# The Finish Line: Your Goals



## Assetologist (Apr 19, 2009)

Where do you want to be financially (in 2010 $) when you retire from your j-o-b?

*Pre-tax Income($):*

*Net Worth (Total Assets)($):*

*Real Estate:*
Principal Residence(%):
Investment Property(%):

*Investable/Liquid Assets($):*
Stocks(%):
Bonds(%):
Others (%):

*What age will you retire?:*

_Cut and Paste in Reply_


----------



## Assetologist (Apr 19, 2009)

*View from down the road*

Pre-tax Income($):$200,000

Net Worth (Total Assets)($):$6,000,000

Real Estate:$3,000,000
Principal Residence(%):$1,500,000
Investment Property(%):$1,500,000

Investable/Liquid Assets($):$3,000,000
Stocks(%):$2,400,000
Bonds(%):$600,000
Others (%):0

What age will you retire?artial=55, Full=62


----------



## Square Root (Jan 30, 2010)

Pretax income = $1.1 million
Total assets= $28 million (including capitalized pension)
Real estate = $3 million
Stocks= $15million
Bonds (only capitalized pension)= $10 millon
Retired at 56 and very fortunate


----------



## John_Michaels (Dec 14, 2009)

For where I want to be when I retire? Assuming family income.

Pre-tax Income($): ~$60K

Net Worth (Total Assets)($)$2M - $2.5M
Real Estate:~$500K
Principal Residence(%):100%
Investment Property(%):0%

Investable/Liquid Assets($):$1.5-$2M
Stocks(%):90%
Bonds(%): ya...have to fix this, I know but love the dividends from equity
Others (%):10% - cash, GICs

What age will you retire?:45 for me, 50 for the wife..perhaps these are partial.

Perhaps another thread but for me to retire, say 2 years for now, is a bit of a mental struggle. Do I retire eary and 'enjoy life' or take the financial risk or work longer and have a better cushion. Obviously @ $60K family income, I'm not going to have new cars (well, maybe a Ranger), lots of sunny winter vacations, cottage and the fancy stuff but I don't think a good life is made up of that stuff anyway. I like the Pinery, Grand Band, motorcycles are ~cheap, and hate being told what to do so it's obvious what I'm going to do when I can.
I'm just very thankful I have a choice in the matter.


----------



## sags (May 15, 2010)

Are you guys serious?..........a capitalized pension worth 10 Million?

And people complain about my "gold plated" piddly little GM pension.........

I don't know what our net worth is.

We own diddly, that is worth anything.

I retired at 55 and just turned 60.

I receive a DB pension of 30,000 per year for the next 5 years, and 21,000 per year for the rest of my life.

My wife receives a pension of 18,000 for one more year, and then receives 8400 a year for the rest of her life.

Both pensions have spousal protection, and are indexed to inflation.

Maybe somebody can give me a nice ballpark figure so I won't feel so poor and can vote.

Everybody gets CPP, so I guess we don't count that?

And here I thought we were doing well...........little do I know.


----------



## MoneyGal (Apr 24, 2009)

Using actuarial calculations, I estimate that a non-indexed pension of $30K per year starting at 65 for a male is worth about $340K today. (Note that this calculation is extremely sensitive to interest rate assumptions; I used 4% which is the appropriate rate as at October 1 [last time I ran this calculation, using annuity yields current then]). 

CPP is part of your total wealth and the capitalized (or present) value of your total expected lifetime entitlements should be included in your holistic net worth statement. Because CPP is inflation-adjusted, the rate used should be a real rate of approximately 2%, not 4%. 

A CPP pension of $11,000 per year, indexed to inflation, for a 65-year-old male is worth about $150K today, discounting at 2%.


----------



## steve41 (Apr 18, 2009)

Net worth isn't particularly useful.... what is more revealing is the income you get to receive AFTER TAX to spend on beer and groceries. I calculate that, including OAS&CPP... (full CPP for you and 50% for wife), that you can live on (spend) $48,000 per year and make it out to age 95. Based on a rate of 4%, inflation 2%, living in Ontario. That's a $4K a month lifestyle. I could do that, some couldn't.


----------



## MoneyGal (Apr 24, 2009)

Net worth is useful if you are estimating legacy value, not just drawdown/spending rates.


