I’m supposed to be running errands but this looks more fun.
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I’m not sure the 4% rule is the right thing to apply here. That gives 97% success in the money lasting 30 years, generally with a lot left at the end. But a pension payment ends at death. Say the expected value is zero at death, could you use a 50% chance of success as a proxy for that?
And when is expected death? Fortunately for our calculations, the life expectancy for a 55yo Canadian woman is right about 30 years. (Life expectancy at various ages, by population group and sex, Canada; 29 if you use all income groups, 30 using the 4th income quintile)
Using https://ficalc.app/ a $10k annual draw with a $150k nest egg has a 51% chance of success over 30 years. So instead of
I’d propose using:
the amount you expect at 55, multiply by 15 and divide by 2
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Me, too. Now for those errands.
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I updated all my spreadsheets and it changed many things.
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I have always 100% ignored my pension but maybe I should be considering it. It’s like I have 2 net worths- the money I control and can, for instance, leave to people in my will, and the money that I can actually live on personally, which is way more. Of course if I die pre-retirement-age there are survivor benefits, which would be Someone Else’s Problem!
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As of today I’ve been thinking of it as real net worth (for planning purposes) vs what can be made liquid. Both numbers matter to me.
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I’m in Canada and find this subject very confusing. Hubby had a choice when he retired to give me 60%, 80% or 100% of his pension after he dies. He chose 100% because of my health issues (haven’t worked for an outside employer for decades) and the fact I’m so much younger than him (probably will live longer, even with health issues). Plus we have plenty to live on now if we include his two defined benefit pensions (the biggest one only partially indexed to inflation), CPP, OAS and GIS. We income split.
As I understand it, his CPP will be severely reduced or disappear after he dies. I get a lump sum survivor’s benefit, but that’s it? Is that correct? His CPP makes up a big chunk of our income.
We currently live on about $45,000 CAD per year after tax. We don’t travel very much, or have expensive hobbies like golf.
We approached a banker earlier this year to ask how long we could live off our money, given the current situation. He brushed us off, asking, “You can live off it now without any problems?” When I answered in the affirmative, he basically told us it wasn’t worth his time to do the calculations!
So yeah…when I do monthly Net Worth statements for us, I include all income in the month, including pensions. But when it comes to figuring out the value of the defined benefit pensions, I have no idea. And I’m not sure it matters?
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Mostly I flail my hands in the air over health care and assume I’m working until both pension and retiree healthcare kick in (7 years three months, not that I’m counting).
I only really track liquid net worth, not even home value, so.
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it’s super complicated imo if you’re receiving multiple CPP benefits. https://www.canada.ca/en/services/benefits/publicpensions/cpp/cpp-survivor-pension.html says “You will receive 60% of the contributor’s retirement pension, if you are not receiving other CPP benefits.” plus the 2500 lump sum death payment.
Doug Runchey, Author at Retire Happy might be a resource? also https://www.drpensions.ca/
If you want to give us hard numbers (real or made up, up to you) various people here will help figure it out.
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Moved post.
Sorry I killed the thread. I moved my post to a new thread.
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I had seen your post and was planning on spreadsheeting it today if I have time.
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Sent you a PM
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Q3 was slightly unkind - about -2.3% on net worth. Now that I’ve started to roll vehicle values in, Net Worth is around $1,029k. Liquid assets dropped about 0.7% to $891k.
Net worth does not include “current market value” of our house (~$585k) but rather original appraised value from 7 years ago ($395k.) As we gear up to sell… it will be interesting to see what we get for it, and how that affects the charts. If we rent, our liquid assets will see a big jump. But if we buy again, with mortgage rates what they are, we’ll be putting a lot towards a new mortgage.
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I’m popping in for the first time with a graph of my own! I started tracking things in YNAB at the veeery end of 2021, so that’s where my graph starts.
I hit $50k net worth last month which feels absolutely bonkers. Most of that is checking/emergency fund money, but I recently peeled off a bunch of that to go sit in the market and do its thing. The numbers here aren’t quite accurate because I haven’t figured out how I want to track investment in YNAB yet. Currently, I’m just moving the money I invest into a tracking account so it’s out of my checking balance but it doesn’t disappear entirely. I haven’t connected it to the actual investment account because I don’t want to watch that number fluctuate constantly, but I also don’t want my numbers to be too far off? If anyone has any tips for tracking investments in YNAB or in general, I would be happy to hear them. I am very new to the investment world haha 
It’s interesting to see the clear chunks of time in this graph:
- part-time student job
- higher-paying full-time internship
- not working & living off my scholarship stipend
- back to the internship part-time
- graduated & employed full-time!
I imagine it’ll be a while before I have enough money invested in the market to see fluctuations beyond just regular savings. At the moment, I’m just grateful that scholarship money put me at such a good starting point after college. I’m excited to see where all of this goes in the long-term!
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Congratulations!!! I also really enjoy watching my graph progress!
I use the old desktop ynab, and to track investments, I have them labeled as ‘off budget’ accounts, and update the account balance on the first of the month. I clear any transfers, then I ‘reconcile’ the account and let an adjustment transaction update the actual balance. I think I could stand to do a less frequent reconciliation (quarterly, or something), but monthly mostly works for me.
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Congratulations on starting your investments! Just be sure that you have enough in your emergency fund, and if not, bring it back up to where it needs to be before investing any more.
I have a spreadsheet that we use to track investments and everything else. We, too, only update account balances once a month. I’m of the opinion that if and only if you are 100% sure you will not panic no matter what happens, it’s good to watch investment balances change while there isn’t much money at stake…because it prepares you for it later when the numbers get substantial.
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It keeps hovering up and down with market fluctuations but my total net worth is just about $200k now! I’ve been very lucky but I’m also proud of myself because this time five years ago I was fresh out of college and my net worth was slightly negative. Time sure flies.
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