tag:blogger.com,1999:blog-4402283548766807872.post2144836153738597275..comments2024-03-20T02:26:06.500-04:00Comments on The Blunt Bean Counter: How Much Money do I Need to Retire? Heck if I Know or Anyone Else Does!The Blunt Bean Counterhttp://www.blogger.com/profile/11358868550072516313noreply@blogger.comBlogger12125tag:blogger.com,1999:blog-4402283548766807872.post-11303008279517638622014-02-01T16:12:37.467-05:002014-02-01T16:12:37.467-05:00Hi Anon
Everyone seems to have missed the words, ...Hi Anon<br /><br />Everyone seems to have missed the words, "crude tax centric model". I cant even multiply without a calculator, i certainly did not come up with a monte carlo simulation. Howver, I will reference several studies that use Monte Carlo simulations. The point is there is no formula, as I say who the heck knows the number, way to many variables. I think I may regret this series, everyone is expecting way too much :(The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-28034852599621837522014-02-01T15:58:20.133-05:002014-02-01T15:58:20.133-05:00Looking forward to seeing your model. Hope it has...Looking forward to seeing your model. Hope it has some Monte Carlo Simulation to it to help deal with the variables people have noted above. I think this is going to be like peeling an onion!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-13998743607072510672014-01-30T12:54:03.506-05:002014-01-30T12:54:03.506-05:00Mark, your $40k figure will be similar to an examp...Mark, your $40k figure will be similar to an example I have and $1mill plus is in the ballpark, albeit a bit light - but as I say in title, who the heck knows, it is just an educated guess.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-32581820206195376512014-01-29T19:06:28.624-05:002014-01-29T19:06:28.624-05:00Very much looking forward to your series :)
I fig...Very much looking forward to your series :)<br /><br />I figure $1 M+ in liquid assets should work for my wife and I. That should spin off dividend income to the tune of about $40,000 per year before taxes. Then, add on our pensions and debt free home, we should be good.<br /><br />CPP and OAS are a bonus. Not even thinking about those although from a tax perspective I'll need to.<br /><br />MarkMy Own Advisorhttp://www.myownadvisor.canoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-77145144088033836262014-01-29T16:27:24.919-05:002014-01-29T16:27:24.919-05:00Hey CI
You give me too much credit. Very simple t...Hey CI<br /><br />You give me too much credit. Very simple tax centric calc, as i dont think any calculation tells you very much in the first place, other than giving you a ballpark figure with all the variables required.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-9804585775697024972014-01-29T16:11:32.270-05:002014-01-29T16:11:32.270-05:00Looking forward to it too, especially the tax-cent...Looking forward to it too, especially the tax-centric aspect, since the combination of different types of accounts (non-reg, registered retirement, TFSA) plus types of investments (interest-producing, cap gains, dividends) inter-acting with with government programs like CPP, OAS make it very complicated, let alone guessing when you will die and deciding how much to leave to others.CanadianInvestorhttps://www.blogger.com/profile/05645767559302303541noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-66558078445889056372014-01-28T12:36:26.572-05:002014-01-28T12:36:26.572-05:00Sorry about that.
As these are tough questions wit...Sorry about that.<br />As these are tough questions with no set answers, I know that I will benefit from your point of view, research, and discussion.<br /><br />This is truly an excellent blog.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-32170728394185196272014-01-28T11:12:17.106-05:002014-01-28T11:12:17.106-05:00Anon, you got it exactly, except you just wrote my...Anon, you got it exactly, except you just wrote my 6 part series in a few paragraphs :(The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-27011475284908129422014-01-28T10:59:11.318-05:002014-01-28T10:59:11.318-05:00Excellent idea for a series. I'm sure your co...Excellent idea for a series. I'm sure your contribution will be very valuable.<br /><br />In the end, every model will be flawed because it needs to take into account:<br /><br />- At what age will you die?<br />- At what age will your spouse die?<br /><br />- What will the inflation rate be over the next decades?<br />- What will your investment returns be over the next decades? (the 1975-2005 average is not the same as 1955-1985 one)<br /><br />- Are you a "live for the moment guy" (have fun now, suffer in old age), or a "smooth out my consumption" guy (try to have equivalent spending power at all times)?<br /><br />- What is your ideal outcome? Leave money to the kids, or reach $0 balance on your last day?<br /><br /><br />- **And most important:** where should the error fall? It is certain that your number will be "off". Which risk is worst for you: To run out of money early (I had a great life, now I'm in trouble) -or- to have too much money (I missed out on too many opportunities)?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-67909184915505000032014-01-28T10:55:18.777-05:002014-01-28T10:55:18.777-05:00Hi Mark,
I'll bet your forumla has plenty of ...Hi Mark,<br /><br />I'll bet your forumla has plenty of support for and against the figures you use and the rationalle behind the formulation, this is more important than the final figure.<br /><br />Can't wait - Have a great day!<br />Mark<br />Mark Argentinohttps://www.blogger.com/profile/10720520986774448200noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-74815052710711077632014-01-28T09:39:02.031-05:002014-01-28T09:39:02.031-05:00Hi Mark
Unfortunately my formula has no more magi...Hi Mark<br /><br />Unfortunately my formula has no more magic then any of ther others out there and probably less since it is tax centric. But I will provide some numbers in my final blog in the series.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-54890111499701223142014-01-28T09:04:30.754-05:002014-01-28T09:04:30.754-05:00Hello Mark,
As usual, you hit the nail on the h...Hello Mark, <br /><br />As usual, you hit the nail on the head that the 'experts' in the retirement community tend to stay away from helping with that 'magic number'. When they are pressured to do so I can't help but think they quote a high number so you will invest more of your retirement savings with them so they will earn more money from us!<br /><br />I can't tell you how excited I am to view your methodology on how you get to the "magic number" I too have gone over countless calculations to determine how much is enough. <br /><br />Maybe your formula will allow me to exit this year in my life, now that really would be "Freedom 55" for me!<br /><br />Thanks in advance for your words of wisdom,<br />Mark<br />Mark Argentinohttps://www.blogger.com/profile/10720520986774448200noreply@blogger.com