Quote:
Originally Posted by CaptainYooh
This should be a pretty easy calculation. Think of a realistic amount you need to sustain your desired retirement lifestyle. For argument sake, let's use $10,000 per month, after tax or $14,000 before tax. Multiply it by 12 months = $168,000. This is what you need to receive annually for the rest of your life. Then, make some reasonable assumption about interest rate you can safely count on from a good income-producing security of some kind (REIT, bond, income properties etc.). Again, for this example, let's use 5% return. Capitalize your desired pre-tax income: $168,000/0.05 = $3,360,000. This is what you need to have invested as a nest egg to assure $14,000 income for the rest of your life assuming that your investment safely delivers 5% return. The moment you have that amount (or equivalent) in the bank – call it quits and go fishing.  |
What the heck are you planning on doing when you are retired that it will cost you 120,000 per year? You are saying that you will need to save over three million dollars, for the average family in Calgary, that would involve saving all of their money for the next 35 years.... before taxes. Such a ridiculous number to use.
Also, how boring would life be having retired at 30 years of age?