Steve since you love playing with the numbers how much do you need to have $20,000 a month revenue to retire at 55 and live to 90?

 

For a 4% nominal rate, 2% cpi, living in BC, diebroke age 90, with full CPP/OAS, you would need $9.7M in your RRSP. If the nest egg were 100% nonreg (taxed as interest), you would need $7.23M.

 

$20k expenses per month? 35 years.. $8.4 million

 

Better play WSOP lol Actually I better plan to work to 90 lol

 

Marina: I thought that was a typo at first

 

NO TYPO I need a Cabana boy and my Caribbean Beach Front place plus my home in Ontario ,my place down East and my place in Florida , trip to Europe at least once a year and 3-4 trips to Vegas/Florida .I will just keep working and take a break every 2-3 months lol

 

You're a bit off-topic Marina! Not everyone has such aspiring retirement plans [even with money].

 

In my experience it is not hard to spend this kind of money with a little imagination.

 

If you are used to a $xx,xxx a month life style then you will want to retire with that life style , We spend about $40,000 a year in traveling and yes I know if i started living on a 'average' salary I could retire much sooner but I could be dead tomorrow so I rather enjoy life now.And we are saving for the same retirement lifestyle , My husband has three brothers who make us look frugal

 

Maybe mods should start closing threads when questions are answered so we do not go off topic

 

Where is the fun in that? Seriously though, we think most members like to have free-wheeling discussions even if threads occasionally go way off base.

 

It would not be so much fun then Marina & the mods [for the most part] are pretty tolerant here, however, people sometimes need to be a little sensitive to the question being asked.

 

I hear what you are saying, but the person who originally posed the question has never posted again and may or may not have read any of the response posts.

My point is that if the OP isn't going to stay involved in the thread, then staying on topic shouldn't really matter much.

 

Well I think the question was answered very early in this thread yet we now have 50 posts. Going off topic is pretty common here and only seems to bother some people when the views expressed don't match their own, I think.

 

Going off topic is pretty common here and only seems to bother some people when the views expressed don't match their own, I think.

If that comment was directed at me, you think wrong!

I appreciate and/or respect everyone's opinion & have no problem agreeing to disagree. However, that was not the point I was making, and neither was going off-topic per se. Need I really spell it out?

Even when the OP disappears, it does not mean that the topic would not be helpful to others by the way.

 

One big kink in the whole $500k retirement fund and some of the monthly spending assumptions made is that people are assuming they won't require nursing homes or assisted care. If we could all be so lucky!! Anyone have some figures to contribute on the odds of this happening and what typical expenses are when health is less than excellent? How much would one need then? Perhaps it could be similar as it would then come out of the travel budget...

 

I have tons of figures, including on the likelihood of requiring long-term care, but they're all from the U.S.

Thinking about the requirement for nursing home care is *similar to* thinking about the requirement for insuring against longevity risk. The chance of living to very old age - to, say, age 100 and up - is very small, but it is real. Do you keep a pool of money aside in the chance that you will need it, or do you transfer the risk to someone else who is willing to share it with you? (The providers of LTC insurance, that is.)

Alternately, you can take your chances with the public system.

Is this a "big kink?" It is a relatively small kink with a big impact. Here is the best paper I've seen on understanding this issue from a risk management POV: http://crr.bc.edu/briefs/what-is-the-distribution-of-lifetime-health-care-costs-from-age-65/

 

OK

 

Seems like if you have about $750,000 in fixed-income and preferred shares, it doesn't seem like enough:

http://www.theglobeandmail.com/glob...lobe-investor/seeds-of-doubt-amid-a-well-tended-retirement-plan/article4382171/

 

Original question was is $500000 enough to retire on? Yes, plenty if you spend according to your income. I semi-retired as of last September with a bit over $1000 a month defined benefit pension, another $1000 monthly from investment income, another $1000 monthly from 2 part - time jobs, another $500 monthly from a hobby, more than enough for my wife and I. House paid for, car (Infiniti) paid in cash, no debt, investments of over $250000, not to be touched til 65 or older (57 now) won't draw Canada pension till needed, and old age for my wife and I at 65. I have no intention of stopping part time work in the forseeable future, but I could if I wished, and of the income listed above, 30 to 40% is saved and invested monthly. We do live fairly frugally, except for my cars, but for us no new investments are really needed in the future. Hopefully.

 

Downsized their home by $200K in 2020. Reduced both CPPs as per the data specified. Had her continue her pt job until 2020.

Car loan assumed 5 years at 4%.

Assumed a modest 2% rate (nominal) going forward, inflation 2%. Living in BC, dying broke at 95..... result? a combined after tax lifestyle of $55K annually, leaving an estate (proceeds of fam home) of $365K in today's $ at age 95.

$55K is shy of the $62K they were looking for, but not drastically so. If they upped the rate to 3% from 2% and reverse mortgaged, they would be just fine.

Mary's Plan

Mike's Plan