You Know What Really Grinds My Gears? Now with 3x more gears...

[Sliver]

Originally Posted by ResAlien

Wtf how did a link fuzz posted bork this page so badly? Looks like booty juice on mobile now. Thanks fuzz and everyone who quoted it

You on Netscape Navigator? Didn't bork anything for me.

[Locke]

Originally Posted by Sliver

You on Netscape Navigator? Didn't bork anything for me.

I asked Jeeves and it got me nowhere!

[topfiverecords]

Originally Posted by ResAlien

Wtf how did a link fuzz posted bork this page so badly? Looks like booty juice on mobile now. Thanks fuzz and everyone who quoted it

This one?

Originally Posted by Fuzz

So the median is 100k, the average is $131k. Sometimes it does matter. Lots of above average earners skew the average, so it's not really a great measure of the middle.

https://www03.cmhc-schl.gc.ca/hmip-p...ood&SearchTags[0].Key=Households&SearchTags[0].Value=Number&SearchTags[1].Key=Statistics&SearchTags[1].Value=AverageAndMedian

[Barnet Flame]

Originally Posted by Slava

Well, I'll chime in. There's no way I retire tomorrow if I came into $4m tonight. I know that this is a hot take incoming, but not many people should. I think that people need something to retire to, which is a significant issue, and there are some social issues at play here, too.
I believe people need a reason to get out of bed in the morning and they want to feel productive. I'm not saying that you should stick around doing the same job you have today if you hate it. But the reality is that people who retire to "just hang and chill" are the people who also die early. It's not healthy.

But there's another factor, aside from kids, that a lot of us have to consider as well. You come into a whack of cash today. None of your friends do, so sure, you're going to travel and play golf or whatever...alone? That's a terrible idea. And yeah, you can make new friends, but I don't know if that is a solution either. I like my friends and I like hanging out with them.

I like to get the daily news.

[Locke]

Originally Posted by Barnet Flame

I like to get the daily news.

I need my stock quotes!

[Cappy]

Originally Posted by kevman

Agreed, the vast majority will not. But you don't know where he works to know the situation of the group that he was speaking to. The vast majority do not earn that kind of money, but there are no shortage of people that do in this city that would not hit their "number" today with an extra $4m.

I mean, unless these are all people earning over 200k per year and have the coolest jobs in the world.... but given the averages, i doubt thats the case.

I earn over the amounts discussed, and even i would quit my job for that kind of cash, easily. Doesn't mean i would stop working, but I am not pulling a 9-5 again

[Slava]

Originally Posted by Cappy

I mean, unless these are all people earning over 200k per year and have the coolest jobs in the world.... but given the averages, i doubt thats the case.

I earn over the amounts discussed, and even i would quit my job for that kind of cash, easily. Doesn't mean i would stop working, but I am not pulling a 9-5 again

Yeah, but I think this is the crux of the matter. I could stop working with another $4m. I would continue working for sure, but it would change how I work and some things about the work I do. I feel like that is the case for a lot of people.

And I've seen plenty of people who retire and end up going back to work because they miss it. For a lot of us, you identify with your job. I'll use myself as an example. I get called and asked for opinions and thoughts on finances, stocks, and markets all the time. I love it. When I retire one day, those phone calls and conversations will probably stop, and honestly, that's an enormous adjustment. Your career becomes a piece of your identity, and suddenly, you're turning that off. I think that is really difficult for a lot of people to handle.

[fotze2]

Something that annoys me that I have done and comes from a good place. When someone telly you bad crap that is coming down. Stuff that turning the frown upside down won’t help. Either STFU or acknowledge it sucks. It’s easy, you don’t even have to lie now.

I know I have been your fried for 20 years but at the time I need you, I’m gonna make up some bull crap nonsense.

[btimbit]

Originally Posted by ResAlien

Wtf how did a link fuzz posted bork this page so badly? Looks like booty juice on mobile now. Thanks fuzz and everyone who quoted it

Use any modern browser and it should be fine

[PepsiFree]

Originally Posted by btimbit

Use any modern browser and it should be fine

Nah he’s right this is ridiculous.

[Mightyfire89]

I’m astonished that anyone would think 4 million isn’t enough to live the rest of your life in relative luxury. Insane

[GGG]

Part of what people don’t account for in their living expenses is the cost of working.

