Required retirement nest egg

[HVA7mm]

Originally Posted by cranky

Mistake i made was i retired a bit to late. Didnt need to work but kept going. Downsized my business by quite a bit but still worked.
Finally retired and about a year later a massive heart attack put a kibosh on enjoying retirement.
If you can retire dont hold off till you get sick and cant enjoy it much, or worse. Retired friends used to tell me that but i kept working. Just saying.

Originally Posted by huntinstuff

Nailed it

Retire and enjoy yourself. Be satisfied. Decide on an age and do it. Dont trade years for bucks. Its a poor trade.

There is no magic age. Everyone is different.

These are my sentiments exactly. I'm focusing way more on retiring "healthy" than "wealthy". As long as my family and I have our health, we plan on making the best of it as long as we can. Material wealth will never trump experiences for me.

[Buckhead]

Everyone's situation is different.
It's called career management.
I can retire tomorrow or whenever I like, but why would I?
I can work as many hours as I want or as few as I want. And take time off whenever I please. I hunt and fish as much as I like.
And mentor the younger people coming up.
Everyone is all hyped up about early retirement.

All that means, is you don't put any value on your capabilities at a certain age.
I don't know if I will ever retire. I have too much to offer.

[58thecat]

Originally Posted by Buckhead

Everyone's situation is different.
It's called career management.
I can retire tomorrow or whenever I like, but why would I?
I can work as many hours as I want or as few as I want. And take time off whenever I please. I hunt and fish as much as I like.
And mentor the younger people coming up.
Everyone is all hyped up about early retirement.

All that means, is you don't put any value on your capabilities at a certain age.
I don't know if I will ever retire. I have too much to offer.

To each their own...it doesn't mean you put any less or more value on your capabilities it just means that through your life to financial freedom you have chosen to retire and enjoy other things in life full time.

[zabbo]

I pulled the pin almost 5 years ago. Been great so far! I get CPP and OAS as well as rent from our revenue property. My wife gets a pension from work. We have some investments and RRSP's stashed too. We live quite well. Spend the summer camping and fishing. Until the covid thing, twice a year to Mexico in the winter. Have to say though, now and again I look over my shoulder regarding financing. I'm 66 and figure 85 is about end of the line. I'm the image of both my Dad and Grandfather and they passed at 85 and 84. That is how I decided to take CPP at 62. Playing chicken with the grim reaper.

This pandemic and the great reset make me very nervous. The turd seems to be doing whatever he feels like, or someone in the background tells him to do. That with a minority government. Downright scary to think that he will probably get back in with a majority! freeland does exactly as she is told (that's why she is there in my opinion) and it really is hard to figure out who is doing the telling. Getting money out of RRSP's asap without taking to much of a hit on the taxes. Just might follow advice here and buy gold (not paper but the actual shiny metal) and stash it in the mattress.

The Canadian national debt has doubled in less that a year and the turd has committed to spending 100's of billions more over the next couple years! The snowflakes living in the basement and collecting CERB won't even be able to pay the income tax on that CERB next spring. Where else will turdy get the cash to pay for his grand scheme? Boomers that looked after themselves and saved for the future. Gun control and firearms bans have far more behind them than public safety in my opinion.

As I have said here before, hang on tight, because the next few years are going to be a rough ride!

Now I'll take off the tinfoil hat, go get a coffee with Baileys and continue enjoying retirement!

[HVA7mm]

Originally Posted by Buckhead

Everyone's situation is different.
It's called career management.
I can retire tomorrow or whenever I like, but why would I?
I can work as many hours as I want or as few as I want. And take time off whenever I please. I hunt and fish as much as I like.
And mentor the younger people coming up.
Everyone is all hyped up about early retirement.

All that means, is you don't put any value on your capabilities at a certain age.
I don't know if I will ever retire. I have too much to offer.

The value of capabilities at a certain age have nothing to do with wanting to retire early. For may people a job is just that, only a job. But I do get what you're saying, nobody should feel the need to retire just because they reach a certain age.

Some people derive much of their identity and self-worth through their particular vocation or job title. Some peoples' self-identity comes from their life outside of work. Unless forced, early retirement is definitely a personal choice.

