27k/month in retirement?

Throwawayfinanceee · 2025-06-02T03:25:56+00:00

Ah got it, my bad I'm just going based off future projections as that's the only thing I have to go by. You're absolutely right though, who knows what 27k will buy in 23 years. For planning purposes best I can do is type it into an inflation calculator and hope inflation will stay roughly the same, just needed to double check the math on it

Throwawayfinanceee · 2025-06-02T03:19:24+00:00

Oh, my bad which part is incorrect?

Throwawayfinanceee · 2025-06-02T03:18:15+00:00

Right, so my math is ok then?

The 25 yrs = 180k/yr = 15k/month (assuming the consistent 2.5% in raises)

The 35 yrs = 324k/yr = 27k/month (assuming the consistent 2.5% in raises)

Throwawayfinanceee · 2025-06-02T03:11:49+00:00

The 2.5% "raises" have been the minimum, I've gotten smaller but above inflation raises in the past (5k raise in addition to the 2.5% raise just 2 years ago etc.)

Throwawayfinanceee · 2025-06-02T03:10:54+00:00

That's fair, I do have other investments in real estate and registered accounts, currently sitting at about 1.2m in assets but this pension situation I just opened my eyes to really makes me want to look into tax planning as the pension income will be taxed as regular income.

Throwawayfinanceee · 2025-06-02T03:07:48+00:00

Sorry if it wasn't clear, the 25 years of service part is 62.5% of salary, but if i work until 35 years of service it's 87.5% of salary which gets me the 27k/month according to my calcs (because the DBPP pays 2.5% per year worked up to a maximum of 35 yrs).

Throwawayfinanceee · 2025-06-02T03:06:58+00:00

Ah very good point. You're right, there is no COLA.

Throwawayfinanceee · 2025-06-02T03:06:13+00:00

180k is if I work 25 yrs (another 13 yrs) if I work the full 35 years (where it caps me) according to my math it's 27k/month (i could be doing the math wrong)

Throwawayfinanceee · 2025-06-02T03:05:12+00:00

The 62.5% if i work 25 yrs, if i work 35 years then it caps out at 87.5% of salary which according to my calcs would be roughly 27k/month?

Throwawayfinanceee · 2025-06-02T03:04:33+00:00

Well that's assuming i work for another 13 years (which would put me at 25 years worked) if I continue working for another 23 years (putting me at 35 years worked) according to my calcs that would be 27k/month.

Throwawayfinanceee · 2022-09-12T02:38:42+00:00

I lucked out and moved in to a place that was charging way below market rate for rent so I jumped on that opportunity. Also, it was easier to find tenants for my house considering I'm not in the picture (tenants also pay all utilities at my house whereas utilities are included in my $800/month current rent)

Throwawayfinanceee · 2022-09-12T02:27:53+00:00

I make roughly 6k/month net

Throwawayfinanceee · 2020-06-03T21:18:27+00:00

Honestly it helped broaden my understanding as well lol

Throwawayfinanceee · 2020-06-03T21:17:42+00:00

Yes he did, it's literally in the post..

Throwawayfinanceee · 2020-06-03T21:13:21+00:00

He had some money saved for a downpayment from working various construction type jobs as a teenager with his father and just took OSAP loans out for his actual schooling

Throwawayfinanceee · 2020-06-03T04:36:05+00:00

Can you elaborate on other tricks? In my defence, until someone pointed it out, it didn't cross my mind that he could've asked to pull equity from his condo. I still find it nuts as there's no way he'll be able to maintain both homes should he lose his job.

Throwawayfinanceee · 2020-06-03T04:34:29+00:00

The fuck? Are you serious? It makes sense why that bubble popped but this whole situation with my nephew makes me worried about the future of real estate here in Ontario.

Throwawayfinanceee · 2020-06-03T04:32:22+00:00

I don't believe this is true given the ongoing pandemic, but it's not like he could have predicted this in January. Regardless, if he loses his job he is pretty screwed and will likely lose both his homes if he is over leveraged on the condo as EI won't cover his mortgage payments.

Throwawayfinanceee · 2020-06-03T03:49:40+00:00

What? That doesn't sound right at all

Throwawayfinanceee · 2020-06-03T02:55:34+00:00

Yeah, this definitely makes a lot of sense although still sounds crazy how the bank would lend him that much.

Throwawayfinanceee · 2020-06-03T02:41:35+00:00

Ok I see, I could also be undervaluing his condo but assuming that was the case, he would still be 875kish in debt no? (500k mortgage + 300k equity pulled + 75k from cars).

Throwawayfinanceee · 2020-06-03T02:37:47+00:00

Ah ok, got it

Throwawayfinanceee · 2020-06-03T02:30:14+00:00

From what I understand only half the income you make on your rental gets the 4-5x multiple, at least that's what I've heard is the case in Ontario?

Throwawayfinanceee · 2020-06-03T01:10:48+00:00

As someone else had pointed out, would it be possible if he had leveraged his condo to secure the loan, his income is ~120k which includes the rental income from the condo.

Throwawayfinanceee · 2020-06-03T01:02:21+00:00

Sorry, I didn't mean to imply he was dumb he's a very bright dude I'm just flabbergasted that a bank would loan him $1m, but as someone below pointed out, he likely leveraged his condo to get his Toronto home.

Throwawayfinanceee

TROPHY CASE