Personal Finance

When are you planning to retire and how much monthly income are you going to need

  • Last Updated:
  • Sep 23rd, 2019 11:36 pm
Deal Addict
Oct 22, 2015
1678 posts
585 upvotes
HyperTech wrote: I am retired now at 38yo with 20k per year. Annual expense 7000$ car and house expense included, yhe rest is for food and entertainment. I dont care much how i look, so i dont buy brand clothes. I mainly spend my time chatting with family in person. I live in Québec.
38 is quite young but good for you. 20 k per year is prob the minimum per year. Is 20 k all from dividends? Are you touching the principal?
Deal Addict
User avatar
Dec 4, 2007
4869 posts
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Quebec
20k doesn't include my rrsp nor celi/other money.

If for some reason i need more, i just need to withdraw from those saving account depend on fiscal advantage
Sr. Member
Nov 16, 2013
917 posts
330 upvotes
GTA
HyperTech wrote: I am retired now at 38yo with 20k per year. Annual expense 7000$ car and house expense included, yhe rest is for food and entertainment. I dont care much how i look, so i dont buy brand clothes. I mainly spend my time chatting with family in person. I live in Québec.
Do you live in your own house?

The property tax and monthly gas, hydro bill plus some kind of wear / tear to house will cost

Seems unbelievable
Sr. Member
Jan 5, 2015
615 posts
165 upvotes
Edmonton, AB
HyperTech wrote: I am retired now at 38yo with 20k per year. Annual expense 7000$ car and house expense included, yhe rest is for food and entertainment. I dont care much how i look, so i dont buy brand clothes. I mainly spend my time chatting with family in person. I live in Québec.
Umm... what?
Dividend?
Are you the same guy in this RFD thread? Asking for investment help on dividends?
Banned
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Nov 28, 2016
22791 posts
3321 upvotes
Out west
vivmk20 wrote: Do you live in your own house?

The property tax and monthly gas, hydro bill plus some kind of wear / tear to house will cost

Seems unbelievable
Because it probably is, reading on here for awhile some say things that arent truth. E-penis sort of thing, but the opposite on here,
Deal Fanatic
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Jan 19, 2005
5203 posts
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Vancity
FirstGear wrote: Really in theory if one of these homeowners wanted, they can sell their house, use the $1M on blue-chip dividend stocks, and make around $80,000 - 100,000+ passive income... but they don't do it...
Care to enlighten us which blue-chip dividend stocks pay a yield of 8-10% long-term? You sound like somone too young to have been through many bear markets.
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Deal Fanatic
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Nov 2, 2013
5697 posts
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Edmonton, AB
recordman wrote: Care to enlighten us which blue-chip dividend stocks pay a yield of 8-10% long-term? You sound like somone too young to have been through many bear markets.
Should had clarified, that's after factoring in dividends. CIBC for example, has been appreciating by 8.54% YoY - not yet counting dividends - for the last 5 years as of this time of writing. 7.04% if you look back 10 years, and that's factoring in the 2008 recession pulling that figure down.

If you're one of those people who constantly try to time the market, make threads on RFD about the prediction of the next massive crash/recession, and will sell your stocks after a few months to a year or two because you believe in one coming, then I can see where you're coming from.

Really for those people who want to make money and have the patience, they should be greedy when others are fearful during those down times - so they can buy the quality companies at lower prices - instead of worrying about the next crash like we do on the daily on RFD, or even what their holdings are doing on a daily basis.

However, for most people who think like that, real estate may be the answer, as information about market value is not as transparent. It's difficult to gauge how much the market will pay for their home(s) on a daily basis. And for them, it's better if they do not know. If they do realize they're down, then the emotional value of the tangible asset touch is an additional incentive to hold, and/or they can just live in it (where then in their head, the investment becomes just a roof over their heads).
Accountant (Public Practice)
Temp. Banned
Apr 20, 2018
151 posts
73 upvotes
And, if one is lucky enough to have contributed to a "forced savings plan" like the one provincial/federal govts offer.
Then, retire @ 55-, get your govt pension bridged until 60-65, have some of your investments kick in, bridge ends, OAS/CPP kick in.

It's nice you know: OAS+CPP+GOVT PENSION+anything else invested.
Deal Fanatic
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Nov 14, 2003
6675 posts
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LaLaLand
HyperTech wrote: I am retired now at 38yo with 20k per year. Annual expense 7000$ car and house expense included, yhe rest is for food and entertainment. I dont care much how i look, so i dont buy brand clothes. I mainly spend my time chatting with family in person. I live in Québec.
+1 for me. I did it when I was about 40, about ten years ago. Although, HyperTech has me beat by a few years.

