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Old 08-06-2010, 04:08 PM   #41
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When out two kids went to school, our day care payments went from a mortgage payment to a car payment...........
FD, thanks a lot, I hadn't even thought about that! Our recently refi'd 100K mortgage has a monthly payment of $491 (5/5 ARM). We pay $800 for child care. If we have another kid, we probably should just buy a 100K house and lock both kids in there with food and water. What could go wrong?!

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Pre school is only 2 days a week from 10 am -12:30 pm. Something like $5 an hour.
Ahh OK, I think ours works out to be about $7-8/hr. Our friends pay a similar rate.
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Old 08-06-2010, 08:35 PM   #42
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Originally Posted by WanderALot View Post
FD, thanks a lot, I hadn't even thought about that! Our recently refi'd 100K mortgage has a monthly payment of $491 (5/5 ARM). We pay $800 for child care. If we have another kid, we probably should just buy a 100K house and lock both kids in there with food and water. What could go wrong?!

Ahh OK, I think ours works out to be about $7-8/hr. Our friends pay a similar rate.
I think my $5 an hour is typical for most places around here, I'm just buying the service at a low number of hours per month, hence the low cost. Just checked - $4.375 an hour. 40 instructional hours for $175 snack NOT included.
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Old 08-07-2010, 10:54 AM   #43
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If you want income it should (normally) be possible to convert your assets to bonds, dividend-paying common stock, etc. Are your assets unusually illiquid?
I'm sitting on 750k of paid for real estate... 300k in our Vancouver condo, 450k in 5 acres of land on a small west coast island - the place I will flee to when DW and I exit the rat race. The condo will be sold and its proceeds will bolster our portfolio when we move to the island, best case scenario being 7 years from now when we are 45.

Our non real estate holdings total about 450k; 200k cash/GIC's, 100k RRSP's, 100k DB plan, 50k various stock holdings and mutual funds. Still in learning mode regarding investments, thus the amount safely tucked away in savings accounts or GIC's.

As you can see, nice net worth... but the majority being non-income producing real estate. The island property is 5 acres and I could rent out a cabin or two on it... if they existed. The land is gorgeous, but devoid of even the slightest sign of human enterprise.
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Old 08-07-2010, 11:24 AM   #44
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As you can see, nice net worth... but the majority being non-income producing real estate. The island property is 5 acres and I could rent out a cabin or two on it... if they existed. The land is gorgeous, but devoid of even the slightest sign of human enterprise.
Well it's only $2/sq.ft., so it should be easy to sell if you need to.
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Old 08-08-2010, 03:54 PM   #45
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The Gulf Islands are beautiful (although a relatively expensive place to live), and I remember them fondly from my navy training days. But as you will not be ready to retire for at least seven years, I am not sure that it makes sense to have so much of your net work tied up in raw land, which historically increases in value only at the rate of inflation. Admittedly that has not been the case for the west coast during the last few years, but perhaps that is merely an argument to sell before the market reverts to the norm.

In any case, you have 200K in cash or GICs. That can easily be converted to an income stream, if that's what you'd like to do. For example, you could purchase a portfolio of blue chip dividend payers like this:

(1) two of the following ‘Big Five’ banks: BMO, BMS, CM, RY, TD (average yield = 4.08%)

(2) one of the following pipelines: ENB, TRP (average yield = 3.75%)

(3) one of the following railroads: CNR, CP (average yield = 1.6%)

(4) one of the following energy companies: CVE, ECA (average yield = 2.7%)

Total yield = ~3.25%, or $6,500 annual income. Tax advantaged, too, due to the dividend tax credit.

I am not suggesting that the above is the only option, or even the best option ... it's just an example of a simple, conservative portfolio of long-established companies that have an excellent track record of growing their dividends.
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Old 08-10-2010, 01:17 PM   #46
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Join the military at 17 or 18, then retire at 37 or 38. Heck, you could even push it to 40.

But you would have to avoid debt and do some savings along the way. And avoid getting blown up overseas.
...or under seas or in the sky. It's not an easy way to retire early. The only positive outcome for extreme ER is that all the moving around probably means you won't have any family obligations. In any case, I don't think I would have enjoyed being in the military when I was 17. I was a big nerd with glasses.
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