Comments for Canadian Dream: Free at 45 http://blog.canadian-dream-free-at-45.com Tue, 07 Feb 2012 18:14:07 +0000 hourly 1 http://wordpress.org/?v=3.1 Comment on Making My Retirement Less of a Gamble by Marianne http://blog.canadian-dream-free-at-45.com/2012/02/07/making-my-retirement-less-of-a-gamble/comment-page-1/#comment-91470 Marianne Tue, 07 Feb 2012 18:14:07 +0000 http://blog.canadian-dream-free-at-45.com/?p=4078#comment-91470 No worries- didn't seem 'pick'y to me. :) This gives me lots to think about. I am quite new at this (only been investing for about a year and with the help of our financial advisor) so am always looking to learn as much as I can from others' experiences! No worries- didn’t seem ‘pick’y to me. :) This gives me lots to think about. I am quite new at this (only been investing for about a year and with the help of our financial advisor) so am always looking to learn as much as I can from others’ experiences!

]]> Comment on Making My Retirement Less of a Gamble by Rob http://blog.canadian-dream-free-at-45.com/2012/02/07/making-my-retirement-less-of-a-gamble/comment-page-1/#comment-91469 Rob Tue, 07 Feb 2012 17:54:09 +0000 http://blog.canadian-dream-free-at-45.com/?p=4078#comment-91469 "Marianne" If by low risk, you mean less volatile, say bonds vs stocks. Then I agree, however, IMHO that should happen at a very slow pace, and even in your 70s you should still be holding stocks. The riskiest thing an investor can do is opt for lower yielding securities in order to maintain capital, especially when nothing is ever certain. At 41 I am 100% in stocks, but most of them are good strong blue chip dividend payers, and worst case scenario, I still receive the $4500.00 per year in dividends. I can wait for the market to come back for a long time. Check out Derek Fosters books. In full disclosure though, I am slowly moving some money into bonds as I will need to draw on them in the next few years, but only the amount I will need to draw; and it is to reduce volatility, not for safety. I would argue that a strong dividend company like say Bank of Nova Scotia is a lot safer than a province of Ontario bond. Because, the bond will not likely make any real money after inflation, where BNS has the potential to increase, and pays a little cash to tide you over. Sorry, don't mean to pick, but the general definition of risk always bugs me. “Marianne”

If by low risk, you mean less volatile, say bonds vs stocks. Then I agree, however, IMHO that should happen at a very slow pace, and even in your 70s you should still be holding stocks. The riskiest thing an investor can do is opt for lower yielding securities in order to maintain capital, especially when nothing is ever certain. At 41 I am 100% in stocks, but most of them are good strong blue chip dividend payers, and worst case scenario, I still receive the $4500.00 per year in dividends. I can wait for the market to come back for a long time. Check out Derek Fosters books. In full disclosure though, I am slowly moving some money into bonds as I will need to draw on them in the next few years, but only the amount I will need to draw; and it is to reduce volatility, not for safety. I would argue that a strong dividend company like say Bank of Nova Scotia is a lot safer than a province of Ontario bond. Because, the bond will not likely make any real money after inflation, where BNS has the potential to increase, and pays a little cash to tide you over. Sorry, don’t mean to pick, but the general definition of risk always bugs me.

]]> Comment on Feeling Needed by Miss T @ Prairie Eco-Thrifter http://blog.canadian-dream-free-at-45.com/2012/02/06/feeling-needed/comment-page-1/#comment-91468 Miss T @ Prairie Eco-Thrifter Tue, 07 Feb 2012 17:31:47 +0000 http://blog.canadian-dream-free-at-45.com/?p=4068#comment-91468 One thing I have realized earlier in life compared to later is that your job does not define you and that it is only part of your life. This has been a hard thing to get used too but I am glad I have. There are so many other components in my life that have value and that are important to living a fulfilled life. I don't want to spend all of my energy on my career and not be able to attend to other things. I think when I retire down the road my days will be filled with numerous activities that I will get feedback from. That way I will always feel I have relevance. One thing I have realized earlier in life compared to later is that your job does not define you and that it is only part of your life. This has been a hard thing to get used too but I am glad I have. There are so many other components in my life that have value and that are important to living a fulfilled life. I don’t want to spend all of my energy on my career and not be able to attend to other things. I think when I retire down the road my days will be filled with numerous activities that I will get feedback from. That way I will always feel I have relevance.

]]> Comment on Making My Retirement Less of a Gamble by Marianne http://blog.canadian-dream-free-at-45.com/2012/02/07/making-my-retirement-less-of-a-gamble/comment-page-1/#comment-91467 Marianne Tue, 07 Feb 2012 16:36:24 +0000 http://blog.canadian-dream-free-at-45.com/?p=4078#comment-91467 I know this is probably old news but I think the recommendation by the Wealthy Barber to leave yourself a 7-10 year buffer nearing retirement to be able to switch your investments into lower risk holdings at an opportune time is a great idea. I know this is probably old news but I think the recommendation by the Wealthy Barber to leave yourself a 7-10 year buffer nearing retirement to be able to switch your investments into lower risk holdings at an opportune time is a great idea.

