hello from the great white north

[caribookid]

greetings from B.C.

Great forum here... I'm going to have to retire early to have time to read it all....

I'm 53, looking at bailing out within 4 or 5 years max.

Feels like a tough call sometimes, but after reading some of the "best of" topics, it doesn't seem soon enough!

We're selling our house, and buying down in the spring of 08, and at the same time, building our retirement home at the lake. By next fall, we'll be able to really start crunching numbers, but of course the burning question is, how much do we really need per month to retire on?

I work 8 days on and 8 days off year around, with a full 6-figure salary, so it's not too hard to stay.
But everyone I talk to (retired people) says the same thing,.... you don't need nearly as much as you think, and if they knew what it was like, they would have gone years earlier.

Wife and I have so many interests and things to do, we don't know what to do FIRST sometimes, so that certainly won't be an issue!

What to do!

[bssc]

Welcome to the boards

Of course, there are other Canadians on board already and we know about healthcare. As for looking at how much you will need to retire, I started with the last three years of data I had on Quicken. Good luck and enjoy the lake.

[caribookid]

Did you say healthcare?

What we have is access to a waiting list.

[Coach]

Welcome caribookid!

Any chance you could get a sabbatical at work? Six months or a year of practice retirement might tell you a lot.

Coach

[Milton]

Quote:

Originally Posted by caribookid the burning question is, how much do we really need per month to retire on? everyone I talk to (retired people) says the same thing,.... you don't need nearly as much as you think, and if they knew what it was like, they would have gone years earlier.

Rather than relying upon the generic comments of others, why don't you try keeping track of all of your current expenses for the next three or six months? That should give you a rough idea of your annual income needs (divide by 12 for monthly needs). Subtract any obvious work-related expenses (dry-cleaning, transportation, etc.), add in any new expenses like travel or hobbies, and you should have a pretty good idea of how much income you want in retirement.

[caribookid]

Quote:

Originally Posted by Coach Welcome caribookid! Any chance you could get a sabbatical at work? Six months or a year of practice retirement might tell you a lot. Coach

Well, working 8 days on / 8 days off has given us a pretty good taste of semi-retirement, as we spend all my off days at the lake all year around.... it's just that I lose 2% per year on the pension, and I'm thinking about going 8 years early, so that's a pretty big hit. But I might be willing to take that hit depending on the final numbers.

[Ed_The_Gypsy]

Quote:

Did you say healthcare? What we have is access to a waiting list.

Then, join me south of the border, amigo. Many places, many choices.

[kcowan]

You might help with the math of you housing. Dream home by the lake sounds expensive. The lake can be mighty lonely in the winter. Is the capital recapture from you city place after downsizing going to fund it all?

I took a corporate DB pension at 49 and it was only 42.5% of my last year's earnings. We are making out fine at 4% SWR for the rest. So far so good. Make sure you budget for more travel and entertainment, and extra health care costs from copayments.

[caribookid]

Quote:

Originally Posted by kcowan You might help with the math of you housing. Dream home by the lake sounds expensive. The lake can be mighty lonely in the winter. Is the capital recapture from you city place after downsizing going to fund it all? I took a corporate DB pension at 49 and it was only 42.5% of my last year's earnings. We are making out fine at 4% SWR for the rest. So far so good. Make sure you budget for more travel and entertainment, and extra health care costs from copayments.

We did well on the recreational land up north... house was paid off at the time, so I took equity out to leverage the two lots at the lake, and then they went through the roof during the next 4 years. (But since we want to keep the land, there is no direct gain.)

Selling our house will fund a downsized townhome, plus 80% of the lake house. If I can't handle the shortfall, I can sell the 2nd lake lot and walk away clean with $ in the bank. Thing is, we are trying to keep the 2nd lot if possible, as a hedge against inflation for the kids, so we will use the land to leverage any shortfall in construction.

[kcowan]

Quote:

Originally Posted by caribookid Thing is, we are trying to keep the 2nd lot if possible, as a hedge against inflation for the kids, so we will use the land to leverage any shortfall in construction.

Yup I think you are wise to hang onto the lot. In 2000, we sold our family tear-down cottage on a 50ft lot to the neighbour for $200k. The neighbour just wanted the buffer and maybe something for the kids to build on.