Is my math way off - sibling comments
Hi all,
I recently was chatting with my siblings about investments, savings, retirement, etc. The conversation made me wonder if my calcs are off, given I make less than my siblings and have a larger family.
I make $117k/yr.
We are 38ish years old.
We have $900k invested in ETFs (TFSA, RRSP, not maxed TFSA yet).
Mortgage is $145k (paid off in ~9 years from now, maybe sooner, 4.84% interest until we renew in 2-3 years).
Last year we spent about $83k including mortgage and RESP (Not being counted in what we have invested since its not really for us).
Approx $40k of our investments are earmarked for our kids (we have been holding gift money for all of them and investing it and plan to give it back when theyre old enough for their own accounts).
We think we have reduced spending now by making some changes - shopping on Amazon less, buying lunch out much less (still need to do the comparison). Plus our youngest is getting older so some baby expenses are reducing. none of the kids are teens yet though.
My spouse and I both have DB plans HOWEVER we both started late at these companies so the pensions will never cover our full living expenses (maybe 1/3rd), even if we work till 65.
My spouse is not working right now since daycare is too expensive but will go back to work when the youngest kids are in school, doubling our income. That is in late 2029.
I figure we can work 10 years after that of doubled income - and increased spending for after school care - and retire at that point. Also note that lots of kids does mean high CCB so we do get $20k+ for now, decreasing when we double income and going up again if we retire at that age before dropping off around age 54/55. For info, we use the Canadian Couch Potato Method. Our house is worth an estimated $715k. I didn't consider that we could sell it when elderly, but that is a fall back.
Is there any reason our plan won't work? It feels weird to me that family members making 2x to 4x more than us think they wont be able to retire young, especially given they invest too? They do travel more and trade vehicles in occasionally, but not excessively. Is that really all it takes to make them think they have to work so late? Or maybe they're just pretending to be modest.
I dont see many FIRE posts from people with a whole brood of kids.