Who here has achieved early retirement, or working towards it?

[WetSeeker]

After child support and U costs etc etc my actual living expenses are less than 40% of my gross income. So like many men I have learned to live on 40% of pre-tax income. A single male without children has never had to pay for children which is a minimum of $250,000 - $500,000 per child so that explains how to retire early. No obligations, no worries and no children or grandchildren - to each his own.
Once I do finally retire I will still be comfortable and frankly I do hope to share that retirement with a desirable woman that can support herself equally.

 

[fall]

Not many make 100K even pre tax. Not many jobs pay that much. Do you have your own business ?

No, I am just a skilled educated employee . Yes, most people make less than $100K pretax, and it is still very decent money. But it would be foolish to quit your job at 55 if you have only $1M saved regardless of where you work, unless, f course, you are staking groceries at Walmart, but people who were able to save $1M by 55 in addition to the value of their house (assuming it was not an inheritance or a lottery win) usually make at least $150K, so, I just assume they do not want to spend less when they retire young to enjoy life.

 

[angrymime666]

So, you are basically living in poverty. 1mil can support 15 years of normal life (including all the income it will generate during these 15 years).

normal life...lol.

that depends on so many things. location, lifestyle, etc.

single guy no kids. doesnt live in toronto. will be moving out to a maritime province and living off grid home paid for. overseas 6mths out of the year.

living off of a 4% dividends return on a mil is 40k and thats almost tax free passive income. that does not include any capital growth. include oas and cpp if Im still eligible.

like I said I live very minimal. I dont keep up with the joneses.

I dont need or want the majority of stuff other people spend their money on.

 

[angrymime666]

I believe if they are all Canadian companies, there would be no income tax with the dividend tax credit and no other income to declare.

bingo

 

[angrymime666]

I would apply the 4% rule, where if you can live off 4% of your nest egg it will last in perpetuity. So by that metric if he could live off ~$40K a year until he can collect CPP he should be fine. Depends on what exactly you want to do in retirement, if you can supplement it, etc. We are all going to die, and most men I have seen die far earlier than 80 unless they have exceptional genes. I nearly died about 4 times driving home after work on Thursday.

damn you know my plan well.

I was using the 4% rule and also does not include capital growth. it also depends on how someone chooses to live. toronto life or off grid life. new bmw or paid off vehicle. be self reliant or pay for convenience.

I was shooting for 80 and anything afterwards is gravy. people tend to forget as people get older they spend less money. I see this behavior in my parents.

I see my nest egg growing larger each year because I regularly invest and do not think I will stop this behavior even in retirement.

 

[Indiana]

Take the money and move to Thailand

 

[realthing69]

damn you know my plan well.

I was using the 4% rule and also does not include capital growth. it also depends on how someone chooses to live. toronto life or off grid life. new bmw or paid off vehicle. be self reliant or pay for convenience.

I was shooting for 80 and anything afterwards is gravy. people tend to forget as people get older they spend less money. I see this behavior in my parents.

I see my nest egg growing larger each year because I regularly invest and do not think I will stop this behavior even in retirement.

Everybody is different, lifestyle and how healthy you are etc.. A friend of mine whos parents were in their 80s were constantly traveling and going to Vegas a couple of times a year.

If you're a "homebody" type of person, you'll probably stay within the neighbourhood. If someone who loves to travel, chances are you will continue (assuming you have the money).

 

[angrymime666]

There will be capital gain tax (half of the regular tax rate) and tax on dividend income (the fact that these are Canadian companies will reduce the tax by about half). So, with about 7% annual after-tax return (assuming no more than half of the market risk), $100K annual withdrawals adjusted for 2% annual inflation, and assuming there is no deferred capital gain (so that it is not some past investment of $500K that grew to $1M now so that there is about (1M-$500K)*0.4/2=$100K deferred taxes top be paid), based on my Excel calculations, $1M will last for exactly 14.5 years.

thanks for the info. I forgot about inflation. I have never run the number that far but with my current lifestyle which is most likely no where similar to other people living off 40k a year is excessive for me. I would most likely reinvest anything unused. I understand the math but when I look at the cost of my life now and as I grow older will spend less it doesnt compute. I guess the proof will be in the pudding and time will tell.

Take the money and move to Thailand

thats also part of the plan

 

[angrymime666]

Everybody is different, lifestyle and how healthy you are etc.. A friend of mine whos parents were in their 80s were constantly traveling and going to Vegas a couple of times a year.

