Can't say enough about keeping it simple. Buy what you know. Don't take flyers. Stay the course.

But most of all, just save as much of your earnings as you can. Let the 'assets' do the rest. (It's shockingly simple).

I did feel a little silly a few times: For example. A friend told me to buy a little company called "Tesla" when it was trading at about $28. I looked at it's earnings and laughed at him. (It was valued at more than Ford, GM, and Toyota combined at the time - Insane). Another friend told me to buy something called 'bitcoin' when it passed $1000! I told him he was nuts. I'd never buy some load of crap as that... Instead I bought more VXC each of those times... (Ironically, I got some tesla in there anyway didn't I?). No regrets.

I'd also recommend not forgetting to live life along the way: I recently made a couple of purchases (new wood shop equipment and a utility vehicle). Paid cash. At the end of the month I was surprised to see our total accounts balances were higher anyway. I guess that shouldn't have been a surprise. They go up and down 1-3% every day if you're paying attention. Spending less than 1% hardly makes a difference anymore. As long as you don't do it every month. Part of me wishes we bought them sooner. Would have made life easier. But that's not me. I tell my kids all the time: "Easy choices, hard life. Hard choices, easy life". (Now it's all about convincing them to make some hard choices.)
 
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