Comments on: My Simplified Retirement Plan http://blog.canadian-dream-free-at-45.com/2009/11/03/my-simplified-retirement-plan/ Wed, 08 Feb 2012 17:31:40 +0000 hourly 1 http://wordpress.org/?v=3.1 By: Dave http://blog.canadian-dream-free-at-45.com/2009/11/03/my-simplified-retirement-plan/comment-page-1/#comment-35155 Dave Fri, 06 Nov 2009 23:05:45 +0000 http://blog.canadian-dream-free-at-45.com/?p=1069#comment-35155 @ LH The house I'm paying off is a condo townhouse. Windows and roof is covered by condo fees at $140ish a month. Property taxes are at $200 or so per month. So it's just things like furnace and A/C to look after - pretty cheap living if you ask me. Even with elevated fees, not too bad. @ LH

The house I’m paying off is a condo townhouse. Windows and roof is covered by condo fees at $140ish a month. Property taxes are at $200 or so per month. So it’s just things like furnace and A/C to look after – pretty cheap living if you ask me. Even with elevated fees, not too bad.

]]> By: George http://blog.canadian-dream-free-at-45.com/2009/11/03/my-simplified-retirement-plan/comment-page-1/#comment-35144 George Fri, 06 Nov 2009 18:51:16 +0000 http://blog.canadian-dream-free-at-45.com/?p=1069#comment-35144 @LH: Living in a paid-off house is not "zero" cost, but it's the closest one will ever get to zero for housing expenses, unless you choose to live permanently in an RV, shelter, or tent. Maintenance, insurance, property taxes, and utilities should not cost more than $500-800 per month, depending on the size of the home and where it's located. My house will cost me about $600/month for all of the above once the mortgage is paid off. Compare that to the average rent of $1200/month for a 2-bedroom apartment, and it sounds like a heck of a deal! @LH: Living in a paid-off house is not “zero” cost, but it’s the closest one will ever get to zero for housing expenses, unless you choose to live permanently in an RV, shelter, or tent.

Maintenance, insurance, property taxes, and utilities should not cost more than $500-800 per month, depending on the size of the home and where it’s located. My house will cost me about $600/month for all of the above once the mortgage is paid off. Compare that to the average rent of $1200/month for a 2-bedroom apartment, and it sounds like a heck of a deal!

]]> By: LH http://blog.canadian-dream-free-at-45.com/2009/11/03/my-simplified-retirement-plan/comment-page-1/#comment-35140 LH Fri, 06 Nov 2009 17:56:19 +0000 http://blog.canadian-dream-free-at-45.com/?p=1069#comment-35140 Don't kid yourself that a paid-off mortgage is living at nearly zero cost. It's nice to be sure, but there is always maintenance, insurance, property taxes (sure to be going up soon) and repairs. (How old is the roof?) Less than a mortgage, but a long way from zero, so budget accordingly. Don’t kid yourself that a paid-off mortgage is living at nearly zero cost. It’s nice to be sure, but there is always maintenance, insurance, property taxes (sure to be going up soon) and repairs. (How old is the roof?)

Less than a mortgage, but a long way from zero, so budget accordingly.

]]> By: Canadian Personal Finance Blog » Blog Archive » Random Thoughts: Flip, Flop and Flu http://blog.canadian-dream-free-at-45.com/2009/11/03/my-simplified-retirement-plan/comment-page-1/#comment-35126 Canadian Personal Finance Blog » Blog Archive » Random Thoughts: Flip, Flop and Flu Fri, 06 Nov 2009 07:28:49 +0000 http://blog.canadian-dream-free-at-45.com/?p=1069#comment-35126 [...] at 45 writes about His Simplified Retirement Plan, which is an important plan to have, unless you want to work ’til you [...] [...] at 45 writes about His Simplified Retirement Plan, which is an important plan to have, unless you want to work ’til you [...]

