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Discussion Starter #1
I am new to this site and would like some advice from the knowlegeable people that post here.

Background:

Live on the east coast in NL (just finished reading a post from someone in NS who kinda ran down the east coast regarding earning...I do not agree... east coast (esp NL, it rocks, best place to raise a family!) and can still earn decent salary.

I earn approx 100 000/yr for last 15 yrs (72 000 salary 25- 30 per year small business)
Wife earns 70 000/yr..RN

We clear up about 3400/month from Nov to April and probably 5000/mth from may thru Sept

We bought a $300,000 home 6 years ago with 10% down. I am currently in a 5 yr fixed mortgage @ 3.65%. Payments are $900.00 bi-weekly. pay property taxes separately. 4 yr remaining on term..owe 217 000

Consumer debt:

20 000 on line of credit (this was at an high of 47 000, have been very active and focused in paying this off asap @ 1000/mth

No other debt...one vehicle payed off completely...other leased thru company at 650/mth

Cash...none to speak of (on purpose)...money constantly put into paying off LOC

Investments

RRSP...me about 120 000. Plus just landed a govt job where I pay into pension
Wife 40 000...not counting pension she has contributed to through work at the hospital..I think valued at 30 000 and now paying into a pension at private company

TSFA: 10 000

RESP: 10 000

Just came into 13 000 quick dollars that I have not yet paid tax on. What should I do going forward. Contribute some to my rrsp? I have over 100K in unused room? OR pay 40% tax and use the remaining 60% on paying down LOC?

Of course I want to be debt free. I want to be mortgage free by 50. I want to have a net worth of a million dollars.

Wife and family want a vacation (its been 5 yrs). Wife would like to have a hottub...yikes!! Not everyone is obcessed with saving...


I would like to hear from some of you and what you think my strategy should be going forward.

Thanks in advance
 

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ROV,

What is the interest rate on your LOC? Have you contributed to your RRSP yet this year? If so how much? Without RRSP contributions, how much tax will you owe for 2010?
 

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Discussion Starter #3
FT

Thanks for reply...I was just scanning donw thru my original post and realized that our income is not stated properly. We actually clear up $3400 bi-weekly in winter time and closer to 5000 bi-weekly in summer months.

Interest rate on LOC is prime + 1%

Have not contributed to RRSP in several yrs.

If I do not contribute to RRSP I generally forward 37.5% of my small business income to CRA and usually break even at tax time. Not sure if this is the right strategy though.
 

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Discussion Starter #6
Hi All

To answer some of the questions. My wife and I are both 42. Children are 12 and 7.
Yes our business is incorporated. The business is struggling a little more each year as a result of several factors including govt regulation, high canadian dollar, finding qualified personnel

When do I want to retire? Not really sure...I love to work, I have a great job as instructor with the university and run a small business...it's not so much about retiring as it is having the feeling of being financially independent and getting up in the morning, knowing my family is secure. That being said, I guess once I reach my late 60's (God willing!) I may not have the zest for work that I now have.

In the long-term I would like to implement the most effective strategy that will improve my net worth by the greatest amount. In the short-term I would like to know what to do with my $13 000.

Thanks again
 
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