As of today I have about $950,000 CAD in the bank.
I used this calculator and figured that if I have $2MM in the bank at 4% return rate, and spending $5K/month at 3% inflation, I’ll never outlive my money.
http://www.calcxml.com/calculators/i-am-retired-how-long-will-my-savings-last?skn=119#calcoutput
I should be able to have $1MM in the bank by end of this year.
However, there are other things:
- Parents. I need to support Dad. Mom too. Though Mom might have leftover money for me. I won’t include that in my expectations though.
- USD to CAD exchange rate
- Investment – right ones will make me even more money; property investment might give me monthly income
- Fun stuff – travels, luxury
- Health stuff
- Boyfriend/Husband – I need to find one who, together, we’ll make more rather than less.
- Most of my money is not invested to make 4%
- Taxes – corporate and personal
- World economy
Basically, if I can accumulate $2MM in the bank, and perhaps $500K ~ $2MM for other things, then I will never run out and can have lots of fun too.
The reason why I’m thinking about this is that, Alex is 42 years old with no savings. He just got a job for $16.5/hour, and he is excited. It’s in film. There will be overtime. He’ll get to meet people and make connections.
I don’t think he is thinking long term however. He needs to make enough money to live for another 40 to 50 years.
He’ll have to start from scratch.
If he makes on average $45K/year for the next 25 years, and saves 1/3 of it (there’s tax to account for too), then he can accumulate $375K. If he lives ’til 95, then he will have $1K per month to spend, plus probably $600 from the government.
That’s the best case scenario, and it ain’t go great.
Looking at Cat, who is in the same boat. 40 and no savings, making very little.
Nicole, even worse. 40 and in debt. But she has her mom to lean on. So about the same.
Tyler? Brodie? Cyndi? Tina?
Vanessa didn’t start making good money until her late 30s. She is probably making $60K/year? But she made good investment and had savings.
Anna is doing probably $55k/year. She has savings.
Summer is doing well, but she was miserable at 40. She pretty much had to start from scratch. But she had a running business, so not really.
The point is, do I have respect for Alex? He is excited about this film job, and with guidance can probably find even better opportunities. If he was 10 years younger, this is awesome, but he is not.
Right now he doesn’t want to focus on a side business. That’s fine. But if in say half a year, he still hasn’t found something paying more than $80k/month, he should probably do a side business.
I don’t know what to think of the situation. I guess I’ll just be supportive at least until I go to Taiwan.