I make a habit of reading at least 1 paper a day often The Toronto Star. However depending on the day I can get through -so far 4- in one day ( The Toronto Star, The Guardian, The Calgary Harold and The New York Times). Last night I decided to read another common paper from Toronto- The Globe and Mail. The Globe has great articles about finance as it should. But one caught my eye. The article is called "Early retirement still possible-just not as early as desired"
This couple have a monthly income of: $8,000
Assets: family home: $900,000; Bank accounts: $4,000; RESPs $114,000; RRSPs $530,000; TFSA $23, 000; non registered savings $11,000. TOTAL: $1.158 million
Liabilities: None (AKA no debt)
The couple wanted to know if in 5 years when the husband would be 55 if they would have enough saved up to retire. The financial planner told them NO and to wait until the husband was 59 instead.
Can you believe that most of us would die to have 1) no debt!!! and 2) $1.58 million in assets
The thought that this couple can't retire the way they would like to with that kind of money is down right depressing. And scares the hell out of me!!
The upside to this is that clearly saving and stockpiling money is not the best way to go about things. I think I am going to follow Derek Foster's idea... or try at least.
I've already got plans in the works but when they get a little more stable I will let you know!!
According to all the reports I will never be able to retire, but I just can,t see my bosses wanting me in with my walking frame and incontinence knickers. LOL
ReplyDeleteBy the way I cut and paste my weekly spends straight from spendingdiary.com I love this little online tool, it keeps me honest and it,s free!!!!
Well I think to be fair they live in Vancouver. It's pretty expensive there even with 1.58 million in assets.
ReplyDeleteI think 1.58 million is enough to retire but not as early as they wanted, because you have to imagine that they'll live another 20-30 years on that income, with no income coming in.
Still, if they cut back on expenses perhaps they could do it. I think BF & I estimated we'd need $2 million to retire at 50 years old. We'd have a pretty simple life at that, because 30 - 40 years of living on 2 million is really not a lot.
It's $33,000 each for 30 years, and we each spend about $20,000 - $30,000 a year now.
At 40 years that's $25,000 a year each.
Not even factoring in inflation.