Are you saving enough for retirement?

[edslunch]

Originally Posted by Reggie28

I don’t know how you pulled this off, I brought up that I may retire early (stressful job) but she would probably have to keep working, went over like a lead ballon. We came together later in life, in for a Penny, in for a Pound, I guess.

I retired at 60 after years of burnout, and figured we had enough to make it work. I’m 4 years older than her so could play the “I’ve paid my dues” card. Of course that’s the moment she decided to launch a startup and has been insanely busy ever since. But if it wasn’t that it would be something else…she will never retire.

[RichieRich]

Hey Reaper - great questions and you triggered a bunch of awesome stuff. Perhaps like drinking from a fire hose for a bit. Biggest advise stated (which I agree with) was: Take a bit of time and get educated. Read a LOT. It'll be overdose and "too much" for the first bit until the pieces of the puzzle come together.


Here's a Canadian couple.. yes they were high income earners but they REALLY really dove into things and created a great "how to" online guide for free. Website link is here: https://www.millennial-revolution.com/start-here/, followed by: https://www.millennial-revolution.com/investworkshop/


and their basic layout is as follows:
Part 1: Why People Lose Money in the Stock Market
Part 2: How To Build a Portfolio
Part 3: Asset Allocation: Slicing the Pie
Part 4: Rebalancing: How to Buy Low and Sell High
Dollar Cost Averaging: How To Invest Without Freaking Out
Sequences of Returns Risk
Black Swan Events
How To Pay No Tax On Your Investments (Canadian Edition)
Investment Fees Are The Worst


I have *not* actually rigorously followed this specific instruction (but do in general), but have followed their online blog and studies etc etc pretty much since the beginning. It may be easier to binge-read some of this stuff.

[RichieRich]

NEXT big things that I don't believe I saw that much of above:


Figure out how to get extra money to save.


That may look like a combination of:
- more work
- more pay (how? be more valuable, rise up, 2nd income stream)


What many forget is that you also gotta look at what you spend your existing money on and basically do better. It may mean cutting a few things, trimming here and there, and quite probably just doing better with contracts. It's daunting but not that hard. What am I talking about?
- cut unnecessary streaming services and online stuff like Prime, Netflix, etc...
- maybe cut non-essential memberships (unless they are of exceptional value to you such as physical/mental health)
- do better on your TV/Phone/Internet - it's a tight market and relatively easy to get big discounts for relatively little effort.
- Use GasBuddy
- Use Flashfood
- Discounts and coupons on everything you do
- local holidays instead of flights/etc...
- find ways to spend less on vehicle(s), housing (electricity/gas)
- clothing you need - so much on Marketplace and ValueVillage and Goodwill
- other "stuff" - so much on Marketplace/Kijiji
- avoid buying new or latest-and-greatest
- stop buying coffee/food/booze from cafes/restaurants


I'm sure there are many other ways to stretch a dollar BUT then you gotta have the discipline to put it away for your future self.

[RichieRich]

lastly (for this evening) most of ya'll may find this link useful:
https://www.theglobeandmail.com/inve.../cpp-benefits/


Basically helps you determine when taking CPP makes sense, or to compare where the crossover point is for total monies taken. Of course don't forget taking CPP is added to your taxable income so it also has an affect there.
I back-calculated the approx CPP internal rate of return (ie if you defer year over year for a higher rate down the line) and it was around 8%'ish. So that means if you take it early and invest it for yourself (and your heirs if you croak), you need to be making more than ~8% return.

[GGG]

Originally Posted by RichieRich

lastly (for this evening) most of ya'll may find this link useful:
https://www.theglobeandmail.com/inve.../cpp-benefits/


Basically helps you determine when taking CPP makes sense, or to compare where the crossover point is for total monies taken. Of course don't forget taking CPP is added to your taxable income so it also has an affect there.
I back-calculated the approx CPP internal rate of return (ie if you defer year over year for a higher rate down the line) and it was around 8%'ish. So that means if you take it early and invest it for yourself (and your heirs if you croak), you need to be making more than ~8% return.

