Tag Archives: retirement

Stop making excuses for why you “can’t” save $25,000 for retirement by age 30

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My 30 Financial Milestones You Need To Hit By Age 30 post recently went viral. It was met with a tremendously positive response, but there were a few naysayers in the mix. They seemed to congregate around one point of contention: #5 – Have at least $25,000 saved for retirement by age 30. Even the Globe & Mail’s Rob Carrick suggested this might be “unrealistic”. He wasn’t alone. Many people insisted that whether or not you can hit this target depends on your circumstances: what you studied in university, how much debt you have, whether you have to support yourself, when you started saving, blah blah blah. Before we continue, I want to point something out. My original suggestion was that you actually have the equivalent of one year’s salary saved for retirement by age 30 — I was low-balling it with the suggestion of $25,000! In other words, I […]

How much should you have saved for retirement by age 30?

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How much you should have saved for retirement by age 30 (or any age) is not an easy question to answer, namely because how much you can save depends on a myriad of factors. You likely spent a few years of your 20s in school, and then just started out in your career. Consequently your income might be low, and you don’t have a lot of years of savings behind you. How much should you have saved for retirement by age 30 Apparently, a 20-year-old could need to have $7 million saved by retirement, so it’s best to start early! At 27, my retirement nest egg is somewhere in the neighbourhood of $20,000. If you add in my TFSA (and I don’t, because I might spend that on other stuff) it’s even higher. I started saving at 25, which is early or late depending who you talk to in the […]

Short-term gain for long-term pain

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I worry about people a lot. Sometimes because they’re crazy and I don’t really get it, but also sometimes because they’re just making decisions that I don’t think are in their best interest. It’s hard for me to avoid launching into a lecture to set them straight — so hard actually that I’m rarely successful at keeping my big mouth shut. But I have their best interests at heart, I promise. I’ve been wrestling with the paperwork for my employer RRSPs for the past two days, and surprisingly, no one has been able to give me the answers I need… and they are really basic answers, like what is our Group ID. I am now resigned to spending this morning on the phone with an investment advisor in Toronto, because that’s the only solution. When I asked why no one knew how to fill out these sheets, can you guess […]

Early Retirement Extreme

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The Early Retirement Extreme (ERE) blog is one of my favorite of the online PF community. The author put away a ridiculous amount of his income (as high as 80% of it after taxes) for five years, then “retired” — not in the sense that he sits around doing nothing all day, but just that he doesn’t have to subscribe the average 9-to-5 lifestyle the rest of us have been raised to believe that’s-just-how-it-is. I am probably never going to go the ERE route. Often people accuse the blogs author of being unrealistic or too extreme (haha), and he’s right when he shoots back they’re just unwilling to do the work he did. I am unwilling, and I admit it. Heck, I embrace it. I don’t want to eat tuna sandwiches every day for six years, take cold showers, or live in a $400/mo apartment (seriously, it’s that price for […]