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Deal Addict
Jul 27, 2017
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mech9t5 wrote:
Nov 27th, 2018 10:54 am

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.

+1 again to you mech9t5 for those clear & concise points

makes sense folks
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speedyforme wrote:
Nov 27th, 2018 10:57 am
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.
by age 50 you should be well & truly done
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Dec 11, 2008
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porticoman wrote:
Nov 27th, 2018 11:01 am
by age 50 you should be well & truly done
Hopefully. Plan is to retire at 56. *fingers crossed*

I may have to revisit some numbers to play out potential scenarios.
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once again, just wanted to add, starting at age 20 newly married my wife & I were mortgage free at age 27, starting from zero, no hand-outs, we saved our deposit for a Toronto 5 room rental income property in one year.

As slumlords - we lived in it rented out rooms by the week - from then on it was easy street, oh & we did not have out first child till we were 31

different time, yes maybe, but just work the numbers, work hard, two, even three jobs for a short period, be frugal & modest ....
Last edited by porticoman on Nov 27th, 2018 11:08 am, edited 1 time in total.
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May 25, 2008
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speedyforme wrote:
Nov 27th, 2018 10:50 am
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.
The goal of covering your expected expenses in your retirement is a good one, since you want the peace of mind of that safety net whether you chose to continue working or not. The thing that I wasn't quite prepared for, was what do I do after I reached my goal(s)? I mean, its definitely first world problem, but after you hit the mark, everything is just numbers on a piece of paper or your computer screen. My mind is just not wired to spend for the sake of spending because I no longer need that discipline that served me well at the start. My kids, although they don't know it, will be very well off by the time I check out. I chose to continue working as I enjoy the people I work with and what I do. However, I've redirected some of my assets to a property up north where I can enjoy something tangible and still keep within my asset accumulation mindset.
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Dec 16, 2005
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speedyforme wrote:
Nov 27th, 2018 10:57 am
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.
If you're looking to cover $230k gross from investments per year, that is not easy. You'll need something like $5-6million invested. You would need to make some big bets to get there. I guess the question would be why? You said you can save $6500 a month on that income so what would you do with the extra $6500 when you retire when you don't need to save it anymore?
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May 25, 2008
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porticoman wrote:
Nov 27th, 2018 11:01 am
by age 50 you should be well & truly done
I agree, with your income (speedyforme), just have a plan and execute it. You will be fine.
Last edited by STP123 on Nov 27th, 2018 11:11 am, edited 1 time in total.
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Jun 13, 2018
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nmclean wrote:
Nov 27th, 2018 8:26 am
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.
My view is far from narrow, to opine about other peoples views would consume way too many pages of discussion. The simple reality is I, like you, offer an opinion. There is no right or wrong opinion.
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Bullseye wrote:
Nov 26th, 2018 1:02 pm
You shouldn't let your ignorance lead to false assumptions. Have you ever even been north of Barrie? My kids school in Muskoka is better funded than their city school, and has fantastic teachers. Every kid gets a Chromebook to use, and a veggie tray daily. If I thought moving here would be worse for my kids, I of course would never have done it. There are pros and cons of every place, but I feel on balance, they will have a better overall lifestyle here. Which is why we moved here. I was mortgage free in the GTA, we didn't move to save money, we moved to be near nature, which is our passion, and to give the kids a shot at owing a house one day without a million dollar mortgage.
There is an assumption for a lot of people that living in the "big city" wherever that may be is better. But better than what? I have lived in both smaller cities and bigger cities and I have to say that, on balance, the people I have met from smaller cities seem more wholesome and respectable than those from the bigger cities. I think that there is a difference in how people conduct themselves in smaller cities because your reputation matters and is somewhat essential to your survival and success. For many living in the big city is a way to hide and become somewhat anonymous. I am not saying that big cities are all bad but there is a different focus in big cities. People seem more concerned with how they look, what the drive, and how others see themselves. Vancouver seems to me be one of the most superficial places I have ever experienced. Los Angeles may be the same or more but many of the people who live in Vancouver spend so much money on their clothes, their cars, their houses, etc. that I think they forget about the more important things. I would expect that these types of environment can really shape the way kids see the world when they are growing up.
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Dec 11, 2008
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STP123 wrote:
Nov 27th, 2018 11:08 am
The goal of covering your expected expenses in your retirement is a good one, since you want the peace of mind of that safety net whether you chose to continue working or not. The thing that I wasn't quite prepared for, was what do I do after I reached my goal(s)? I mean, its definitely first world problem, but after you hit the mark, everything is just numbers on a piece of paper or your computer screen. My mind is just not wired to spend for the sake of spending because I no longer need that discipline that served me well at the start. My kids, although they don't know it, will be very well off by the time I check out. I chose to continue working as I enjoy the people I work with and what I do. However, I've redirected some of my assets to a property up north where I can enjoy something tangible and still keep within my asset accumulation mindset.
I agree with your mindset and think I may fall there too. Just because I eventually retire, I do not know if I can recondition my brain to see money differently. No matter how much we have, VALUE is a big thing in my brain. We won't have children so someone or some charity will benefit from our money.

