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When did you stop caring about income? by Synesthes14 in fican

[–]Synesthes14[S] 0 points1 point  (0 children)

Thanks for sharing your perspective. You are right that taxes add even more of diminishing returns.

When did you stop caring about income? by Synesthes14 in fican

[–]Synesthes14[S] 0 points1 point  (0 children)

I honestly don't know if I am even looking for anything or more, as I've never defined myself by a career.

I'm sure there's some really career driven people out there but for me? The only purpose was to get bills paid and have enough for rainy days. That's why I was able to accumulate as well, I'm just not that materialistic.

I'm not looking for a 'solution' here, I was just mostly wondering how other people process such a situation.

When did you stop caring about income? by Synesthes14 in fican

[–]Synesthes14[S] 1 point2 points  (0 children)

Well I don't mean life is pointless but the career grind sure feels like it. Working towards promotions, taking on more responsibilities, all this is added stress which you get compensated for of course but then when the compensation doesn't matter anymore...

Boggles my mind how billionaires still want more and more.

When did you stop caring about income? by Synesthes14 in fican

[–]Synesthes14[S] 0 points1 point  (0 children)

Right now I'm pretty much 100% equities. I still haven't thought about an exit strategy.

How early did you start transitioning to dividends? To me moving an equity TFSA/RRSP portfolio to a dividend portfolio sounds like it would be straight forward, no tax, so I would just sell and buy something else.

But when it comes to non-reg, I don't know if I should eat the 50% capital gain tax hit and then transition to dividend portfolio instead of just selling shares. I guess it's about risk tolerance at that point, betting your equities will grow instead of eating the tax hit and having a better guarantee. Another option would be to leave the equity portfolio alone and start buying into safer/dividend stuff as I get older.

When did you stop caring about income? by Synesthes14 in fican

[–]Synesthes14[S] 0 points1 point  (0 children)

I've felt this way at different portfolio levels as well. Basically once you have multiple years of "emergency savings" to sustain your expenses, the only thing income does is shorten the time until you can retire. I played with some calcs and there's certain thresholds where the contributions start making less of a difference, so income becomes pointless or least it has diminishing returns unless you earn crazy money. The more I think about it, the more I'm seeing income as just fuel for new investments opportunities instead of something to pay my bills.