My favourite posts (written by other bloggers) about finances, early retirement and financial freedom. I have these book-marked to inspire me.

Mr. Money Moustache

From Zero to Hero in One Blog Post

The Shockingly Simple Math Behind Early Retirement

How much do I need for retirement?

MMM’s 2013 annual spending (~$25,000, they are mortgage-free)

Canadian Investing with Mr. Frugal Toque

Why is it so hard to downshift?

How to make money in the stock market (index funds)

Teaching children about money

Case studies

Freedom with Bruno

Bruno’s Path to Financial Freedom

Root of Good

Early Retirement at 33: An Overview

Zero to Millionaire in Ten Years

Their family’s 2016 budget ($40,000 for a family of 5)

How they save money on groceries

One month of groceries ($555 – they live in the US)

Go Curry Cracker

Journey to Early Retirement: Episode 4

Journey to Early Retirement: Episode 3

Journey to Early Retirement: Episode 2

Clawing Out of Debt

Jim Collins

Guest blog post on MMM: Financial Independence 23 years later

A simple path to wealth

What Jim owns and why he owns it

History of “This is the Top – Dow Jones (1900-2016)”

Canadian Couch Potato

The Ultimate Couch Potato Guide

Couch potato FAQs

Model Canadian Couch Potato portfolios

Tangerine Portfolio selector – it resulted in the same allocation that I follow (Balanced)

Why Rebalance your Portfolio?

How to lower your rebalancing costs

Scientific review of portfolio diversification

  • Couch potato consistently falls in the middle of the pack

Generating a retirement income

  • set up a 5 year GIC ladder and keep one year’s worth of living expenses in a high-interest savings account.

Mom and Dad Money

Two ways to make investing less risky (asset allocation and diversification)

  • A good rule of thumb is to expect that in any given year you could lose half of whatever money you have in the stock market. Your risk tolerance will affect your asset allocation.
  • Good advice from Matt about asset allocation: “I would simply encourage you to pick an asset allocation that feels right to you for now, put it in place, and stick with it through at least one big market crash. After that you can re-evaluate how you feel about the level of risk you’ve taken on and re-adjust if you need to.”

Matt’s personal investment plan (70% stocks, 30% bonds)

Can I retire yet?

Your retirement planning should at a minimum assume one spouse will live to at least 95 years old. Read more here.

Canadian retirement income calculator here

Three best free retirement calculators here.

Vanguard’s retirement nest egg calculation here.

For Canadians, how much CPP and OAS can you expect to receive when you retire?

Maximum benefit – $ 19,950.24 (in 2016). This amount will be reduced if you have other sources of income, and it depends on how much you have contributed to CPP – Source

Government of Canada website – The average monthly pension is $500 per month

Difference between CPP and OAS here.

Miscellaneous
Investing Calculator – how much do you need to invest in order to retire by a certain number of years?

Here’s a back-of-the-envelope calculation you can do to figure out the size of your nest egg (from this article).

  1. Multiply your annual retirement expenses by 25. For example, if you think you’ll need $40,000 a year in retirement, then you’d have to save $1,000,000.
  2. Subtract a conservative estimate of the government benefits you’ll be receiving, such as those from the Canada Pension Plan (CPP) and Old Age Security (OAS), which may provide you with an additional $10,000 or $15,000 per year, said Engen. That means your nest egg would only have to be $625,000-$750,000.

Vanguard’s power of compounding calculator here.

Average net worth of Canadians

Net worth milestones by age – Globe and Mail (pretty unrealistic numbers, I think)

Net worth milestones by age – Money Matters

–  By age 40, your net worth should be twice your salary.

– By age 50 your net worth should be four times your salary.

– By age 60, your net worth should be 6x your salary.

– When you are ready to retire, you should have 10x your salary saved.

Average net worth of Canadians in 2018

Target net worth for Canadians – Freedom 35 blog (this has a good table for target net worths by age and “sufficient”, “good”, “excellent” and “rich”. Note to account for the city that you live in (we live in Calgary, so can multiple the values in this table by 49.86).

Average net worth of Canadians in 2014 – Money Sense

Median and average net worth

Average net worth of Canadians in 2005 – Stats Canada

Average net worth of Canadians in 2012 – Stats Canada

Average household expenses in Canada

(In 2013, the average Canadian household spent $58,592, not including income taxes, charitable contributions or RRSP contributions)

Sunlife calculator – compares your net worth with others in Canada

Rules of thumb

The Simple Dollar recommends this formula for roughly determining what your net worth should be: (Average of your last 10 years of annual income) minus ($15,000 and an additional $5,000 for every person in your household, including you). Multiply that by your age and divide by 8. Read more here.

Average 401(k) balance by age

Budgets are Sexy

Are Canadians saving enough?

Planning for Retirement. Are Canadians saving enough? They recommend saving at least 15% of your gross earnings. They concluded that 2/3’s of Canadians aren’t saving enough.

Thoughts on asset allocation

Thoughts on asset allocation

Identifying your money archetype

According to the book, “Money Magic: Unleashing Your Potential for True Prosperity” by Deborah Price, there are 8 money “archetypes”, you can read about the 8 archetypes here and take a quiz to find out about your archetypes here.

As of April 2019, the test revealed that I am 50% magician, 42% warrior and 17% creator/artist, with 9% fool and tyrant.

RRIFs

Retirement Planning spreadsheet

Money Sense article Turning an RRSP into a RRIF – a Registered Retirement Income Fund – is by far the most common choice these days. When you convert your RRSP, your investments move into a RRIF account in kind/as is. So for all intents and purposes, it’s the same account, just with a different account number and of course the minimum required withdrawal rules. You can’t contribute to a RRIF either.

The complete guide for RRIFs

RRIF vs annuity

How to invest an RRIF

Annuities

Annuities are most likely to benefit you if you’re a typical middle-class retiree.

You get the greatest benefit from gradually adding annuities to your investment mix from your late 60s to your late 70s, until you have about one-third of your portfolio in annuities.

Whatever annuity you choose, make sure its payouts are guaranteed for life rather than just a limited term.

Down side of annuities:

  • having to hand over capital to an insurance company, the possibility of dying early and not getting all your money back (or be able to pass on to your heirs), high costs and too many terms and conditions. Read more here.

 

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