[Cageyc]

I retired in February at 59.5 and am adjusting well. I’m not free spending as much as when I was working but things are going good in that dept. I didn’t want to work until my health deteriorated so much that I couldn’t work. I have many hobbies and just don’t do the costly ones as often. Remember folks, work to live and not live to work. Life goes by way too fast not to enjoy it.

[ward]

Originally Posted by HVA7mm

The value of capabilities at a certain age have nothing to do with wanting to retire early. For may people a job is just that, only a job. But I do get what you're saying, nobody should feel the need to retire just because they reach a certain age.

Some people derive much of their identity and self-worth through their particular vocation or job title. Some peoples' self-identity comes from their life outside of work. Unless forced, early retirement is definitely a personal choice.

Well said, it goes both ways. To each his own.

[KGB]

Originally Posted by zabbo

I pulled the pin almost 5 years ago. Been great so far! I get CPP and OAS as well as rent from our revenue property. My wife gets a pension from work. We have some investments and RRSP's stashed too. We live quite well. Spend the summer camping and fishing. Until the covid thing, twice a year to Mexico in the winter. Have to say though, now and again I look over my shoulder regarding financing. I'm 66 and figure 85 is about end of the line. I'm the image of both my Dad and Grandfather and they passed at 85 and 84. That is how I decided to take CPP at 62. Playing chicken with the grim reaper.

This pandemic and the great reset make me very nervous. The turd seems to be doing whatever he feels like, or someone in the background tells him to do. That with a minority government. Downright scary to think that he will probably get back in with a majority! freeland does exactly as she is told (that's why she is there in my opinion) and it really is hard to figure out who is doing the telling. Getting money out of RRSP's asap without taking to much of a hit on the taxes. Just might follow advice here and buy gold (not paper but the actual shiny metal) and stash it in the mattress.

The Canadian national debt has doubled in less that a year and the turd has committed to spending 100's of billions more over the next couple years! The snowflakes living in the basement and collecting CERB won't even be able to pay the income tax on that CERB next spring. Where else will turdy get the cash to pay for his grand scheme? Boomers that looked after themselves and saved for the future. Gun control and firearms bans have far more behind them than public safety in my opinion.

As I have said here before, hang on tight, because the next few years are going to be a rough ride!

Now I'll take off the tinfoil hat, go get a coffee with Baileys and continue enjoying retirement!

That was my thinking too. I have a few more years before I hit the “60” mark but.... I am seriously thinking to pull the pin earlier due to the stupidity and unpredictability of our idiots in Ottawa... I am seriously afraid for my money, both RRSP and savings.. Not sure about gold either due to it volatility.... Platinum? May be... Enriched Uranium looks more and more attractive, lol!

[Ronaround]

Originally Posted by cranky

Mistake i made was i retired a bit to late. Didnt need to work but kept going. Downsized my business by quite a bit but still worked.
Finally retired and about a year later a massive heart attack put a kibosh on enjoying retirement.
If you can retire dont hold off till you get sick and cant enjoy it much, or worse. Retired friends used to tell me that but i kept working. Just saying.

This Above my friends. You may never have enough, dont be the thousands of others saying I Wish ....Then in the hospital, medically disabled, wife gets sick etc. 1-5 years later.
I just bailed in May 2020 at 63. Not rich, but i worked the last year making sure All purchases, land, house and a reasonable 401. now just living on Social security.
this season i hunted whitetail the whole 7 day gun season every day.plus bow prior.
Never had that opportunity when i owned my business.
It was a great feeling.

[tirebob]

What is retirement anyways? Does it mean simply not working? Does it mean just doing what you want? I think it all comes down to what you enjoy in life and for some, me included, it means working in some form or another, but getting away from a boring monotonous grind type of working.

My dad busted his butt his entire life, worked six day a week at a minimum and often seven, all so he could sock money away to be able to have the financial freedom to retire and do the things he wanted, except he got cancer and died in his sixties before ever being able to do those things.

Me, I did pretty much what I wanted my whole life, always working hard, but rather than shoving more money into retirement savings I went to Europe regular, hit the sun and beaches many times, bought the toys I wanted, the good scotch and wine and great food. I could not retire if I wanted to, but I have zero regrets because I lived my life, and quite fully I might add. I mean I was responsible in that I have always paid my way, will have a house paid off in a reasonable time, raised kids that can stand on their own and pay their own way in life, and all of that, but I never worried about getting enough money I don't have to work.

