Quote:
Originally Posted by Leondros
Have any of your projections materially changed due to inflation, cost of living projects, and expected investment returns since COVID started? I assume you being an advisor you run this type of analysis periodically?
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The other thing is that YEAR TO YEAR it always seems like "this time it's different"... when really, at a fundamental level, things really have not been so different. The details/microscopic yes but not the big picture stuff. By this I mean you can somewhat look at long-term trends, add your own flavour, and go from there.
I've copied this here before... but play with this site to get an idea:
https://www.firecalc.com/
example:
"Start here" tab... enter $50k annual spending, portfolio starts at $350k, for 30yrs
"Other income" tab... put you & spouse, each getting CPP/OAS of $15k/yr ($30k/yr total) starting in 2035.
"Not retired?" tab... retire in 2032, annual savings until then of $10k.
Click SUBMIT on "not retired".
Statistical result shows 100% success (ie not running out of money given historical 30year time periods, which cover huge periods of global chance/unrest) over that 30yrs.
Play with the other tabs to run sensitivity modelling for your rates of return, inflation, monies added and when, flexibility on withdrawals, etc...
It's worth going down this rabbit hole and doing a few examples for yourself. You may surprise or scare the cr@p outa yourself.