I think this is the wrong way to look at CPP.

CPP is a guaranteed investment, effectively an inflation adjusted annuity. By having this annuity it allows you to take more risk in other investments and generate greater returns there. It’s your longevity hedge. So in evaluating its value one should look at the cost to purchase a similar product if it’s even available.

[Fuzzy14]

One underappreciated item for retirement planning is planning your withdrawals, in which order you withdraw from which account, etc.

I deal with a lot of clients who are gobsmacked when they find out the tax bill when the second of mom and dad passes. Mom and dad lived frugally, still had a million in the RRSP, government takes ~half... ouch.

[Bill Bumface]

Originally Posted by DoubleF

That's why I said it's one of many right or wrong options. I also said later in the post that he could consider some or all of the 20K. It doesn't have to be all in right away and not all in the same stock.

IMO tracking a bank stock is more effective to learn how investments work than a blended ETF. A blended ETF is more effective at investment diversification. its two slightly different things.

I think recommending anyone pick their own stocks is dangerous. Just head over to reddit/wallstreetbets. Trading hits the same parts of our brains as gambling, and it's very challenging to manage the emotional parts of trading to save yourself from yourself.

I would actually recommend that no one get a trading account at all until they are sure they are ready for it. The best part of a managed account (robo or human) is it keeps your fingers out of the pie.

Not to say that no one should pick their own investments, I just wouldn't send someone down that path, especially someone without the time to make up for the mistakes that often come with that learning curve.

[Slava]

Originally Posted by RichieRich

NEXT big things that I don't believe I saw that much of above:


Figure out how to get extra money to save.


That may look like a combination of:
- more work
- more pay (how? be more valuable, rise up, 2nd income stream)


What many forget is that you also gotta look at what you spend your existing money on and basically do better. It may mean cutting a few things, trimming here and there, and quite probably just doing better with contracts. It's daunting but not that hard. What am I talking about?
- cut unnecessary streaming services and online stuff like Prime, Netflix, etc...
- maybe cut non-essential memberships (unless they are of exceptional value to you such as physical/mental health)
- do better on your TV/Phone/Internet - it's a tight market and relatively easy to get big discounts for relatively little effort.
- Use GasBuddy
- Use Flashfood
- Discounts and coupons on everything you do
- local holidays instead of flights/etc...
- find ways to spend less on vehicle(s), housing (electricity/gas)
- clothing you need - so much on Marketplace and ValueVillage and Goodwill
- other "stuff" - so much on Marketplace/Kijiji
- avoid buying new or latest-and-greatest
- stop buying coffee/food/booze from cafes/restaurants


I'm sure there are many other ways to stretch a dollar BUT then you gotta have the discipline to put it away for your future self.

I just quoted you for this idea, and wanted to talk about it a little. i get the idea of being frugal and looking for deals and such, so I wouldn't say that I'm against that. But, to look to make all parts of your spending and finances as efficient as possible and that kind of thing just seems so soul-crushing. I won't deny that I like nice things and while I look for deals or try to be efficient on some things, you also need to live a little. of course spending zero dollars on something today, and saving and investing that would put you in a much spot say 20 years from now. But there has to be a balance between decades of austerity and enjoying your life.

I don't know, but when I hear the story of someone who dies at say 80 years old and they had millions in the bank and lived like a complete pauper to make that happen, I don't really think of that as a successful outcome. To each their own, of course, but that sounds like the other side of spending everything and living paycheque to paycheque.

To be clear, I don't know that this is what you're suggesting here, and that list just made me think of that.

Originally Posted by Bill Bumface

I think recommending anyone pick their own stocks is dangerous. Just head over to reddit/wallstreetbets. Trading hits the same parts of our brains as gambling, and it's very challenging to manage the emotional parts of trading to save yourself from yourself.