My dad always used to get on me asking how I expect to retire one day... What am I going to do when I am older... Etc, etc. It used to make him crazy. Then I found out that before he died he posed the question to my mom and that maybe he was wrong all along. Maybe I had it right. Maybe if he spent more time living life rather than for a goal he never got to use, maybe he would have been happier. It didn't matter because it was too late, but in the end all we have in this life are our experiences, and who is to say what is right for one person over another?

In the end, for me I can't ever see myself not trying to make some kind of business or venture, even if it is small scale and just for a bit of extra cash. That isn't restricting to me as much as a challenge to keep me interested and hungry. I am more than good with that!

[Rackmastr]

Good post Bob and some great insight to ponder!

[Bigwoodsman]

Originally Posted by tirebob

What is retirement anyways? Does it mean simply not working? Does it mean just doing what you want? I think it all comes down to what you enjoy in life and for some, me included, it means working in some form or another, but getting away from a boring monotonous grind type of working.

My dad busted his butt his entire life, worked six day a week at a minimum and often seven, all so he could sock money away to be able to have the financial freedom to retire and do the things he wanted, except he got cancer and died in his sixties before ever being able to do those things.

Me, I did pretty much what I wanted my whole life, always working hard, but rather than shoving more money into retirement savings I went to Europe regular, hit the sun and beaches many times, bought the toys I wanted, the good scotch and wine and great food. I could not retire if I wanted to, but I have zero regrets because I lived my life, and quite fully I might add. I mean I was responsible in that I have always paid my way, will have a house paid off in a reasonable time, raised kids that can stand on their own and pay their own way in life, and all of that, but I never worried about getting enough money I don't have to work.

My dad always used to get on me asking how I expect to retire one day... What am I going to do when I am older... Etc, etc. It used to make him crazy. Then I found out that before he died he posed the question to my mom and that maybe he was wrong all along. Maybe I had it right. Maybe if he spent more time living life rather than for a goal he never got to use, maybe he would have been happier. It didn't matter because it was too late, but in the end all we have in this life are our experiences, and who is to say what is right for one person over another?

In the end, for me I can't ever see myself not trying to make some kind of business or venture, even if it is small scale and just for a bit of extra cash. That isn't restricting to me as much as a challenge to keep me interested and hungry. I am more than good with that!

Nailed it.

BW

[bdub]

Originally Posted by KGB

That was my thinking too. I have a few more years before I hit the “60” mark but.... I am seriously thinking to pull the pin earlier due to the stupidity and unpredictability of our idiots in Ottawa... I am seriously afraid for my money, both RRSP and savings.. Not sure about gold either due to it volatility.... Platinum? May be... Enriched Uranium looks more and more attractive, lol!

Just a bit of info if it helps. The volatility of gold has been historically lower than the volatility of the stock market. Plot GVX vs VIX and you will see that stocks have given us a much rougher ride over the last while than stocks. US stocks anyway. Combining gold with stocks also reduces the overall volatility of your portfolio.

[big zeke]

It's key to know your spending habits, we track everything over about $10 in something called the moneybook (binder kept on the island), for us it has been fairly consistent at $3700-$4500/month with everything paid off. Where possible try to spread expenditures out.

From there assume an average ROI of 2.5-4% above inflation and you should be able to back calculate the required lump sum. Make allowance for CPP and any govn't plan if you believe you will actually get some; if you plan to work part-time you could include these amounts as well though it might just work out to beer money. Manage RRSPs aggressively as you don't want to get caught in a RRIF trap.

I'd guess for most this will get you just over a mil as a lump sum. If you start with a lot less you risk running out of cash or having to sell assets (like your house) to cover living expenses. You probably want to overshoot as there is no way to fix a shortfall.

When you have figures like this you definately want a professional involved, good ones have years of training and can offer good guidance, generally these guys are worth their fees. Beware of anyone offering high ROI, they are either unrealistic of crammed full of risk.

