Club Dynasty
Toronto Escorts

My goal of becoming financially independent and quitting my steady job

desert monk

Active member
Apr 22, 2009
442
59
28
I am working towards having enough money saved that I can live off my dividends, and work part time. My goal is to have $1,000,000.00 in investments by age 40 (6 years from now), at which point I quit my full time job (I currently have about $460K in savings, and currently can contribute about $50K per year). I will live off a combination of my dividends (I am estimating 3-4% in dividends per year, or $30K-$40K) and going back to contracting (I could make anywhere between $20K per year to $150K, depending on the economy and jobs available). I may also buy a house with a basement that I can rent out, to pay my mortgage, freeing up more money. Basically, I am pretty sure I could live on the reduced income because I don't spend nearly what I make now. I will also be inheriting between $500,000-$1,000,000 from my parents estate which I estimate will likely happen by or around the time I hit 50, increasing my draw from investments. Any financial guys have advice here?
 

bazokajoe

Well-known member
Nov 6, 2010
9,250
7,191
113
Don't be so focused on money you forget to live life. You don't want to be the richest man in the cemetery.
 

Smallcock

Active member
Jun 5, 2009
13,703
21
38
^^^
Being able to work part time or retire at 40 is incredible. If he's taking some time out to enjoy (including hobbying haha), he's tracking perfectly. Plan looks solid.
 
  • Like
Reactions: koreanjames

desert monk

Active member
Apr 22, 2009
442
59
28
agree... 40 is a long ways from the cemetery (hopefully!)... out of curiosity what field are you in desert monk?
I'm a red-seal steamfitter-pipefitter, I work for a mine. Used to work as a contractor on big industrial projects out west.
 

HOLLYWOODG

Well-known member
Dec 11, 2016
1,206
39
48
What are you going to do with all the time you free up Desert Monk? I am in a really good position as well and around the same age. I am not stingy. I do work hard and play hard.

I intend on retiring at 50 and people roll their eyes at my when I have mentioned this. Wonder what the reaction would be if I said 40. Could do it as well but I love my work.
 

desert monk

Active member
Apr 22, 2009
442
59
28
What are you going to do with all the time you free up Desert Monk? I am in a really good position as well and around the same age. I am not stingy. I do work hard and play hard.

I intend on retiring at 50 and people roll their eyes at my when I have mentioned this. Wonder what the reaction would be if I said 40. Could do it as well but I love my work.
I'll probably just dedicate my time to getting a job I like more, in a location I like more. If I could do this now, I probably wouldn't even care about being financially independent at any point. I will probably never fully retire (bachelor, no kids), I just want to be in a position to cherry pick my jobs as opposed to being stuck in a job like where I am now.
 

HHHHBK

Finding the Showstoppers
May 28, 2008
64
12
8
Sounds like a good plan. Why buy a house, they only tie you down. You're young, travel the world, see different places. Long term the markets have beat housing, so why stop at that point? Food for thought.
 

wbh32

Member
May 4, 2015
46
0
6
I'll probably just dedicate my time to getting a job I like more, in a location I like more. If I could do this now, I probably wouldn't even care about being financially independent at any point. I will probably never fully retire (bachelor, no kids), I just want to be in a position to cherry pick my jobs as opposed to being stuck in a job like where I am now.
I think this is a great plan. Completely retiring with 1M might not cut it depending on how the future goes....although it could work out for you. Supplementing with income from work you enjoy is ideal. I'd be careful not to expect too much from your investments that you take on too much risk.
 

Denmae

Active member
Jan 30, 2013
578
26
28
Just check people who have won the lottery, much more than $1M.... it doesn't last.

Good plan but might need more.
Yes , because easy come easy go. $1M is more than enough, if you don't have much or any debt. Just need to keep expenses low. But if you live the consumer lifestyle like many people, then it may not last.
 

Smallcock

Active member
Jun 5, 2009
13,703
21
38
Just check people who have won the lottery, much more than $1M.... it doesn't last.

Good plan but might need more.
Easier to waste money when you get it for nothing. Just like the government.
 

waterloodude

Member
Sep 2, 2004
199
2
18
I am working towards having enough money saved that I can live off my dividends, and work part time. My goal is to have $1,000,000.00 in investments by age 40 (6 years from now), at which point I quit my full time job (I currently have about $460K in savings, and currently can contribute about $50K per year). I will live off a combination of my dividends (I am estimating 3-4% in dividends per year, or $30K-$40K) and going back to contracting (I could make anywhere between $20K per year to $150K, depending on the economy and jobs available). I may also buy a house with a basement that I can rent out, to pay my mortgage, freeing up more money. Basically, I am pretty sure I could live on the reduced income because I don't spend nearly what I make now. I will also be inheriting between $500,000-$1,000,000 from my parents estate which I estimate will likely happen by or around the time I hit 50, increasing my draw from investments. Any financial guys have advice here?
While $1M may be enough if your living expenses are very modest there are a number of factors you might want to consider:
- impact of inflation on savings and future expenses, so factor in a 2% inflation rate (at least) on top of the gains required for your living expenses to preserve your future nest egg
- investment mix and potential tax implications - if that $460K you currently have is mainly in RRSPs there will be withholdings and possible tax implications if you begin drawing down that will reduce (or at least delay) the funds you have available for living expenses
- buying a house will reduce your savings (at least for the down payment) and the amount of income generated
- while your expenses are modest while working now, when you're retired you will have a lot of free time which can lead to new expenses to occupy yourself (travel, hobbies, the company of beautiful ladies)
- with people living longer and also taking on significant expenses in their golden years for additional health expenses (home care, accessibility needs, medications are all not covered by Canadian health care) so your inheritance estimates could be on the high side
 

betdog

Member
Aug 13, 2013
236
3
18
PHL/DCA/BUF
If you are at $460 now and are contributing $50k annually, it won't lead up to $1mil unless stock market maintains it's trajectory. To minimize impact of stock market fluctuations, you may want to buy a house outright for say, $375k and live on $625k. At 4% withdrawal rate, you'd have about $25k annual budget and no mortgage. Doable.
 