Retired you are probably down to 1 car. Your clothing bill is cut in half, day care expenses are gone. Retirement savings is gone. So compared to that 100k after tax number there is probably 20k or so spent on working or saving for retirement. So that 140k or so post tax income is significantly more than a median of say 80k. Let’s say you used 500k to pay off a house it reduces your take home by about 20k to 120k but relative to the median family spending at least 25% on housing and you now make double what the median family does 60k vs 120k.

You’d also probably accidentally earn money doing things your are passionate about.

4 million and I’d be done tomorrow.

[Locke]

Originally Posted by GGG

Part of what people don’t account for in their living expenses is the cost of working.

Retired you are probably down to 1 car. Your clothing bill is cut in half, day care expenses are gone. Retirement savings is gone. So compared to that 100k after tax number there is probably 20k or so spent on working or saving for retirement. So that 140k or so post tax income is significantly more than a median of say 80k. Let’s say you used 500k to pay off a house it reduces your take home by about 20k to 120k but relative to the median family spending at least 25% on housing and you now make double what the median family does 60k vs 120k.

You’d also probably accidentally earn money doing things your are passionate about.

4 million and I’d be done tomorrow.

I know. I find out where you live and voila! I've got $4M more dollars and 1 less guy saying things about me. Win/Win.

[you&me]

Depends on your circumstances.

Single person with a cat? Sure, they'll probably be ok and can afford some luxuries. (But then, wtf do you do with your time?)

Large, active family? Sadly, it won't as far as you'd hope.

Regardless, it seems like $4mm is on the low-end for a sensible retirement.

[Locke]

Originally Posted by you&me

Depends on your circumstances.

Single person with a cat? Sure, they'll probably be ok and can afford some luxuries. (But then, wtf do you do with your time?)

Large, active family? Sadly, it won't as far as you'd hope.

Regardless, it seems like $4mm is on the low-end for a sensible retirement.

Look here! Your Cat is not a CRA approved security system nor is it's food a deemed eligible deductible expense!

Wait. What were we talking about?

[Whynotnow]

Originally Posted by GGG

Part of what people don’t account for in their living expenses is the cost of working.

Retired you are probably down to 1 car. Your clothing bill is cut in half, day care expenses are gone. Retirement savings is gone. So compared to that 100k after tax number there is probably 20k or so spent on working or saving for retirement. So that 140k or so post tax income is significantly more than a median of say 80k. Let’s say you used 500k to pay off a house it reduces your take home by about 20k to 120k but relative to the median family spending at least 25% on housing and you now make double what the median family does 60k vs 120k.

You’d also probably accidentally earn money doing things your are passionate about.

4 million and I’d be done tomorrow.

People also don’t account for the cost of not working. You spend money, what else do you do.

[DownInFlames]

If I suddenly had 4 mil at my disposal I’d be dead in a year so I might as well retire.

[PepsiFree]

Originally Posted by Whynotnow

People also don’t account for the cost of not working. You spend money, what else do you do.

I don’t think people aren’t accounting for that. That’s the “living in luxury” part.

[Slava]

Well I don’t think $4m is the low end for a sensible retirement at all. That’s an enormous amount of money. I’ve had plenty of clients retire with much less and be perfectly fine. The thing is, part of the battle for retirees is psychological. They have to be prepared to see that $4m come down. So you can definitely retire on $4m, but if you’re hoping to live a luxurious lifestyle and not deplete the money, you might have a problem. If you are fine to spend that down though (which retirees should be to some extent), then go don’t need $4m and you can have a fantastic retirement for $4m.

As with most things financially, it depends on how much you plan on spending.

[Jason14h]

The question was "would you retire" and not "Would you quit your job" or "Can you live off $4 Million"

So basically the questions is (using 4% rule for easy math) are you fine earning ~$140K after tax a year for the rest of your life (Inflation Adjustment)

Certainly enough to live a good life if you want to live a modest(ish) lifestyle. However, if your goals are different it's not really a surprise people would keep working, work part time, or work at a lower paying job then they currently have to supplement this nestegg

You can burn through $140K very fast depending on lifestyle and dependents, plus ... Then what? You aren't traveling around the world year round on $140K after all your expenses. You arent taking up expensive hobbies, etc (Or at least if you are you arent doing a lot else some years)

Supplementing the $140K actually starts pushing you into "Luxury" territory