Money Are Dereck and Heather on track to retire at age 50?

17:34  18 may  2017
17:34  18 may  2017 Source:   MoneySense

Is Katy Perry’s New Song ‘Swish Swish’ a Taylor Swift Diss Track?

  Is Katy Perry’s New Song ‘Swish Swish’ a Taylor Swift Diss Track? Is Katy Perry’s New Song ‘Swish Swish’ a Taylor Swift Diss Track?Other lyrics include Perry telling the song’s hypothetical target, “you’re calculated, I got your number,” “your game is tired, you should retire, you’re ‘bout as cute as an old coupon. Expired. And karma’s not a liar, she keeps receipts.” Indeed, while there is no official video yet for “Swish Swish”, the YouTube clip does come with an animation of a hand, presumably Perry’s, holding receipts from a place called “Karma Coffee & Tea.

Are Dereck and Heather on track to retire at age 50 ? Hoping to leave their stressful jobs and retire for good, can the couple make the numbers work? By the time they retire Derek expects his unregistered investments will total 0,000.

Am I on track … … to retire at age 50 ? The goal Lynn Gueutal wants to save million by the time she’s 50 so she can retire . The current situation “I became a single mom in my 20s so I’ve always had to live within my means,” says Gueutal, 41, of Calgary.

Dereck and Heather-1200 © Used with permission of / © Rogers Media Inc. 2017. Dereck and Heather-1200 Retiring at age 50 can be a tall order as you are financing a retirement lifestyle that could be 40+ years long. Heather and Dereck hope to accomplish this in just 9 years. Is their savings plan enough?

The current situation

Heather and Dereck Irwin are both 41 and live in Woodstock, Ont. Heather is a project coordinator working with kids with special needs earnings $50,000 annually, while Dereck is an electrician earning $120,000 a year. Not only does this couple have stressful jobs, Dereck’s job requires a lot of shift work, which makes spending time together difficult. The Irwins, who don’t have any kids, are true do-it-yourselfers. “We cook everything ourselves, I fix our vehicles myself and we do all the renovations and maintenance on our home,” says Dereck. “We just like it that way.”

Vince Wilfork still undecided about retirement

  Vince Wilfork still undecided about retirement Vince Wilfork still undecided about retirementThe 35-year-old nose tackle, who is currently a free agent, says he's unsure if he will play in 2017 or hang up his pads. After 13 seasons in the league, Wilfork wants to be certain of his decision before announcing it.

Spending your days of leisure at 50 while many of your peers are still forced to work out of financial necessity could be within your reach if you follow the FutureAdvisor step-by-step guide. Related Articles. How To Retire At Age 40. in Early Retirement .

Milan Sengupta of Calgary wants an annual net retirement income of $ 50 ,000 so he can travel extensively.

Right now, the couple has a home valued at $350,000 with a $225,000 mortgage on it. They also have RRSPs and TFSAs that total $468,000 plus they will receive pension benefits. Their goal is to retire at age 50 with $60,000 gross per year in income from their portfolio, taking into account 2% inflation annually. “Our money is invested in a range of index mutual funds and exchange-traded funds,” explains Dereck. “We have been getting 6% gross average annual returns for several years now and can see us getting the same return going forward.”

Where they stand now 

Assets

Assets © MoneySense Assets

Liabilities 

Liabilities © MoneySense Liabilities

Their plan involves living off of their RRSPs until age 70, and only claiming their CPP and OAS at that time. “According to my calculations, our CPP should be about $930 per month each and Old Age Security around $761 per month each,” says Dereck. “That would give us about $40,584 fully indexed per year.” Dereck also adds his calculations show that their TFSAs should total about $500,000 at age 70 (in today’s dollars) and they would use this money to supplement their income to the desired $60,000 gross annually.”

The best way to rebalance several ETF couch potato accounts

  The best way to rebalance several ETF couch potato accounts TFSA, RRSP and LIRA accounts require special attention once a year—Kees, Calgary

Retiring at the age of 50 can be a difficult task, but if you make smart choices with your money early on, such a goal is possible. Cut spending as much as possible now in order to save and invest more of your money for later.

Check out your age and see if you’re on track ! Retirement Savings by Age : Summary. Hi Derek , I’m assuming these numbers are based on a person retiring at 65 and lasting for 30 years. What about those that wish to retire early, such as in our mid- 50 ’s?

To achieve all this, Dereck has a methodical nine-year plan that he put together himself that involves putting $600 biweekly into his RRSP and $230 bi-weekly into Heather’s. He’ll also be putting $350 biweekly into his TFSA and $211 in Heather’s.

In order to meet his retirement savings goals, Dereck wants to set up the home financing on a long amortization schedule. It won’t pay off the mortgage quickly but it frees up savings dollars (due to lower mortgage payments). To ensure they aren’t on the hook for their mortgage in retirement, in two years the couple will start putting $1,050 biweekly into an unregistered account that will eventually be used to pay off the remainder of their mortgage. By the time they retire Derek expects his unregistered investments will total $200,000. “With rates so low, I’m making minimum payments on my mortgage and redirecting that extra money to savings,” says Dereck. “I think I can get a better return doing that over the next fear years.”

