It’s still looking good for now. My non-registered is popping up on the $124 400. I gave a quick look at my stocks, everything seem to be fine. CHR.B is giving me awesome profits. I will take them as long it will last.
TD Canada Trust has a fun calculator tool. I adore online calculators. They let you imagine all kind of scenarios.... Like what if I make a 15% (!!!) per year from my investment, how I will have when I 45, 55 or 65?
I would qualify myself as being a good investor and in control but sometimes, I get adventurous and I guess at a point, even “good” investors can turn bad. Take for example Jean-François Tardif. He used to rock out the place. And now? His JFT Strategies Fund (JFS.UN) closed its first year on the market, the year 2012, at -6% or something like it. WHY?
Jean-François Tardif simply stops trying. He’s not as hard as he had been on himself because he no longer has Eric Sprott as boss. Now millionaire and on a more relax lifestyle, Jean-François Tardif is simply letting it go. And I am going to explain to you why we should all be doing the same: LET IT GO.
To be able to understand, we need to move back on that retirement calculator thing from TD Canada Trust.
First, play the game for real. Enter all the information needed in the section 1. About you.
Me: I am 32. I would to retire – let say 45.
I earn about 43k annually before tax.
2 – Retirement plan
How many years of retirement are you saving for? I enter 40.
How much income will you need for your desired retirement lifestyle? I enter $25 000.
If you expect to receive additional income after you retire, please enter it: I enter 0. But at a point, I guess at 67+, I will qualify for a small Canadian pension.
3. Savings and investments
How much have you saved? I enter $38 097.97
How much do you regularly contribute to these accounts? I enter 0 because I no longer contribute to my RRSP.
Other retirement savings and investments
How much have you saved? I enter $125 488.61 (non registered account + TFSA values on date of December 31).
How much do you regularly contribute to these accounts? I enter $1500 – Monthly. (realistic savings of 1k per month AND reinvestment of the dividend earn, $500. Even there, we could say $650 instead of $500, for a total of $1 650...)
4. Rate of Return
How much do you expect to earn on your investments annually, as a percentage?
I enter 6%
Your Retirement Savings Goal is: $563,114
You are projected to save: $637,959 You will have a surplus of: $74,845
With that scenario that is quite realistic, I will be able to retired at 45 and I will still have a surplus of more than 74k. You need 7%, 8%, 9% or 10% in annual results on the stock market to be able to make it happen. In this case, I did not even enter any possible pension income that I will probably receive once I hit 67.... So that’s quite impressive, isn’t?
Lesson learns: you can be easy going, not to say lazy, like Jean-François Tardif on the TSX angel stock market. A 6% annually as income is quite realistic goal. You don’t have to try really hard. The early retirement dream is really that simple and easy. You really had to read this post tonight just to find out that yeah, money easy with the Dividend girl and Jean-François Tardif (sorry buddy, but I do really like u that much :0)).
In other words: TAKE IT EASY.