My net income My wife's net income Both minus CPP and EI premiums. That total, is what we need, to have the exact same lifestyle we do now, travel, dinners, all of it. Then I looked at our future unemployed tax rates if the income was 75/25 capital gains and Canadian eligible dividends..10-15% each on up to 100k each. calculated the amount we need per year including 15% tax bill on the entire amount. In case you went there. No we won't pay tax on all of it half of our investments are in TFSAs.. this gives us a buffer. I changed my goal amount in 🌸 to represent that number...and we are over it!! we are officially FREE.
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4 Comments
Tyson
@timeagent · 20d
Consider the following: [Net incomes] - [CPP and EI premiums] - [current savings amount] - [current tax amount] + [future tax amount] And as you're going the PII route, you may want to + [future DRIP amount] I also recommend + [charitable giving]. This also helps lower taxes owed, but you'll still be out of pocket some.
ETF Go
@etf.go · 22d
I’d like to celebrate with you but I get worried when I see this type of ‘math’ as it doesn’t reference the biggest variables related to longevity in retirement: the WITHDRAWAL RATE, Expected Return/Volatility and Time Frame. Too often now I see people using ‘distributions’ as ‘income’ with that income linked to high cost funds that add leverage to concentrated and/or volatile holdings. Hopefully you’ve considered these variables too.🤞 It’s always good to celebrate milestones. 👍
Brettts
@brettts · 22d
@etf.go Thanks, I think 😁. Currently we are still working...and hammering the accounts. The amount we are making doesn't include a withdrawal rate... because there isn't one yet..that amount is coming in without using any principal , there is enough excess for me to get out of one really dumb ETF and reductions in the others. If / when we decide to add a withdrawal rate we will be fine. We have a large amounts of investments not included in the annual income figures
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