This blogging has paid off handsomely. It has literally forced me to review my financial setup. I have become ruthless in streamlining my finances. I have been closing bank and investment accounts. I began 2018 with 23 accounts for credit cards, bank and investment accounts. I currently stand at 14 accounts. It has been a busy number of months.
Accounts To Close In 2018
- Close a Real Estate Holdco which I opened to hold our office unit. This will be absorbed into our original Holdco.
- Bank Accounts Closed x 4
- Tangerine Holdco Account
- Tangerine Personal Account (Mine)
- Tangerine Personal Account (Hubby)
- Credit Union Office Unit Account
- Investment Accounts Closed x 5
- Credit Union TFSA (Mine)
- Credit Union TFSA (Hubby)
- Tangerine TFSA (MIne)
- Tangerine TFSA (Hubby)
- Credit Union RRSP (Mine)
Current Entities & Accounts
- Medical Professional Corporation
- Holdco (Holding Company)
Bank Accounts (4)
- Medical Professional Corporation
Investment Accounts (7)- Can get away with 5 accounts if no USD accounts
- USD (Will cancel when I sell Berkshire & Amgen)
- Holdco- Holds Berkshire
- Medical Professional Corporation- Holds Berkshire & Amgen
- Holdco Cdn
Credit Cards (3)
- Corporate- TD Aeroplan Visa
- Personal- CIBC Dividend Visa
- Costco- Mastercard (Will cancel if Costco accepts Visa)
Current Investment Plan
|Holdco Account||Retirement||60/40 Equities/ Bonds||VCN, XAW, ZDB|
|TFSA||Estate Planning||80/ 20 Equities/ Bonds||VGRO|
- Front load each account in January.
- Re-balance portfolio with incoming cash.
- Contribute more if the market moves beyond my 5% bands.
- Otherwise, ignore the portfolio.
I have been very careful with our finances over the years. I still ended up accumulating a veritable junk drawer of bank accounts, investment accounts, credit cards and investments. That is why some of us are opening up the books so to speak. Simply writing about this has helped me. Hopefully some of this may help other docs who are thinking about similar topics.
If one is not careful, you spend more time moving funds between accounts rather than actually doing anything worthwhile with the savings. That has certainly happened with me.
There are significant barriers to simplifying. For many of us, closing accounts and reformatting takes a lot of effort. Those accounts did not start themselves and they will not close themselves. It is too easy to allow daily life to get busy and divert you from taking care of these annoying but important tasks.
The biggest motivator was when I realized that my poor husband does not even know what accounts we have. And if something happened to me, he would not even know how to access them. Thus my deliberate push to simplify it all.
If I can not make him understand the need for an account or an investment, then it was going to be cancelled. I recently reviewed Dr. Networth’s burgeoning real estate empire. I realize that I only require the simplest structure for the investments that I plan to hold.
I am amazed at how ruthlessly efficient I have become. Simply detailing my finances for this blog has made me want to declutter the mess of accounts I had accumulated.
Since this blog started, I have:
- Decluttered my investment plan. It is either a 3 fund portfolio in my Corporate account or a one fund portfolio in the TFSA.
- Decluttered all my accounts- banks and investment accounts, investments and credit cards. This one feels awesome.
- Decided against credit card travel hacking. I can barely keep track of the accounts I had, need I say more.
- Formulated a coherent retirement plan for hubby and I.
Nowadays when I read any financial information, I can easily gloss or skip over any stock picking suggestions, dividend stock suggestions, market pundits, credit card suggestions, well all of it actually. That is the beauty of making a plan my family is happy with. It truly tunes out the noise.
I am at the stage where I know myself much better. Even if an investment strategy could outperform my plan, it would not matter. I would be grateful to get the market average. I do not delude myself that I have superior investment know how. I know that if something is remotely complicated, I would not follow it for long. Whatever I achieve as a DIY investor, I will be fine with it.
I simply can not continue with financial complexity after this process. Thank goodness for that.