Is anyone here actually living off their investments with no other incomes?

[james22]

21 hours ago, NoCalledStrikes said:

Do not take good health for granted.

 

There's great value simply in guaranteeing the experience.

 

If I have a fatal heart attack today, I'll go at least having known retirement.

 

If I died in the saddle, my last thoughts would be of regret.

[scorpioncapital]

7 hours ago, james22 said:

 

There's great value simply in guaranteeing the experience.

 

If I have a fatal heart attack today, I'll go at least having known retirement.

 

If I died in the saddle, my last thoughts would be of regret.

 

1,000,000,000 is your wealth. The 1 is your health. Take it away and you have just zeroes.

 

[ICUMD]

I'm 46. 

 

Probably could have retired 5 yrs ago.

 

Enjoy work, so plan to work until at least 60, granted I may reduce my hours before then.

 

Just had my first child 6 days ago - a baby girl- so there goes my retirement plan.  

 

 

[Parsad]

2 hours ago, ICUMD said:

I'm 46. 

 

Probably could have retired 5 yrs ago.

 

Enjoy work, so plan to work until at least 60, granted I may reduce my hours before then.

 

Just had my first child 6 days ago - a baby girl- so there goes my retirement plan.  

 

 

 

Congratulations on your new daughter!  There goes any sleep for the next 6 months as well.  Cheers!

[nwoodman]

3 hours ago, Parsad said:

 

Congratulations on your new daughter!  There goes any sleep for the next 6 months as well.  Cheers!

+1 wonderful news

[james22]

13 hours ago, ICUMD said:

I'm 46. 

 

Probably could have retired 5 yrs ago.

 

Enjoy work, so plan to work until at least 60, granted I may reduce my hours before then.

 

Just had my first child 6 days ago - a baby girl- so there goes my retirement plan.  

 

Congrats!

 

It is much easier to retire early when single.

 

I can see if you've family responsibilities you'd always want to be able to solve problems that could be solved with money.

 

And so delay retirement.

[ICUMD]

Thanks all for the kind wishes.  

It's an incredible experience to be a father to this extremely cute baby.

 

For me, my work has become part of my identity.   I think it would be hard to walk away regardless of income.   

 

I wonder if culture these days is shifting towards early retirement due to increasing wealth in general. 

 

Perhaps it is the status of the privileged to say - Hey! I'm retired. 

 

Regardless, for me, while the idea of 'freedom' seems tantalizing, I'm satisfied doing most what I know best and dabbling a little in what I know least, for now.

 

Seems to work for me both in life and in investing.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[crs223]

14 minutes ago, ICUMD said:

 

I wonder if culture these days is shifting towards early retirement due to increasing wealth in general.

 

I’ve thought this too.  If this is true, supply and demand dictate that prices and salaries will rise to force people to become productive again.

 

I also love my job (21 years now).  If I didn’t need money, I’d pay to do some of the work.  I was so lucky to stumble into it… and I hope to teach my children how loving your job makes life so much better.

[SharperDingaan]

12 hours ago, ICUMD said:

Thanks all for the kind wishes.  

It's an incredible experience to be a father to this extremely cute baby.

 

 

Congratulations on your new addition.

Life as you used to know it, will now be forever changed!

 

Keep in mind that if you live in NA, the baby boom distorts your reality - when most people you know are retiring boomers, it is not surprising to think that you should be doing the same. Of course, if you're in your mid-40's, that isn't practical for at least another decade. The bulk of the crowd you hang out with - should be the same generation as you.

 

Purely by virtue of numbers, boomers change everything they touch. In this case - retirement before the boomers arrived, and retirement after the boomers have arrived will be very different things. Younger folks following, reap the benefit.

 

SD

Edited August 21, 2022 by SharperDingaan

[james22]

Generations really matter when choosing where to live once retired.

 

Surrounded by young professionals downtown is very different from a retirement community.

[maxthetrade]

In 2000 I finished university and made my first million (back then in DEM!). After a couple of years with performance in the twenties I made a bit over 100% in 2000, my best year ever so far. A bit cocksure I decided to retire early . The next few years weren't pleasant because of USD devaluation. Going into the great recession I was too optimistic and bought too early in 08. Had to sell some stock in early 09 to prevent a margin call. It was a good lessen though. I switched to LEAPS and that worked out pretty well. Since then I invested more conservatively, you don't have to risk what you need for what you don't need.

All in all it has worked out pretty satisfactory and I plan to move to a tax heaven with better weather somtime during the next couple of years. Germany today is not the country I grew up in, it sucks. The generation of woke idiots has arrived and is ruining the country. Fortunately there are still some decent alternatives.

 

[Parsad]

On 8/20/2022 at 10:00 AM, james22 said:

 

Congrats!

 

It is much easier to retire early when single.

 

I can see if you've family responsibilities you'd always want to be able to solve problems that could be solved with money.

