The Situation:
- Age: 21, BBA in Accounting. CPA track (starting full-time in 2 years, 2 years later to be officially cpa).
- Net Worth: ~$65,000 ($0 debt).
- Breakdown: $45k invested in tax free accounts (50% XEQT / 50% CAGE), $2k in chequing, and an $18k car (paid cash, under warranty until 2030).
- Expenses: $0. I live with my parents.
- Summer Income: Factory job at $30/hr. Expecting to net ~$20k this summer (student tax status).
- Contribution Room: I only have $9,000 of room left to max out my TFSA and FHSA for the year.
The Dilemma: A friend working in aviation offered a "buddy pass" for a 2-week trip to Asia. I'd be looking at about $200 for a round-trip ticket.
- Direct cost: ~$1,000-1,500 (Flight, hostels, food).
- Opportunity cost: ~$3,000 (Lost wages/potential overtime for 2 weeks).
- Total "hit" to my potential net worth: ~$4,000.
The Logic: Whether I take the trip or not, I will max out my TFSA and FHSA this summer. The extra $4,000 I’d earn by staying would simply end up in a non-registered account.
I know that $4,000 invested at 21 has massive compounding potential, but I also realize that a $200 round-trip ticket to Asia is a rare window that might not be available once I’m working at an accounting firm.
My question: At 22, with a solid head start and a clear high-income career path, would you take the trip? Or is the "future value" of that extra $4k in a taxable account too significant to pass up when you're this young?
Basically: at what point does "stacking" become overkill when you've already secured your tax-advantaged buckets and have no debt?