I would actually recommend that no one get a trading account at all until they are sure they are ready for it. The best part of a managed account (robo or human) is it keeps your fingers out of the pie.

Not to say that no one should pick their own investments, I just wouldn't send someone down that path, especially someone without the time to make up for the mistakes that often come with that learning curve.

I see this all the time, and clients will make these kinds of investments both through me and on their own, because its "play money". Some of the reasons that people buy various investments is just so interesting.

[you&me]

Originally Posted by Bill Bumface

I think recommending anyone pick their own stocks is dangerous. Just head over to reddit/wallstreetbets. Trading hits the same parts of our brains as gambling, and it's very challenging to manage the emotional parts of trading to save yourself from yourself.

I would actually recommend that no one get a trading account at all until they are sure they are ready for it. The best part of a managed account (robo or human) is it keeps your fingers out of the pie.

Not to say that no one should pick their own investments, I just wouldn't send someone down that path, especially someone without the time to make up for the mistakes that often come with that learning curve.

100%

That 'advice' is verging on dangerous, considering the poster's circumstances.

[Jason14h]

Originally Posted by Kybosh

I was on track to retire by 55 but then we went and had another baby. ####ing dumbasses lol.

I was on track to retire and then had triplets at 43 years old!!

Now I just plan on dying before it becomes an issue unless someone on here dies and leaves me their fortune.

Anyone volunteer ?

[Sliver]

Originally Posted by Jason14h

I was on track to retire and then had triplets at 43 years old!!

Now I just plan on dying before it becomes an issue unless someone on here dies and leaves me their fortune.

Anyone volunteer ?

Holy fk that's madness. I'm 49 and can't imagine having three six year olds. Duuude. What a wild roll of the dice that one is. Super neat and I'd love to getting little snuggles and stuff still, but exhausting, I'm sure.

[TorqueDog]

Originally Posted by Slava

I just quoted you for this idea, and wanted to talk about it a little. i get the idea of being frugal and looking for deals and such, so I wouldn't say that I'm against that. But, to look to make all parts of your spending and finances as efficient as possible and that kind of thing just seems so soul-crushing. I won't deny that I like nice things and while I look for deals or try to be efficient on some things, you also need to live a little. of course spending zero dollars on something today, and saving and investing that would put you in a much spot say 20 years from now. But there has to be a balance between decades of austerity and enjoying your life.

I don't know, but when I hear the story of someone who dies at say 80 years old and they had millions in the bank and lived like a complete pauper to make that happen, I don't really think of that as a successful outcome. To each their own, of course, but that sounds like the other side of spending everything and living paycheque to paycheque.

I'm definitely not the sort of person who wants to live on bread and water while squirreling away money, but I also have learned that I can have nice enough things without the exorbitant price tag if I buy smarter. I'll provide some of my own examples.

- cut unnecessary streaming services and online stuff like Prime, Netflix, etc...
I only have Prime Video because it's free with Prime, everything else I cut. I have Tivimate at $58/year for streaming IPTV and Plex-n-Chill for $15 USD a month. Grey market. I was perfectly content to pay for streaming services when it was under $10-$12 a month. Now that everyone has their own and everything got fragmented, it's just more expensive cable plus on-demand. Screw that.

- maybe cut non-essential memberships (unless they are of exceptional value to you such as physical/mental health)
I cut my gym membership down to just the location I'm actually going to use (this is an option!). My condo doesn't have a gym, but I'm also not gallivanting around Calgary using their other locations, so why would I buy the all-inclusive membership? Traveling? I only stay at Marriott family properties and they all have gyms.

- do better on your TV/Phone/Internet - it's a tight market and relatively easy to get big discounts for relatively little effort.
I switched from Shawgers to TekSavvy, and next step might be to give QWave or Lightspeed internet a try when TekSavvy expires if the rates are lower. Also reconsidered if I really needed 1Gbps service or not (narrator: he didn't) and that saved a good chunk of change too.

