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Deal Fanatic
Feb 1, 2006
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Muskoka
ritzcrv wrote:
Nov 26th, 2018 2:01 pm
This is an odd concept you have about "retirement village" in one's 40's. Lots of people in the 60's, 70's, & even 80's are not working because they have to, they do it because they want to. It's enjoyable. Is it a JOB (Just Over Broke), no. If it were they'd do something else. It's not too far removed from a career path, tedious work in the beginning before the wisdom of experience gives more freedom to rise above the menial tasks that are always required to be done by someone.

I've never understood the plan that many make to bust their ass for 20 years , so they can retire early & do nothing in their 40's for the balance of their life. The mental position to strive for more may subside for a few weeks, but it won't go away. Boredom sets in, they go looking for something to do, a job, business, etc etc.
My view is that if you need to work for someone else to make your life feel fulfilled and to keep busy, you have done something wrong. Free time to do what you want is always better than paid employment. You may choose to create art, or do woodworking, or volunteer, or meditate....whatever grabs your interest. I choose to run and bike very long distances, that not only takes a lot of time, but also serves as a mediation. My views on life have changed since I left the world of full time work, and I believe it is from all of the time for introspection.
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Nov 25, 2014
1718 posts
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Newton Brook, ON
ritzcrv wrote:
Nov 26th, 2018 2:01 pm
This is an odd concept you have about "retirement village" in one's 40's. Lots of people in the 60's, 70's, & even 80's are not working because they have to, they do it because they want to. It's enjoyable. Is it a JOB (Just Over Broke), no. If it were they'd do something else. It's not too far removed from a career path, tedious work in the beginning before the wisdom of experience gives more freedom to rise above the menial tasks that are always required to be done by someone.

I've never understood the plan that many make to bust their ass for 20 years , so they can retire early & do nothing in their 40's for the balance of their life. The mental position to strive for more may subside for a few weeks, but it won't go away. Boredom sets in, they go looking for something to do, a job, business, etc etc.
I think you'll find the answer somewhere in the "etc etc". The way you've written this, there is only "work" and "nothing". That's an awfully narrow view. Of course many people get fulfillment from continuing to work jobs or starting businesses. I don't see why it's hard to understand that there are also people who get fulfillment from other things.
You need someone with an umbrella not a fork
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Dec 11, 2008
8861 posts
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Depends on how much you plan to live on and how long you may have left to live.

We don't see ourselves our of the race because I don't think we are in it. We both do jobs we are happy with, we don't drive to work and we have goals and targets in all aspects of our lives.

We do plan on retiring at around 56 though. I guess the only thin we cannot escape is being able to sleep in with our current jobs.
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Dec 11, 2008
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STP123 wrote:
Nov 26th, 2018 1:04 pm
I just passed 50 and not long ago, self-declared ourselves financially independent. Our dividend income from all sources (registered/non-reg) exceeds my day job and grows at a rate far greater than what I can get from my employers. Do I hate my job? No. I am forever gratefully they allowed my to plant the seeds allowing me to reach this independence. However, once I reached this state I actually enjoy my job more, because the worry that use to consume me in doing a good and trying to make sure I keep it is gone. I'm very conservative in nature, but now I'm able to communicate more freely and take on more risks that has enabled me to bring more value to my role and the company and things are actually more fulfilling at work. Its a strange paradox, but I'm sure others who have reached this state might know what I'm talking about.
Oh I would be quite ecstatic to be able to be in that position at 50 but I am not sure if that is possible for us.
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May 25, 2008
1338 posts
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Mississauga
speedyforme wrote:
Nov 27th, 2018 9:20 am
Oh I would be quite ecstatic to be able to be in that position at 50 but I am not sure if that is possible for us.
Why not? So long as you have a disciplined mindset to control your expenses (critical early in your planning) and time on your side, I believe anyone is capable. I understood the potential of compound growth early in my planning stage and that is what has allowed me to reach my goal (of matching or exceeding my employment income through passive investing). Most people get discouraged because in the early stages, growth is slow and its difficult to stay motivated. However, once compounding takes hold, you will see your returns go parabolic and you will thank yourself for the planning and discipline established many years before. To use an extreme example to illustrate this point, 99% of Warren Buffett's net worth was accumulated after age 50. Although the magnitude of his wealth is unrealistic for the majority of us, the principle of compound growth, discipline and time works the same.
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Dec 11, 2008
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STP123 wrote:
Nov 27th, 2018 10:14 am
Why not? So long as you have a disciplined mindset to control your expenses (critical early in your planning) and time on your side, I believe anyone is capable. I understood the potential of compound growth early in my planning stage and that is what has allowed me to reach my goal (of matching or exceeding my employment income through passive investing). Most people get discouraged because in the early stages, growth is slow and its difficult to stay motivated. However, once compounding takes hold, you will see your returns go parabolic and you will thank yourself for the planning and discipline established many years before. To use an extreme example to illustrate this point, 99% of Warren Buffett's net worth was accumulated after age 50. Although the magnitude of his wealth is unrealistic for the majority of us, the principle of compound growth, discipline and time works the same.
Our incomes are quite high so we will need quite a HUGE amount invested. Don't think we can get there by 50. Not even at the 50%+ we save from our net income.
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Jul 27, 2017
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STP123 wrote:
Nov 27th, 2018 10:14 am
Why not? So long as you have a disciplined mindset to control your expenses (critical early in your planning) and time on your side, I believe anyone is capable.

