Hi again! I’m a long time lurker and I am pretty sure that I posted a little years ago but I can’t remember my account details so I created a new one
I am now 43, still married with two kids (12, 9). DH is a SAHD while I work as a project manager for a US based megacorp, current income of 140K/year. We LBYM until very recently but with both kids in competitive gymnastics we now spend all available income after the savings outlined below. We are finding ourselves having to budget our spending for the first time ever, not something I particularly enjoy
I still think that we are in good shape for ER (class of 2027) but wanted to share our details for a sanity check:
My RRSP – 225K
Husband’s RRSP – 195K
Company DC plan – 125K
Company stock – 90K
Investment property – value $300K, owe mortgage of $140K, neutral cash flow
Vacation property – 80K, paid in full
Main residence – value $400K, owe mortgage of $160K to be paid off in 2027
Each year we add the following:
RRSP – 6% of gross income
Company DC plan – 6%
Company stock – 7.5%
Total savings per year = approx. 27K
At age 55 I can retire with a DB pension of around $22K/year. By then the house mortgage will be paid off as well as the mortgage from the investment property which will generate approx. $18K/year in income. Our cost of living will be substantially reduced at that time as a result of not having a mortgage or kids in gymnastics anymore. I estimate we will need to draw $40K/year from our retirement accounts, for a total yearly gross income of $80K – plenty enough to live on and travel for a few weeks each year.
When I plug our data into Firecalc, I get a success rate of 100% so I’m feeling pretty good about our current path. The contingency should anything happen is that we will sell the main residence and move to the vacation property for a very low yearly cost. Actually I would want to do this regardless but DH is not onboard with simplifying to that extend so we will probably keep the house until we’re not willing or able to maintain it.
ETA: At age 60 DH and I can also start receiving about $10K combined annually from CPP. At age 65, OAS also kicks in but we're not counting on that - who knows what could happen. If we get it, it will be a bonus
Next step for me is firing our financial planner guy and moving all our assets into low cost ETFs (that’s a separate thread with lots of questions!).
I am now 43, still married with two kids (12, 9). DH is a SAHD while I work as a project manager for a US based megacorp, current income of 140K/year. We LBYM until very recently but with both kids in competitive gymnastics we now spend all available income after the savings outlined below. We are finding ourselves having to budget our spending for the first time ever, not something I particularly enjoy
I still think that we are in good shape for ER (class of 2027) but wanted to share our details for a sanity check:
My RRSP – 225K
Husband’s RRSP – 195K
Company DC plan – 125K
Company stock – 90K
Investment property – value $300K, owe mortgage of $140K, neutral cash flow
Vacation property – 80K, paid in full
Main residence – value $400K, owe mortgage of $160K to be paid off in 2027
Each year we add the following:
RRSP – 6% of gross income
Company DC plan – 6%
Company stock – 7.5%
Total savings per year = approx. 27K
At age 55 I can retire with a DB pension of around $22K/year. By then the house mortgage will be paid off as well as the mortgage from the investment property which will generate approx. $18K/year in income. Our cost of living will be substantially reduced at that time as a result of not having a mortgage or kids in gymnastics anymore. I estimate we will need to draw $40K/year from our retirement accounts, for a total yearly gross income of $80K – plenty enough to live on and travel for a few weeks each year.
When I plug our data into Firecalc, I get a success rate of 100% so I’m feeling pretty good about our current path. The contingency should anything happen is that we will sell the main residence and move to the vacation property for a very low yearly cost. Actually I would want to do this regardless but DH is not onboard with simplifying to that extend so we will probably keep the house until we’re not willing or able to maintain it.
ETA: At age 60 DH and I can also start receiving about $10K combined annually from CPP. At age 65, OAS also kicks in but we're not counting on that - who knows what could happen. If we get it, it will be a bonus
Next step for me is firing our financial planner guy and moving all our assets into low cost ETFs (that’s a separate thread with lots of questions!).
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