- Use GasBuddy
This is one I haven't bothered with consistently; I run Shell 93 in both cars and it is usually the same price all over the city. I don't drive a lot and I live off 17 Ave, so I hit the Shell's Angels location to fill up. I'm not driving all the way to Shawnessy on the off chance I'll save maybe ten cents a litre (I'm not even certain that location has 93).

- find ways to spend less on vehicle(s), housing (electricity/gas)
I am shrewd when buying my vehicles (I scored pretty stellar deals on both) and since I don't commute with them, I'm at least able to put both cars on pleasure insurance rather than all-purpose. I also get parts way cheaper than the dealer network will ever provide. As for housing, electric is really the only one I'm investigating right now as I'm currently with Enmax EasyMax which is not by any stretch a cheap option.

- clothing you need - so much on Marketplace and ValueVillage and Goodwill
I shredded down a ton this year and Marketplace has been hit or miss. But there are some great men's consignment places in Inglewood and on Macleod Trail that I had success with, for both selling my old stuff to plus getting some new pieces. Also, for second-hand premium goods, online sellers from Japan are the way to go.

- other "stuff" - so much on Marketplace/Kijiji
We're doing that with furniture, specifically trying to get a credenza for the dining room and a floating entertainment shelf for the living room. It's more time consuming since so many people suck at listing stuff... seriously, only 25% of listings seem to include the bloody DIMENSIONS.

- avoid buying new or latest-and-greatest
I had the battery changed in my iPhone 15 Pro for $130 instead of buying an iPhone 17 Pro for an extra $42/month for twenty-four months.

Just some of my examples. I definitely don't feel like I'm living any less enjoyably as a result of it.

[undercoverbrother]

Originally Posted by Jason14h

I was on track to retire and then had triplets at 43 years old!!

Now I just plan on dying before it becomes an issue unless someone on here dies and leaves me their fortune.

Anyone volunteer ?

I have an idea.

and hear me out

Sell 1 of the 3 to pay for the other 2.


also congrats?

[Jason14h]

Originally Posted by undercoverbrother

I have an idea.

and hear me out

Sell 1 of the 3 to pay for the other 2.


also congrats?

They are basically Flames tickets.

I can't give them away for free. No one is paying .

[Geraldsh]

Originally Posted by TorqueDog

I'm definitely not the sort of person who wants to live on bread and water while squirreling away money, but I also have learned that I can have nice enough things without the exorbitant price tag if I buy smarter. I'll provide some of my own examples.

- cut unnecessary streaming services and online stuff like Prime, Netflix, etc...
I only have Prime Video because it's free with Prime, everything else I cut. I have Tivimate at $58/year for streaming IPTV and Plex-n-Chill for $15 USD a month. Grey market. I was perfectly content to pay for streaming services when it was under $10-$12 a month. Now that everyone has their own and everything got fragmented, it's just more expensive cable plus on-demand. Screw that.

- maybe cut non-essential memberships (unless they are of exceptional value to you such as physical/mental health)
I cut my gym membership down to just the location I'm actually going to use (this is an option!). My condo doesn't have a gym, but I'm also not gallivanting around Calgary using their other locations, so why would I buy the all-inclusive membership? Traveling? I only stay at Marriott family properties and they all have gyms.

- do better on your TV/Phone/Internet - it's a tight market and relatively easy to get big discounts for relatively little effort.
I switched from Shawgers to TekSavvy, and next step might be to give QWave or Lightspeed internet a try when TekSavvy expires if the rates are lower. Also reconsidered if I really needed 1Gbps service or not (narrator: he didn't) and that saved a good chunk of change too.