That's the numbers...how you fill idle time is a personal choice. Working til you die (unless you LOVE your work) is a poor choice IMO

[thedude99]

For me $2 to $2.5Mil would do it. That should kick off 60k very conservatively and then add in cpp/oas. I hope and pray I can retire before 50 in a few more years. None of these companies give a damn for you, look out for number 1

[silver]

I don't have anything in savings, darn little in RRSP account, some in a pension plan. I am in my 60's, not taking my pension till my 70th, but I still can work. I plan on working part time for another 10 or 15 years. I am physically able and frankly, I enjoy my job. Right now, I don't know what inflation will do to a pension, but I don't want to be a Walmart greeter.

[Austin]

I figure 50k to 60k per year will work for us. We’ll see if I can get us there within the next 5 years. Between our investments and what happens if Lib Govt increases capital gains taxes on property / home sales etc. Good to know to hedge against 2% inflation. Good thread

[Roadhunter]

Originally Posted by tirebob

What is retirement anyways? Does it mean simply not working? Does it mean just doing what you want? I think it all comes down to what you enjoy in life and for some, me included, it means working in some form or another, but getting away from a boring monotonous grind type of working.

My dad busted his butt his entire life, worked six day a week at a minimum and often seven, all so he could sock money away to be able to have the financial freedom to retire and do the things he wanted, except he got cancer and died in his sixties before ever being able to do those things.

Me, I did pretty much what I wanted my whole life, always working hard, but rather than shoving more money into retirement savings I went to Europe regular, hit the sun and beaches many times, bought the toys I wanted, the good scotch and wine and great food. I could not retire if I wanted to, but I have zero regrets because I lived my life, and quite fully I might add. I mean I was
responsible in that I have always paid my way, will have a house paid off in a reasonable time, raised kids that can stand on their own and pay their own way in life, and all of that, but I never worried about getting enough money I don't have to work.

My dad always used to get on me asking how I expect to retire one day... What am I going to do when I am older... Etc, etc. It used to make him crazy. Then I found out that before he died he posed the question to my mom and that maybe he was wrong all along. Maybe I had it right. Maybe if he spent more time living life rather than for a goal he never got to use, maybe he would have been happier. It didn't matter because it was too late, but in the end all we have in this life are our experiences, and who is to say what is right for one person over another?

In the end, for me I can't ever see myself not trying to make some kind of business or venture, even if it is small scale and just for a bit of extra cash. That isn't restricting to me as much as a challenge to keep me interested and hungry. I am more than good with that!

Yep you got it Bob. We are spending our kids inheritance. I knew too many people that have scrimped and saved for retirement and have maybe enjoyed a couple of years and have passed away. Will sell our Calgary property next year I hope if the market is ok. Biggest expense is my new 2020 F450.

[Map Maker]

Lots of good info on this thread but big takeaway is everyone is different.

I still have 10 years to go before retirement according to my “plan”. But everything is paid off so now the nest egg just accumulates.
I’ve gotten to a point where my investments make 8% a year on average, land goes up 15%, house is negligible same with vehicle.
I don’t even look at money anymore. My investments just make money while I sleep and if I need money, I take out what I need. I will continue to do that when I retire.

[Geraldsh]

When I started looking for that magic number I was told to have 11 times my annual income in savings to retire. Ie; if you make $70,000 a year you need $770,000 in savings.
I retired 7 years ago, at 65, so with cpp&oas and my annual withdrawal I am living comfortably. The interest earned on my nest egg is greater than my withdrawal so I can live forever!

[KinAlberta]

Originally Posted by KGB

Well don’t you worry about your savings now guys, our glorious finance minister is looking for ideas how to relive you off your savings....

A version of prisoners dilemma. Everyone saves and invests to better their own pensions (equities, etc.) which then collapse in value because no one is spending.

Also, drive fear into the economy and it leaves no one feeling safe to spend. Economies like ours need leaders playing the old Keynsian confidence game. Doing otherwise is just a good way to bring on the Great Depression II.

[Bushrat]

Originally Posted by KinAlberta

A version of prisoners dilemma. Everyone saves and invests to better their own pensions (equities, etc.) which then collapse in value because no one is spending.

Or.....Key word you used is 'Everyone' I think fewer are saving than those spending because of interest rates so low nobody saves, majority has over spent, maxing out credit lines and cards, many have no more available credit, so new spending ceases or is severely impaired.

If half the population of the country(according to the gov't) is $200 away from being able to pay their bills and payments every month and have little to no savings, they sure didn't get that way from saving money.