I have more income, but I don't spend very much and have very low expenses. It's easier to spend less than to try to make more money to retire early.
Deal Addict
Apr 21, 2014
2321 posts
1106 upvotes
Alberta
FirstGear wrote: Should had clarified, that's after factoring in dividends. CIBC for example, has been appreciating by 8.54% YoY - not yet counting dividends - for the last 5 years as of this time of writing. 7.04% if you look back 10 years, and that's factoring in the 2008 recession pulling that figure down.

If you're one of those people who constantly try to time the market, make threads on RFD about the prediction of the next massive crash/recession, and will sell your stocks after a few months to a year or two because you believe in one coming, then I can see where you're coming from.

Really for those people who want to make money and have the patience, they should be greedy when others are fearful during those down times - so they can buy the quality companies at lower prices - instead of worrying about the next crash like we do on the daily on RFD, or even what their holdings are doing on a daily basis.

However, for most people who think like that, real estate may be the answer, as information about market value is not as transparent. It's difficult to gauge how much the market will pay for their home(s) on a daily basis. And for them, it's better if they do not know. If they do realize they're down, then the emotional value of the tangible asset touch is an additional incentive to hold, and/or they can just live in it (where then in their head, the investment becomes just a roof over their heads).
The paper gains aren’t realized unless you sell. So if you are a buy and hold investor you can’t really live off the paper gains.
Deal Addict
Jun 14, 2018
1368 posts
1662 upvotes
So would the assumption be that in retirement, your investment would yield 3% dividend every year and some potential for capital growth which would allow you to draw from it 1 or 2% every year basically until however long you need it?
Member
Oct 11, 2012
403 posts
388 upvotes
I retired at 47. I’m single and my pension doesn’t start until I’m 55. I’ve been living off of life savings and RSPs for the last 5 years. I own my house and expect to live modestly with a DB pension of $2,100/month.
Newbie
Jul 11, 2019
5 posts
1 upvote
WikkiWikki wrote: I have no idea. Ive been saving in my own RRSPs and now TFSA as well since Ive been 18. While neither are close to being maxed out, whats in there is in there.

So much can change in the next 17 years why worry that far into the future. Right now I have 3 kids to worry about, so Ill wait until that stage of my life is over to worry about the next.

And as for all the planners in this thread that have it "all figured out" just rememeber your life can change in an instant. Yesterdays van attack shows that you cant control everything. While being prepared is good, being over prepared is almost pointless.

At retirement age, I have no idea what my expenses will be, and at this point in my life, I dont care, and wont even pretend to know

People that think they know already, are just fooling themselves
That's pretty much of what I always say. Some people try to dig deep into tomorrow when tomorrow never come. Don't worry about tomorrow, for tomorrow will worry about itself. How many actually reach 65 nowadays? The chances are if you are 40 today, you probably have less than 20 years left. That's if your life didn't end in an instant on your birthday at age of 41
Newbie
Sep 18, 2019
2 posts
1 upvote
How Old are you ? 31
When do you plan to retire? 53
What is your income source and how much do you will have on a Monthly basis ? Pension & investments ~6000k a month
do you plan to live in North America or somewhere cheaper? Planning to stay in Canada but lots of travel
Deal Addict
Nov 8, 2017
1556 posts
894 upvotes
When I'm about 60, then work casual for a few more years after

Work in Healthcare
Should have about 2500$ in pensions @ 60. 400 a day working casual, so do that a few times a month. Not a physically laborious job.
I retired backwards form 18-35, then got a career
Deal Guru
Feb 9, 2009
12381 posts
11307 upvotes
Want to retire by 50.

My goal is to have 48k in dividend income (would shoot for more by dont want to have too much to get OAS clawbacks), which is $4k a month.

5 months on the beach in different locations (One year Thailand, one year Fort Lauderdale, one year Spain, etc) and enjoy life.
Newbie
Jan 7, 2017
37 posts
7 upvotes
Early - 40s
Unfortunately not until 60
Defined Benefit Pension will give me $4000
TFSA and RRSP should produce $1400
probably need about $4000 in today's dollar to retire
40% Canada; 60% caribbean / florida / cruise (3 months a year)
Deal Addict
Jun 14, 2018
1368 posts
1662 upvotes
Currently in early 30's. Probably will be semi-retired by 50, but will likely continue to work on a part-time basis as long as I can still do it. Aiming for $3,500 income a month from age 50 onwards, which should more than cover all of my monthly expenses (currently only spending ~.$2000 a month on non-mortgage expenses). Will most likely stay in NA.

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