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Thread: 20-something + Retirement = What?

  1. #81
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    Originally posted by JDMsomething
    Why not have it all? Don't let people crush your dreams telling you to live below your means etc. EXPAND your means, and your way of thinking.

    I didn't read all 4 pages but I doubt these options were mentioned:

    1. Since you are living at home, you don't NEED to buy a house, but want to start building equity right? LOOK FOR A SMOKING DEAL. Work with good realtors, look on Comfree Etc. You might only find one every 2-3 months, but you are in no rush anyways.

    Lets say you can find a great deal on a house worth $300,000 for a 20% discount of $240,000. You put 5% down(12,000) but your mortgage amount will be almost $235,000 with CMHC fees. Guess what?!?!! A couple months after you close, if it is still worth $300,000 or say you fixed it up and now it is worth $320,000 you can refinance and get 80% of the NEW appraised value as a loan.

    So at $320,000 @ 80% LTV you would get $256,000. So you actually get about $21,000 back after paying out your existing mortgage, at crazy low interest rates, and still have your 20% equity.

    An important point to note is when getting your first 5% down mortgage make sure it is open, or it is just a 3 month interest only payout penalty so when you get the new financing it is easy and cheap to payout.

    For this to work you NEED TO BUY RIGHT. But don't be fooled, these deals are out there, some might need some work, but if the numbers work, who cares?

    2. There are lots of people out there for whatever reason need to move, have a huge payout penalty and you can still assume their mortgage, some even for 0 down. This is a little more complex and I would only recommend it if you are dealing with a realtor who has done these before or a competent lawyer.

    3. I also think it is a good idea to rent your place out at least partially. Why not look for houses that have a separate back entrance etc so you could make a suite or in law suite at least and rent to a buddy. That way you still have separate spaces, but you can offset your costs.

    And to all the people who are saying "If you don't put 20% down, you can't afford the place." So dumb....by that logic if you can't put 100% down, you can't afford the place.

    You need to think bigger to achieve your dreams, not smaller.
    I'm going to dig deeper and work out a plan in Excel to see if it's worth it.

    From what I've seen, the viable properties are $300k+ and anything below is not worth the mortgage pain. Also, a 20% discount is a bit steep for a house.

    Originally posted by chkolny541


    Incredible advice, i think your making a good decision!
    Thanks! Here's to hoping I'm making the right one. It starts this Christmas!

    Originally posted by max_boost


    Studies have found $75K gross/year is the current optimal salary for happiness. Over that, it won't make you any happier. Take it from me and everyone else. Find that balance and enjoy your life. Be open to things and learn. Having more money will improve your long term outlook but it's so important to live in the here and now.

  2. #82
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    Originally posted by flipstah


    I'm going to dig deeper and work out a plan in Excel to see if it's worth it.

    From what I've seen, the viable properties are $300k+ and anything below is not worth the mortgage pain. Also, a 20% discount is a bit steep for a house.
    i got 20.3% off the assessed value of my current home... it can happen. we just kinda lucked out

    house has brand new everything too, windows, roof, furnace, hot water tank, fully reno'd. been here 5 months and still cant see the reason it was so cheap

    the other option you can do is a new build town house. its seems that the trend is a large increase in value once the project is done. with this you could buy it for 5% down, then when you want to upgrade you can hold onto it and buy your second place for 5% down or 10,20, whatever you have saved... and now you have a great investment and a house (less down=better ROI)

    lots of ways to use leverage to your advantage... as long as you can cover the bills in the worst case scenario

  3. #83
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    Nah, housing market in Canada is due for the biggest crash ever.

    You cannot spend or consume your way to prosperity without someone actually producing something.

    Its going to be epic. Maybe not $8,000 average house Detroit epic, but I'd be willing to bet less than $100,000 average epic.

    If war should actually break out in the middle east and gasoline shoots to $12 per gallon, I'm thinking epic and neverbeforeseen crash in car prices. $30,000 cars for $8,000? That would be reasonable given how many people would instantly put up their cars for sale if a tank of gas costed on the order of $200.

    So, to recap. Biflation, expensive food and gasoline - and cheap houses and cars.