[thumper]

When working, I invested as much as I could, while buying higher risk stocks targeting maximum growth. I figured that if I lost a chunk on high risk investment, I'd just have to work a few more years before retirement. With luck, and after going through a few advisors, we ended up in good shape, and I was able to retire at my first opportunity - on my 55th birthday. We immediately switched from risky 'growth' mode, to conservative 'income' mode - stocks with steady dividends. My company pension was heavily discounted by early retirement and spousal deduction, but coupled with my CPP and now OAP, and augmented with those steady dividends, we've done very well for the past 10 years, and will, into the foreseeable future. We found that a million bucks, conservatively invested, maxing out TFSAs, and RRSPs but the bulk in taxable stuff - generates almost $30,000 annually after taxes. If our nest egg capital grows more than 15% in a year, we blow away the excess cash on toys and vacations. We've travelled the world, I've hunted Africa and fished Costa Rica, my wife is fond of Italy and Switzerland. If our nest egg value drops below a million, (as it has in the past year), we suck it up and stick to the basics, but it's the dividend amounts we watch carefully- much more than the total value of investments. We live plainly - same house for 35 years, sold our BC cottage at a peak time, currently one small suv & and a small RV, . I never completed high school, no inheritances, no lottery winnings, no government or oil patch big-buck jobs, no windfalls, never on a gov't cheque - we just worked as a team, saved, and paid attention! This plan has worked well for us. The trick is - have a plan! You don't have to stick to it, - it can change and adjust, but have a plan!

[Map Maker]

Originally Posted by thumper

When working, I invested as much as I could, while buying higher risk stocks targeting

Hey Thumper, so you and wife had $1m in stocks plus pension, house and other assets?
So close to 2 million in equity when you retired?

[dgl1948]

Originally Posted by Geraldsh

When I started looking for that magic number I was told to have 11 times my annual income in savings to retire. Ie; if you make $70,000 a year you need $770,000 in savings.
I retired 7 years ago, at 65, so with cpp&oas and my annual withdrawal I am living comfortably. The interest earned on my nest egg is greater than my withdrawal so I can live forever!

My situation is about the same only I retired 15 years ago. The only thing I would add is you need to be debt free at the time of retirement.

[elkhunter11]

Everyone's situation is different, if you work at your own business, and have flexible hours, you may want to work longer, if you work for a big company, and are tired of the rat race, retiring earlier is attractive. And every person is different, I know people that are happy in retirement for over 20 years, and others that went into depression, and took their own lives, after a few years. Whatever the situation, you need something you keep you occupied, be it a part time job or a hobby or two. And of course , you need to be able to afford the lifestyle that you intend to enjoy. Some people lived high on the hog , and didn't save anything, while other people deprived themselves and saved every penny they could. I enjoyed life, but I paid off my mortgage in eight years, and didn't take many extravagant vacations, or buy large RVs and all the toys that some people bought. I maxed my RRSPs and my TFSA, and invested them in the markets. So with a good company pension, and drawing my RRSPs out at a rate that will have them all out at 71, I can't spend like I used to, but I can still afford a good standard of living. But unlike some people, I was ready to retire early, and I don't regret retiring at 55.

[saskbooknut]

I have never had a regret from my freedom 56 1/2 in 2004.
You control expenditures to match income.
Our expenses sure plummeted with Covid.
No travel expenses allows a lot of savings.
We have never touched our investments, and hardly touched earnings on investment.
It's hard to change the habit of a lifetime of thrift.

[elkhunter11]

Originally Posted by Bushrat

Or.....Key word you used is 'Everyone' I think fewer are saving than those spending because of interest rates so low nobody saves, majority has over spent, maxing out credit lines and cards, many have no more available credit, so new spending ceases or is severely impaired.

If half the population of the country(according to the gov't) is $200 away from being able to pay their bills and payments every month and have little to no savings, they sure didn't get that way from saving money.

Exactly those people can't spend any more, because they have nothing to spend, and most of us that did put away money, don't want to spend our way into that situation. But yes, it's easy to tell people that they need to spend more, if you are making a huge wage , and will enjoy a large pension courtesy of the tax payers.

[badbrass]

I was done at 57, as was my wife! 3 years ago! Love it!

[operator john]

The way our Federal government is functioning "Canadians are saving too much", so they want to be able to tap into those savings for economic stimulus.
I don't trust them.