 

And so delay retirement.

 

It's hard either way. 

 

Remember, as a dual income family with kids, you have more expenses, but you have more income, tax credits, government support, subsidies, income splitting, etc.  

 

As a single person, you don't benefit from any of those things unless you are below the poverty line.  I didn't benefit from one single thing during the pandemic...money dropping out of helicopters to everyone, and I didn't get a nickel.

 

And if you are a self-employed single person...even tougher.  Loans are harder to come by as you don't have any spousal income and are self-employed, pay twice as much on pensions/employment insurance, etc.

 

Cheers!

[scorpioncapital]

"And if you are a self-employed single person...even tougher.  Loans are harder to come by as you don't have any spousal income and are self-employed, pay twice as much on pensions/employment insurance, etc."

 

It seems perverse that self employment and entrepreneurship, the engine of wealth creation is taxed higher than working for someone else. 

 

 

[Parsad]

On 8/21/2022 at 6:25 AM, james22 said:

Generations really matter when choosing where to live once retired.

 

Surrounded by young professionals downtown is very different from a retirement community.

 

I'm not in a retirement community, but I downsized into a community with probably 65% of the residents are over 55 and retired.  I'm about a decade and a bit younger than most of them, but I have to tell you...swimming from 1-3pm followed by a 4pm gin and tonic is pretty damn nice every day in the summer!  Cheers!

[Parsad]

12 minutes ago, scorpioncapital said:

"And if you are a self-employed single person...even tougher.  Loans are harder to come by as you don't have any spousal income and are self-employed, pay twice as much on pensions/employment insurance, etc."

 

It seems perverse that self employment and entrepreneurship, the engine of wealth creation is taxed higher than working for someone else. 

 

 

 

Yup!  All parties should be supporting lower taxes and barriers for self-employed. 

 

You have the minimum 15% tax for large corporations going into effect in the U.S., yet self-employed pay higher taxes than that! 

 

In Canada, self-employed have a lower tax rate up to $500,000, but pay double the Canada Pension Plan and Employment Insurance premiums, plus have to pay for their own health care and extended health plans.  Plus they aren't eligible for RRSP contributions unless they take a salary and pay regular tax on that. 

 

Cheers!

[james22]

14 hours ago, Parsad said:

dual income

 

A Purse (or a Nurse)!

[Spekulatius]

16 hours ago, Parsad said:

 

It's hard either way. 

 

Remember, as a dual income family with kids, you have more expenses, but you have more income, tax credits, government support, subsidies, income splitting, etc.  

 

As a single person, you don't benefit from any of those things unless you are below the poverty line.  I didn't benefit from one single thing during the pandemic...money dropping out of helicopters to everyone, and I didn't get a nickel.

 

And if you are a self-employed single person...even tougher.  Loans are harder to come by as you don't have any spousal income and are self-employed, pay twice as much on pensions/employment insurance, etc.

 

Cheers!

The tax credits for kids don’t amount to much when you are ~$250k in combined income or more. I think we got $1200 or so combined and I had to pay this back even after filing my tax return.

 

On the retirement issue, my son is starting college next year and after that we can consider. I am in my mid fifties right now, my wife a bit younger. I highly recommend having a nurse as your partner.

 

In addition, the key is to have a job that’s not stressful. I don’t mind working, but I do mind jobs that are incredible taxing. Those jobs can eat you up.

[StevieV]

 

7 hours ago, Spekulatius said:

In addition, the key is to have a job that’s not stressful. I don’t mind working, but I do mind jobs that are incredible taxing.

 

Sounds like you've had some different jobs.

 

Any specific careers you think are more or less taxing?  Do you think it is more about the field or the specific job?

 

Generally interested in hearing what careers people like or don't like.

[Spooky]

Curious about where the people who have retired early are living. I'm in Toronto and don't see any possibility of being able to own a property here with no mortgage and retire early.

[RichardGibbons]

I'm in Vancouver. When I retired, we didn't own, but we bought a house about 5 years later.

 

Basically, we'd made enough that buying a house would put our liquid assets back to roughly the level we had at the date of retirement. So, it didn't seem to risk retirement, seemed like a reasonable luxury purchase, and under some scenarios could be helpful as diversification or a parachute.

Edited August 24, 2022 by RichardGibbons
Typo

[Charlie]

I´m semi-retired with 46 years. I work 2-3 hours in the morning and the rest of the day I do what I like to do. 

Over the years I put all my money in Berkshire and that worked out pretty well.

Our house I bought 15 years ago for the land price. The house is paid of.

We have two 4-year old boys and these are the joy and stress of my life. 

I do a lot of swimming and bicycling. I used to play soccer, but my joints are hurting from it.

Most important advice: Live life to the fullest. One day you can´t do it anymore.