    Right now would I rather have one ton of copper pennies ($8,500) or a house in Detroit ($8,500) Pennies for sure, as there is no taxable risk holding it, no liability, no insurance, no worries.
    Last edited by ZenOps; 04-20-2012 at 10:10 AM.
    0.5 gram microsd delivered by 12,000 pound combustion vehicle and driver.

  4. #84
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    20% discounts happen all the time if you are looking for them.

    If you really want to have the house, cars + vacations....you are going to have to get creative.

    Originally posted by flipstah


    I'm going to dig deeper and work out a plan in Excel to see if it's worth it.

    From what I've seen, the viable properties are $300k+ and anything below is not worth the mortgage pain. Also, a 20% discount is a bit steep for a house.



    Thanks! Here's to hoping I'm making the right one. It starts this Christmas!




  5. #85
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    Originally posted by max_boost
    Wow you guys. Retiring at 35? 40? 45? 50? All depends on your lifestyle and expenses I guess I can't even consider something like that. I like to keep busy and I'll be bored as fuck, not to mention I'll plow through my savings so fast haha
    Friend of mine bought first house at 49.

    He may not be money rich, but the stories he can tell, he had a fun life.

    His retirement plan? retire @ 56, blow all the rrsp by 65 and then leech off the government. Blow the cash when the body is willing. No point to be only rich when you are old. In Canada, you have to either be filthy rich or dirt poor. No point being middle class. Middle class get the same service as the poor except you have to pay for it.

  6. #86
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    first, gotta address this comment:

    Originally posted by Sugarphreak
    traveling the world without a care sabotages your long term financial future. I have a few freinds that did it right out of high school and are only getting on their feet in their 30's.
    seriously? if you mean they disappeared for several years, fine, but a couple months here and there wont sabotage your life. if anything, it gives you some real perspective and outlook on life, better enabling you to navigate reality and set goals. your post makes it sound like youre being defensive about being just another hick whos only got a passport to get drunk in cancun once every few years. not saying thats what you are, but thats how it comes across. travelling when young is probably one of the best things ive ever done with myself. my only regret is not doing more of it when i was younger.

    as for teh original poster. while i respect your initiative to try to plan for the future, youve got some growing up to do. trust. youve got personal debt that isnt a mortgage and you are saving 300 a month. u aint retiring any time soon. trust. 300 can disappear easily in a couple hours taking out some friends for a nice meal. people need income when they retire. some ppl slave their whole lives to get cpp and their own rsps. in your 20s u have neither. you would need like a a couple milli in bonds to live off the interest comfortably on top of having a paid off house. and dont forget that without a job u have more free time to spend money too. unless u want to sit in timmys all day nursing a large coffee.

    drop the retirement talk mang, and go do that travelling while u young like others have suggested. your life will change a lot. sounds like you aint married - that shit will change everything like an iphone. youre a pinoy and family is important right?

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    Originally posted by dangleberries
    seriously? if you mean they disappeared for several years, fine, but a couple months here and there wont sabotage your life. if anything, it gives you some real perspective and outlook on life, better enabling you to navigate reality and set goals. your post makes it sound like youre being defensive about being just another hick whos only got a passport to get drunk in cancun once every few years. not saying thats what you are, but thats how it comes across. travelling when young is probably one of the best things ive ever done with myself. my only regret is not doing more of it when i was younger.
    can you please give some real SPECIFIC examples of how traveling for a few months (i assume to SE asia or europe) can help navigate reality and set goals?
    J

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    Originally posted by dangleberries
    first, gotta address this comment:



    seriously? if you mean they disappeared for several years, fine, but a couple months here and there wont sabotage your life. if anything, it gives you some real perspective and outlook on life, better enabling you to navigate reality and set goals. your post makes it sound like youre being defensive about being just another hick whos only got a passport to get drunk in cancun once every few years. not saying thats what you are, but thats how it comes across. travelling when young is probably one of the best things ive ever done with myself. my only regret is not doing more of it when i was younger.
    Yes and no.

    It really depends on what line of career you are in and at which point of your career you are doing these 2-3 months excursions.

    If your work is contact based, it can definitely be done. Heck, most Ft Mac contractors are doing that right now. 6 months on, 6 months off.

    But if your work is operational based, it can be pretty hard to disappear for more than 3 weeks at a time.

