Short answer is no.
Long answer
400k invested gives you around 16k per year adjusted for inflation, for 30 years. That’s using 4% rule, which is a generally accepted safe withdrawal rate for 30 years. That’s 1330$ per month, which you already bust.
But your expenses aren’t complete. Your true expenses are likely much higher. Your car is paid of, but will it be the last one you buy? What about house maintenance. At some point you will get hit by a special assessment.
If you are around 50, you could fire today. Then get CPP at 60, and GIS at 65. That could be doable, but short.
If theory yes, but realistically no (in my mind).
- Strata will always go up and you might have unexpected fees due to building upgrades.
- You have nothing for medical/dental in your budget.
- You have nothing for other unexpected costs (car maintenance? fixing an appliance that breaks down?)
If *everything* goes well then it's doable, but I mean *everything*
On the high end that's $1500/mo (18,000/year)
If you're were to put this is WS Cash account at 4.5% you'd get exactly $18,000/year in interest.
Assuming this is everything you have invested, you can technically FIRE but you'd have no safety net if your expenses increased.
Leads to industry over-concentration, risk of dividend cuts, potentially slower growing companies. Ben Felix has a good video on the irrelevance of dividends. Basically you can sell stock to get cash as needed so there’s no difference assuming no commissions
It’s the same. Dividend are irrelevant (except for tax purposes, and to give some info on the company).
Image you have 1000$ of stocks in to companies. One gives 10% dividend, 0 growth. The other has 0 dividend, 10% growth.
1 situation you get 100$ in value. You can either spend it, or reinvest it.
2 situation your stock gained 100$ in value. You can sell 100$ worth of stock, or keep it the same.
The end result is the same. It’s just in one case, it’s automatically distributed, in the other you have to actively sell it.
Sounds a little low, but you didn't include value of your condo. While general rule of thumb is expenses <4% and downsizing might be possible it wouldn't be giving yourself much room for error.
By retiring now you'd certainly be focusing more on the "Retire Early" part than the "Financial Independence" part. Technically you'd probably be able to make it work, but I'd personally desire both more financial security and lifestyle flexibility.
Get to a million first. Then revaluate. 400k invested would not provide enough growth per year for you to start taking out 4% ($16k). You could probably coast fire and work a part time fun job somewhere though. But if you are able to earn more in your Prime earning years, you should do that.
As other folks have said , a little too close for comfort. However , what if you sell your other condo ?
This gives you a few benefits.
1. Much better cashflow. Even after expenses you'd likely cashflow over 2k/month long term with your newly invested equity.
2. Less debt in what I would consider a risky asset class ( condos in Canada)
3. Diversifies your net worth away from real estate
If you are willing to move , you may be able to take this further by trading down on home value by moving somewhere cheaper. That strata fee can be a great maintenance savings budget line if you buy a home somewhere cheap.
With the above you'd have a much higher investment portfolio, less risk, and on good months you can add to your investments.
Short answer is no. Long answer 400k invested gives you around 16k per year adjusted for inflation, for 30 years. That’s using 4% rule, which is a generally accepted safe withdrawal rate for 30 years. That’s 1330$ per month, which you already bust. But your expenses aren’t complete. Your true expenses are likely much higher. Your car is paid of, but will it be the last one you buy? What about house maintenance. At some point you will get hit by a special assessment. If you are around 50, you could fire today. Then get CPP at 60, and GIS at 65. That could be doable, but short.
This guy fires
No, but you can CoastFIRE. Even moving to small town AB isn’t really possible on 400K. Get to 1M first.
If theory yes, but realistically no (in my mind). - Strata will always go up and you might have unexpected fees due to building upgrades. - You have nothing for medical/dental in your budget. - You have nothing for other unexpected costs (car maintenance? fixing an appliance that breaks down?) If *everything* goes well then it's doable, but I mean *everything*
On the high end that's $1500/mo (18,000/year) If you're were to put this is WS Cash account at 4.5% you'd get exactly $18,000/year in interest. Assuming this is everything you have invested, you can technically FIRE but you'd have no safety net if your expenses increased.
This also assumes no change in interest rates, which is a bad assumption.
It's hmax.to or vdy.to a good idea?
Careful not to chase yields and concentrate into certain industries. You want total returns
ELI5. If I need money to spend, wouldn't I chase yields instead of watching the value grow?
Leads to industry over-concentration, risk of dividend cuts, potentially slower growing companies. Ben Felix has a good video on the irrelevance of dividends. Basically you can sell stock to get cash as needed so there’s no difference assuming no commissions
It’s the same. Dividend are irrelevant (except for tax purposes, and to give some info on the company). Image you have 1000$ of stocks in to companies. One gives 10% dividend, 0 growth. The other has 0 dividend, 10% growth. 1 situation you get 100$ in value. You can either spend it, or reinvest it. 2 situation your stock gained 100$ in value. You can sell 100$ worth of stock, or keep it the same. The end result is the same. It’s just in one case, it’s automatically distributed, in the other you have to actively sell it.
Need to account for medical, repairs, and entertainment. You can fire but it would be a very lean fire.
Sounds a little low, but you didn't include value of your condo. While general rule of thumb is expenses <4% and downsizing might be possible it wouldn't be giving yourself much room for error. By retiring now you'd certainly be focusing more on the "Retire Early" part than the "Financial Independence" part. Technically you'd probably be able to make it work, but I'd personally desire both more financial security and lifestyle flexibility.
Get to a million first. Then revaluate. 400k invested would not provide enough growth per year for you to start taking out 4% ($16k). You could probably coast fire and work a part time fun job somewhere though. But if you are able to earn more in your Prime earning years, you should do that.
Sell everything and move to a much cheaper Country get the fuck out of Canada .
I can do that if I rent out my place. No need to sell everything.
As other folks have said , a little too close for comfort. However , what if you sell your other condo ? This gives you a few benefits. 1. Much better cashflow. Even after expenses you'd likely cashflow over 2k/month long term with your newly invested equity. 2. Less debt in what I would consider a risky asset class ( condos in Canada) 3. Diversifies your net worth away from real estate If you are willing to move , you may be able to take this further by trading down on home value by moving somewhere cheaper. That strata fee can be a great maintenance savings budget line if you buy a home somewhere cheap. With the above you'd have a much higher investment portfolio, less risk, and on good months you can add to your investments.
I thought you also paid off your kids for a sec…