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May 25, 2008
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porticoman wrote:
Nov 27th, 2018 11:19 am
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.
Its difficult to explain, but I/we just can't shift that mindset. My spouse still clips coupons and enjoys looking at what on sale for the week at the grocery store. We've kept our financial situation a secret from our kids and they really don't see evidence of it in our daily lives and routine because I believe that such an awareness will destroy their motivation and the willingness to establish themselves in their own lives.
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Dec 11, 2008
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STP123 wrote:
Nov 27th, 2018 11:25 am
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.
Thanks. There is one thing to be clear, we are not killing ourselves or feel deprived at all. We just don't have expensive lifestyles.
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STP123 wrote:
Nov 27th, 2018 11:39 am
Its difficult to explain, but I/we just can't shift that mindset. My spouse still clips coupons and enjoys looking at what on sale for the week at the grocery store. We've kept our financial situation a secret from our kids and they really don't see evidence of it in our daily lives and routine because I believe that such an awareness will destroy their motivation and the willingness to establish themselves in their own lives.
as I posted it's basically different strokes for different folks

for the period that we lived in we had children late at age 31 & 39

were have been thrifty from the get go, as 'children of the children of the depression' & the Edwardian era grans

our children have followed our theory, they are thrifty also & who believe not to take, ask or depend on others financially. is that unusual - I don't know !

there are folks on RFD that subscribe to 'giving their children all the toys, the latest in clothing, extra curricular activity sports, holidays to paying for their post secondary education (with or without RESP) as well as buying their kids cars ... all of that takes a lot of money

then there are the group that are building a retirement fund to leave to their children

is there a happy medium?
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porticoman wrote:
Nov 27th, 2018 11:37 am
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 todays 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?
To be clear this is certainly and by no means me complaining. We are currently 36 yrs old. I am very aware of our situation and am very thankful of what we have, nor do we deprive ourselves. We have some lofty goals and think that in retirement, we may need about $10,000 a month in expenses due to increased traveling and expenses (this is future dollars). This is a combination of increased eating out and our Misc expenses (upping our travel expenses and other expenditures).

Our current goal is to retire by 56 and retain our current lifestyle or up it just a bit given our free time (travel even more and other additional activities that would require expenses).

As of today's numbers we spend just under $5000 a month and average save $6500 a month.

Mortgage: $1500
Main Fees: $600
Utilities: $250
Prop tax: $400
Telecom: $300
Car: $100
Insurances: $125
TTC: $250
Gas: $75
Food: $600
Clothing: $75
Misc: $725 (gifts, knickknacks, vacation etc)
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Dec 11, 2008
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porticoman wrote:
Nov 27th, 2018 11:46 am
as I posted it's basically different strokes for different folks

for the period that we lived in we had children late at age 31 & 39

were have been thrifty from the get go, as 'children of the children of the depression' & the Edwardian era grans

our children have followed our theory, they are thrifty also & who believe not to take, ask or depend on others financially. is that unusual - I don't know !

there are folks on RFD that subscribe to 'giving their children all the toys, the latest in clothing, extra curricular activity sports, holidays to paying for their post secondary education (with or without RESP) as well as buying their kids cars ... all of that takes a lot of money

then there are the group that are building a retirement fund to leave to their children

is there a happy medium?
I don't know how outdated this is but I just started (late I know) and reading MILLIONAIRE NEXT DOOR and that one chapter on parents with money and children (gifting etc) is really interesting to me. Psychologically interesting too on the motivation and money and lifestyle some affluent parents want for their children.
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speedyforme wrote:
Nov 27th, 2018 11:48 am
We have some lofty goals and think that in retirement, we may need about $10,000 a month in expenses due to increased traveling and expenses (this is future dollars).

This is a combination of increased eating out and our Misc expenses (upping our travel expenses and other expenditures).

Our current goal is to retire by 56 and retain our current lifestyle or up it just a bit given our free time (travel even more and other additional activities that would require expenses).

As of today's numbers we spend just under $5000 a month and average save $6500 a month.

