via The Globe and Mail featuring Matthew Ardrey and Warren Baldwin | April 18, 2014
Evan and Violet are both 27 with good jobs, a big mortgage and their first child on the way.
They hope to have three or four children. They want Violet to leave her $75,000 a year nursing job when the baby is born and stay home with the children indefinitely.
Longer term, they aim to pay off their $717,325 mortgage by the time they are 40, and save for their children’s higher education.
“We’re trying to plan for living on my salary alone while living in a house we bought in Toronto, [an expensive housing market],” Evan writes in an e-mail. He works as a management consultant, earning $130,000 a year plus bonus – a number he reckons will rise substantially as the years go by.
Their biggest single expense is their mortgage, to which they are making extra payments. They do not have an allowance in their budget for vacations because they use Evan’s frequent flyer points, “and we think that with a baby on the way, travel will go down significantly,” he writes.
We asked Matthew Ardrey and Warren Baldwin of T.E. Wealth in Toronto to look at Violet and Evan’s situation. Mr. Baldwin is regional vice-president, and Mr. Ardrey is manager of financial planning.
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