How Much $$$$ to Retire at 35?

[Buster]

Originally posted by Skyline_Addict


Yes, but that's because the onus is still on you to pick the investments.

The advisor doesn't pick your investments per se - they make recommendations and give advice based on your risk tolerance or profile, which is determined by a series of questions you answer (and sign off on, as being accurate). Then you decide whether you want to go for it, or discuss different options.

After your initial portfolio has been completed, it is still up to you to give instructions on the account going forward. They are not authorized to transact without your consent or direction I.E "Hey man. I just put in an order for $100k in the snapchat IPO for you a couple days ago. It's gonna be great. Just wanted to let you know, have a great weekend."

High net worth clients of wealth management firms often give them discretionary investment control. But it's more difficult to be certified to do that.

[timdog]

so hilarious to see people saying "if i'm retiring at age 35, i want to be able to have ferraris and a mansion" when in reality they are probably on track to retire at 65 with an average modest lifestyle. why do you suddenly require a way crazier lifestyle if you are retiring younger? surely if you are retiring at the exact income level you make today (but with no mortgage presumably), your lifestyle will still be much better because you wouldnt need to work. i just dont get why you want to work harder and for longer so that you can retire with a more lavish lifestyle when you're old?

also, I probably would still work. "Retire" to me just means i dont need to work. Maybe i would do different work, or only work part time, or run some sort of hobby business. my lifestyle and stress level would absolutely be better.

[Tik-Tok]

^ Life can get a little dull when you're young and not working, it wouldn't be hard to spend more than you should be spending and end up screwing yourself in your elder years.

Personally, I wouldn't need a Ferarri and mansion, however I would need my current income, plus about $20g more a year to consider it (or my current income, plus a paid off mortgage)

[Xtrema]

Originally posted by timdog
so hilarious to see people saying "if i'm retiring at age 35, i want to be able to have ferraris and a mansion" when in reality they are probably on track to retire at 65 with an average modest lifestyle. why do you suddenly require a way crazier lifestyle if you are retiring younger? surely if you are retiring at the exact income level you make today (but with no mortgage presumably), your lifestyle will still be much better because you wouldnt need to work. i just dont get why you want to work harder and for longer so that you can retire with a more lavish lifestyle when you're old?

also, I probably would still work. "Retire" to me just means i dont need to work. Maybe i would do different work, or only work part time, or run some sort of hobby business. my lifestyle and stress level would absolutely be better.

It's almost always seems like I spend way more when I ain't working. So there may be some logic to that.

[ercchry]

It's pretty easy to spend $300k/yr as a household... and still not get that damn Ferrari

[max_boost]

love this scene so much

[davidI]

Originally posted by Xtrema


It's almost always seems like I spend way more when I ain't working. So there may be some logic to that.

With more time there's more opportunity to spend for sure. It's all about changing habits though. After a day of work, regularly going out for fancy dinners & drinks seems like a reasonable thing to do. When you have more time, cooking nice meals, growing your own vegetables, making beer or wine, and hosting social nights are all reasonable things to regularly do.

After reading this article: http://www.cnbc.com/2017/05/23/heres...etirement.html it made me want to pose a new question for discussion - especially to those who plan to work late into life.

If you died tomorrow, would you be happy with the life you've lived to date?

[DTTB_36]

Originally posted by ercchry
It's pretty easy to spend $300k/yr as a household... and still not get that damn Ferrari

I 100% disagree with this. If you are making 300g,you would probably get around 180g net though it would be (not spending 300g). Unless you have a massive spending problem, you should be able to save 50g a year for your Ferrari (while also saving for retirement). It would just be silly to do that.

IMHO, anyone in Calgary making 200g plus (as a family, so one engineer + average job or just one lawyer/IB/Software etc) should be to increase their net worth easily by 50g a year. Honestly they should be away to increase it 75g a year. And if they wanted to, live a smart lifestyle, be able to retire by 35, would be tough but doable.

Look at the website Canadian Dream: Free by 45, I think he is turning 40 and retiring soon. And his average earnings would a lot less than 200g, I think he is more around the family earnings of 150g range. Its not about living like a monk, it about reducing and being efficient with your cash. You can do what you love, but you cant do everything. Say pick one of these: international trips (I mean Europe each year not Mexico), race cars, massive house. It is very easy to spend a lot of money without realizing it. Its all about optimizing your money to do things that give you maximum happiness with minimal cash (within reason both on both sides of the spectrum)

[JustinL]

Originally posted by DTTB_36
Say pick one of these: international trips (I mean Europe each year not Mexico), race cars, massive house. It is very easy to spend a lot of money without realizing it.

Haha damnit those are my three vices!

[davidI]

Originally posted by DTTB_36

Look at the website Canadian Dream: Free by 45

Do you have a link? I searched "Canadian Dream" and didn't come up with anything.

[DTTB_36]

http://blog.canadian-dream-free-at-45.com/

[Xtrema]

Originally posted by DTTB_36
IMHO, anyone in Calgary making 200g plus (as a family, so one engineer + average job or just one lawyer/IB/Software etc) should be to increase their net worth easily by 50g a year. Honestly they should be away to increase it 75g a year. And if they wanted to, live a smart lifestyle, be able to retire by 35, would be tough but doable.

I think too many here forgot that you can live with a lot less.

I didn't even start spending on frivolous shit until my investment started to be capable of replacing my job.

Because A) you don't want to work forever and B) it may not be even your choice as this city found out over and over again with each oil cycle.

[DTTB_36]

Yup, Calgary is a weird beast. But I fully agree with you, one of the major reasons I am trying to reduce debt/invest is so that the next oil recession doesn't put any stress on me. In fact, I want to be able to take advantage of the next crash.