Hopefully we will continue to have additional goals outside of financial ones to keep us going.
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Dec 11, 2008
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mech9t5 wrote:
Nov 27th, 2018 11:09 am
If you're looking to cover $230k gross from investments per year, that is not easy. You'll need something like $5-6million invested. You would need to make some big bets to get there. I guess the question would be why? You said you can save $6500 a month on that income so what would you do with the extra $6500 when you retire when you don't need to save it anymore?
Yeah which is why I think it's not attainable for us so to cover expenses is definitely something we are already aiming for.

I think we are anticipating the cost of living creeping up faster than our incomes so we are hopeful to use the extra money to offset these increases. We've been crunching numbers and it's certainly doable for the lifestyle we want. We also need to build in flexibility in case our plan derails and something bad happens; but at least it means we can scale down our lifestyle. Hopefully aiming high and plan for the OK path to get there.

I don't know how safe it is to assume our income will remain until we retire, shit happens.
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Jul 27, 2017
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STP123 wrote:
Nov 27th, 2018 11:08 am
My kids, although they don't know it, will be very well off by the time I check out. I chose to continue working as I enjoy the people I work with and what I do.

However, I've redirected some of my assets to a property up north where I can enjoy something tangible and still keep within my asset accumulation mindset.
an observation to that

there is the difference between the way folks from different background & different generation think or do what you just posted

a) when retired or free from the rat race, folks no longer need to keep building wealth, just need to make sure that there is income & if it means start melting down assets, it's do what one needs to do

b) why in retirement/free from the rat race is there a need to keep on accumulating. A zillion dollars is no good, in fact if your all-in year over year expenses are say $48,000/yr, do you need assets or passive income from every source that gives you more than you consume/need?

c) my wife & I are not of the school or subscribe to the 'leaving it to the kids'- that many folks have said 'they the kids/grandkids don't know how lucky they are, they'll be in a better position that I was' .....

if & when you retire/retired once income to assets meet your needs, you either spend spend spend, or start while the kids are young before you 'check-out' start giving them early on & not wait till end of your days.
Last edited by porticoman on Nov 27th, 2018 11:24 am, edited 1 time in total.
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Nov 25, 2014
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ritzcrv wrote:
Nov 27th, 2018 11:09 am
My view is far from narrow, to opine about other peoples views would consume way too many pages of discussion. The simple reality is I, like you, offer an opinion. There is no right or wrong opinion.
I don't know how you took my post to mean your opinion is wrong. I said there is room for both types. It was you who called differing opinions an "odd concept" and that you've "never understood" them. That's what I was commenting on.
You need someone with an umbrella not a fork
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May 25, 2008
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speedyforme wrote:
Nov 27th, 2018 11:12 am
I agree with your mindset and think I may fall there too. Just because I eventually retire, I do not know if I can recondition my brain to see money differently. No matter how much we have, VALUE is a big thing in my brain. We won't have children so someone or some charity will benefit from our money.

Hopefully we will continue to have additional goals outside of financial ones to keep us going.
Your comments are very interesting and I can totally relate to it. Again, it goes back to having SMART goals. Why kill yourself now, so that you can look at a big pile of money that you've accumulated into retirement? If you are someone (like me) who looks at the value at everything you buy, $230K in passive income is a lot of money to put to use when you are retired and have no kids to look after. Set some meaningful goals and don't kill yourself in the process. You will be fine by the time you are 50.
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speedyforme wrote:
Nov 27th, 2018 10:57 am
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.
speedyforme wrote:
Nov 27th, 2018 11:16 am
I think we are anticipating the cost of living creeping up faster than our incomes so we are hopeful to use the extra money to offset these increases. We've been crunching numbers and it's certainly doable for the lifestyle we want. We also need to build in flexibility in case our plan derails and something bad happens; but at least it means we can scale down our lifestyle. Hopefully aiming high and plan for the OK path to get there.

I don't know how safe it is to assume our income will remain until we retire, shit happens.
speedyforme wrote:
Nov 27th, 2018 11:12 am
Just because I eventually retire, I do not know if I can recondition my brain to see money differently. No matter how much we have, VALUE is a big thing in my brain. We won't have children so someone or some charity will benefit from our money.

Hopefully we will continue to have additional goals outside of financial ones to keep us going.
those three posts

now age 38, huge income of $230k/yr, wont have children, hopefully mortgage free soon - retire & free from the rat race at age 50 .... maybe not

case by case, is it a) or b)?

a) age 51 retired, still working, income of $230k/year

b) age 51, from age 40 - age 50, mortgage free, accumulated at least $one-million in investments earning $50,000/yr. OMG, we are poor, we need to keep accumulating to get to $2.5 million, maybe $5 million

what are your numbers, what have you planned that you will need in come at age 50 in today's dollars to meet your lifestyle?

since there are many people that live from paycheque to paycheque on RFD, if you wouldn't mind sharing, excluding mortgage, what are your detailed monthly expenses today?


.
Last edited by porticoman on Nov 27th, 2018 11:48 am, edited 2 times in total.

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