Mortgage: $1500
Main Fees: $600
Utilities: $250
Prop tax: $400
Telecom: $300
Car: $100
Insurances: $125
TTC: $250
Gas: $75
Food: $600
Clothing: $75
Misc: $725 (gifts, knickknacks, vacation etc)
Thank you for posting that, most interesting, let me give you my observation & some feedback

based on your numbers

- with mortgage your total monthly expenses are ~$5000/mth

- without mortgage $3500/mth

take home pay not less than ~$11,500/mth

in retirement less work related activities & any costs related to that including transportation, clothing, lunches & drinks, gifts or treats for colleagues

in retirement hopefully you wont have a mortgage

questions

a) based on a net income of $11,500? minus ~$5000 expenses, where does the cash flow go, where do you save it to/invested?

b) in today's dollars at age 56 mortgage free, will you need more than $3500/mth even if you have a bigger travel budget - if so, has the realistic budget now changed ?

c) at age 56 do you see yourselves living in the same housing that you have today or will you move to lower cost/lower expenses housing?

d) is $10,000 your anticipated retirement budget realistic or is it a lower or higher number?

if so, will you have investments that can give you that $10,000/mth & if so how much in capital invested in RRSP, TFSA & non-registered accounts do you think you will need to provide you with $10,000/mth or $120,000 year income?

e) where are you today in savings, investments, retirement savings to meet your target. Don't need the number, just the percentage of your retirement fund?
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Dec 11, 2008
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porticoman wrote:
Nov 27th, 2018 12:07 pm
Thank you for posting that, most interesting, let me give you my observation & some feedback

based on your numbers

- with mortgage your total monthly expenses are ~$5000/mth

- without mortgage $3500/mth

take home pay not less than ~$11,500/mth

in retirement less work related activities & any costs related to that including transportation, clothing, lunches & drinks, gifts or treats for colleagues

in retirement hopefully you wont have a mortgage

questions

a) based on a net income of $11,500? minus ~$5000 expenses, where does the cash flow go, where do you save it to/invested?

b) in today's dollars at age 56 mortgage free, will you need more than $3500/mth even if you have a bigger travel budget - if so, has the realistic budget now changed ?

c) at age 56 do you see yourselves living in the same housing that you have today or will you move to lower cost/lower expenses housing?

d) is $10,000 your anticipated retirement budget realistic or is it a lower or higher number?

if so, will you have investments that can give you that $10,000/mth & if so how much in capital invested in RRSP, TFSA & non-registered accounts do you think you will need to provide you with $10,000/mth or $120,000 year income?

e) where are you today in savings, investments, retirement savings to meet your target. Don't need the number, just the percentage of your retirement fund?
a) based on a net income of $11,500? minus ~$5000 expenses, where does the cash flow go, where do you save it to/invested?
Our take home pay actually hovers around $10k.
Due to union dues and pension contribution from me. And my husband does stock plan etc from his company. This equates to around $5000+ saved a month. This goes straight to the mortgage which is how we are able to pay so much off and hopefully never have to renew in 2020.


b) in today's dollars at age 56 mortgage free, will you need more than $3500/mth even if you have a bigger travel budget - if so, has the realistic budget now changed ?
This is where out $10,000 future dollars per month budget comes from. We added our expected expenses when retired at today's dollars and added about 2% inflation annually to each category.

c) at age 56 do you see yourselves living in the same housing that you have today or will you move to lower cost/lower expenses housing?
Same home for as long as we can walk stairs. Love location and home.

d) is $10,000 your anticipated retirement budget realistic or is it a lower or higher number?
I would say it's a bit on the higher side. Travel expenses are quite high so we built in a bit of a cushion. This $10,000 is a current total, may change as w get closer and be more realistic if our lifestyle changes as we get closer to retirement.

if so, will you have investments that can give you that $10,000/mth & if so how much in capital invested in RRSP, TFSA & non-registered accounts do you think you will need to provide you with $10,000/mth or $120,000 year income?
We did the math based on conservative 4.5% annual return and a draw down of 4% annually. I don't the exact breakdown of how much is in each account but we did have values in RRSP, TFSA, non-registered in addition to our pensions.

