Congratulations! The fact you are thinking about or asking questions about retirement is a significant step that many people are never able to get to let alone put a plan in place to enjoy.
One of the biggest questions that people have is: Will I run out of money? and how can I stress test this. Over the past few years, I have done a lot of reading and learning about what needs to be true for retirement so I thought I would share some of the resources and or learning I have gained over this time.
- To retire, you need to understand how much you plan to spend each year. This will help you understand how much of a nest egg you need to have saved up to fund your lifestyle. As you go through many of the categories, for a 6-12 month period, you will also be able to identify areas of spend that will not be as high in retirement for example, clothing, commuting costs, lunches etc. There may also be some areas that increase vs. your working days for example travel, entertainment etc. To track Expenses, I use Mint where I link up all of my accounts and credit cards that with a little help learns categories over time. This will help you trend your spending and understand variance year over year in a very easy way.
- Fees: if returns are 6% per year and your advisor or the funds you invest in are 2%, then you are giving away 1/3 of your earnings. ETFs can be put together by a computer and cost significantly less while still providing exposure to the equity markets. If you are investing this way, it is not likely that you need a highly paid money manager.
- Wealthica (Canada) or Personal Capital (US) are great tools you can use to evaluate your net worth over time and understand the fee structure associated with your investments.
Resources
- http://www.ChooseFI.com/start a website and a podcast https://www.choosefi.com/start/
- The Simple Path to Wealth JL Collins the last few pages are a summary for his daughter who was not that interested in finance. https://jlcollinsnh.com/
- Mr Money Mustache blog and app. https://www.mrmoneymustache.com/
- Quit Like a Millionaire https://www.millennial-revolution.com/landing-page/
- Your Money or your Life Book https://yourmoneyoryourlife.com/book-summary/
- https://www.financialsamurai.com/
- https://www.gocurrycracker.com/
- https://www.donebyforty.com/
- https://www.whitecoatinvestor.com/
- Mint.com – track and categorise your spending https://mint.intuit.com/
- Wealthica – net worth tracking https://wealthica.com/
- Personal capital – US net worth tracking. https://www.personalcapital.com/
- The Millionaire Next Door Thomas Stanley https://themillionairenextdoor.com/publications/
- Stop Acting Rich Thomas Stanley https://themillionairenextdoor.com/publications/
- The Millionaire Mind Thomas Stanley https://themillionairenextdoor.com/publications/
- Your Retirement Income Blueprint Darryl Diamond https://www.diamondretirement.com/
- The Secrets of the Millionaire Mind T Harv Eker https://millionairemindevents.com/secrets-of-the-millionaire-mind/
- Die with Zero https://www.diewithzerobook.com/welcome
- Choose FI for kids curriculum https://www.choosefifoundation.org/prek12
- Choose FI the book https://store.choosefi.com/library/
- Big Ern and the Safe Withdrawl rate series. https://earlyretirementnow.com/safe-withdrawal-rate-series/
- https://earlyretirementnow.com/2017/01/25/the-ultimate-guide-to-safe-withdrawal-rates-part-7-toolbox
- Playing with Fire book and documentary https://www.playingwithfire.co/the-documentary
- 1500days https://www.1500days.com/
- The frugalwoods https://www.frugalwoods.com/
- Dave Ramsey (for debt reduction) https://www.ramseysolutions.com/
- The mad fientist https://www.madfientist.com/
- Calculators https://firecalc.com/
- https://jlcollinsnh.com/calculators/
- https://www.newretirement.com/
- https://jlcollinsnh.com/calculators/
- https://www.caniretireyet.com/the-best-retirement-calculators/
- https://engaging-data.com/early-retirement-calculators-and-tools/
- https://princeoftravel.com/ for travel hacking and point collection in Canada
- https://whitecoatinvestor.teachable.com/p/fire-your-financial-advisor
Kick Ass Coaching! 