]]> By: The Rat http://blog.canadian-dream-free-at-45.com/2009/11/03/my-simplified-retirement-plan/comment-page-1/#comment-35086 The Rat Wed, 04 Nov 2009 21:01:55 +0000 http://blog.canadian-dream-free-at-45.com/?p=1069#comment-35086 One can't 'hope' for a plan to be solid because the activity we saw in the markets over the past 12 months (and will eventually repeat itself) will weed out plans that aren't good over time. I've learned some very costly mistakes over time (such as being over exposed to income trusts and equities in general) and not enough cash/savings equivalents in terms of asset allocation. I recently did a post on my own Asset Allocation on my blog (actually, a gentleman named Sampson also corrected me on an error on the post); hit it up if you feel like it. Cheers, P.S. Yes, I'm The Rat :) Keep the good posts comin'! One can’t ‘hope’ for a plan to be solid because the activity we saw in the markets over the past 12 months (and will eventually repeat itself) will weed out plans that aren’t good over time. I’ve learned some very costly mistakes over time (such as being over exposed to income trusts and equities in general) and not enough cash/savings equivalents in terms of asset allocation. I recently did a post on my own Asset Allocation on my blog (actually, a gentleman named Sampson also corrected me on an error on the post); hit it up if you feel like it.
Cheers,
P.S. Yes, I’m The Rat :)
Keep the good posts comin’!

]]> By: Canadian Dream http://blog.canadian-dream-free-at-45.com/2009/11/03/my-simplified-retirement-plan/comment-page-1/#comment-35069 Canadian Dream Wed, 04 Nov 2009 12:12:34 +0000 http://blog.canadian-dream-free-at-45.com/?p=1069#comment-35069 @Dave, Good post. Wow, cutting back your spending by 40% is impressive. On point number 2, I'm doing something similar so I agree the math is questionable, but from an emotional point of view it makes sense. Tim @Dave,

Good post. Wow, cutting back your spending by 40% is impressive. On point number 2, I’m doing something similar so I agree the math is questionable, but from an emotional point of view it makes sense.

Tim

]]> By: Dave http://blog.canadian-dream-free-at-45.com/2009/11/03/my-simplified-retirement-plan/comment-page-1/#comment-35050 Dave Wed, 04 Nov 2009 02:19:11 +0000 http://blog.canadian-dream-free-at-45.com/?p=1069#comment-35050 @jacqjolie – Reading your blog and your finances, you are doing a much better job at maximizing your income then I am (your income by yourself is significantly higher than my household income for the month), but for now I really like my job but there is just little room for upward movement in salary-wise. I agree, I just don’t think people would understand, I rarely discuss my financial plans (not that many people do) – many people tend to focus on what they have recently purchased. @ George – I haven’t really put much thought into a magic number, which is probably something I should do, but I would like to get the house paid off to increase cash flow. My defined benefit plan allows for “early” withdrawal at 60, so I require a bridge between my early retirement date and when I actually retire. @ Candidate #2 (The Rat?) – I hope it’s a solid plan, I would love to get out at 35, or at least have the choice of getting out at 35, but I think I’ll have to delay. The toys are fun to have at the time, but I’d rather have the time wasted working to earn the toys (hindsight is always 20-20) – I have a knack for justifying purchases, and probably always will. @ Jon Snow – I agree, I don’t know if I will get totally out of the workforce when I get to the point of financial independence, but I would like to get there as soon as possible. @jacqjolie – Reading your blog and your finances, you are doing a much better job at maximizing your income then I am (your income by yourself is significantly higher than my household income for the month), but for now I really like my job but there is just little room for upward movement in salary-wise.
I agree, I just don’t think people would understand, I rarely discuss my financial plans (not that many people do) – many people tend to focus on what they have recently purchased.

@ George – I haven’t really put much thought into a magic number, which is probably something I should do, but I would like to get the house paid off to increase cash flow. My defined benefit plan allows for “early” withdrawal at 60, so I require a bridge between my early retirement date and when I actually retire.