e) where are you today in savings, investments, retirement savings to meet your target. Don't need the number, just the percentage of your retirement fund?
If I am guesstimating off of memory, I believe we are at 10% of our goal in terms of savings/investment etc. Hopeing to see it increase much quickly once our home is paid off and we can invest heavily.
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@speedyforme, thanks for posting that back & good luck to you

for others following this thread that get to see the wide opinions/responses, that they find the information useful
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speedyforme wrote:
Nov 27th, 2018 12:24 pm
a) based on a net income of $11,500? minus ~$5000 expenses, where does the cash flow go, where do you save it to/invested?
Our take home pay actually hovers around $10k.
Due to union dues and pension contribution from me. And my husband does stock plan etc from his company. This equates to around $5000+ saved a month. This goes straight to the mortgage which is how we are able to pay so much off and hopefully never have to renew in 2020.


b) in today's dollars at age 56 mortgage free, will you need more than $3500/mth even if you have a bigger travel budget - if so, has the realistic budget now changed ?
This is where out $10,000 future dollars per month budget comes from. We added our expected expenses when retired at today's dollars and added about 2% inflation annually to each category.

c) at age 56 do you see yourselves living in the same housing that you have today or will you move to lower cost/lower expenses housing?
Same home for as long as we can walk stairs. Love location and home.

d) is $10,000 your anticipated retirement budget realistic or is it a lower or higher number?
I would say it's a bit on the higher side. Travel expenses are quite high so we built in a bit of a cushion. This $10,000 is a current total, may change as w get closer and be more realistic if our lifestyle changes as we get closer to retirement.

if so, will you have investments that can give you that $10,000/mth & if so how much in capital invested in RRSP, TFSA & non-registered accounts do you think you will need to provide you with $10,000/mth or $120,000 year income?
We did the math based on conservative 4.5% annual return and a draw down of 4% annually. I don't the exact breakdown of how much is in each account but we did have values in RRSP, TFSA, non-registered in addition to our pensions.

e) where are you today in savings, investments, retirement savings to meet your target. Don't need the number, just the percentage of your retirement fund?
If I am guesstimating off of memory, I believe we are at 10% of our goal in terms of savings/investment etc. Hopeing to see it increase much quickly once our home is paid off and we can invest heavily.
I'm reading along here and I'm laughing to myself because if I didn't think we were alike with your previous few posts, I got to this one and I'm like 'are you guys us?' Lol. So much similar between our situation and yours, right down to the love of travel :)

Anyway, one big difference is that we paid our mortgage off last year. We are 38/40. But similar gross income to you guys, one of us contributes to union and pension, the other takes advantage of company stock plan. We own a house that's paid, one income property, shared ownership of a second income property, and a third income property to close next year. Have some money in RRSPs, TFSA, invested. No kids. Love our house, it's worth over 1M buuuuuut, I'm not in love with the idea of living in a house that's so big and paying taxes, maintenance etc. We stay here bc it's convenient for work but the moment we don't NEED to work at our current jobs, we will consider downsizing.

For us, achieving FIRE means we don't have to work at soul sucking jobs to kee socking money away for the future. It doesn't mean that we will have nothing to do, as PP alluded to. I really don't understand that mentality. When we tell people that we want to retire from our current jobs ASAP, they gasp and ask....'BUT WHAT WILL YOU DO???!!!' Ummm, everything that we WANT to do more often but can't because we work full time.

Anyway, I have this dream of not working at my current job beyond 45 years old. That's another 7 ish more years. But it's like, the more money we save, the earlier I dream of reaching FIRE, but then ironically, the farther away it seems to be possible. Why? Mainly because when we reach FIRE we want to travel. If we stop working at around 45 and are healthy, that's a LOT of money that it'll take to travel as often as we want to. In the ballpark of, I dunno, 20-30K a year?

I'm grateful for the position we are in. But it still just seems so impossible to be able to have 45/47 as age goals for reaching FIRE, or at least not needing to work at our current positions.

So, thanks for sharing. The replies here to your posts make me think we might be able to do it. Do you guys have specific numbers that you're aiming to have saved/in equity/invested before you reach retirement? Or is it an age goal?

