What is your net worth?
- Thread starter nottyboi
- Start date
I wonder what is the statistics on what percentage of family net worth would a guy keep after the divorce. 50% sounds very optimistic.
Free and clear a ew hundred grand is a VERY nice income. Assuming 5% that is 200K... but really, do you want to leave 4M behind, so if you look at it as a slow drawdown of your net worth, you need MUCH less. If you take out 100K/year that is still 40 years plus the 5% how long do you expect to live anyhoo?
Maybe some exaggeration but I always assumed that the average active TERB member has higher disposable income than your average person. This is an expensive hobby.
Lol. Yes, I have travelled. Extensively and annually. I'm not into cheap thrills with low rent bar girls. Travel is something I like to do with loved ones, after all, what's a beautiful sunset in Majorca all alone?
Whether it's with family or specials friends, I don't mind carrying a bit if extra cost or paying their way. Sometimes it's just a way of saying thank you.
Also, I find that I spend more when I have more time on my hands. I'll have oodles when I retire. Golf, cars, watches, travel, fine dining.....it all adds up.
I heard something similar. But as always the devil is in the details.
The advice I heard was.... after the first 2 years, most people should plan on SPENDING about 40-60% a month compared to what you spent while employed.
It certainly did not work for us, but apparently it is good advice
Good for you!! I hope it's more interesting then it sounds..lol. Low rent girls bar girls are not where it's at either.
Not only is everyone fibbing on how much they are worth (poll would have been better to declare no principle residence), now everyone is moaning about needing a mint to retire on. Between the lies and the price of an aging body, the odds are most people here will do quite well on OAS and CPP. Good luck staying healthy enough to party on 6 figures a year after age 80 at the latest. All you'll get is a deluxe assisted living environment.
I agree, spend all your life working so you can not remember where the fuck you are in a nicer place....lol
Yes some people do, for sure. But they are the minority. If I continued to work hard at my current job, I could easily retire at age 65 with about 4-5M, but I think I will quit well before and settle for about 1.2M and enjoy life. If you are lucky enough to love your job AND make good money, there is no reason to retire.
i don't know about you guys but I'm scared thinking about living out my years on the government dole.
If you're net assets are low, say less than $1mm, you probably also don't own your house (assuming you live in Toronto). That makes your monthly cash flow burn higher for rent.
You can get $$5-$7k out of $1.2mm. Not sure for how long.
You can get $$5-$7k out of $1.2mm. Not sure for how long.
You're thinking only financial assets. You are right if I kept half my net worth in an empty house. But if the house is an income property and the rest generating divvys then one can do ok. For a cash reserve a 500k line of credit on the house will do.
How about reverse mortgages? I thought they were designed for middle income people who are cash poor but house rich?
Those pare down your equity. If you want a reverse mortgage get a line of credit instead, you can manage it at your leisure. But paring down home equity is really something you want to do maybe when you move into a nursing home right at the end. Sell the house to pay for a decent nursing home..and hope you die before the $$ runs out lol. I forgot to mention that my plan also has a small kicker in that once I hit 65 CPP will kick in so I will have an additional 1K/month or so. Of course, hyper inflation could kick in, in which case the house should hold it's value, and rents will stay apace, and if deflation shows up, then well.. my debt free status will carry me though and my std of living will remain about flat. Of course if financial armageddon hits, well, I would have at least enjoyed some of the fruits of my labour before they were rendered null and void... and I will then join the rest of you on the collective farm.
Assuming that you have $1.2 million in investible assets, the best way to go here would be to buy High quality dividend paying stocks, bank stocks come to mind. For example, a 5% dividend on $1.2 million will give you $60,000 before taxes. Given the preferred tax treatment, you may net $4k a month. Now the other real beauty is the dividend growth component of the stock. Dividends will likely increase, hopefully annually. This will not only increase your income but also protect you against inflation.
This has been my strategy for the past 15 years and I will be in a position to retire at 55 and I also have company pension. And if you also consider your CPP as early as 60 and OAS at 65, and if you also have RRSPs and TFSA then things should look nicely.
good luck with your retirement plans !
bruce
