Comments on: Retiring Early – Part 2 (The Income) http://www.milliondollarjourney.com/retiring-early-part-2-the-income.htm Building Wealth through Saving and Investing Fri, 19 Mar 2010 19:36:23 -0400 http://wordpress.org/?v=abc hourly 1 By: FrugalTrader http://www.milliondollarjourney.com/retiring-early-part-2-the-income.htm/comment-page-1#comment-92752 FrugalTrader Sat, 18 Jul 2009 12:47:54 +0000 http://www.milliondollarjourney.com/retiring-early-part-2-the-income.htm#comment-92752 Hey CF! These calculations are going way back! I believe that when I did the calculations that I averaged my income from 18 until retirement age and accounted for the zero income years until 60. However, averaging the income may not have been the correct way to calculate. What are your thoughts? Hey CF!

These calculations are going way back! I believe that when I did the calculations that I averaged my income from 18 until retirement age and accounted for the zero income years until 60. However, averaging the income may not have been the correct way to calculate. What are your thoughts?

]]> By: cannon_fodder http://www.milliondollarjourney.com/retiring-early-part-2-the-income.htm/comment-page-1#comment-92306 cannon_fodder Wed, 15 Jul 2009 18:32:08 +0000 http://www.milliondollarjourney.com/retiring-early-part-2-the-income.htm#comment-92306 FT, Based on your projected CPP income if you retire at 45, would I be correct in assuming you have always earned the maximum pensionable earnings since you turned 18? FT,

Based on your projected CPP income if you retire at 45, would I be correct in assuming you have always earned the maximum pensionable earnings since you turned 18?

]]> By: DAvid http://www.milliondollarjourney.com/retiring-early-part-2-the-income.htm/comment-page-1#comment-40740 DAvid Wed, 25 Jun 2008 00:37:56 +0000 http://www.milliondollarjourney.com/retiring-early-part-2-the-income.htm#comment-40740 Ron, I think you may have meant to ask this in another thread, but in effect, you have answered your own question. Even a defined benefit plan has a cash value, whether or not you are fully vested. While you may not be able to extract it as your friend did, it still has value. My annual pension statement has a section that describes my contributions and interest to the plan, but not those of my employer. This money is MINE. While held in trust for me it still belongs to me. Should I die before, or after I retire, my remaining pension contributions plus earned interest are paid to my beneficiary or estate. My employer's contributions remain in the plan. I believe you will find this to be the case for many pension plans. You may wish to have a look more closely at yours. Since there is a repayment of the contributions and interest to the estate, it is rightly included in net worth. DAvid Ron,
I think you may have meant to ask this in another thread, but in effect, you have answered your own question. Even a defined benefit plan has a cash value, whether or not you are fully vested. While you may not be able to extract it as your friend did, it still has value. My annual pension statement has a section that describes my contributions and interest to the plan, but not those of my employer. This money is MINE. While held in trust for me it still belongs to me. Should I die before, or after I retire, my remaining pension contributions plus earned interest are paid to my beneficiary or estate. My employer’s contributions remain in the plan. I believe you will find this to be the case for many pension plans. You may wish to have a look more closely at yours.

Since there is a repayment of the contributions and interest to the estate, it is rightly included in net worth.

DAvid

]]> By: Ron http://www.milliondollarjourney.com/retiring-early-part-2-the-income.htm/comment-page-1#comment-40713 Ron Tue, 24 Jun 2008 19:51:38 +0000 http://www.milliondollarjourney.com/retiring-early-part-2-the-income.htm#comment-40713 How does retirement pension income factor into net worth calculation. I have a friend who took a cash settlement when he retired. That amount now contributes to net worth. However, he must draw down on that amount for annual living expenses. I, on the other hand receive a monthly pension check for life, but have no claim available to heirs, other than spouse upon death. How can this asset be included in net worth calculation. How does retirement pension income factor into net worth calculation. I have a friend who took a cash settlement when he retired. That amount now contributes to net worth. However, he must draw down on that amount for annual living expenses. I, on the other hand receive a monthly pension check for life, but have no claim available to heirs, other than spouse upon death. How can this asset be included in net worth calculation.

]]> By: Retiring Early - Part 1 (The Expenses) | Million Dollar Journey http://www.milliondollarjourney.com/retiring-early-part-2-the-income.htm/comment-page-1#comment-18154 Retiring Early - Part 1 (The Expenses) | Million Dollar Journey Tue, 27 Nov 2007 12:51:08 +0000 http://www.milliondollarjourney.com/retiring-early-part-2-the-income.htm#comment-18154 [...] 2: Early Retirement - The [...]

[...] 2: Early Retirement – The [...]

]]> By: Retiring Early - Part 3 (Conclusions) - Million Dollar Journey http://www.milliondollarjourney.com/retiring-early-part-2-the-income.htm/comment-page-1#comment-481 Retiring Early - Part 3 (Conclusions) - Million Dollar Journey Fri, 16 Feb 2007 12:50:21 +0000 http://www.milliondollarjourney.com/retiring-early-part-2-the-income.htm#comment-481 [...] Tools that I Use TaxTips.ca DinkyTown Financial Calculators Home > Retirement > Retiring Early - Part 3 (Conclusions) Retiring Early - Part 2 (The Income) [...]

[...] Tools that I Use TaxTips.ca DinkyTown Financial Calculators Home > Retirement > Retiring Early – Part 3 (Conclusions) Retiring Early – Part 2 (The Income) [...]

]]> By: FrugalTrader http://www.milliondollarjourney.com/retiring-early-part-2-the-income.htm/comment-page-1#comment-478 FrugalTrader Fri, 16 Feb 2007 11:54:47 +0000 http://www.milliondollarjourney.com/retiring-early-part-2-the-income.htm#comment-478 All taxes are deducted in Part 3 when I do my calculation tables. FT All taxes are deducted in Part 3 when I do my calculation tables.

FT

]]> By: David http://www.milliondollarjourney.com/retiring-early-part-2-the-income.htm/comment-page-1#comment-476 David Fri, 16 Feb 2007 04:39:14 +0000 http://www.milliondollarjourney.com/retiring-early-part-2-the-income.htm#comment-476 So far your expenses seem to be paid from your net income, and your income statement is gross income. A quick survey indicates that the ony real reduction from my net income is my mortgage. In addition I may have to buy health insurance, or drug insurance upon retirement. Since the mortgage is about 40% of my net, the 70% figure, if assessed against current NET income, seems practical. David So far your expenses seem to be paid from your net income, and your income statement is gross income.

A quick survey indicates that the ony real reduction from my net income is my mortgage. In addition I may have to buy health insurance, or drug insurance upon retirement. Since the mortgage is about 40% of my net, the 70% figure, if assessed against current NET income, seems practical.

David

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