accountingsucks
Recycles dryer sheets
- Joined
- Jan 28, 2006
- Messages
- 346
I am one of those hopeless souls stuck in MegaCorp, but planning to ER.
I am 30 y.o., have my mortgage paid off (home worth 275K) and between my company RSP and my savings am putting approximately $40,000 per year in either my RRSP (retirement account in Canada) or non retirement funds. I currently only have about $40,000 in my retirement accounts as I just started doing this as my focus previously was on paying the mortgage off.
I am by profession an accountant so naturally I've built my own comprehensive Excel worksheet with fairly extensive detail on every possible scenario. By my projections I will definetly be able to retire at 50 and possibly at 45 depending on market conditions. Ideally I want to semi retire at 47 or 48 and work 2-3 days per week at that point (doing bookkeeping, tax returns, easy non stressful stuff) whereby I would cover my expenses and let my nest egg grow for 5 or 6 more years during the highest compounding period.
Of course planning like this means absolutely nothing as there are so many variables. Some of my projections are that I stay single, get married with no kids, and married with kids. Obviously the best result financially is getting married with no kids as there would be 2 income streams saving for ER.
Having said all this, I HAVE NO IDEA how much kids would cost. I assume my wife would have a salary of about $35,000 and that a child would cost $1,000 a month to raise for 18 years (and then 3% inflation after that). I am assuming that I would not pay for college (sorry kids, pay your own way like I did...plus schooling here is very cheap). How realistic is this figure? Obviously each phase of a child's life will cost more or less than others. Generally speaking I am assuming that having a 2nd income would offset the cost of children in my calculations but would be interested in hearing of better estimates for my projections. $12,000 a year adjusted for inflation seems reasonable to me though (that's about $220,000 over 18 years in todays dollars)
I am 30 y.o., have my mortgage paid off (home worth 275K) and between my company RSP and my savings am putting approximately $40,000 per year in either my RRSP (retirement account in Canada) or non retirement funds. I currently only have about $40,000 in my retirement accounts as I just started doing this as my focus previously was on paying the mortgage off.
I am by profession an accountant so naturally I've built my own comprehensive Excel worksheet with fairly extensive detail on every possible scenario. By my projections I will definetly be able to retire at 50 and possibly at 45 depending on market conditions. Ideally I want to semi retire at 47 or 48 and work 2-3 days per week at that point (doing bookkeeping, tax returns, easy non stressful stuff) whereby I would cover my expenses and let my nest egg grow for 5 or 6 more years during the highest compounding period.
Of course planning like this means absolutely nothing as there are so many variables. Some of my projections are that I stay single, get married with no kids, and married with kids. Obviously the best result financially is getting married with no kids as there would be 2 income streams saving for ER.
Having said all this, I HAVE NO IDEA how much kids would cost. I assume my wife would have a salary of about $35,000 and that a child would cost $1,000 a month to raise for 18 years (and then 3% inflation after that). I am assuming that I would not pay for college (sorry kids, pay your own way like I did...plus schooling here is very cheap). How realistic is this figure? Obviously each phase of a child's life will cost more or less than others. Generally speaking I am assuming that having a 2nd income would offset the cost of children in my calculations but would be interested in hearing of better estimates for my projections. $12,000 a year adjusted for inflation seems reasonable to me though (that's about $220,000 over 18 years in todays dollars)