tag:blogger.com,1999:blog-37422580.post6542683920099608693..comments2023-04-04T03:43:44.728-06:00Comments on Canadian Dream: Free at 45: How Much Do You Need to Retire - Part VTim Stobbshttp://www.blogger.com/profile/02029234099545136789noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-37422580.post-49262770155276491612007-07-13T21:21:00.000-06:002007-07-13T21:21:00.000-06:00Anon,$25K a year is for Regina, SK, Canada. Prope...Anon,<BR/><BR/>$25K a year is for Regina, SK, Canada. Property taxes are around $3500/year. You have to keep in mind that $25K/year is almost completely tax free and if you have your house paid for you can actually live that cheap fairly easily with a car and some travel.<BR/><BR/>As for health costs not covered I'm not planning on buying insurance. Why? I barely have any costs as is right now. Most years my medical bills for the entirely family are below $1000 per year before I put in any claims to my current coverage.<BR/><BR/>As to how to live on that amount of money. Well if you take my current spending and strip out the mortgage payment and retirement savings I'm only spending about $1850/month of after tax money and that is with a small kid. So living on $2000+ a month without a kid should be very possible for me.<BR/><BR/>I live well, but I refuse to waste money on things I don't care about. So I get the most out of every dollar I spend to get the life I can afford and want.<BR/><BR/>CDTim Stobbshttps://www.blogger.com/profile/02029234099545136789noreply@blogger.comtag:blogger.com,1999:blog-37422580.post-15932652652230387732007-07-12T16:52:00.000-06:002007-07-12T16:52:00.000-06:00I agree, $25,000 a year is nothing today. Just pay...I agree, $25,000 a year is nothing today. Just paying Property Taxes, utilities, phone, etc is expensive or are you planning to live off the grid. What about Medical expenses? If you aren't covered by a health plan at work, you need to get some kind of insurance, Medicare doesn't cover everything. Have you considered dental costs, tranportation?<BR/><BR/>It's nice to want to retire at such a young age, but I think you have seriously understimated the annual cost of doing so.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-37422580.post-16219113321883232022007-07-11T14:54:00.000-06:002007-07-11T14:54:00.000-06:00I like the way you have planned this all out - but...I like the way you have planned this all out - but $25K a year?! I didn't see where you live, but I guess it's not anywhere near a major city like Toronto, Vancouver, Calgary, etc where property taxes alone are $4-5K a year. I don't know why you would like to live below the poverty line for the rest of your life. No car? No travel? Lots of KD I guess.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-37422580.post-80108239713828307862007-04-23T17:10:00.000-06:002007-04-23T17:10:00.000-06:00CD,Do you have any knowledge or forecasting the su...CD,<BR/><BR/>Do you have any knowledge or forecasting the success of your retirement strategy with the mathimaticall principal called "Monte Carlo".<BR/><BR/>It's the idea that there is no average return, so it tries to run your investment scenarios against historical variability thousands of times to tell you how likely your investment strategy will be to succeed for X years. (that's my understanding at least)<BR/><BR/>I don't think most people use it in their calculations or are even aware of what it is.<BR/><BR/>I've seen some retirement and planning software that offers this feature and thought it seemed very relevant for long term planning and "what if" situations. <BR/><BR/>I'm sure it could the topic could cover several posts, but I thought I'd ask what you know of it, if you can recommend any specific software and if there is a reason you would or wouldn't use it.<BR/><BR/>A free online tool is available along with some interesting articles from a retired software developer at:<BR/>http://www.flexibleretirementplanner.com/<BR/><BR/>Thanks very much for your inputJordanhttps://www.blogger.com/profile/14261191417363201262noreply@blogger.comtag:blogger.com,1999:blog-37422580.post-55462345577502928662007-04-20T20:19:00.000-06:002007-04-20T20:19:00.000-06:00Excellent series CD. This is exactly the kind of ...Excellent series CD. This is exactly the kind of info we need to plan for retirement, early or otherwise.<BR/><BR/>It's good to see the details and analysis to see how other people approach retirement planning issues.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-37422580.post-77695621054690587402007-04-20T15:13:00.000-06:002007-04-20T15:13:00.000-06:00Hey Canadian Dream,CanadianCapitalist has offered ...Hey Canadian Dream,<BR/><BR/>CanadianCapitalist has offered some recommendations for upcoming Canadian Tour of Personal Finance blogs.<BR/><BR/>Care to drop by and comment?!!<BR/><BR/>Thanks,<BR/><BR/>Monty LoreeAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-37422580.post-36809348145030555882007-04-20T14:53:00.000-06:002007-04-20T14:53:00.000-06:00CM,Thanks for the advice. I'm glad you liked the ...CM,<BR/><BR/>Thanks for the advice. I'm glad you liked the posts. They were a lot of work, but I think worth it.<BR/><BR/>Anon,<BR/><BR/>I left enough buffer in the basic spending requirements to cover a kid or two for a few years. After I ran the run down model on the big pool of cash I ran it on my RRSP money and I estimate I have an extra $30,000 based on the current model. As to education funding, I currently use any government money I get for the kid and dump it into an RESP, so that should provide a nice pool of cash to help cover some education expense (at least $25,000). I have never intended to pay for all my kid's education. As I found I personally learned more about money after my own parents stopped paying for my university degree.<BR/><BR/>CDTim Stobbshttps://www.blogger.com/profile/02029234099545136789noreply@blogger.comtag:blogger.com,1999:blog-37422580.post-19229040749434011862007-04-20T14:06:00.000-06:002007-04-20T14:06:00.000-06:00Did you factor into your equation the increasing c...Did you factor into your equation the increasing costs as your kid gets older, if you decide to have another kid, and education expenses?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-37422580.post-70558863132443115232007-04-20T12:00:00.000-06:002007-04-20T12:00:00.000-06:00Great series of posts CD!I found that the most cha...Great series of posts CD!<BR/><BR/>I found that the most challenging part of these calculations was making a good estimate of income required for retirement.<BR/><BR/>If you can collect a few years of spending data you will be in an excellent position to make this estimate. In this reqard, I found that keeping it simple makes it bearable. We still do it even though we are retired.Canadian Moneyhttps://www.blogger.com/profile/17431816235387089968noreply@blogger.com