I don't really understand investing that much so I don't understand how the concept of knowing how much you need to have saved/invested to consider it 'enough' to live off the interest/dividends? Any advice? Thanks.
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May 18, 2007
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amz155 wrote:
Nov 27th, 2018 8:06 pm
I'm reading along here and I'm laughing to myself because if I didn't think we were alike with your previous few posts, I got to this one and I'm like 'are you guys us?' Lol. So much similar between our situation and yours, right down to the love of travel :)

Anyway, one big difference is that we paid our mortgage off last year. We are 38/40. But similar gross income to you guys, one of us contributes to union and pension, the other takes advantage of company stock plan. We own a house that's paid, one income property, shared ownership of a second income property, and a third income property to close next year. Have some money in RRSPs, TFSA, invested. No kids. Love our house, it's worth over 1M buuuuuut, I'm not in love with the idea of living in a house that's so big and paying taxes, maintenance etc. We stay here bc it's convenient for work but the moment we don't NEED to work at our current jobs, we will consider downsizing.

For us, achieving FIRE means we don't have to work at soul sucking jobs to kee socking money away for the future. It doesn't mean that we will have nothing to do, as PP alluded to. I really don't understand that mentality. When we tell people that we want to retire from our current jobs ASAP, they gasp and ask....'BUT WHAT WILL YOU DO???!!!' Ummm, everything that we WANT to do more often but can't because we work full time.

Anyway, I have this dream of not working at my current job beyond 45 years old. That's another 7 ish more years. But it's like, the more money we save, the earlier I dream of reaching FIRE, but then ironically, the farther away it seems to be possible. Why? Mainly because when we reach FIRE we want to travel. If we stop working at around 45 and are healthy, that's a LOT of money that it'll take to travel as often as we want to. In the ballpark of, I dunno, 20-30K a year?

I'm grateful for the position we are in. But it still just seems so impossible to be able to have 45/47 as age goals for reaching FIRE, or at least not needing to work at our current positions.

So, thanks for sharing. The replies here to your posts make me think we might be able to do it. Do you guys have specific numbers that you're aiming to have saved/in equity/invested before you reach retirement? Or is it an age goal?

I don't really understand investing that much so I don't understand how the concept of knowing how much you need to have saved/invested to consider it 'enough' to live off the interest/dividends? Any advice? Thanks.
Enough is basically 25 times your expected annual expenses in retirement (4% withdrawal rate) in investable assets. This number is hard to estimate but it mostly seems to be around the same level you are spending right now give or take. Some may say you could spend less in retirement but I am hesitant to accept that opinion as the more free time I would have the easier it would be to spend money.
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wonginator wrote:
Nov 27th, 2018 9:31 pm
Enough is basically 25 times your expected annual expenses in retirement (4% withdrawal rate) in investable assets. This number is hard to estimate but it mostly seems to be around the same level you are spending right now give or take. Some may say you could spend less in retirement but I am hesitant to accept that opinion as the more free time I would have the easier it would be to spend money.
Thanks. Can you explain sentence to me like I'm five? :facepalm: Seriously, pls :)

I agree about the free time. And what about retiring early? I'll need a lot more if I want to stop working at 45 vs 55. Does the 25x still apply?
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Aug 2, 2001
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amz155 wrote:
Nov 27th, 2018 10:08 pm
Thanks. Can you explain sentence to me like I'm five? :facepalm: Seriously, pls :)

I agree about the free time. And what about retiring early? I'll need a lot more if I want to stop working at 45 vs 55. Does the 25x still apply?
The "famous" study quoted in the early retirement community is the Trinity Study (https://en.wikipedia.org/wiki/Trinity_s ... onclusions). It concluded that: "If history is any guide for the future, then withdrawal rates of 3% and 4% are extremely unlikely to exhaust any portfolio of stocks and bonds during any of the payout periods shown in Table 1. In those cases, portfolio success seems close to being assured".

What this means, in general, is that you can safely spend 4% of the amount you retired with every year and it is highly unlikely you would run out of money based on all the historical scenarios.

Example:
You want to have a yearly income of $100,000. You need your portfolio to be $2,500,000 in size at retirement to support $100,000 yearly withdrawals



It may be complicated but there is a calculator here that runs your spending / portfolio size / retirement years against 118 potential 30 year cycles:
https://www.firecalc.com/
It will give you the percentage, based on that data, that you are likely to not run out of money given history repeating itself. Again this might be meaningless without reading more about FIRE.
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Sep 23, 2007
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While people in developed countries complain about work etc, there are people in the world who work 16 hour days while earning peanuts. Let me put things in better historic perspective...Back a few centuries, life was brutal and short. A lot of people die from starvation, disease, or war. People used to work 16 hour days. now we work 8 hour days and complain that it is too busy. Sentences like "we are busier than ever" is utter bull crap. Humanity in developed countries has never been easier.