To use an extreme example to illustrate this point, 99% of Warren Buffett's net worth was accumulated after age 50. Although the magnitude of his wealth is unrealistic for the majority of us, the principle of compound growth, discipline and time works the same.
agree & I'd like to add to that since there are many folks on here that must be approaching or who are 50+

do not discourage or discount those at age 50 with yet to start or have a 'retirement fund' or who also 'do not have a works/company pension plan' - that they have the ability to have a nice retirement fund by the time they reach age 65

I can speak to this because I'm 71, have traveled the road & have helped a few to get there as well

it doesn't take much effort, it does though take they will be in good health & employed through those 15 years

I have worked the numbers every which way & backwards, even to a point where at age 50 mortgage free, no RRSP, no TFSA & no non-registered investments

and at age 65 they are still mortgage free & have zero debt including zero loans or HELOC

I always & mean always (maybe its my childhood upbringing) that owning a mortgage free house first is better than having investments in registered & non-registered funds .... it just made sense.

in the case taking a 50 year old with an OH, two children (hopefully now empty nesters), the OH had worked minimum 12.5 years from age 20 -50, neither had registered accounts, then all of sudden at age 50 one or maybe both of them had that huge RRSP contribution room (later in life they are earning more than they did 25 years earlier), one or both started plonking every spare dollar to RRSP (factor in spousal RRSP also), the tax refund to TFSA, the did a nice small HELOC of $100k invested returning double what they paid in interest (that's without double leverage/margin in an IB brokerage) , by the time they reached 65 today, they'd have $500,000

at 65 mortgage free, OAS, CPP, bits of add-on's from the Feds & province, RRSP turned into RRIF, TFSA .... in their retirement years $4000+/mth should be a no-brainer, even if they opted out at age 60, started drawing CPP early, converted RRSP to RRIF, they'd still be able to retire .... modestly
Last edited by porticoman on Nov 27th, 2018 10:47 am, edited 2 times in total.
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May 25, 2008
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speedyforme wrote:
Nov 27th, 2018 10:34 am
Our incomes are quite high so we will need quite a HUGE amount invested. Don't think we can get there by 50. Not even at the 50%+ we save from our net income.
The goal of matching my employment income is just mine, you can set your own that makes sense. In corporate speak, set goals that are SMART: Specific/sensible, Measurable, Attainable, Realistic and Timebound.
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Jul 27, 2017
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STP123 wrote:
Nov 27th, 2018 10:43 am
The goal of matching my employment income is just mine, you can set your own that makes sense.

In corporate speak, set goals that are SMART: Specific/sensible, Measurable, Attainable, Realistic and Timebound.
"corporate speak", that's interesting, I'm thinking many folks do not read financial books, or web search detailed financial topics or who work in the corporate world to understand most of the tech-speak jargon.

all the same, what you just said makes sense, now I need to digest that
Last edited by porticoman on Nov 27th, 2018 10:51 am, edited 1 time in total.
Deal Fanatic
Dec 11, 2008
8861 posts
860 upvotes
STP123 wrote:
Nov 27th, 2018 10:43 am
The goal of matching my employment income is just mine, you can set your own that makes sense. In corporate speak, set goals that are SMART: Specific/sensible, Measurable, Attainable, Realistic and Timebound.
Absolutely true.

