Does Mr. Money Mustache technique work in GVA/GTA?
mr. money mustache retired on $800K net assets. can someone still do that in canada gva/gta?
Aug 21st, 2016 4:13 pm
Aug 21st, 2016 6:13 pm
Aug 21st, 2016 7:00 pm
Aug 21st, 2016 7:02 pm
Aug 21st, 2016 7:12 pm
Aug 21st, 2016 7:41 pm
Aug 21st, 2016 11:34 pm
Aug 22nd, 2016 1:12 am
This.serious7 wrote: ↑ I don't understand how money moustache can help you retire.
Assuming you have 800k invested with 4% dividends that you use to fund all of your life expenses. You have to rely on capital appreciation to help you stay ahead of inflation. There's no way a conservative couch potato portfolio can outpace inflation when dividends are not reinvested. The future value of that 800k will not be enough to pay for future expenses due to inflation.
Aug 22nd, 2016 4:52 am
Not disputing that it's pretty hard to live on $32k and that $800k leaves no room for error.
Aug 22nd, 2016 5:26 am
Aug 22nd, 2016 9:01 am
4% safe withdrawal rate, adjusted by inflation each year.
Aug 22nd, 2016 9:04 am
Google the Trinity Study. Shows that 4% when you're 40% bonds/60% stocks (I think, haven't looked at it myself) almost always succeeds for a 30 year retirement. In the vast majority of cases it grows rather than diminishes.masterhapposai wrote: ↑This.serious7 wrote: ↑ I don't understand how money moustache can help you retire.
Assuming you have 800k invested with 4% dividends that you use to fund all of your life expenses. You have to rely on capital appreciation to help you stay ahead of inflation. There's no way a conservative couch potato portfolio can outpace inflation when dividends are not reinvested. The future value of that 800k will not be enough to pay for future expenses due to inflation.
Its all b.s.
Aug 22nd, 2016 9:54 am
Yeah, but if you compare writing a 1 page blog once a week vs 9-5 + commute + sitting in an office. One job seems a lot more interesting than the other. I'd rather learn to replace a roof, do it, and appreciate the effort that goes into it. Besides it's great to still stay active once you retire. If you just move to Florida and sip corona's on the beach, or sit on the couch watching law and order and playing candy crush you end up croaking a lot sooner than someone who stays active, even if by lightly "working".ksgill wrote: ↑ You know what amazes me about early retirement websites is that these guys save money aggresively, change careers and call it early retirement. It's not retirement if you start replacing roofs, writing blogs or manage rentals instead of writing software (as MM does). MM also makes quite a bit of money from his website to which he actively contributes... that's work. IMHO, it's a change in career and not early retirement.
Now back to whether you can survive with 32k/year after tax in Toronto... you probably could if you don't have a family to raise and don't mind living with roommates. That or your spouse also makes 32k... a lot of people survive with similar incomes in this city.
Aug 22nd, 2016 10:20 am
Aug 22nd, 2016 10:37 am
Sure, but you aren't retired if you still work *fulltime* as he does replacing roofs, writing blogs and managing rentals. BTW, his blog makes 6 figures per year by some estimates.Super_Chicken wrote: ↑Yeah, but if you compare writing a 1 page blog once a week vs 9-5 + commute + sitting in an office. One job seems a lot more interesting than the other. I'd rather learn to replace a roof, do it, and appreciate the effort that goes into it. Besides it's great to still stay active once you retire. If you just move to Florida and sip corona's on the beach, or sit on the couch watching law and order and playing candy crush you end up croaking a lot sooner than someone who stays active, even if by lightly "working".ksgill wrote: ↑ You know what amazes me about early retirement websites is that these guys save money aggresively, change careers and call it early retirement. It's not retirement if you start replacing roofs, writing blogs or manage rentals instead of writing software (as MM does). MM also makes quite a bit of money from his website to which he actively contributes... that's work. IMHO, it's a change in career and not early retirement.
Now back to whether you can survive with 32k/year after tax in Toronto... you probably could if you don't have a family to raise and don't mind living with roommates. That or your spouse also makes 32k... a lot of people survive with similar incomes in this city.
...
Aug 22nd, 2016 1:44 pm
It's called FI/RE - Financial Independence/Retire Early. You're what MMM calls the "Internet Retirement Police" - saying what he's done is false/fake because he doesn't just sit around doing nothing, or play golf all day.ksgill wrote: ↑Sure, but you aren't retired if you still work *fulltime* as he does replacing roofs, writing blogs and managing rentals. BTW, his blog makes 6 figures per year by some estimates.Super_Chicken wrote: ↑Yeah, but if you compare writing a 1 page blog once a week vs 9-5 + commute + sitting in an office. One job seems a lot more interesting than the other. I'd rather learn to replace a roof, do it, and appreciate the effort that goes into it. Besides it's great to still stay active once you retire. If you just move to Florida and sip corona's on the beach, or sit on the couch watching law and order and playing candy crush you end up croaking a lot sooner than someone who stays active, even if by lightly "working".ksgill wrote: ↑ You know what amazes me about early retirement websites is that these guys save money aggresively, change careers and call it early retirement. It's not retirement if you start replacing roofs, writing blogs or manage rentals instead of writing software (as MM does). MM also makes quite a bit of money from his website to which he actively contributes... that's work. IMHO, it's a change in career and not early retirement.
Now back to whether you can survive with 32k/year after tax in Toronto... you probably could if you don't have a family to raise and don't mind living with roommates. That or your spouse also makes 32k... a lot of people survive with similar incomes in this city.
...
Aug 22nd, 2016 3:13 pm
Don't get your knickers in a bunch, I didn't define the term. Perhaps I should move to Thailand and "retire" with my mid-six figure portfolio while working full-time in the tourism industry. What a joke.Retirement rəˈtī(ə)rmənt/ (noun)- the action or fact of leaving one's job and ceasing to work.
Aug 22nd, 2016 3:55 pm
Aug 22nd, 2016 3:55 pm
fixed.ksgill wrote: ↑ Where do you see me calling him a fraud?
Early Retirement rəˈtī(ə)rmənt/ (noun)- the action or fact of leaving one's job and ceasing to work for The Man.
Don't get your knickers in a bunch, I didn't define the term. Perhaps I should move to Thailand and "retire" with my mid-six figure portfolio while working full-time in the tourism industry. What a joke.
Aug 22nd, 2016 9:23 pm
Past performance is not an indication of future performance. Reinvested dividends played a really big role in index investing performance. Taking that out of the picture leaves a lot of questions about the ability for the principle to keep pace with inflation. There's unfortunately a pretty good chance that it either will break even with inflation or fall short.
There is currently 1 user viewing this thread. (0 members and 1 guest)