If you're a "homebody" type of person, you'll probably stay within the neighbourhood. If someone who loves to travel, chances are you will continue (assuming you have the money).

that the thing. hopping around to different counties all the time gets pricey its the cost of the flight that kills your budget. where as living in a country for 6mths is completely different in terms of cost. 1 round trip and renting an apartment eating local food is way cheaper than package tours for 2 weeks a couple times a year.

so be a home body for the 6 months and traveler for the winter

 

[realthing69]

that the thing. hopping around to different counties all the time gets pricey its the cost of the flight that kills your budget. where as living in a country for 6mths is completely different in terms of cost. 1 round trip and renting an apartment eating local food is way cheaper than package tours for 2 weeks a couple times a year.

so be a home body for the 6 months and traveler for the winter

Nothing wrong with that either...good plan too. That's why I said everybody is different.

Anyways, planning to live around mid 80s is a good plan.

 

[wpgguy]

I have no desire to retire completely at any age as long as I’m healthy enough to work. I’ve built my business up over the last 20 years to a point where it needs constant little tweaks and regular contact with clients but I really don’t work very hard. I really enjoy what I do, I enjoy the bulk of the people I interact with on a daily basis and as long as I have a decent internet connection I could work from any place I choose for about a month at a time. What I will do is cut out the bottom 20% of my client list as they are the wankers that need 80% of the attention for very minimal return and use the extra time to travel. Even if it’s just two days in Banff at the end of a trip to Calgary or an extra few days at the lake.

Like 666 I live a pretty low key lifestyle so I won’t need millions to be happy.

 

[realthing69]

I have no desire to retire completely at any age as long as I’m healthy enough to work. I’ve built my business up over the last 20 years to a point where it needs constant little tweaks and regular contact with clients but I really don’t work very hard. I really enjoy what I do, I enjoy the bulk of the people I interact with on a daily basis and as long as I have a decent internet connection I could work from any place I choose for about a month at a time. What I will do is cut out the bottom 20% of my client list as they are the wankers that need 80% of the attention for very minimal return and use the extra time to travel. Even if it’s just two days in Banff at the end of a trip to Calgary or an extra few days at the lake.

Like 666 I live a pretty low key lifestyle so I won’t need millions to be happy.

This is what I plan to do. I don't have a business but work at a company that is pretty flexible. Hopefully work part-time to pay monthly expenses and use the saved money for travel/recreation etc.

 

[desert monk]

I have no desire to retire completely at any age as long as I’m healthy enough to work. I’ve built my business up over the last 20 years to a point where it needs constant little tweaks and regular contact with clients but I really don’t work very hard. I really enjoy what I do, I enjoy the bulk of the people I interact with on a daily basis and as long as I have a decent internet connection I could work from any place I choose for about a month at a time. What I will do is cut out the bottom 20% of my client list as they are the wankers that need 80% of the attention for very minimal return and use the extra time to travel. Even if it’s just two days in Banff at the end of a trip to Calgary or an extra few days at the lake.

Like 666 I live a pretty low key lifestyle so I won’t need millions to be happy.

Consider yourself lucky. Lots of people spend their whole life doing something that is “just a job”. Something that no one would do for free, that they are mostly in to simply make a living and/or they are stuck in it because they have sunk too many years in and have no realistic alternatives. Lots of jobs/careers sound good on paper and you don’t understand the full extent of the downsides until you have 10+ years in.

 

[fall]

damn you know my plan well.

I was using the 4% rule and also does not include capital growth. it also depends on how someone chooses to live. toronto life or off grid life. new bmw or paid off vehicle. be self reliant or pay for convenience.

I was shooting for 80 and anything afterwards is gravy. people tend to forget as people get older they spend less money. I see this behavior in my parents.

I see my nest egg growing larger each year because I regularly invest and do not think I will stop this behavior even in retirement.

Well, if you do not plan to spend on SPs ($300 once a week = $15,000 a year), limit yourself to at most 2-week vacation a year outside of North America flying Economy class, and limit restaurant eating to once a week, then you can live on $50K a year (assuming your house is fully paid off, i.e., you have $1M PLUS a house). However, if you want to see SPs and MPs regularly, see the world while being able to lie down during the flight (very important when you are getting older), and do not cook for yourself everyday, $100K after tax is the minimum that you need. I just see no reason why retire young and then go die a slow death in a shit hole, trying to save every dollar you have, and limiting yourself of pleasures that you can still indulge in? Is your job so terrible that in order to avoid it you want to give up everything else? And it is wrong that people need less money when they retire: people need less money when they are old and cannot spend them anymore. If someone retires young, he will need even more money because he is still able to enjoy all the things the money can buy and have all the time to do it.