- Use GasBuddy
This is one I haven't bothered with consistently; I run Shell 93 in both cars and it is usually the same price all over the city. I don't drive a lot and I live off 17 Ave, so I hit the Shell's Angels location to fill up. I'm not driving all the way to Shawnessy on the off chance I'll save maybe ten cents a litre (I'm not even certain that location has 93).

- find ways to spend less on vehicle(s), housing (electricity/gas)
I am shrewd when buying my vehicles (I scored pretty stellar deals on both) and since I don't commute with them, I'm at least able to put both cars on pleasure insurance rather than all-purpose. I also get parts way cheaper than the dealer network will ever provide. As for housing, electric is really the only one I'm investigating right now as I'm currently with Enmax EasyMax which is not by any stretch a cheap option.

- clothing you need - so much on Marketplace and ValueVillage and Goodwill
I shredded down a ton this year and Marketplace has been hit or miss. But there are some great men's consignment places in Inglewood and on Macleod Trail that I had success with, for both selling my old stuff to plus getting some new pieces. Also, for second-hand premium goods, online sellers from Japan are the way to go.

- other "stuff" - so much on Marketplace/Kijiji
We're doing that with furniture, specifically trying to get a credenza for the dining room and a floating entertainment shelf for the living room. It's more time consuming since so many people suck at listing stuff... seriously, only 25% of listings seem to include the bloody DIMENSIONS.

- avoid buying new or latest-and-greatest
I had the battery changed in my iPhone 15 Pro for $130 instead of buying an iPhone 17 Pro for an extra $42/month for twenty-four months.

Just some of my examples. I definitely don't feel like I'm living any less enjoyably as a result of it.

This mirrors my lifestyle almost to a t. The smartest thing I did was marry a woman who is even more frugal than I am, struggle now is getting her to loosen the purse strings in retirement. Our net worth is the same now as when I retired 11 years ago but it’s not necessary to keep that amount.

[Bill Bumface]

Going from financing cars to driving a not so great car for a few years and then paying cash for nicer used cars has been the best financial change I've ever made.

[Brupal]

Here’s a link to some potentially helpful online tools

https://www.theglobeandmail.com/busi...s-dont-have-a/

[RichieRich]

Originally Posted by Slava

I just quoted you for this idea, and wanted to talk about it a little. i get the idea of being frugal and looking for deals and such, so I wouldn't say that I'm against that. But, to look to make all parts of your spending and finances as efficient as possible and that kind of thing just seems so soul-crushing. I won't deny that I like nice things and while I look for deals or try to be efficient on some things, you also need to live a little. of course spending zero dollars on something today, and saving and investing that would put you in a much spot say 20 years from now. But there has to be a balance between decades of austerity and enjoying your life.

I don't know, but when I hear the story of someone who dies at say 80 years old and they had millions in the bank and lived like a complete pauper to make that happen, I don't really think of that as a successful outcome. To each their own, of course, but that sounds like the other side of spending everything and living paycheque to paycheque.

To be clear, I don't know that this is what you're suggesting here, and that list just made me think of that.



I see this all the time, and clients will make these kinds of investments both through me and on their own, because its "play money". Some of the reasons that people buy various investments is just so interesting.

I do agree with you… that said depending how aggressively one needs to get to a magic number may dictate how deep they cut. Urgency and necessity sometimes dictate course of action. An expression I’m trying to adopt is “live for today and also save for tomorrow”.

Now my list above was intended to suggest some ideas. Perhaps some resonate as being possible, but to do all? That’s a steep ask.

If your retirement fund is already looking good that’ll help you spend more now versus “OMG I’m so far behind and haven’t started yet”.

[5abi]

There is no longer a science to it, rrsp plannng that is. Vfv or xeqt depending on if you believe the us will outperform the global market

[Slava]

The S&P 500 love is a recent phenomenon. It wasn't long ago that investors didn't want the S&P. The massive push for people to look there today is primarily based on recency bias, where past returns are viewed as if those times are destined to continue. That's a dangerous mindset in investing, though, and it can have disastrous consequences.