Investing

What are the top investment companies?

  • Last Updated:
  • Sep 5th, 2017 4:44 pm
[OP]
Member
Mar 26, 2017
270 posts
139 upvotes
xgbsSS wrote:
Sep 5th, 2017 2:29 pm
I think your goals to semi-retire are somewhat difficult to do with so little time actually working. In your case, paying off the mortgage right off the top was a mistake as the interest rate you were likely paying was much lower than the return you would have gotten investing passively. From here on, 5 years of saving will amount to very little.

A general return of 6% per year for 5 years investing approximately $5K a month should yield $350k, and that is assuming you get 6%. Do you honestly think you can semi retire on that? $350K assuming 2% inflation and taking only $10K a year lasts only 27ish years. That doesn't seem like hardly enough.

First of all, you need to define how semi retirement to you would look like. How much would you both work, how much money do you need per year to be comfortable. Your 5 year plan honestly looks unrealistic. Also, I think you may become quite bored at that rate.

Even increasing the amount of years worked to 10 years saving $5K a month will increase your next egg to over $800K which will give you much more capital to work with.

What I recommend...

1)Decide how much money you need per month during you semi-retirement. You can use calculators to figure this out. One quick simple one is https://www.saskpension.com/wealth-calculator.php We will need $2000 a month to live very comfortably

2)Decide how much nest egg you require for one off purchases, emergencies and just to feel safe in addition to what is required during semi and full on retirement
It'll be good to have between 30 to 50k as a nestegg

3) What life goals do you guys have? Is it travel? Having children? You need to keep these costs in mind when you come with a plan.
We just want to travel, we won't be having kids.

Regardless what you want to do, the 5 year plan I think is out of reach. I think before you start considering where to invest, you need to define what your goals are first.
I agree, the 5 year plan was a bit too aggressive and you're right 10 years from now seems more realistic.

As for a plan, if quicker retirement (before 65) is wanted, maximizing RRSP contributions is the way to go in your case as you will have the opportunity to draw it down over a longer term.
That sounds like a plan!
Thank you! :)
[OP]
Member
Mar 26, 2017
270 posts
139 upvotes
So should I just stay with Wealth simple? Or should I find the cheapest way to buy MAW105 or MAW104?

:D
Deal Addict
Jul 27, 2017
1870 posts
721 upvotes
GTA
@ post #16, thanks

- In the next 5 years you can/bank save/invest towards registered/non-regaitered approx $300k

- You have room to max out TFSA & RRSP's (work out that number) from now till end of year 5....what is that total number? You need to keep that number to yourself....as follows

- With the RRSP number any tax back during this period could be re-contributed to the next year RRSP. At year 6 since you will be down to approx $2000/mth expenses ($1000 each) withdrawing any top up income for expenses (if you have no PT work income) could be taken out of the RRSP in $5k chunks with minimal tax impact.

- I'll discuss investing inside & outside registered accounts in future posts

- Calling this year 1 potential net income/free cash flow yr after all expenses year 1-5 total $300k

- Taking the start of year 6 as the first step when one of you either quits working full-time or you both do part-time, do you have the flexibility both work wise and income wise (without looking at investment/passive income) to have enough net income to cover all expenses?

- I'm guessing now at stage 1 being the start of the sixth year that there is $400k across all products TFSA, RRSP, non-registered accounts. That all of that yields 5% or $20k/year. Any PT work is covering all expenses, so at this point you are well and truly 'FIRE' (I dislike acronyms) 'Financial independence, retired early'

- At year 6, downsized, $50k added to the pot (cash in a savings account), $400k in investments (registered & non-registered), target working PT earning $40k net - approx $20k yearly expenses. Use the surplus cash flow for a) whatever, 2) max on RRSP and/or TFSA
Deal Addict
Jul 27, 2017
1870 posts
721 upvotes
GTA
Gord18Stirr wrote:
Sep 5th, 2017 3:23 pm
So should I just stay with Wealth simple? Or should I find the cheapest way to buy MAW105 or MAW104?

:D
do nothing till we get through all of your questions about your goals, plans & horizon.