What do you call a rat race? The reality is that there is probably always someone who has more wealth/power/ability etc than you. Escaping the rat race is more about how you think about your life rather than some fixed number you need to reach. Think about what kind of life you want. Think about what skills you have to offer the world. Working is not just about how many hours you work. You can also try to increase your earnings per hour by demonstrating your value (I know it's easier said than done). For me and probably a lot of people who make decent income, they enjoy their work. They don't think about money that much. Money just kind of happens and is a byproduct of creating value for someone. Lots of people seem stuck on fighting their managers for 1% raise vs 2% raise etc. After taxes, it's not that meaningful. What's probably more effective is if you try to focus on what you CAN change. You can upgrade your skill set. You can control your spending. You can change your life's outlook. You can try to find satisfaction in what you have instead of always looking at what other's have with jealousy.

I think a lot of people don't realize how good we have it. The fact that an average person can dream about "career progression" is already amazing. Go back a few centuries and most people were living on subsistence farming. It didn't matter how hard you worked or how smart you are. One drought, war, disease outbreak etc and you are screwed.

Go enjoy life. You can find happiness whether you are rich or poor. The difference is merely in how you think. You don't need the latest gadgets or a nice house. The fact remains that by living in Canada, you are probably in the top 5% in terms of living standard in the world. We have a government that offers a lot of social security. Even a person on welfare in Canada is probably better off than some regular people in less developed countries.
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Dec 11, 2008
8857 posts
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amz155 wrote:
Nov 27th, 2018 8:06 pm
I'm reading along here and I'm laughing to myself because if I didn't think we were alike with your previous few posts, I got to this one and I'm like 'are you guys us?' Lol. So much similar between our situation and yours, right down to the love of travel :)

Anyway, one big difference is that we paid our mortgage off last year. We are 38/40. But similar gross income to you guys, one of us contributes to union and pension, the other takes advantage of company stock plan. We own a house that's paid, one income property, shared ownership of a second income property, and a third income property to close next year. Have some money in RRSPs, TFSA, invested. No kids. Love our house, it's worth over 1M buuuuuut, I'm not in love with the idea of living in a house that's so big and paying taxes, maintenance etc. We stay here bc it's convenient for work but the moment we don't NEED to work at our current jobs, we will consider downsizing.

For us, achieving FIRE means we don't have to work at soul sucking jobs to kee socking money away for the future. It doesn't mean that we will have nothing to do, as PP alluded to. I really don't understand that mentality. When we tell people that we want to retire from our current jobs ASAP, they gasp and ask....'BUT WHAT WILL YOU DO???!!!' Ummm, everything that we WANT to do more often but can't because we work full time.

Anyway, I have this dream of not working at my current job beyond 45 years old. That's another 7 ish more years. But it's like, the more money we save, the earlier I dream of reaching FIRE, but then ironically, the farther away it seems to be possible. Why? Mainly because when we reach FIRE we want to travel. If we stop working at around 45 and are healthy, that's a LOT of money that it'll take to travel as often as we want to. In the ballpark of, I dunno, 20-30K a year?

I'm grateful for the position we are in. But it still just seems so impossible to be able to have 45/47 as age goals for reaching FIRE, or at least not needing to work at our current positions.

So, thanks for sharing. The replies here to your posts make me think we might be able to do it. Do you guys have specific numbers that you're aiming to have saved/in equity/invested before you reach retirement? Or is it an age goal?

I don't really understand investing that much so I don't understand how the concept of knowing how much you need to have saved/invested to consider it 'enough' to live off the interest/dividends? Any advice? Thanks.
Ha well I am glad there is someone here that is similar enough that we can compare slightly. I am impressed you have so many properties.

I think mathematically, we were looking at $10,000k requirement, given the 4% drawdown we need at least $3,000,000 invested which I am not sure we can get there, hopefully by 56.

However, we will also have CPP and pensions which should allow us to receive about $8000/month. This would reduce our investment portfolio requirement to $600,000 which is easy to do. However with taxes etc, this will probably bump us back into the $2,000,000 or so category required for investments which should be doable as well.

