I’m 40, here’s where I’m at for retirement…

[chris1987]

@sagar1027 Gotta get those points. I pay with my credit card for everything, just pay it off on time and be mindful of how much you card.

 

[sagar1027]

@chris1987 I do, but also was just making a smart ass remark

 

[blessed1985]

@endquote

I can’t really afford to invest any more right now, we have three young children and after what we invest, bills and discretionary spending, there isn’t much left at the end of the month.

Yep, totally screwed with nearly 1M net worth, over 200k income, tiny mortgage and a DB pension a few years away

 

[resjudicata]

@blessed1985 What’s with this sub and the raging jealousy?

It used to be jealousy against wealthy people.

OP is an average Joe with this personal finance being average. Yet, he is being blasted with sarcastic comments basically telling him to “stop flexing”.

Peak PFC is no longer beige Corolla, it is now hate boner on any post suggesting even moderate/average success.

 

[madisynwalkers]

@resjudicata It's the tone deafness of the post, he's complaining he doesn't have much after not only covering all his bills, but also after socking away much leftover money into other accounts. He doesn't feel he's better off because he's not spending on lambos and parties.

 

[blessed1985]

@resjudicata He's obviously doing better than the vast majority and whining about not being able to retire until 65 when he could probably retire in 5 years.

He about as far away from being screwed as financially possible

 

[markcmusic]

@endquote your summary: ~25 yrs to regular retirement (65 - for the man - you)

combined 292k RRSP, no mention of TFSA. HHI 203k, 1k each paycheque to savings

wife pension unknown full amount at 54

- - -

12y money double let's conservatively say (6% growth over inflation/fees, rule of 72)

your current $292k combined RRSPs, x2 x2 = ~1.2M for you at 64

let's assume you save 1k/paycheque til 54, 14 yrs, 364k (this assumes just principal, no actual gains)

~1.565M 4% return is 62,500 roughly

say your 203k HHI, less 40% tax, less 26k investments per paycheque = 121.8k - 26k = 95.8k

if your wife's pension is 95.8-62.5k = 32.3k, looks like you can retire earlier, likely quite a bit earlier than 64, with no loss of income in retirement.

At 70% of working income, you've retired years earlier!

- - -

** above scenario doesn't even include:

- mortgage paid off, more money to invest,

- the ongoing recurring investment compound gains

- - -

I'd think you can retire at some point in your 50s.

 

[endquote]

@markcmusic This is a really good breakdown, thank you!

 

[markcmusic]

@endquote np, retire young and enjoy your time with family and friends!

 

[markcmusic]

basically you need the RRSPs to cover the following shortfall:

your HH spending less your wife's full pension at 54.

4% withdrawal rate is a basic assumption financial people use, because when running Monte Carlo simulations, your funds rarely runs out, over a long period of retirement.

 

[swc1293]

@endquote only paid off 100k of your mortgage in 14 year? that's wild

 

[endquote]

@swc1293 We refinanced 4 years ago to build a two-story double detached garage which cost $60K

 

[koolcat25]

@endquote A two story garage? Lol

 

[endquote]

@koolcat25 Two door garage with a loft above for my office / man cave

 

[koolcat25]

@endquote No shot that was only 60K.

Troll post

 

[endquote]

@koolcat25 You don’t believe the garage was $60K? The cost included engineering plans, permits, concrete pad and footings, framing, rough electrical, metal roof, building wrap and siding along with two garage doors, one man door and 4 windows. The inside was left unfinished both upstairs and downstairs. I finished the insulation, vapor barrier and drywall upstairs, downstairs is just OSB. My brother is an electrician and did all the finish electrical work along with network drops.

 

[koolcat25]

@endquote No. Way too low for all that. Concrete alone would be 20K, metal roof probably similar around another 20K.

 

[endquote]

@koolcat25 Believe what you want but I’m telling you what I paid. Make note they I did the grading and forms for the concrete with my brother, he had a dump trailer and mini excavator. That was a significant cost saving and the metal roof was $7 a square foot and the garage is 30 x 24, roofing materials were $6,000 and we installed it ourselves. All the contractor did was frame it and side it. Concrete was not $20K, we needed 18 cubic yards for the slab and footings, we got 25 MPa which was about $190 per M3, it was just under $3,000 for two trucks.

 

[resjudicata]

@endquote I wouldn’t even argue with that feller. It is quite obvious he has no concept of construction costs. 60k sounds right to me.

 

[kkamagwi]

@endquote You are saving way too much unless you plan a lavish lifestyle. It's not worth saving RRSP's if your wife has a pension as she will pay about the same taxes on withdrawal. TFSA is a better option. And do not stress over that FULL pension. Leave when she wants and live on a little less.

Not sure how you don't have much left each month ? You guys clear ~12k per month???

Even if you paid the mtg off in 5-6 years it' would only be ~25% on your net.

You could retire or go P/T in ~5-6 years if you paid off the house and loaded up your RRSP and TFSA to 4-500k. We had 3 kids and I did this in my later 40's but my spouse had zero pension. It all worked out great. We can't even spend all the CPP/OAS and RRSP funds!