desert monk

Active member
Apr 22, 2009
442
59
28
While $1M may be enough if your living expenses are very modest there are a number of factors you might want to consider:
- impact of inflation on savings and future expenses, so factor in a 2% inflation rate (at least) on top of the gains required for your living expenses to preserve your future nest egg
- investment mix and potential tax implications - if that $460K you currently have is mainly in RRSPs there will be withholdings and possible tax implications if you begin drawing down that will reduce (or at least delay) the funds you have available for living expenses
You are correct. However, making these calculations accurately is difficult because of the variety of factors involved (such as future interest rates and how long I will end up living). My money is mainly in a personal investment account, and I have a maxed RRSP and TFSA. I plan on working in some capacity till 55 at least (what else am I going to do with my time?) to hedge against inflation and reduced investment income.
- buying a house will reduce your savings (at least for the down payment) and the amount of income generated
I do not currently own a house. I prefer to rent because it allows me to be mobile for work (and leaving at the drop of a hat), and I am often out of town on weekends. I did the math, and for the type of property I would be looking at (condo or small house), I am better off financially by renting.
- while your expenses are modest while working now, when you're retired you will have a lot of free time which can lead to new expenses to occupy yourself (travel, hobbies, the company of beautiful ladies)
This is true, that's why I would like a large sum of money to live off.
- with people living longer and also taking on significant expenses in their golden years for additional health expenses (home care, accessibility needs, medications are all not covered by Canadian health care) so your inheritance estimates could be on the high side
Goood point. I am not relying on my inheritance to finance my retirement, however it could end up being $2 million depending on a variety of factors.
If you are at $460 now and are contributing $50k annually, it won't lead up to $1mil unless stock market maintains it's trajectory. To minimize impact of stock market fluctuations, you may want to buy a house outright for say, $375k and live on $625k. At 4% withdrawal rate, you'd have about $25k annual budget and no mortgage. Doable.
True except there are many expenses involved in maintaining a house and upkeep besides simply the mortgage. I could also also use an annual 4% withdrawl to cover a nice apartment and living expenses, and work just enough to do the extra things I want. I think Canada may be headed for some big political upheaval in the next couple decades, so I could also see myself trying to get into the USA , even illegally if I have to (noone else respects border laws, why should I?). So having mobility and capital I can draw upon may be preferable in that scenario.
 

wbh32

Member
May 4, 2015
46
0
6
Just curious.....(and not looking for a political discussion a la the politics forum)....what possible scenario do you see where you'd prefer to move to the states?
 

yomero5

Well-known member
Jan 12, 2017
1,982
487
83
You are doing well. I would continue to rent instead of buying a house. Can you briefly describe your investment portfolio?
 

desert monk

Active member
Apr 22, 2009
442
59
28
You are doing well. I would continue to rent instead of buying a house. Can you briefly describe your investment portfolio?
I own
ENB
KMI
TRP
USB
VFV
WMT
BCE
CP
ENF
XOM
JNJ
PG
REI.UN
T
TD
RY
BMO
BNS
CNQ
CNR
CU
FFH
PSK
VSB
and some investment management company specific maximum growth managed funds (won't name them here).
I am ~ 40% managed funds, ~25% bonds and index funds, the rest individual stocks (roughly $5-10K in each).
I've got a few duds and lacklustre performers, but most have been good. I try to stick to blue chip companies with rising dividends, and obviously I have gone for diversification over higher potential returns.
 

GPIDEAL

Prolific User
Jun 27, 2010
23,355
9
38
I'm a red-seal steamfitter-pipefitter, I work for a mine. Used to work as a contractor on big industrial projects out west.
My friend started out as a steamfitter, working for others and then his dad when he was alive and owned a small company, but is now a project manager for a large U.S. corporation that does oil refineries. His son is a young SF. The work can be out west or in the States.

Interesting post.
 

Barca

Active member
Sep 8, 2008
2,062
4
38
I own
ENB
KMI
TRP
USB
VFV
WMT
BCE
CP
ENF
XOM
JNJ
PG
REI.UN
T
TD
RY
BMO
BNS
CNQ
CNR
CU
FFH
PSK
VSB
and some investment management company specific maximum growth managed funds (won't name them here).
I am ~ 40% managed funds, ~25% bonds and index funds, the rest individual stocks (roughly $5-10K in each).
I've got a few duds and lacklustre performers, but most have been good. I try to stick to blue chip companies with rising dividends, and obviously I have gone for diversification over higher potential returns.
My portfolio manager has done really well for me if you're interested in advice. Plus he adds a tax and insurance overlay for me that amplifies after-tax returns. Let me know if you want his details.
 
Ashley Madison
Toronto Escorts