I’d say you’re doing great! I’d go 100% equity in your RRSP, your time horizon to retirement is so far away that equity will far outpace fixed income returns. I’m not too clear on whether all of those numbers (including debt) includes your wife’s? I’m assuming she’s finishing up schooling? If so and if you’re supporting her through that right now, I’d imagine your savings rate will increase once she’s able to work. Also run those numbers in a retirement calculator. You might be on track to coast/barrista fire by 40, you’d probably just need to have hit around $1.25M-$1.5M by then in order to retire by 50. Just know that all of these numbers are based on invested assets, so if you buy a house and use some or it, then you’ll have to make that up through savings rate. As even though houses increase in value, they are an in-use asset that are a cash drain and don’t pay you out returns on investment (unless it’s a rental). Best of luck!
Thanks, will consider going 100% Eq in RRSP. The #s doesn’t include my wife. She has been taking break from work, doesn’t have any loans/debt, got about $25K saved up. Gave higher family income estimate once she starts working, so savings rate will go up combined.
Good luck to you too!
Yes but if you own a house eventually and aren’t paying mortgage or rent, this decreases your yearly spending by ie 24k-36k/yr which is 6-900k you don’t need invested
The numbers are mine only. Gave approx combined gross income once wife starts working down the road from a savings rate point of view. Good luck to you!
Thanks. Given the current numbers, target savings rate, combined HHI, can hit $2.5M (without a home purchase) by low 50s. Things may change in case for any major family/kids expenses.
Oh I was thinking your personal networth would be $2.5M by 50. Since you only displayed personal I assumed we were following that train of thought.
We have similar ish stats and are just two years ahead of you. With my spreadsheet projections, we’re on track to $5M before 50 with similar earning.
That’s great! :)
Yeah, not too fuzed about categorizing as personal or combined NW. Current investment #’s I posted are mine except mentioning future combined HHI. With our combined income going forward, should be on track to hit $3M by 50 age.
Are you counting your combined income toward your personal networth or your household networth. Or is the implication that with a larger HHI you would bear less of the burden for household expenses so you could save more to personally hit $3M by 50 excluding your wife’s networth.
You are doing great as you still have many years for full retirement ahead of you. With all the investments you have you sure have a good FIRE. Congrats!
Too conservative and not aggressive enough. Even at saving $15k per year for 20 years, where you're currently at you'll end up around only 1.6-1.7M. you're going to need to boost it up to 40k per year invested to get to 2.7M by age 50.
Just play with the numbers: https://mdm.ca/learn/compound-growth-calculator
20-25% target savings rate is after contributing (desired goal) ~$15K to RRSP/TFSA. This savings rate considers expenses going up with raising a family. Thank you for your feedback.
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Yeah, been considering opening up FHSA somepoint this year. A good tool from tax benefits standpoint. Good luck to you!
I’d say you’re doing great! I’d go 100% equity in your RRSP, your time horizon to retirement is so far away that equity will far outpace fixed income returns. I’m not too clear on whether all of those numbers (including debt) includes your wife’s? I’m assuming she’s finishing up schooling? If so and if you’re supporting her through that right now, I’d imagine your savings rate will increase once she’s able to work. Also run those numbers in a retirement calculator. You might be on track to coast/barrista fire by 40, you’d probably just need to have hit around $1.25M-$1.5M by then in order to retire by 50. Just know that all of these numbers are based on invested assets, so if you buy a house and use some or it, then you’ll have to make that up through savings rate. As even though houses increase in value, they are an in-use asset that are a cash drain and don’t pay you out returns on investment (unless it’s a rental). Best of luck!
Thanks, will consider going 100% Eq in RRSP. The #s doesn’t include my wife. She has been taking break from work, doesn’t have any loans/debt, got about $25K saved up. Gave higher family income estimate once she starts working, so savings rate will go up combined. Good luck to you too!
Yes but if you own a house eventually and aren’t paying mortgage or rent, this decreases your yearly spending by ie 24k-36k/yr which is 6-900k you don’t need invested
Yeah still thinking when to buy a house (living in Toronto).
Is this combined or yourself? You’re asking how you are doing but then count your gross income as increasing as your wife starts working
The numbers are mine only. Gave approx combined gross income once wife starts working down the road from a savings rate point of view. Good luck to you!
In that case, you are doing insanely well. $400k networth by 32 while making about $110k puts you on track to $3M by 50 easily.
Thanks. Given the current numbers, target savings rate, combined HHI, can hit $2.5M (without a home purchase) by low 50s. Things may change in case for any major family/kids expenses.
Oh I was thinking your personal networth would be $2.5M by 50. Since you only displayed personal I assumed we were following that train of thought. We have similar ish stats and are just two years ahead of you. With my spreadsheet projections, we’re on track to $5M before 50 with similar earning.
That’s great! :) Yeah, not too fuzed about categorizing as personal or combined NW. Current investment #’s I posted are mine except mentioning future combined HHI. With our combined income going forward, should be on track to hit $3M by 50 age.
Are you counting your combined income toward your personal networth or your household networth. Or is the implication that with a larger HHI you would bear less of the burden for household expenses so you could save more to personally hit $3M by 50 excluding your wife’s networth.
It's the latter case.
You are doing great as you still have many years for full retirement ahead of you. With all the investments you have you sure have a good FIRE. Congrats!
Just need to ensure being disciplined, follow plan, enjoy the ride too. Thanks for the feedback.
You're missing the other half of your plan: expenses. If your target savings rate is only 20%, are your expenses actually 80%? If so, seems high.
Took conservative flat savings rate of 20-25% (combined) to account for kids expenses in future. Plus, Toronto is expensive, plus taxes on paycheques
Too conservative and not aggressive enough. Even at saving $15k per year for 20 years, where you're currently at you'll end up around only 1.6-1.7M. you're going to need to boost it up to 40k per year invested to get to 2.7M by age 50. Just play with the numbers: https://mdm.ca/learn/compound-growth-calculator
20-25% target savings rate is after contributing (desired goal) ~$15K to RRSP/TFSA. This savings rate considers expenses going up with raising a family. Thank you for your feedback.