 

[fall]

thanks for the info. I forgot about inflation. I have never run the number that far but with my current lifestyle which is most likely no where similar to other people living off 40k a year is excessive for me. I would most likely reinvest anything unused. I understand the math but when I look at the cost of my life now and as I grow older will spend less it doesnt compute. I guess the proof will be in the pudding and time will tell.



thats also part of the plan

Damn, how can someone familiar with TERB be able to live off $40K ??? But good for you if you spend only $40k/year total and get all you want from the life! Being happy is what counts

 

[wpgguy]

Consider yourself lucky. Lots of people spend their whole life doing something that is “just a job”. Something that no one would do for free, that they are mostly in to simply make a living and/or they are stuck in it because they have sunk too many years in and have no realistic alternatives. Lots of jobs/careers sound good on paper and you don’t understand the full extent of the downsides until you have 10+ years in.

I certainly do consider myself lucky, I was 15 years into “just a job for a pay cheque” and hating every minute of every day when I made the switch. Scary to walk away from a guaranteed salary etc but if I hadn’t I would have been miserable my entire life and the place went tits up 10 years later so I would have been screwed. Had to live pretty lean the first couple of years but turned out to be worth the effort. It was way better to go through that at 35 then at 55.

 

[angrymime666]

Damn, how can someone familiar with TERB be able to live off $40K ??? But good for you if you spend only $40k/year total and get all you want from the life! Being happy is what counts

Im just a perv at heart. I enjoy(sometimes) the male discussions. its just a really interesting place to have discussions where I wouldnt normally be able to have them. I dont hobby in canada, as I like the girlfriend experience of the asian countries. its just a nicer vibe and I find it way more less robotic as an hour rendezvous.

 

[angrymime666]

I have no desire to retire completely at any age as long as I’m healthy enough to work. I’ve built my business up over the last 20 years to a point where it needs constant little tweaks and regular contact with clients but I really don’t work very hard. I really enjoy what I do, I enjoy the bulk of the people I interact with on a daily basis and as long as I have a decent internet connection I could work from any place I choose for about a month at a time. What I will do is cut out the bottom 20% of my client list as they are the wankers that need 80% of the attention for very minimal return and use the extra time to travel. Even if it’s just two days in Banff at the end of a trip to Calgary or an extra few days at the lake.

Like 666 I live a pretty low key lifestyle so I won’t need millions to be happy.

keeping busy is the key. becoming a sloth and lying around is a quick way to death.

 

[angrymime666]

Well, if you do not plan to spend on SPs ($300 once a week = $15,000 a year), limit yourself to at most 2-week vacation a year outside of North America flying Economy class, and limit restaurant eating to once a week, then you can live on $50K a year (assuming your house is fully paid off, i.e., you have $1M PLUS a house). However, if you want to see SPs and MPs regularly, see the world while being able to lie down during the flight (very important when you are getting older), and do not cook for yourself everyday, $100K after tax is the minimum that you need. I just see no reason why retire young and then go die a slow death in a shit hole, trying to save every dollar you have, and limiting yourself of pleasures that you can still indulge in? Is your job so terrible that in order to avoid it you want to give up everything else? And it is wrong that people need less money when they retire: people need less money when they are old and cannot spend them anymore. If someone retires young, he will need even more money because he is still able to enjoy all the things the money can buy and have all the time to do it.

I have a plan and its not like most others. its simple yet does everything I want to do. on my list build my final house offgrid by myself, travel other countries for winters living there for 6mths a year. growing a vegetable garden for extra food when in canada, playing my guitar, working out in my home gym, prostitutes and beer when out of canada, building projects and cooking. theses are the things I look forward to a fulfilling and chill life.

on my trip to thailand I was in economy and learned a valuable lesson. spend the extra money to upgrade.

its hard to break old habits and I will never be the one to spend wildly and frivolously. more than likely Ill grow my nest egg due to an engrained investing and saving habits.

 

[bazokajoe]

I recently retired at 57. I have a company pension plus a nice nest egg(no I'm not going to tell you what it is).
Been single all my life and no kids.
I plan on collecting CPP at 60.
No debt.
When I was around 30 I started investing my money in mutual funds and stock trading. I had 20% of my net income every week automatically taken from my bank account and into mutual funds. Maxed out my RRSP every year until TFSA came in. So I started to max out my TFSA and stopped contributing to my RRSP.
Now that I am retired I stopped the auto withdrawals and take money from my nonregistered mutual funds and max out my TFSA.
Not sure when I will start to draw down my RRSP's. Probably when I hit 65 that's when my company pension will be reduced.
Even with the weekly withdrawals, when I was working, I still had more then enough money for travel and to do anything else I wanted.
Saving money is simple. I had a goal and a plan and stuck to it.