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Question: how do i attach a spreadsheet? :)

Spreadsheet with my figures

OK I've worked through some calculations as to when I can retire. This thread may help some one work through their own scenario or some one might spot some mistakes with what I've done.

I've read a few threads on people saying oh - i am going to retire when im 40 and they are 30. It made me think about when I can retire. So i did some calculations.

- I'm thinking of aiming for 60% of our current salary.
- Our currrent combined net salary is $89,800
- 60% of this at present value is $53880
- So monthly, at present value, this would be $4490 for a decent standard of living
- Her pension will be around 50% of her final 5 years salary. With regards to her final 5 years salary it would be around 83,000 in present value, which would be a yearly pension of 41500.
- I'm assuming this is before tax, so with tax this would be around 27,390 at 33% tax (not sure what it might be down the road).
- So per month around 2282.50
- So of the $4490 we require, she is paying $2282.50 of it, leaving $2207.50 for me to pay. Or $26490 to pay yearly.

However when I retire its going to be around when im 55 or 60. Hopefully.

So lets say I retire when I'm 55, thats 27 years. The future value of that $26490 is $76380, assuming 4% inflation. (FV = PV * 1.04 ^ 27).

Looking at my spreadsheet. If I invest into dividend yielding stocks, with an average growth rate of 3% and a yield of 4%, my dividend yield covered the required 76380, just after the age of 55. I'm not sure if i have to pay any tax on only receiving dividends. The limit in Alberta is 30k before you start paying taxes, and the present value of dividend return would be 26490. So if we projected that same logic forward it should hopefully mean this income is tax free.

After the age of 55, I would obviously start taking the dividend payout for myself rather than re-investing it. The return should start building up the 60% of our current salary to being higher as dividend yield and growth take effect.

All this is going on the gross assumption of dividend growth and yield increasing :D

Side note: I was looking at putting away 600 dollars away per month to get towards those numbers (around 8% of our net take home). I also increased my yearly payment to match inflation, so i wasn't paying in less as i got older.
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