[Spekulatius]

10 hours ago, StevieV said:

 

 

Sounds like you've had some different jobs.

 

Any specific careers you think are more or less taxing?  Do you think it is more about the field or the specific job?

 

Generally interested in hearing what careers people like or don't like.

It has to do with the field, but more so about the specific job. I work in engineering and had a job where I was both individual contributor and had to lead a group of engineers as well. Than add a bunch of travel to the mix as well.  The money was good, but it wasn’t worth it for me.

Edited August 24, 2022 by Spekulatius

[ICUMD]

8 hours ago, Spooky said:

Curious about where the people who have retired early are living. I'm in Toronto and don't see any possibility of being able to own a property here with no mortgage and retire early.

Ah good ol' Toronto! 

 

During a 10 yr span living and working there,  I thought Toronto was THE place to be.  

 

A combination of work place politics in TO, better job and pay, the chance to live in a home on a lake without traffic, took me to Northern Ontario. 

 

Do I miss TO?  Paradoxically, I enjoy it more.  A 1 hr inexpensive plane ride lands me downtown TO.  I walk to my condo (purchased in 2002), now kept as my pied a terre.  Eat, enjoy friends company, see a show and come home.   

 

Financially and practically, I've escaped the 'Toronto Tax'.  For me, the frictional costs of traffic,  dealing with overbearing people at work and expensive homes were ridiculous.  

 

I accelerated my possible retirement by over 20 years by investing my excess income (rather than paying a mortgage), formed much closer friends in a small community and have unparalleled access to nature.  

 

So do consider alternatives.  

Big city life is not currently a value proposition IMHO. (Unless you bought tons of real-estate in 2002).

 

 

 

 

 

 

[SharperDingaan]

4 hours ago, ICUMD said:

Ah good ol' Toronto! 

 

During a 10 yr span living and working there,  I thought Toronto was THE place to be.  

 

A combination of work place politics in TO, better job and pay, the chance to live in a home on a lake without traffic, took me to Northern Ontario. 

 

Do I miss TO?  Paradoxically, I enjoy it more.  A 1 hr inexpensive plane ride lands me downtown TO.  I walk to my condo (purchased in 2002), now kept as my pied a terre.  Eat, enjoy friends company, see a show and come home.   

 

Financially and practically, I've escaped the 'Toronto Tax'.  For me, the frictional costs of traffic,  dealing with overbearing people at work and expensive homes were ridiculous.  

 

I accelerated my possible retirement by over 20 years by investing my excess income (rather than paying a mortgage), formed much closer friends in a small community and have unparalleled access to nature.  

 

So do consider alternatives.  

Big city life is not currently a value proposition IMHO. (Unless you bought tons of real-estate in 2002).

 

 

We also did a version of this, and are based in Burlington (GTA). Toronto is only an hour away by Go Train, we can see a world-class show whenever we want, the international airport is a limo ride away, costs are materially lower, and there is a great deal more space.

 

Wherever practical, we bought our various new-build houses off plan, and had them upgraded at start to what we wanted. Thereafter, sold off the old place, moved into the new place, and financed the difference with a mortgage. Mortgage repaid over time via debt service and systematic capital repatriation from an investment account. No tax as each house was a primary residence

 

The house costs materially less than it would in Toronto, services are brand new, it's what you want, and 10 years out the greenery has matured. Then its just replace the windows/appliance, update kitchen/bathrooms, re-landscape - or simply sell off and rinse/repeat.

 

A 25 year mortgage amortization does not mean that it will take 25 years to pay it off. Assuming a 'reasonable' mortgage, If you are doing systematic capital repatriation it will take maybe 5-10 yrs at best. Every time you move, you're essentially selling a fully paid off house. 

 

Different strokes.

 

SD

 

Edited August 24, 2022 by SharperDingaan

[Red Lion]

On 8/22/2022 at 1:19 PM, Parsad said:

 

It's hard either way. 

 

Remember, as a dual income family with kids, you have more expenses, but you have more income, tax credits, government support, subsidies, income splitting, etc.  

 

As a single person, you don't benefit from any of those things unless you are below the poverty line.  I didn't benefit from one single thing during the pandemic...money dropping out of helicopters to everyone, and I didn't get a nickel.

 

And if you are a self-employed single person...even tougher.  Loans are harder to come by as you don't have any spousal income and are self-employed, pay twice as much on pensions/employment insurance, etc.

 

Cheers!

Most of these points do NOT apply to higher income two income families. 
 

For example there’s a significant marriage penalty for us federal income taxes when combined AGI is above $250k. There is also a huge penalty for the 3.9% investment tax.

 

The only subsidies I’m aware of like earned income credit, child tax credit, etc. are phased out at such a low level that they certainly don’t help anyone in a HCOLA other than deadbeats.  
 

In my case our combined taxes would be at least $10-15k a year higher if we actually got married since we are both business owners.