]]> Comment on Making My Retirement Less of a Gamble by Rob http://blog.canadian-dream-free-at-45.com/2012/02/07/making-my-retirement-less-of-a-gamble/comment-page-1/#comment-91466 Rob Tue, 07 Feb 2012 16:14:27 +0000 http://blog.canadian-dream-free-at-45.com/?p=4078#comment-91466 I retired after 20 years with the Military, so receive a Defined Benefit that provides me with an income of approximately $2000.00 per month. Enough to live on, but not a lot of extras. We currently have about $126,000.00 in investments and our relatively large house is paid for. In order to make sure we have enough funds, we are selling the house, and building a smaller house on a lot we already own, giving us around $200k for a nest egg. After all, my pension is not indexed until age 60, so the 2k I bring in now, will not buy then, what it does today, plus I lose $500 per month from it at age 65, the CPP bridge amount. Ideally I will have around $300k in our TFSAs by the time we are 65, our RRSPs will be depleted, and so will our non-registered investments, ensuring that extra money from investments does not get included in any income tests. That will provide us a handsome income. I know that my CPP will be minuscule, because I only worked 22 years. As for OAS, both my wife and I will receive it, but I fully expect it to be payable at age 68 by the time we get there, although, I would argue that it will likely be more money than it is now, just a gut feeling. That should provide us with an income of about $50k per year at 65, and as much as $65-70k per year by age 70, with house paid for, and $300k invested. The tough part is from now (41) until age 60. However we are going to spend a few years living on our sailboat in the Carribean, so that should help, as it is a lot cheaper to live on a boat than it is to live in a house. I retired after 20 years with the Military, so receive a Defined Benefit that provides me with an income of approximately $2000.00 per month. Enough to live on, but not a lot of extras. We currently have about $126,000.00 in investments and our relatively large house is paid for. In order to make sure we have enough funds, we are selling the house, and building a smaller house on a lot we already own, giving us around $200k for a nest egg. After all, my pension is not indexed until age 60, so the 2k I bring in now, will not buy then, what it does today, plus I lose $500 per month from it at age 65, the CPP bridge amount. Ideally I will have around $300k in our TFSAs by the time we are 65, our RRSPs will be depleted, and so will our non-registered investments, ensuring that extra money from investments does not get included in any income tests. That will provide us a handsome income. I know that my CPP will be minuscule, because I only worked 22 years. As for OAS, both my wife and I will receive it, but I fully expect it to be payable at age 68 by the time we get there, although, I would argue that it will likely be more money than it is now, just a gut feeling. That should provide us with an income of about $50k per year at 65, and as much as $65-70k per year by age 70, with house paid for, and $300k invested. The tough part is from now (41) until age 60. However we are going to spend a few years living on our sailboat in the Carribean, so that should help, as it is a lot cheaper to live on a boat than it is to live in a house.

]]> Comment on Making My Retirement Less of a Gamble by Poor Student http://blog.canadian-dream-free-at-45.com/2012/02/07/making-my-retirement-less-of-a-gamble/comment-page-1/#comment-91465 Poor Student Tue, 07 Feb 2012 15:00:00 +0000 http://blog.canadian-dream-free-at-45.com/?p=4078#comment-91465 I do not know yet if I will ever work for a company which provides a pension, so I don't include that. While I know it is far off I am not sure I can count on CPP either. If I do end up receiving anything from it then that is great. If not, then everything is still okay because I made sure not to count on it. I have not heard enough about OAS but if you are not sure about it I am not going to factor it in. My RRSP is the big boost to income that I will receive at 65, and that is the only one one which I am relying right now. That is the way I like it because I have some control over it at least. I hate leaving things to chance, even though I also enjoy betting on football (and also had a bad Super Bowl). I do not know yet if I will ever work for a company which provides a pension, so I don’t include that.

While I know it is far off I am not sure I can count on CPP either. If I do end up receiving anything from it then that is great. If not, then everything is still okay because I made sure not to count on it.

I have not heard enough about OAS but if you are not sure about it I am not going to factor it in.

My RRSP is the big boost to income that I will receive at 65, and that is the only one one which I am relying right now. That is the way I like it because I have some control over it at least. I hate leaving things to chance, even though I also enjoy betting on football (and also had a bad Super Bowl).

