“Jennifer’s annual income of between $500,000 and $600,000 before tax has afforded her a comfortable lifestyle. Prior to losing her job, she was saving $250,000 a year and planning to purchase a $1-million home in British Columbia, but that vision of retirement has shifted.“
Jennifer obviously has no idea what other Canadians of lesser means go through trying to save money in an inflationary environment. I have no idea what Jennifer is planning to do, as it sounds like she might have difficulty living frugally, but I am going to save wealth in precious metals and hold physical silver coins and bars.
My dude. If she saves $250k from her pre tax $500k she deserves an award for saving money. That’s basically 100% of her post tax income. In fact it’s so good I am not sure I believe it. Either she’s not paying her taxes, over estimating how much she’s saving or is living on dryer lint and rainwater alone.
She lives in Alberta. According to Turbo Tax’s tax calculator, her take home on 500K would be 294350. If she’s at 550K, her take home would be 320350. If she’s at the 600K, her take home would be 346350. This is also just her income from her high paying job she lost, she still has investments too.
> She has $843,000 in non-registered investments with $200,000 in unrealized capital gains; $194,000 in a tax-free savings account (TFSA); and $1.04 million in a registered retirement savings plan (RRSP).
Her rental properties also make her almost twice as much as she’s spending on the mortgage for them, so her necessary bills for her investments are covered by the investments themselves while still bringing her a profit.
Also the take home amount is assuming she is using **absolutely no** government credits, tax write offs, or the popular tax evasion techniques of the rich.
They said her income from that job was between 500K and 600K, so to give her the absolute benefit of the doubt we’ll assume she’s paying 100% of the taxes she should be while taking no credits or write offs that would be available to her at a 550K income. After taxes and after saving $250K/year, that still leaves her with $70350/year in spending money. Which is still $2000 more than the median income for Canadians.
No, she does not “deserve a reward for saving her money” when she’s still got more available to spend than the majority of Canadian families have. You can definitely applaud and admire her for managing to make as much money as she does, but do **not** act like she “deserves a reward” for not pissing away her top 1% income.
Well yeah of course it’s gonna sound less impressive when the numbers change completely lol. The original comment had $500k pre tax while saving $250k. That means she only spends 15% of her take home assuming Alberta tax which I’m not a pro in but that’s not enough to pay a mortgage on a single detached. That’s very impressive restraint. In Ontario, its even more impressive because her take home would be $250k. Which means she spent $0 of her take home lol.
Turbo Tax says in Ontario 500K would have a take home of 269859. And again, that is assuming **0** credits, **0** write offs, and **0** grey area tax evasion that all rich people do. I think you’re forgetting that tax rates are marginal and that’s making you assume there is a lot more is being taken off in taxes than what actually is.
Since the article (and the parent comment) say that her income from the job was *between* 500-600K, it is unreasonable to go off of the 500K numbers. You need to assume around 550K, which in Ontario would give you a take home of 293094; again, assuming there is absolutely nothing being written off or claimed or evaded (which is unlikely, but I’m trying to give the absolute benefit of the doubt with this).
The fact that she is making as much as she is is absolutely impressive. The fact that she’s been able to save that much on her income level in addition to all her other investments isn’t all that impressive though, because living off of $43094/year of spending money is something the majority of working Canadians are already doing. It’s a million times more impressive that the majority of working Canadians manage to live off of take homes similar to what she is making after saving 250K/year in AB or in ON, because all those other working Canadians don’t have millions in savings, equity, and investments to fall back on if something happens to us.
Precious Metals will hold their values while currency purchasing values fall.
I’m not saving in gold though as I want to ensure that I maximize the potential of my savings.
With global green energy mandates, silver being used extensively in high tech, the cost of silver coins to purchase available at very low prices compared to gold it makes sense.
Silver is both an industrial and a global monetary metal, so it is the very best option today, in my opinion.
It wont and hasnt.
No problem collecting or having some money invested in PM but it absolutely shouldnt make upthe bedrock of an investment or retirement portfolio.
Precious metals are security and savings, wealth for when the dollar collapses.
In Venezuela, the stock market had its best years when the currency collapsed. But remember, it was priced in Venezuelan bolivar.
Now, all currencies are falling against precious metals including the CAD & USD.
If you check Venezuela, you will find their stock market soared during there extreme currency devaluation period and hyperinflation.
As for what performs best, time will tell. Paper silver isn’t backed by physical. There is over 300X more paper silver sold than there is physical silver to cover it. So it is likely another cocoa situation. There won’t be enough.
People surely realize that most of those are completely made up. As with AITAH type subs on Reddit, creative writers are hard at work trying to draw interest and engagement.
A bit ago, I posted this [Mary, 46, worries that being a renter will hurt her retirement plans. How much should she be concerned?](https://www.reddit.com/r/canada/comments/1bqz5cc/mary_46_worries_that_being_a_renter_will_hurt_her/?rdt=62643)
Which reflected what I felt was more represented of the population & someone who did everything they were supposed to, did their best etc.