----------



## steve41 (Apr 18, 2009)

> Net worth is useful if you are estimating legacy value, not just drawdown/spending rates.


 For Daddy Warbucks (Square Root) maybe, but certainly not for sags.


----------



## Cal (Jun 17, 2009)

The time of retirement is a factor as well, as 4 million dollars at retirement today, is not the same as 4 million dollars in 25-30 years when I retire.


----------



## sags (May 15, 2010)

steve41 said:


> For Daddy Warbucks (Square Root) maybe, but certainly not for sags.


Legacy?..............We are still waiting for our legacy...........


----------



## sags (May 15, 2010)

steve41 said:


> Net worth isn't particularly useful.... what is more revealing is the income you get to receive AFTER TAX to spend on beer and groceries. I calculate that, including OAS&CPP... (full CPP for you and 50% for wife), that you can live on (spend) $48,000 per year and make it out to age 95. Based on a rate of 4%, inflation 2%, living in Ontario. That's a $4K a month lifestyle. I could do that, some couldn't.


That is pretty close..........and it is more than enough for us, especially living in Southwestern Ontario where the cost of living is a lot less than in other areas.


----------



## steve41 (Apr 18, 2009)

I know this is not normally contemplated, but if sags did indeed find that $48K was more than enough to live on, and despite the fact that neither spouse had 'diddly' saved up, they could still amass an estate. If they limited their lifestyle to $40K, they could in fact, pass on (net) just over $600K to their estate.


----------



## andrewf (Mar 1, 2010)

Lots of high net worth individuals here... my balance sheet would be a rounding error on those listed here.

My net worth at retirement would be in the 1 - 1.5 million range in inflation adjusted terms. This is highly variable at this point, being a 40 year projection.


----------



## GeniusBoy27 (Jun 11, 2010)

Cal said:


> The time of retirement is a factor as well, as 4 million dollars at retirement today, is not the same as 4 million dollars in 25-30 years when I retire.



He did state it in 2010 dollars.


----------



## John_Michaels (Dec 14, 2009)

andrewf - AND don't forget the age differences.


----------



## John_Michaels (Dec 14, 2009)

sigh..hit send too early. re; age differences. While I'm sure your estimates include inflation, savings rates, raises etc.. I suspect 40 (hey, even 20) years from now you'll have MUCH more than you calculate.


----------



## slacker (Mar 8, 2010)

Wah !! So many richies here !!


----------



## steve41 (Apr 18, 2009)

I am not sure if they are actually rich, or whether some suffer from HNWGD (High Net Worth Grandiosity Disorder).... a common affliction.


----------



## Jon_Snow (May 20, 2009)

I only pay attention to net worth to get a "big picture" look at how we are doing, and that it is going up steadily. So much of our net worth is real estate, and that inflates our net worth quite a bit... between our condo and 10 acres of land on a little island, these things look good on the net worth sheet, but generate ZERO INCOME. 

I am more concerned with accumulating income generating assets at this point... got a LOOOOONG way to go in that regard. Then again, at 38, time is still on our side....


----------



## sags (May 15, 2010)

steve41 said:


> I know this is not normally contemplated, but if sags did indeed find that $48K was more than enough to live on, and despite the fact that neither spouse had 'diddly' saved up, they could still amass an estate. If they limited their lifestyle to $40K, they could in fact, pass on (net) just over $600K to their estate.


A valid point. Many of the retirees I know say they are saving more now than they did when working and raising a family. I have yet to hear any of them discuss net worth. For retirees it is all about monthly income.

It is kind of funny, but people with a million dollars in the bank, fret and worry about their money lasting them for their retirement, while people with a DB pension fret and worry about not having a million dollars in the bank.

I suppose if people had a DB pension AND a million dollars in the bank, they would just find something else to worry about.


----------



## GeniusBoy27 (Jun 11, 2010)

sags said:


> A valid point. Many of the retirees I know say they are saving more now than they did when working and raising a family. I have yet to hear any of them discuss net worth. For retirees it is all about monthly income.
> 
> It is kind of funny, but people with a million dollars in the bank, fret and worry about their money lasting them for their retirement, while people with a DB pension fret and worry about not having a million dollars in the bank.
> 
> I suppose if people had a DB pension AND a million dollars in the bank, they would just find something else to worry about.


That sounds like my parents. They worry about why I don't call and visit them more often.


----------