]]> Comment on Feeling Needed by Rob http://blog.canadian-dream-free-at-45.com/2012/02/06/feeling-needed/comment-page-1/#comment-91464 Rob Tue, 07 Feb 2012 05:09:50 +0000 http://blog.canadian-dream-free-at-45.com/?p=4068#comment-91464 It is very ironic that I stumbled across this blog and this particular post, on this day. I retired 5 days after my 40th birthday, that was over a year and a half ago. Our first step was to build a house with our own hands so that we could be mortgage free. That is now complete; just before Xmas 2011. And now I am feeling the same lack of productivity eating at me. My life is starting to slow down, and there is no rush to get anything done. So, we do what I want, when we want. I feel pressure from my friends and neighbors who still work, and are productivity based. I know that this slow down is what should be happening, and I have looked forward to it, but the transition is still difficult, albeit welcome. And perhaps even more ironically, is that I feel no desire to be needed. In fact I find myself hoping that no one will ask me to help them out, because I no longer want to operate on that busy timetable, deadline, or productivity scale. I want to savor each moment of life, taste it, touch it, feel it, and do it all again if the mood takes me. It is very ironic that I stumbled across this blog and this particular post, on this day. I retired 5 days after my 40th birthday, that was over a year and a half ago. Our first step was to build a house with our own hands so that we could be mortgage free. That is now complete; just before Xmas 2011. And now I am feeling the same lack of productivity eating at me. My life is starting to slow down, and there is no rush to get anything done. So, we do what I want, when we want. I feel pressure from my friends and neighbors who still work, and are productivity based. I know that this slow down is what should be happening, and I have looked forward to it, but the transition is still difficult, albeit welcome. And perhaps even more ironically, is that I feel no desire to be needed. In fact I find myself hoping that no one will ask me to help them out, because I no longer want to operate on that busy timetable, deadline, or productivity scale. I want to savor each moment of life, taste it, touch it, feel it, and do it all again if the mood takes me.

]]> Comment on Feeling Needed by deegee http://blog.canadian-dream-free-at-45.com/2012/02/06/feeling-needed/comment-page-1/#comment-91462 deegee Mon, 06 Feb 2012 22:18:28 +0000 http://blog.canadian-dream-free-at-45.com/?p=4068#comment-91462 When I was still working, some days I felt more productive than others. As a go-to person in my division, I was often fielding questions and saving everyone's ass at some point. When I switched to working part-time, I was still the go-to person even if I fielded more questions from home (when I did that) and on the 2-3 days per week I was at the office. But I was becoming more productive on the says I did not work, as my volunteer work and hobbies had begun to take hold. Now that I don't work any more, some days are more productive than not. The volunteer work is a few days a week. The hobbies are a few days a week, sometimes on the same days but rarely conflicting. Some days I have neither of those activities, what I call "free" days. To anyone else, every day of mine is a "free" day. Whether I am actually productive or not does not matter. :) When I was still working, some days I felt more productive than others. As a go-to person in my division, I was often fielding questions and saving everyone’s ass at some point.

When I switched to working part-time, I was still the go-to person even if I fielded more questions from home (when I did that) and on the 2-3 days per week I was at the office. But I was becoming more productive on the says I did not work, as my volunteer work and hobbies had begun to take hold.

Now that I don’t work any more, some days are more productive than not. The volunteer work is a few days a week. The hobbies are a few days a week, sometimes on the same days but rarely conflicting. Some days I have neither of those activities, what I call “free” days. To anyone else, every day of mine is a “free” day. Whether I am actually productive or not does not matter. :)

]]> Comment on Feeling Needed by Retiredat44 http://blog.canadian-dream-free-at-45.com/2012/02/06/feeling-needed/comment-page-1/#comment-91461 Retiredat44 Mon, 06 Feb 2012 21:16:42 +0000 http://blog.canadian-dream-free-at-45.com/?p=4068#comment-91461 Ah, feel needed! That's the right word! I was only thinking how stressful it would be if I was still working and needed to take care of family and friends. 'Feel needed' is the more positive way to look at it, thank you! I don't have problem feeling productive at home at all; even looking out from my window daydreaming is productive to me! Ah, feel needed! That’s the right word! I was only thinking how stressful it would be if I was still working and needed to take care of family and friends. ‘Feel needed’ is the more positive way to look at it, thank you!

I don’t have problem feeling productive at home at all; even looking out from my window daydreaming is productive to me!

]]> Comment on Feeling Needed by Robert http://blog.canadian-dream-free-at-45.com/2012/02/06/feeling-needed/comment-page-1/#comment-91458 Robert Mon, 06 Feb 2012 18:23:43 +0000 http://blog.canadian-dream-free-at-45.com/?p=4068#comment-91458 Poor Student, I like my to do list. When I find that things aren't coming off, or a day goes by where I do a lot, but none of it was from the to do list, it makes me wonder if I'm putting the right things on my to do list. Poor Student, I like my to do list. When I find that things aren’t coming off, or a day goes by where I do a lot, but none of it was from the to do list, it makes me wonder if I’m putting the right things on my to do list.

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