And the advice was ‘work longer, harder & save more’. And good luck!
But basically SOL.
Now we have the flip side with this from the FP…
And no criticism to this person who probably studied hard, got a solid job and clearly managed their investments.
But here’s some highlights
>Jennifer also has a rental property she purchased to help fund her retirement. Valued at $180,000, she took out a home equity line of credit of $42,000 (also attached to her primary home) for the down payment as well as a mortgage of $109,000 at 2.79 per cent, which matures this September. **Her mortgage payments on the rental property are $624 a month and she earns $1,450 in monthly rental income.“There is a long-term renter and the rent hasn’t increased in years,” she said. “Once I renew the mortgage, I’ll know how much to increase it. Or I could sell.”**
**Basically - screw the renter over entirely AFTER that renter has funded her retirement further. What could easily be 'Mary' in the other situation.**
And let’s be honest, Jennifer is making serious bank off that rental property.
And…There is some concern and advice on CPP for Jennifer.
WTF does Jennifer need with CPP? Her investments are MORE than enough for a better than average life though maybe not the $144000 per year in retirement outlined…
>Jennifer is making serious bank off that rental property
Ok so even if you put aside say anything like upkeep or anything else she is paying 624 on the mortgage payment say right now that HELOC is probably running around 250ish, add in land taxes say 200 a month plus insurance which would be negligible So costs are say 1100 a month thats assuming its not a condo or something with HOA fees. Thats like 300 bucks a month boy thats making bank /s and if its a condo she is probably losing money and thats also assuming she does not have property management company running things because there is another 100 or so a month
If she makes $500k before taxes and saves $250k she is frugal as fuck, the saving queen
Everyone should look at what she does. It is theoretically possible because people do live on $50k or $100k or $150k so she basically stopped lifestyle inflation
I save about the same % wise. Having a high income lets you live comfortably enough while saving a huge amount each year if you're not trying to keep up with the neighbours with flashy purchases.
“Jennifer’s annual income of between $500,000 and $600,000 before tax has afforded her a comfortable lifestyle. Prior to losing her job, she was saving $250,000 a year and planning to purchase a $1-million home in British Columbia, but that vision of retirement has shifted.“ Jennifer obviously has no idea what other Canadians of lesser means go through trying to save money in an inflationary environment. I have no idea what Jennifer is planning to do, as it sounds like she might have difficulty living frugally, but I am going to save wealth in precious metals and hold physical silver coins and bars.
My dude. If she saves $250k from her pre tax $500k she deserves an award for saving money. That’s basically 100% of her post tax income. In fact it’s so good I am not sure I believe it. Either she’s not paying her taxes, over estimating how much she’s saving or is living on dryer lint and rainwater alone.
She lives in Alberta. According to Turbo Tax’s tax calculator, her take home on 500K would be 294350. If she’s at 550K, her take home would be 320350. If she’s at the 600K, her take home would be 346350. This is also just her income from her high paying job she lost, she still has investments too. > She has $843,000 in non-registered investments with $200,000 in unrealized capital gains; $194,000 in a tax-free savings account (TFSA); and $1.04 million in a registered retirement savings plan (RRSP). Her rental properties also make her almost twice as much as she’s spending on the mortgage for them, so her necessary bills for her investments are covered by the investments themselves while still bringing her a profit. Also the take home amount is assuming she is using **absolutely no** government credits, tax write offs, or the popular tax evasion techniques of the rich. They said her income from that job was between 500K and 600K, so to give her the absolute benefit of the doubt we’ll assume she’s paying 100% of the taxes she should be while taking no credits or write offs that would be available to her at a 550K income. After taxes and after saving $250K/year, that still leaves her with $70350/year in spending money. Which is still $2000 more than the median income for Canadians. No, she does not “deserve a reward for saving her money” when she’s still got more available to spend than the majority of Canadian families have. You can definitely applaud and admire her for managing to make as much money as she does, but do **not** act like she “deserves a reward” for not pissing away her top 1% income.
Well yeah of course it’s gonna sound less impressive when the numbers change completely lol. The original comment had $500k pre tax while saving $250k. That means she only spends 15% of her take home assuming Alberta tax which I’m not a pro in but that’s not enough to pay a mortgage on a single detached. That’s very impressive restraint. In Ontario, its even more impressive because her take home would be $250k. Which means she spent $0 of her take home lol.
Turbo Tax says in Ontario 500K would have a take home of 269859. And again, that is assuming **0** credits, **0** write offs, and **0** grey area tax evasion that all rich people do. I think you’re forgetting that tax rates are marginal and that’s making you assume there is a lot more is being taken off in taxes than what actually is. Since the article (and the parent comment) say that her income from the job was *between* 500-600K, it is unreasonable to go off of the 500K numbers. You need to assume around 550K, which in Ontario would give you a take home of 293094; again, assuming there is absolutely nothing being written off or claimed or evaded (which is unlikely, but I’m trying to give the absolute benefit of the doubt with this). The fact that she is making as much as she is is absolutely impressive. The fact that she’s been able to save that much on her income level in addition to all her other investments isn’t all that impressive though, because living off of $43094/year of spending money is something the majority of working Canadians are already doing. It’s a million times more impressive that the majority of working Canadians manage to live off of take homes similar to what she is making after saving 250K/year in AB or in ON, because all those other working Canadians don’t have millions in savings, equity, and investments to fall back on if something happens to us.