As for your situation, are you going to stick with rental properties? It can provide all the income you need depending on what your other costs are. If not, then it is best to start looking at other investments since you do want to have some variability in your assets as well.
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Jul 27, 2017
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speedyforme wrote:
Nov 28th, 2018 8:03 am
I think mathematically, we were looking at $10,000k requirement, given the 4% drawdown we need at least $3,000,000 invested which I am not sure we can get there, hopefully by 56.

However, we will also have CPP and pensions which should allow us to receive about $8000/month. T

his would reduce our investment portfolio requirement to $600,000 which is easy to do.

However with taxes etc, this will probably bump us back into the $2,000,000 or so category required for investments which should be doable as well.
interesting topic, interesting discussion, interesting how folks from different walks of life, different ages, income/expenditure levels & affluence come up with escape the 'Rat Race'

someone should look at putting all of the discussions, thoughts & ideas of this thread to a book

speedyforme your posts to this thread make it an interesting case study, thanks for posting & please continue with the ideas & points of your retirement plan

summary from the earlier post

mortgage free at age 38

net income of $10,000/mth without factoring in any yearly increases/cost of living to age 56 & retired

at mortgage free, day to day expenses, all-in $3500/mth, cash flow $6500/mth - $78,000/yr x 18 years = $1,404,000 without knowing the ROI or compounding, without a breakdown of the TFSA pot, the RRSP & other investments, company shares, company pensions ....

questions for you,

based on my/our own experience that we had traveled the world by the time we were 56, back & around in both directions, sometimes with children in tow, so maybe a little dated, yet something I can relate to your dream.

- will you be taking any yearly vacations between age 38 & 56, if so, what is your budget?

- at age 56 fully retired, what do you anticipate your yearly travel budget will be?

my observation based on your plan


- lets suppose at age 38 or 40 that you start on your dream of world travel, all the places on your bucket list for the next 16 years

- what would your yearly budget be?

-could you see yourselves going to every place on your bucket list & I'm not talking about places that WestJet, Air Transat or Sunwing fly to - do you have that list?

- since you've posted at age 56 that you'd only need $600,000 money pot, you have over $800,000 between age 38 & age 56 saved from cash flow from income & thats without the ROI or compounding

- $800,000 divided that by 18 years = $44,444/yr for annual vacations even if they were 4 week vacations, now that's a nice budget, so why wait till age 56 to go see all the places on your list?

- in retirement with all the places you'd ever want to see, you've now narrowed it down to the handful of places to visit for six months each & every year

- your retirement income is $10,000/mth less expenses $3500/mth is $6500/mth or $78,000/yr travel budget, which for six-mths traveling would be $13,000/mth each & every mth for 6 mths each & every year

- in retirement could you see $13,000/mth travel budget based on six-mths of travel/yr - do you need to spend more or less?

now the meltdown question, not the draw down

- in your plan have you factored in a terminal date that one or both of you will be 'end of days', this is an important calculation - is it age 80, 90 or 100.

- in your plan - plan for the 'what-if' one or both of you have life threatening incurable illness or become disabled that your travel dream is no longer a reality

- with the pot of money, say $600,000 + all that pension income, are you planning on leaving a legacy?

epilogue

- wife & I are fortunate, very fortunate (in the dark ages) to have been able to retire FIRE early (mortgage free at age 27 from a zero start position), traveled the world, been in good health, had children....

- now age 71 our modest mth over mth expenses are less than $2000/mth for everything, without giving the money away we continue to build unwanted wealth

- we are considered old, yes especially when it comes to bouncing around & traveling. The old body is not as resilient as they once were, yet we still have a handful of items left on the bucket list.

- my wife & I did the age 100 & gone for the money calculation to be at zero $0, takes into account from age 63 when I stopped the daily grind (yes, age 63, I loved my job) all income, pensions, other (from age 63 to age 100),& melting it down, it's going to be difficult

- plus the fact that at any moment in time we could be at our 'final destination' in our lives when the sun sets on our parade .... was it all worth having all that money>


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Last edited by porticoman on Nov 28th, 2018 6:43 pm, edited 6 times in total.

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