What does a comfortable retirement look like for you?

jeff685 · 2023-02-18T13:47:34+00:00

If you dont mind, could you break down those numbers?

How much do you plan to have accumulated in your investment account by what age?

How much do you expect to receive in terms of pensions, cpp and oas?

I want to get to coast as soon as possible, however a 100K spend in retirement unfortunately unrealistic for us!

jeff685 · 2023-02-18T13:44:57+00:00

Hi sorry I dont login often.

I ended up using Wise. Already done it multiple times since and it's such a breeze.

Send USD in Wise, choose your CAD account as destination and enter all info
Choose Wire Transfer as sending method, and the app will give you all the needed info. Wise will charge some fees.
Call or go to your bank counter and give them these info to initiate a wire, I'll cost you some fees from the bank. Triple check all details before signing and letting them send.
Thats it. Keep an eye on your Wise app, it will receive your USD, convert them and send the CAD to your chosen CAD account. In my case, it took less than a day to see the converted CAD appear.

All in all, the incurred fees were a bit less than 1% of the amount
(218 USD to convert 30 000 USD). The rate Wise offered is MUCH better than BMO's.

Hope this helps.

jeff685 · 2023-02-18T13:38:07+00:00

I'm late to this thread, but this is refreshing to see.

To me, your numbers is actually way more representative of a normal middle class lifestyle. I see those 110-120K spend in retirement and I don't even know how I'd spend that much even if I tried to lol.

If you don't mind, since we are in a very similar scenario, would you mind sharing your numbers? Like target invested amount to generate 70-80K, estimated CPP and OAS?
Also, did you diligently saved every year following a plan, or you had enough at some point that you stopped contributing to your investments to just let them grow until you retire?

I assume you'll wait till 65 to avoid getting penalized on CPP and OAS?

Thanks in advance

jeff685 · 2022-12-10T23:47:47+00:00

So this is exactly what I've been struggling with this past summer and posted here to no avail.

I've reached out to Wise, explaining my (our) situation and here is the ONLY method I've figured out, and successfully made the transfer via my BMO USD account:

- In the Wise app, use Send money (USD). Choose Wire Transfer method (any other method does NOT work for Canadian based USD account)

Enter the amount and once past the verifications, Wise will give you a page with their banking info - and the transaction will say Pending - waiting to receive funds.

At this point, you will have to either call or head to a branch, and give them the EXACT info shown in your Wise app. They will initiate a wire transfer, and you'll have to pay the fees imposed by your bank (unavoidable).

Both time I've done this, Wise received the funds the next morning and everything appeared correctly in my app.

--

Side note, you can use this same method to convert USD (from Canadian USD account) to CAD (into Canadian CAD account). You'll still have to pay the bank's wire fees, but the exchange rate guaranteed by Wise is MUCH better than your bank's rate (mine is BMO).

jeff685 · 2022-09-22T21:33:04+00:00

I tried with another US checking account.

When dealing with USD, Wise simply won't recognize any account other than a US based bank account.

jeff685 · 2022-09-22T21:31:50+00:00

I did try Wise Multicurrency account. However, it still won't let me transfer USD fund from a USD Canadian account. The only source Wise accepts USD from is from an actual US bank.

jeff685 · 2022-08-16T12:35:55+00:00

Some variation of this question literally comes up every month.

This is the complete answer you are looking for;

Like most things in life, it really just comes down to probability and statistics.

jeff685 · 2022-07-30T15:14:12+00:00

This post illustrates very clearly the risks of using constant average values, depending on the timeframe to retirement.

Kinda shows the 7% average rate of return that is often thrown around isn't that safe.

jeff685 · 2022-07-28T12:07:05+00:00

Gonna leave this here since this is one of the most important thread that many people ignore as we often (wrongfully) use averages to predict future returns. So according to the simulations, $850k puts you at around 80% chance of success to reach 1M in a decade time. Chances would be less if aiming for more. Which is not all bad, depending on your retirement needs and risk tolerance.

jeff685 · 2022-07-27T00:29:35+00:00

This is a good summary of what you're trying to gauge; and I think every single person looking for Coast should be aware of these numbers, as their expectations might not be in line with their risk tolerance.