I means I guess we do have SMART goals for our financial future among other things as a couple. I guess that is why I wish we were able to attain that but I guess a goal that I think is more important is to be able to have enough investment income to cover your expected expenses. I assume you are way past that already though.
Deal Fanatic
Dec 11, 2008
8861 posts
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porticoman wrote:
Nov 27th, 2018 10:37 am
agree & I'd like to add to that since there are many folks on here that must be approaching or who are 50+

do not discourage or discount those at age 50 with yet to start or have a 'retirement fund' or who also 'do not have a works/company pension plan' - that they have the ability to have a nice retirement fund by the time they reach age 65

I can speak to this because I'm 71, have traveled the road & have helped a few to get there as well

it doesn't take much effort, it does though take they will be in good health & employed through those 15 years

I have worked the numbers every which way & backwards, even to a point where at age 50 mortgage free, no RRSP, no TFSA & no non-registered investments

and at age 65 they are still mortgage free & have zero debt including zero loans or HELOC

I always & mean always (maybe its my childhood upbringing) that owning a mortgage free house first is better than having investments in registered & non-registered funds .... it just made sense.

in the case taking a 50 year old with an OH, two children (hopefully now empty nesters), the OH had worked minimum 12.5 years from age 20 -50, neither had registered accounts, then all of sudden at age 50 one or maybe both of them had that huge RRSP contribution room (later in life they are earning more than they did 25 years earlier), one or both started plonking every spare dollar to RRSP (factor in spousal RRSP also), the tax refund to TFSA, the did a nice small HELOC of $100k invested returning double what they paid in interest (that's without double leverage/margin in an IB brokerage) , by the time they reached 65 today, they'd have $500,000

at 65 mortgage free, OAS, CPP, bits of add-on's from the Feds & province, RRSP turned into RRIF, TFSA .... in their retirement years $4000+/mth should be a no-brainer, even if they opted out at age 60, started drawing CPP early, converted RRSP to RRIF, they'd still be able to retire .... modestly
That is sort of our approach when it comes to our mortgage. Pay it off asap and then invest heavily as well. We do invest now but it's moreso to pay back HBP and for my husband's bonus goes straight to RRSP etc. Other than that, extras go into mortgage so we will be mortgage free by 38.
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Dec 16, 2005
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speedyforme wrote:
Nov 27th, 2018 10:34 am
Our incomes are quite high so we will need quite a HUGE amount invested. Don't think we can get there by 50. Not even at the 50%+ we save from our net income.
what kind of income are we talking here? If you are saving 50%+ of your net income, why wouldn't you be there by 50? How much time do you have left?
Remember when you quit working and the mortgage drops off, those expenses go away. That means you have the exact same lifestyle as when you were working but requiring less money.

When my mortgage is done, it will be as if I got a $50k raise before taxes. That should accelerate savings/investments. Which is why, typically you are going to save more in the later years of working. Just don't fall into the trap of constantly trading up your house.
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Jul 27, 2017
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speedyforme wrote:
Nov 27th, 2018 10:52 am
That is sort of our approach when it comes to our mortgage. Pay it off asap and then invest heavily as well. We do invest now but it's moreso to pay back HBP and for my husband's bonus goes straight to RRSP etc. Other than that, extras go into mortgage so we will be mortgage free by 38.
+1 good luck to you

now imagine that, age 38 mortgage free, half of the battle is over, to the finish line is shorter.

doing at starting age age 50 is also OK, in fact any age that gets folks something over & above Government hand-outs is a bonus
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Dec 11, 2008
8861 posts
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mech9t5 wrote:
Nov 27th, 2018 10:54 am
what kind of income are we talking here? If you are saving 50%+ of your net income, why wouldn't you be there by 50? How much time do you have left?
Remember when you quit working and the mortgage drops off, those expenses go away. That means you have the exact same lifestyle as when you were working but requiring less money.

When my mortgage is done, it will be as if I got a $50k raise before taxes. That should accelerate savings/investments. Which is why, typically you are going to save more in the later years of working. Just don't fall into the trap of constantly trading up your house.
Our current household gross income is like $230k. Our mortgage is not huge, about $1500/month. We plan to stay in our home for as long as we can. So freeing up the mortgage isn't going to boost our investments as much. However, with no more additional payments, we should be able to save $6500+ a month.

If we are 38 now, that's only 12 years of investing to reach a sizeable amount, which I don't think covers our incomes.
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Dec 11, 2008
8861 posts
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porticoman wrote:
Nov 27th, 2018 10:57 am
+1 good luck to you

now imagine that, age 38 mortgage free, half of the battle is over, to the finish line is shorter.

doing at starting age age 50 is also OK, in fact any age that gets folks something over & above Government hand-outs is a bonus
Thank you. I agree and hopeful that many others can get to where they not only can retire modestly or comfortably but also have enough to enjoy their hard work and not just spend spend spend now.

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