The what to invest in or where to invest for later...please
[OP]
Member
Mar 26, 2017
270 posts
139 upvotes
porticoman wrote:
Sep 5th, 2017 3:29 pm
@ post #16, thanks

- In the next 5 years you can/bank save/invest towards registered/non-regaitered approx $300k

- You have room to max out TFSA & RRSP's (work out that number) from now till end of year 5....what is that total number? You need to keep that number to yourself....as follows

- With the RRSP number any tax back during this period could be re-contributed to the next year RRSP. At year 6 since you will be down to approx $2000/mth expenses ($1000 each) withdrawing any top up income for expenses (if you have no PT work income) could be taken out of the RRSP in $5k chunks with minimal tax impact.

- I'll discuss investing inside & outside registered accounts in future posts

- Calling this year 1 potential net income/free cash flow yr after all expenses year 1-5 total $300k

- Taking the start of year 6 as the first step when one of you either quits working full-time or you both do part-time, do you have the flexibility both work wise and income wise (without looking at investment/passive income) to have enough net income to cover all expenses?
Yes, will have enough net income to cover all living expenses.. I don't really need to touch our savings to live off of.

- I'm guessing now at stage 1 being the start of the sixth year that there is $400k across all products TFSA, RRSP, non-registered accounts. That all of that yields 5% or $20k/year. Any PT work is covering all expenses, so at this point you are well and truly 'FIRE' (I dislike acronyms) 'Financial independence, retired early'

- At year 6, downsized, $50k added to the pot (cash in a savings account), $400k in investments (registered & non-registered), target working PT earning $40k net - approx $20k yearly expenses. Use the surplus cash flow for a) whatever, 2) max on RRSP and/or TFSA

That sounds about right, I am going to invest in our RRSPs first and put the rest in TFSAs, we shouldn't need to open up any non-registered accounts until a year from now as we have a ton of TFSA room

You're the best porticoman!
Deal Addict
Jul 27, 2017
1870 posts
721 upvotes
GTA
@ post #20, goals & plan mapped out. Has the OP questions been answered?

Now its onto the investments

- present situation is wealthsimple' (WS) is that good enough for the OP?

- does the OP pull from WS to go with one of the suggested mutual funds?

- follow couch potato approach... see thread for that

- other options, do it himself, stick with 101% safe & sure such as a OAKEN laddered 5 year GIC 2.9% semi-annual interest....

- what do folks suggest based on that this is a 5-year plan to FIRE?
Jr. Member
Feb 3, 2013
129 posts
52 upvotes
GREENWOOD
- present situation is wealthsimple' (WS) is that good enough for the OP?
Yes, the fees are low and it's probably well diversified. I don't know what portfolio he has with them (want to tell us?)

- does the OP pull from WS to go with one of the suggested mutual funds?
Naw, wealth simple is still cheaper and he doesn't have to do any work to maintain it.

- follow couch potato approach... see thread for that
OP doesn't sound like he wants a DIY managed portfolio. Robo ETF is still probably cheaper than e-series or mawyer.

- other options, do it himself, stick with 101% safe & sure such as a OAKEN laddered 5 year GIC 2.9% semi-annual interest....
He doesn't have enough to retire now. His 5 year plan probably won't work out unless he has a very low cost lifestyle. However if I was planning on retiring in 5 years, I would want some guarantees. I maintain a savings account and a term deposit in addition to my riskier investments.

- what do folks suggest based on that this is a 5-year plan to FIRE?
Probably too soon. But it all depends on his life style. It's not impossible.
Jr. Member
Feb 3, 2013
129 posts
52 upvotes
GREENWOOD
Gord18Stirr wrote:
Sep 5th, 2017 12:21 pm
We are both 29
My wife works and makes $85,000/yr
I currently make $40,000/yr


We have a $200,000 home paid off (we live someplace where houses aren't ridiculously priced)
$10,000 in Spousal RRSP
$1,000 in RRSP

We liquidated all of our savings to pay the house off asap as we don’t like debt.

We have $5,000 a month to save.

Our goal is to Semi-retire within 5 years, (work for 6-8 months out of the year) as both of our careers will allow that.
Fully retire whenever we just feel financially comfortable.
I would have said a fees paid financial advisor but ongoing fees compared to your current account sizes may be overwhelming. You could try finding a good financial planner (only you pay) for a one time financial plan to get you up and going. The type of advisor you want is one with a good reputation that has no products to sell you. Preferably one that doesn't even have the ability to set up or manage accounts for you.

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