Weekend Reading – Living off $1 M, pro athletes living in vans, RRSP contributions and more #moneystuff
Welcome to my latest Weekend Reading edition where I share some of my favourite articles from the week that was across the personal finance and investing blogosphere.
These were my articles from the past week:
Here are some great reasons why you should consider pensionizing part of your nest egg at some point. Not a requirement – just things to consider! Read the article and enter to win a FREE copy of Pensionize Your Nest Egg from the author!
I posted some great low-cost ETFs to invest in the U.S. market. By investing in these ETFs, and staying lazy with these investments (i.e., don’t trade), I suspect doing so could add tens of thousands of more dollars in your pocket over time.
Enjoy the rest of these articles and see you here next week!
Need some guidance or help regarding how to get wealthy eventually? Me too! This is why I wrote this post – how to mind your investing behaviours. I’m working on a bunch of these investing behaviours and the results are starting to show. Check out that post sooner than later – enter soon to win a FREE copy of The Behavior Gap by noted author Carl Richards.
Mr. Money Mustache wrote about living off $1 million invested, forever, spending about $40,000 per year. Aside from some longevity risks, major inflation risks, and changing taxation laws/taxation implications, I would largely agree with him this is “enough money” for most folks to retire on including those in Canada.
Assuming modest spending and expenses – I’ll use his words:
- “If you retire with $800,000 in investments, you will probably make it through your whole life without running out of money (a 5% withdrawal rate)
- If you start with a $1 million nest egg (a 4% withdrawal rate), you will very likely never run out of money
- If you start with a $1.33 million chunk (a 3% withdrawal rate), it is overwhelmingly certain that you’ll have a growing surplus for life.”
That $40K per year supplemented by Canada Pension Plan (CPP) and Old Age Security (OAS) in your 60s should provide most couples with at least $50,000-$60,000 per year without any workplace pension plan, for multiple decades on end.
Want to learn from folks who have successfully been there and done that for retirement?
From the world of tech, this is how open source software has taken over the world.
Like Eat, Sleep, Breathe FI – I too embrace some elements of the “Mustachian” lifestyle. We strive to increase our happiness and well-being on this planet by reducing our environmental footprint, optimizing our time, and more. Here is post about embracing this approach but also avoiding any hardcore “Mustachianism”.
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My friend Robb over at Boomer & Echo provided advice on RRSP contributions – make them! Then you can figure out the products that fit with your financial plan.
This is how Half Banked organizes her finances now that she’s married. We’re similar – we have joint chequing and joint savings accounts. I think this only makes sense because we have shared goals and priorities together. We also keep some small savings separate, albeit only a few hundred bucks each, to spend as we wish.
Dividend Earner listed some high yielding Canadian stocks.
GenYMoney wondering if buying back her pension was worth it. Personally, unless you are planning to stay with your employer long-term, i.e., for at least another 10+ years, I would say no. Might as well take the cash you have and pay down debt or invest it in your TFSA or RRSP.
In the coming weeks, readers have asked me about my dividend income journey, where I started from; how much my portfolio was worth and so on so I will try and address those questions and more.
I’ve also got some posts planned about how to cut the crap (!) when investing and considerations for how to invest in a Locked-In Retirement Account. Stay tuned!