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    ...
    Last edited by Sugarphreak; 07-09-2019 at 03:48 PM.

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    Originally posted by Xtrema


    Friend of mine bought first house at 49.

    He may not be money rich, but the stories he can tell, he had a fun life.

    His retirement plan? retire @ 56, blow all the rrsp by 65 and then leech off the government. Blow the cash when the body is willing. No point to be only rich when you are old. In Canada, you have to either be filthy rich or dirt poor. No point being middle class. Middle class get the same service as the poor except you have to pay for it.
    Yea I'd love to hear some of the stories he has to tell. I know where you are coming from but it's not the case for everyone.

    I know for myself where the balance is. I'm perfectly alright with working, paying my bills, playing sports after work, taking long weekends off and traveling 1-2x/year. It makes time go by really fast and I don't really feel like I'm missing out? Sure I can do more fun things and have crazy experiences like your buddy but perhaps that's not really my personality anyway.
    Originally posted by rage2
    Shit, there's only 49 users here, I doubt we'll even break 100
    I am user #49

  11. #91
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    go travel
    this is a crap day but here's my view in australia today, notice the ocean on the right (just getting into winter, ugh)
    and with that said, i'm off to go surf....can't do that in a new house :P

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    Originally posted by Dumbass17
    go travel
    this is a crap day but here's my view in australia today, notice the ocean on the right (just getting into winter, ugh)
    and with that said, i'm off to go surf....can't do that in a new house :P
    we have similar jobs right?

    lets meet back here in 5 years

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    Last edited by kaput; 03-12-2019 at 08:05 PM.

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    Last edited by Sugarphreak; 07-09-2019 at 03:46 PM.

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    Originally posted by Mys73ri0


    can you please give some real SPECIFIC examples of how traveling for a few months (i assume to SE asia or europe) can help navigate reality and set goals?
    nope, thats just not how it works. i cant explain the meaning of life to you.

    Originally posted by Xtrema


    Yes and no.

    It really depends on what line of career you are in and at which point of your career you are doing these 2-3 months excursions.

    If your work is contact based, it can definitely be done. Heck, most Ft Mac contractors are doing that right now. 6 months on, 6 months off.

    But if your work is operational based, it can be pretty hard to disappear for more than 3 weeks at a time.
    of course its hard, thats why more people dont do it. there are always excuses and ultimately the mixture of fear of the unknown, comfort with the status quo, and an abundance of excuses is what stops people from travelling.

    Originally posted by Sugarphreak


    I am talking about people who have gone for a year or more right off the bad with no planning, not people taking a few months here and there. Anybody I have known that has done this has been set back a good 5 years in terms of financial development, most are only getting onto some kind of decent career track in their mid 30's.

    The biggest issue is when they get back, and they are applying for the same employment as teenagers because that is the skill level they are at. Employers tend to question why, and often they get passed over for promotions when somebody younger shows more promise. Then there is the regret factor, after having a massive shift in lifestyle it is hard to fall back into a 9-5 schedule.

    Sure it is a lot of fun, but so is having unprotected sex with hookers. It is a form of self sabatoge IMO.

    I'd say you are better off working, getting somewhat established with your career and then spending a few months traveling here and there.

    This is just my 0.02, I am sure it isn't the popular opinion
    well said. total agreement...though the only flaw is that you havent considered post secondary. there is zero detriment to fucking off a couple years after high school if youre going to come back and enter school again. not a heck of a lot some pos 18 year old highschool shithead can do right out the gates anyhow. this isnt what i did. i went straight from hs to univ but i sure wish i had taken a year off. everytime i travel i come across those kids and they are in an enviable place for sure.

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    nm
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  18. #98
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    Alright, I've scrolled through all of the posts and feel the need to add my $.02. Sorry - going to be a long post.

    My Background:
    I just turned 28.
    I bought a house at 25.
    I have been to 50+ countries.
    I've offered a lot of 'lifestyle' advice to friends in the past about these sorts of things - they often don't listen - and now I commonly hear how much they regret not listening.

    My circumstances are a bit different from yours as I work overseas on 5 week on / 5 week off rotations which has made my accomplishments easier, but that doesn't mean I don't recognize how to make the same things happen under a normal Calgary job.