@ Candidate #2 (The Rat?) – I hope it’s a solid plan, I would love to get out at 35, or at least have the choice of getting out at 35, but I think I’ll have to delay. The toys are fun to have at the time, but I’d rather have the time wasted working to earn the toys (hindsight is always 20-20) – I have a knack for justifying purchases, and probably always will.

@ Jon Snow – I agree, I don’t know if I will get totally out of the workforce when I get to the point of financial independence, but I would like to get there as soon as possible.

]]> By: Jon Snow http://blog.canadian-dream-free-at-45.com/2009/11/03/my-simplified-retirement-plan/comment-page-1/#comment-35043 Jon Snow Tue, 03 Nov 2009 23:52:00 +0000 http://blog.canadian-dream-free-at-45.com/?p=1069#comment-35043 The important thing for me is to reach a point where I can choose when I want to pull the plug. If its 45, great - if working isn't completely sucking maybe I will stick it out to 50 to ensure that I won't have any financial limitations on my retirement lifestyle. Its nice to see everyone here is pretty much on the same page.... The important thing for me is to reach a point where I can choose when I want to pull the plug. If its 45, great – if working isn’t completely sucking maybe I will stick it out to 50 to ensure that I won’t have any financial limitations on my retirement lifestyle.

Its nice to see everyone here is pretty much on the same page….

]]> By: Candidate # 2 http://blog.canadian-dream-free-at-45.com/2009/11/03/my-simplified-retirement-plan/comment-page-1/#comment-35042 Candidate # 2 Tue, 03 Nov 2009 23:02:35 +0000 http://blog.canadian-dream-free-at-45.com/?p=1069#comment-35042 Nice post Dave. Sounds like you've got a solid plan in place (now that you have had toys to enjoy!)and if there's anything I have learned it's your # 3 point - Invest like crazy when the time is right. I'm a couple years older than you and my aspirations are to finish it all up by age 35 (or at least semi-retire in the near term), and based on what you are saying, I can't think of anything more important than being mortgage free. Once that's in place, you're in business. I would even go as far as saying that I feel it is more important to focus on that than maximizing one's RRSPs in the run of a year. Best of luck and again, congrats on the position and nice thread. Cheers Nice post Dave.

Sounds like you’ve got a solid plan in place (now that you have had toys to enjoy!)and if there’s anything I have learned it’s your # 3 point – Invest like crazy when the time is right.

I’m a couple years older than you and my aspirations are to finish it all up by age 35 (or at least semi-retire in the near term), and based on what you are saying, I can’t think of anything more important than being mortgage free. Once that’s in place, you’re in business. I would even go as far as saying that I feel it is more important to focus on that than maximizing one’s RRSPs in the run of a year.

Best of luck and again, congrats on the position and nice thread.

Cheers

]]> By: George http://blog.canadian-dream-free-at-45.com/2009/11/03/my-simplified-retirement-plan/comment-page-1/#comment-35040 George Tue, 03 Nov 2009 22:53:56 +0000 http://blog.canadian-dream-free-at-45.com/?p=1069#comment-35040 My plan is pretty similar - get the house paid off early (by age 36-37 or so), then sock away as much as possible while maintaining a simple lifestyle so that I can exit the rat race early, if I choose to do so at the time. The magic number I've used is 33: I need 33 dollars in investments for every dollar in yearly income once retired. This provides for a comfortable cushion and enables the plan to survive almost any up or down market. Like Dave, I have a good defined-benefit pension plan that I can draw from as early as age 50, but I'd like to have enough cash saved up to retire earlier if I can... My plan is pretty similar – get the house paid off early (by age 36-37 or so), then sock away as much as possible while maintaining a simple lifestyle so that I can exit the rat race early, if I choose to do so at the time.

The magic number I’ve used is 33: I need 33 dollars in investments for every dollar in yearly income once retired. This provides for a comfortable cushion and enables the plan to survive almost any up or down market.

Like Dave, I have a good defined-benefit pension plan that I can draw from as early as age 50, but I’d like to have enough cash saved up to retire earlier if I can…

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