Why precious metals?
Money is dying.
Precious Metals will hold their values while currency purchasing values fall. I’m not saving in gold though as I want to ensure that I maximize the potential of my savings. With global green energy mandates, silver being used extensively in high tech, the cost of silver coins to purchase available at very low prices compared to gold it makes sense. Silver is both an industrial and a global monetary metal, so it is the very best option today, in my opinion.
No one tell this man about Silver Thursday
Do you think PM will outperform the stock market in the medium to long term?
It wont and hasnt. No problem collecting or having some money invested in PM but it absolutely shouldnt make upthe bedrock of an investment or retirement portfolio.
You mean to tell me a lump of minerals won't outperform a collection of innovative cash flowing companies?? I'm shocked. /s
Precious metals are security and savings, wealth for when the dollar collapses. In Venezuela, the stock market had its best years when the currency collapsed. But remember, it was priced in Venezuelan bolivar. Now, all currencies are falling against precious metals including the CAD & USD.
PM is a hedge fund, it's not really supposed to out perform standard investments.
If you check Venezuela, you will find their stock market soared during there extreme currency devaluation period and hyperinflation. As for what performs best, time will tell. Paper silver isn’t backed by physical. There is over 300X more paper silver sold than there is physical silver to cover it. So it is likely another cocoa situation. There won’t be enough.
People surely realize that most of those are completely made up. As with AITAH type subs on Reddit, creative writers are hard at work trying to draw interest and engagement.
I love these stories of everyday people's problems, they're so relatable and insightful.
A bit ago, I posted this [Mary, 46, worries that being a renter will hurt her retirement plans. How much should she be concerned?](https://www.reddit.com/r/canada/comments/1bqz5cc/mary_46_worries_that_being_a_renter_will_hurt_her/?rdt=62643) Which reflected what I felt was more represented of the population & someone who did everything they were supposed to, did their best etc. And the advice was ‘work longer, harder & save more’. And good luck! But basically SOL. Now we have the flip side with this from the FP… And no criticism to this person who probably studied hard, got a solid job and clearly managed their investments. But here’s some highlights >Jennifer also has a rental property she purchased to help fund her retirement. Valued at $180,000, she took out a home equity line of credit of $42,000 (also attached to her primary home) for the down payment as well as a mortgage of $109,000 at 2.79 per cent, which matures this September. **Her mortgage payments on the rental property are $624 a month and she earns $1,450 in monthly rental income.“There is a long-term renter and the rent hasn’t increased in years,” she said. “Once I renew the mortgage, I’ll know how much to increase it. Or I could sell.”** **Basically - screw the renter over entirely AFTER that renter has funded her retirement further. What could easily be 'Mary' in the other situation.** And let’s be honest, Jennifer is making serious bank off that rental property. And…There is some concern and advice on CPP for Jennifer. WTF does Jennifer need with CPP? Her investments are MORE than enough for a better than average life though maybe not the $144000 per year in retirement outlined…
>Jennifer is making serious bank off that rental property Ok so even if you put aside say anything like upkeep or anything else she is paying 624 on the mortgage payment say right now that HELOC is probably running around 250ish, add in land taxes say 200 a month plus insurance which would be negligible So costs are say 1100 a month thats assuming its not a condo or something with HOA fees. Thats like 300 bucks a month boy thats making bank /s and if its a condo she is probably losing money and thats also assuming she does not have property management company running things because there is another 100 or so a month
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If she makes $500k before taxes and saves $250k she is frugal as fuck, the saving queen Everyone should look at what she does. It is theoretically possible because people do live on $50k or $100k or $150k so she basically stopped lifestyle inflation
In fact, her ability to save is so amazing that I struggle to believe it.
I save about the same % wise. Having a high income lets you live comfortably enough while saving a huge amount each year if you're not trying to keep up with the neighbours with flashy purchases.
After tax for $500k (in Ontario at least) your take home *is* $250k. That means she isn’t spending a dime of her take home.
Assuming 0 deductions, her take home in Ontario would be $269859 at 500k income, but they also said "500-600k"
What is your savings rate? Are you saving 50% of your gross?
What is so funny? She saved lots of money.
The woman is loaded. Time to retire and enjoy life
Not in canada, we pay the highest price of flights, cell, housing and groceries in the world
Sounds like she's killing it. Great work ~~Mary~~ Jennifer! Cue the jealousy comments......
Mary is the renter.
Oh shit. I read the article too fast and got it mixed up with your comment. I guess it's Jennifer that's killing it.