    My plan is to take 2013 and 2014 off work. I'll likely sell my house, car and majority of my possessions and try to tick off more of my bucket list. I may rent out my house as an investment property, but that's just because I'm in a financial position to allow me to do so. I wouldn't hesitate to sell the house to pay for my 2 years of travel if it meant keeping me out of debt.

    Retirement savings? Yea, I've socked away some money, and guess what? Over 7-years they've increased 1.1% (company DC plan - mutual funds). Interest rates are brutally low so 'saving' can potentially be a negative given inflation rates. Should interest rates rise, property prices will go down (granted mortgage rates will be higher) which I see as a wash.

    My advice...

    First - you can't have it all at once. Decide on your priorities and sacrifice those things which can wait.

    Second - Pay off your debt and save money until you can afford to travel.

    Third - Travel young and take time off work to do it. Take 6 months to 2 years off. Assuming 3 weeks of holiday a year, it would take almost 9 years to accomplish the same amount of travel as a 6 month break from work. Many companies will offer you a 6-12 month unpaid leave if you ask for it and work with them on it. If not, there is plenty of work out there so once you have the experience, quit and go for it.

    Why do I recommend traveling when you're young?
    1. It's cheaper (I know you said you don't like hostels but $30 hostel vs. $200 hotel makes a big difference on overall travel costs) so suck it up. There's not reason not to like hostels! They make travel more social and fun. Also, if you take that 6 months - 2 years off you can buy an around the world ticket which will cost a fraction of what multiple trips would cost. You'll also better be able to handle the red-eye flights, slow boats, bus rides and cheaper transportation.

    2. It's more fun. The backpacker party scene is phenomenal. You'll also get laid, a lot. Who knows, you may meet your dream girl which will turn your life plans upside down.

    3. You'll see more and enjoy it more. Would you prefer to hike up to Maccu Picchu and beat the crowds, experience the area for yourself, or show up with 500 60+ y.o.'s on the bus? Same goes for activities. Can you guarantee you'll be able to go cliff jumping, scuba diving, snorkelling, bungee jumping, whitewater rafting etc. when you're 60+? You may be able to, and lots of people do - but lots of people don't.

    4. You'll learn a lot about yourself. This is especially true if you backpack solo. You may also discover your true interests and passions in life, which will make your remaining years that much more enjoyable.

    5. You'll be a smarter worker when you return. You'll better understand work / life balance, and probably be seen as more 'experienced' just for being older and wiser.

    Fourth - Get a job and be so happy that you had that awesome mini-retirement at a young age. Don't stress about the fact that it may mean working one more year when you're 55. Who knows if you'll even make 55? Do you think the fun you'd have traveling at 55 is greater than the fun you'd have traveling in your 20's? Hopefully your travels will give you perspective on the rest of your life and allow you to make the most of your time on this great planet.

    Fifth - I still see marriage as a questionable choice (lots of divorced friends), but if you do find that dream girl, you're going to want a different place to live than what you'd buy now anyways. Save on the costs of realtor fees, moving, lawyers etc. and wait until you're ready for your first home. Live in a crappy rental or with roomies or whatever it takes to bank some coin when you return from your travels. Your amazing memories from the road should make it bearable. This is especially true given the uncertainty in Real Estate these days. Condo supplies will probably keep increasing and therefore prices may easily correct (my bro just lost $40k on his condo sale purchased 4 years ago as he moves to a house). If you buy a house, as I did, it means a lot of time and money spent on maintenance and makes it difficult to pick up and leave. You'll also be further away from the 'action' making it harder and more expensive to have fun as a single 20-something. Same with posessions. You'll kit out your place, which just means you'll have a lot of stuff that makes it harder to pick up and leave. That's why traveling before you have 'stuff' makes more sense, and why buying a place with a girl if you plan to get married one day means less money wasted on duplicate possessions.

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    Originally posted by ercchry


    we have similar jobs right?

    lets meet back here in 5 years
    am i missing something? i don't get what you're getting at

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    Originally posted by Dumbass17

    am i missing something? i don't get what you're getting at
    Meet back in 5 years and you can tell him about all of the awesome experiences you've had in Australia, and he'll show you his 1200 thread count cotton sheets, Bunn Coffee Maker, and Armani jeans.



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