In order to FI/RE, I think there are a few steps you need to do

1) Reduce day-to-day expenses: Firstly, you have to cut it to the bone. Eventually you will figure out what you can and can't live with out. Add back in what you can't live without but in all likelihood, you will be spending a lot less.

2) Recurring expenses: This is another optimization exercise. Things like cell phones, insurance, heating bill, water bill, electricity bill all can be optimized. If you can get your water usage down, each cubic meter will save you 3 bucks a month. All these "little" things that people shrug off can collectively save you thousands to ten-thousands each year. And the added bonus, less money is required to retire since your month to month is reduced!

3) Big purchases: This one is pretty much house and to a less effect cars. How much how do you really need? Can you work with smaller, and get a nice bones but in need of updates house. I definitely screwed this one up as I have a pretty big mortgage (thought the wife would go back to work after having a kid, but we decided that having her stay home was best for the family although terrible for my early retirement) and my time in Mexico has taught me that I bought way way more house than I need, even with future kids. Cars are the worst for monthly expenses, yes this is beyond but buying a sensible old reliable car is key. Being a one car family will save you 5-10g a year.

3) Increase income: Finally, there is only so much optimization will do so it becomes a matter of increasing income without increasing your lifestyle is key. I've done this personally by taking on special roles (usually field) and lately becoming an expat.

4) Luck: With all of this, some luck is always good. House market timing/stock market timing. Do you have dependent parents that will rely on you in future or will they give you a nice inheritance. And most important with luck is health though good lifestyle habits tend to increase your luck.

If one does all this, their investments will grow. Eventually it will reach critical mass where your investments will outgrow your income (I am nowhere close but trying). Eventually one will reach the "various" stages of FI, barista FI, Lean FI an then finally FI. And if one wants fat FI. Its an incredibly simple path in concept but in reality so difficult to do early. Why? Any little bump/difficultly will add a lot to your working years, plus every additional working year means one less in retirement. Life changes, kids (costs varies huge), lifestyle creep, divorce, all these just add working years.

[DTTB_36]

I had dreams of retiring at 35, but definitely will not achieve that. Big house (mortgage of 650g that I am actively trying to destroy) and wife becoming a stay at home mom means I likely won't achieve lean FI till at least 45 and a nice retirement by 50.

[SkiBum5.0]

Originally posted by DTTB_36
I had dreams of retiring at 35, but definitely will not achieve that. Big house (mortgage of 650g that I am actively trying to destroy) and wife becoming a stay at home mom means I likely won't achieve lean FI till at least 45 and a nice retirement by 50.

If you're on an expat ride, why not sell the house and invest until you return?

[DTTB_36]

3 reason why I didn't sell.

1) I bought in 2015 at 5 yr fixed since I had no idea this would happen, so my mortgage penalty would have been over 50g (I assume)

2) I think the house has dropped 75-100g in value, so I'd rather ride it out. In that bad range of 600g-1,000g that was hit the hardest imho

3) It's only a short term (2 year) role with possibility of extension or reduction (depending on project load and if new projects come up)

A close family member is taking care of/living in my house at great deal. I would have rather rented it out for a tidy sum even if it was slightly less than mortgage. But got vetoed on that one. I assume a few people now know who I am based on the way too much info over internet share

[rx7boi]

Originally posted by max_boost
Is there anything to prevent these experts from messing up your portfolio? Or am I overthinking it lol I don't have the networth to even make a call lol

You might be the most humble Beyonder in the history of Beyond lol.

Ninja baller. How many secret restaurants and porsches ya got now?!

Originally posted by Skyline_Addict


Yes, but that's because the onus is still on you to pick the investments.

The advisor doesn't pick your investments per se - they make recommendations and give advice based on your risk tolerance or profile, which is determined by a series of questions you answer (and sign off on, as being accurate). Then you decide whether you want to go for it, or discuss different options.

After your initial portfolio has been completed, it is still up to you to give instructions on the account going forward. They are not authorized to transact without your consent or direction I.E "Hey man. I just put in an order for $100k in the snapchat IPO for you a couple days ago. It's gonna be great. Just wanted to let you know, have a great weekend."

I always come out as low to medium risk based on those questions, but when I review my funds I am never happy with the ROI that I'm getting.

Overall, I would say I am pretty risk averse but I do want something that is more aggressive and high risk. I won't put all my money into it but I'd rather risk some money and make 20%, lose 10% rather than cruise along making barely 3% a year

[jwslam]

Originally posted by DTTB_36
I assume a few people now know who I am based on the way too much info over internet share

Well otherwise the only cool thing to do in CDMX is run around in your awesome pink cape.

[DTTB_36]

Hahahahaha, that pink cape is glorious. I might have to start my own underground luchador league

[Gman.45]

I think it depends on what you expect out of life, retiring young. I "retired" at 40, but it wasn't because I chose to, it was due to colon cancer x2 and systemic Lupus putting me on disability. I can still work, just not in my chosen field, and it has to be very light and at home.

I built a house in Cranston in 99/2000, sold that in 04, bought another one off Center St in the NW and sold that near the end of 2006, and made nearly 150$k on the first sale, and $200k on the second. I put a fair bit of that into a home in Ft Mac in 2006/7, and sold that when I left in 2010 for not quite double what I paid for it.

So my current home is paid for, and I have enough $ left over + the pretty meager disability (which I could live without if it goes bust or whatever) to live probably for the rest of my days, so long as the world market conditions don't completely have a sky falling deal - and even then. I don't have kids either, otherwise I doubt I would be as comfortable as I am now.

IMO if you have a home/whatever paid for, and a few hundred k, and a means of making a bit of $ on the side to help with bills or extra expenses/stuff as it comes up, you can "retire" at any age in the late 30s or 40s and probably not suffer, so long as you live smart and aren't indulgent or wasteful. Or have kids.