'Shark Tank' investors fight over idea a single mom financed with $40,000 meant for her retirement

  'Shark Tank' investors fight over idea a single mom financed with $40,000 meant for her retirement Heather Stenlake invented a sheer slip to wear under a wedding gown that can lift up the fabric of the dress making it possible for a bride to pee on her own.It took Stenlake 15 years and a personal reinvention to go from having the idea to developing her product into a company. But Stenlake eventually found the confidence to launch her business: Once she did, her inspirational attitude won over the investors on hit reality show "Shark Tank." By the end of her pitch, which aired Friday night, Stenlake had multiple sharks clamoring to invest in her business, the Bridal Buddy.

Below we offer a step-by-step guide detailing how to get there. Related Articles. How To Retire At Age 40. in Early Retirement . Any individual under 70 with taxable compensation is eligible. Contribution Limits. - Age < 50 : ,000 per year - Age 50 -65: ,000 per year + a ,000 catch-up provision per

- Age < 50 : ,500 per year - Age 50 -65: ,500 per year [capped at level of taxable compensation]. Taxes. Step 5 - Review Our Savings Tips To Raise Your Savings Rate Over Time Track Your Savings. You know the old saying "what gets measured gets managed?"

When the couple runs the numbers they say that nine years from now when they’re both ready to retire, their own estimates say their assets will look like this:

In 9 years 

In 9 years © MoneySense In 9 years

At age 50, the couple plans to downsize their home and move to either Kingston or Windsor, Ont. They figure they’ll be able to live very comfortably on $48,000 net annually.

The verdict

They are off to a good start having no consumer debt and making regular payments on their mortgage. Tom Feigs, a certified financial planner with Money Coaches Canada ran the numbers and believes Dereck and Heather should reach their goal of generating $48,000 in net average annual income for life.

This is a sound strategy as long as investment growth can reasonably outpace the borrowing cost. Feigs recommends the couple use a 4% mortgage rate as your cut off point. If mortgage rates exceed 4% then they should considering switching to a debt reduction focus, by using their non-registered savings to pay off a chunk of the mortgage and increase their monthly payments.

Retired Racehorse Finds New Career as a Professional Artist

  Retired Racehorse Finds New Career as a Professional Artist Metro Meteor once competed in high-profile horse races, but a knee injury ended his racing career abruptly. This thoroughbred used to be a high-profile race horse. Today, he’s reinventing himself through a successful career in painting.Meet Metro Meteor, a retired racehorse in Pennsylvania, whose paintings sell for hundreds of dollars."He loves to paint,” Metro’s owner Ron Krajewski of Gettysburg told Caters News. “As long as he wants to keep doing it, I will keep handing him the brush.

Below we offer a step-by-step guide for how to get there. Related Articles. How To Retire At Age 40. in Early Retirement . Any individual under 70 with taxable compensation is eligible. Contribution Limits. - Age < 50 : ,000 per year - Age 50 -65: ,000 per year + a ,000 catch-up provision per year.

The key to retiring early is to start saving early, and to save a high proportion of your income. $ 50 k Invested at Age 20 Grows to over 0k by Age 45. Step 5 - Review Our Savings Tips To Raise Your Savings Rate Over Time Track Your Savings.

Feigs also drilled down into Dereck’s projections for his portfolio and found them to be fair, if not underestimated. Given most of their retirement savings are in tax sheltered accounts Feigs projects their savings may actually be 10% higher than Derek estimated when they plan to retire.

With regards to the couple’s pensions, Feigs suggests taking a lifetime monthly income from their company pensions rather than a lump sum pay out. This pensionizes some of your financial resources and lowers tax payable, he says.

Canada Pension Plan entitlements are earned over the course of your working life and Old Age Security is an additional entitlement based on residence in Canada. Dereck and Heather can expect to accumulate a combined $44,184 annually in payouts if they hold off until age 70.

If they decide to tap these programs when they turn 65 then their CPP and OAS payouts will be a combined $31,684. This plan can be expected to yield $57,000 in after-tax dollars and adjusted for inflation. This indeed reaches their goal to retire at age 50 with enough money to last a lifetime. Keep chugging away as you are for now. You’re doing great!

MORE STORIES LIKE THIS:

Am I on track to quit my job now?

Am I on track to be a millionaire by 50?

Am I on track to have $250,000 by age 55?

When Will You Be Ready to Retire? .
Dividend stocks such as Brookfield Infrastructure Partners L.P. (TSX:BIP.UN)(NYSE:BIP) can help you retire. Here’s how.BIP

—   Share news in the SOC. Networks

Topical videos:

This is interesting!