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A millionaire by retirement......


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#1 scrappy survivor

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Posted 16 February 2011 - 12:39 PM

http://www.windsorst...4803/story.html

Seriously I don't know too many people who ahve that much $$ to put away every month.

#2 TecMommY

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Posted 16 February 2011 - 12:42 PM

Anyone can do this: IF YOU ARE SINGLE WITH NO KIDS!!! lol

#3 Lilacmom

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Posted 16 February 2011 - 12:58 PM

In that article it stated...

It offered the following advice: Start putting $100 a month into a registered retirement savings plan (RRSP) at the age of 25; up that to $250 at the age of 30; $500 at 35; $750 at 40; and keep RRSP savings at $1,000 a month between the ages of 50 and 65.


Who, at the ages of 50-65 has and extra $1000 a month laying around. We certainly don't. That is just rediculus.

#4 cbarker78

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Posted 16 February 2011 - 01:00 PM

https://lifeeventspl...n&Event=Leisure

This is a calculator that will tell you how much per month you need to sock away to have a million dollars by a certain age... or at what age you will have a million dollars by investing a set amount each month...

at $100 a month, I'll be 86 years old before I have a million bucks!! LOL!!

#5 scrappy survivor

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Posted 16 February 2011 - 01:14 PM

Cbarker..... It is only $100 per month for 5 years then 250 for 5 then 500 for 5 then 750 for 10 then 1000 for 15. I don't know anyone who can afford to do this

#6 Mama2Gracie

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Posted 16 February 2011 - 01:21 PM

I wish they said what interest rate this is at because if you calculate it, it's only 330,000. They must be offering a pretty high interest rate, considering the last GIC I bought I was only offered 1.25%

#7 mom2nico

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Posted 16 February 2011 - 01:48 PM

I wish they said what interest rate this is at because if you calculate it, it's only 330,000. They must be offering a pretty high interest rate, considering the last GIC I bought I was only offered 1.25%


In this article is says: "The calculations assume an annual return on RRSP investments of 6.8 per cent." This is a high interest rate, but I have no idea how it compares to current RRSP's.

#8 Cowboy From Hell

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Posted 16 February 2011 - 02:26 PM

f*** that. I don't care about being a millionaire when I'm near death. What do I need the money for then?

#9 murkywaters

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Posted 16 February 2011 - 02:29 PM

I remember seeing something like this when i was just starting out in the world. Then you figure out that life is more fun when you dont worry about every little dime when one might not even make it to retirement.

#10 JavaBean

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Posted 16 February 2011 - 02:31 PM

I love info like this. I do however, appreciate the after tax options available for investing.

#11 Mama2Gracie

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Posted 16 February 2011 - 02:35 PM


I wish they said what interest rate this is at because if you calculate it, it's only 330,000. They must be offering a pretty high interest rate, considering the last GIC I bought I was only offered 1.25%


In this article is says: "The calculations assume an annual return on RRSP investments of 6.8 per cent." This is a high interest rate, but I have no idea how it compares to current RRSP's.


They might be beter now but the last investment I made with my RRSPs as stated was 1.25% approx 4 or 5o months ago. Most RRSP's only see that kind of return when invested in mutual funds but I'm hesitant to do mutual funds becse I'm afraid of losing it all LOL

#12 elainesj

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Posted 18 February 2011 - 06:48 PM

Investments are always dicey. we do mutual funds and even when the market has been really bad, it's meant we haven't done great (or anwhere near what we wanted), but we still have a small gain overall.

Frankly, if you're just going to invest in a GIC that earns 1.5%, you might as well ut your money towards your mortgage which costs you 5%, kwim? our investments are down so now we're just putting as much as possible towards our mortgage.

whatever you can sock away is a good thing :) even if it's just $100 a month, it will multiply really nicely if left to sit.

we're big on saving and always make sure the savings come out first before all the fun stuff.

E

#13 Lasergirl

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Posted 18 February 2011 - 07:32 PM

You can get mutual funds that are very very safe and ones that are risky. You (mama2gracie) are young and can definately withstand more risk than a 1.5% GIC will offer you. GIC as made for older folks who need the safety because they will be needing the money much sooner than someone in their 20's or 30's. Of course, some are risky (like one of my funds), but when everyone else's portfolio was way down mine was even because I had made so much over the last few years.
Last week I read someplace that it is really a myth for most that you will need 1M at retirement. It really depends on what lifestyle you want to lead. Although the investment schedule the OP mentioned is lovely, it is not realistic for the majority of folks. But, as Elaine said, even $25 can add up over time with compounding and such

Edited by Lasergirl, 18 February 2011 - 07:33 PM.


#14 bcnap

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Posted 18 February 2011 - 07:36 PM

Before kids, when we were in our early 20's, we put away A LOT, all in rsp's. now not so much, whatever % off my paycheck and my employer matches that.. but that is RRSP.
I hope I can retire before i am 50 :) heck 40..LOL, nah who am I kidding, If i had a billion dollars, I would still work.

#15 Mama2Gracie

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Posted 18 February 2011 - 10:57 PM

You can get mutual funds that are very very safe and ones that are risky. You (mama2gracie) are young and can definately withstand more risk than a 1.5% GIC will offer you. GIC as made for older folks who need the safety because they will be needing the money much sooner than someone in their 20's or 30's. Of course, some are risky (like one of my funds), but when everyone else's portfolio was way down mine was even because I had made so much over the last few years.
Last week I read someplace that it is really a myth for most that you will need 1M at retirement. It really depends on what lifestyle you want to lead. Although the investment schedule the OP mentioned is lovely, it is not realistic for the majority of folks. But, as Elaine said, even $25 can add up over time with compounding and such


I starts RRSP's at 21, wasn't sure why I needed them, just knew I needed them LOL So I originally started with GICs because I was told there was close to zero risk. I do have older GICs that I'm earning anywhere from 3.6-5.9% on. Its just that the crappy market is down. My hubby deals with mutual funds and has done very well on them. He's made thousands in the last couple of months. I just don't understand enough to correctly choose one. However I guess thats where your financial advisor should step in.

#16 Lasergirl

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Posted 19 February 2011 - 09:35 AM

Absolutely--- it is their job to assess your risk level and advise appropriately. I just think that for someone as young as yourself, you could definately be making more on your investments. Mutual funds, although they still have risk and some more than others, are not as risky as a stock. Because they are managed by fund managers, who's job it is to watch the markets and adjust the fund accordingly.
And I know for the guys that I work for- they do Mutual funds and GIF products, they also adjust accordingly to the markets. So when things are up, they will pull some profit out of the funds to ensure you don't lose it. They will adjust for downside risk. Of course they are not mind readers, and can only protect so much, but I could probably say that most of their clients wouldn't lose everything

#17 Leslie

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Posted 19 February 2011 - 01:26 PM

In that article it stated...

It offered the following advice: Start putting $100 a month into a registered retirement savings plan (RRSP) at the age of 25; up that to $250 at the age of 30; $500 at 35; $750 at 40; and keep RRSP savings at $1,000 a month between the ages of 50 and 65.


Who, at the ages of 50-65 has and extra $1000 a month laying around. We certainly don't. That is just rediculus.


I agree that is a lot but some people ie. may have their mortgage paid off when they turn 50. And are still working. So if you essentially were taking the same payment you made on your mortgage every month and now re-directed this to an rrsp, you may have another 10 yrs on which you would contribute at a much higher level. All depends what you have been budgeting for.