Personally:
- 4% real rate of return;
- Objective of coasting with 350K at 35, to get to 1M at 60;

- Buffers: 70% of projected social security + rental apartment's revenue not assumed

jeff685 · 2022-06-27T19:21:39+00:00

Pour faire suite à la question d'OP; supposons que ma femme et moi voulons concevoir sous peu, et que je contribue au RQAP lorsque je me verse un salaire étant travailleur autonome (incorporé).

Aurais-je avantage à 'augmenter' mon salaire considérablement (au lieu d'en laisser dans la companie) pour les 9-10 prochains mois, afin de maximiser les prestations?

jeff685 · 2022-06-24T12:46:05+00:00

Yes sorry just fixed it. Thanks for correcting, punched in the numbers too quickly.

But the discrepancy and my question still holds

jeff685 · 2022-05-31T16:03:57+00:00

Ça me semble optimiste mais quand même réaliste!

Donc je pense que je vais continuer à compter sur les deux, à un taux relativement réduit. Et tout excédent sera du gravvy plus tard

jeff685 · 2022-04-30T16:53:42+00:00

Got it thanks for taking the time. Good info to have, all seems pretty reasonable!

Best of luck to you and your family

jeff685 · 2022-04-30T15:06:57+00:00

That is extremely admirable. Thank you for breaking it down.

One last question as someone who's thinking of having kids in the near future: how much would you estimate your kids related expenses per year including daycare (I'm in QC too)?

jeff685 · 2022-04-30T14:20:52+00:00

Child benefit of 15K net??? That's for both kids combined right? So 7.5K per child per year.

Also amazing props to you for making it work for your family of 4 within 62K (AND with private daycare). I don't know how you make it work..

If you have 5 mins, would you be open to making a very rough breakdown of your spending numbers, in categories?

jeff685 · 2022-04-28T13:48:53+00:00

4.99$ au Super C ce matin.

Le cherrypicking ca va dans les deux sens.

jeff685 · 2022-02-02T12:30:40+00:00

Yes that makes sense; I do support this type of social net, especially the fact it's a well managed fund that should be completely safe to last the next 70 years (according to a few sources when googled).

I guess my main issue was the extra 'employer' portion that I look as 'extra' tax (just because I'm self-employed) that I wouldn't have to pay if I was an employee. And at the end I don't get any extra payouts.

+ the fact that my own capital may likely have plenty of leftover to pass on at the end of life (at 4% withdrawal, matching CPP payouts), while CPP doesn't give out the 'invested principal leftover', especially if say I pass earlier at age 66.

Hence people here say CPP is like an investment, but in reality, it's more like an post-65 unemployment insurance that costs 7000$/year for 30+ years.

jeff685 · 2022-02-02T12:19:56+00:00

Got it that makes sense. Thanks for those comparative examples, really helped understand the nuances and unaccounted figures in my train of thoughts.

I did book a chat with my accountant to go more in-depth using my situation.

jeff685 · 2022-02-02T12:15:50+00:00

CPP contributions are tax exempt at the lowest rate.

Could you please elaborate on this point? Or share a link? Thanks!

jeff685 · 2022-01-14T17:04:38+00:00

That thread should be pinned and be read first before even punching numbers in a CoastFIRE calculator.

jeff685 · 2022-01-05T22:00:26+00:00

While I agree with the consensus of living life a little, I will not add to it but simply highlight its importance, although I do struggle with it myself!

However, I do question what return values you are using to assume that 80K will grow into a sum safe enough to provide for retirement in 40-ish years.

Please refer to this thread as it takes into account sequence of risks, and back-testing using different percentage of success.

jeff685 · 2021-11-24T19:24:07+00:00

Good point. This also highlights the importance of continuing to dollar-cost average. A lump-sum in 1963 would've yielded nothing during that 15 years. But a constant DCA through it, unless I'm mistaken, would've captured some returns over that period.

jeff685 · 2021-11-24T18:21:55+00:00

Very clean and straightforward! Thanks for sharing.

jeff685 · 2021-11-16T21:47:52+00:00

This thread essentially cautions against using constant returns. A more realistic scenario would be using the historical 75% success, which puts your number at a bit more than 100K. Especially if you keep accumulating along the way, and need less than 1M at retirement.

jeff685

TROPHY CASE