You’re not a chicken; however, having a nest egg that meets your retirement needs is just as golden.
What is a nest egg, and how much should you save for retirement?
A nest egg is a large amount of money saved in assets, investments or bank accounts for retirement.
If you’re thinking about early retirement or plan on working until 65 or longer, consider what could put a wrench in your goals.
Sadly, not everyone with a nest egg lives to enjoy what they’ve worked so hard to build.
Today, I want to explore expectations during retirement and whether you will use your nest egg.
Planning Your Retirement Nest Egg
Do you ever find yourself scanning the obituaries to see if you know someone that passed away?
Call her crazy, but Mrs. CBB does this, and I wondered why she was intrigued for the longest time.
For one, she’s found people from her past that had died or parents and grandparents that she’d met.
She feels that between the age of 55 and up are the most utilized years of retirement savings.
Adults in their 20s and 30s are working to make a mark in this world, and it’s tough to invest.
With housing prices no longer in reach, the focus of planning a nest egg has shifted.
Paying yourself first through a wage, savings, or investments is likely a stretch.
First, pay the rent or mortgage, including expenses, debt and bank loans.
Some people can’t get to that point without juggling bill payments or credit cards to make ends meet.
There is no money left to invest in a nest egg for retirement, and good luck if there ever will be.
Living on government pensions if you’ve worked long enough in Canada covers the basics.
Before, During And After Retirement
Perhaps you are a two-income family; the kids are moving away and coming back home.
The situation is not unheard of because students and working young adults can’t afford to live.
Parents may feel obliged to support a child who moves back in or require them to pay a nominal rent.
What about if you have aging parents you need to care for?
The list of what could happen before, during and after retirement is neverending.
Things can go south quickly if something is left out, such as a Legal Will or financial information.
Start wrapping yourself in red tape and be prepared for the hustle of the living and the dead.
Making Life Choices Based On Experience
Planning our retirement nest egg came years before Mrs. CBB, and I tied the knot.
We didn’t learn about retirement or investing in school; we learned through life experiences.
Starting a family for some people is often put on hold due to financial instability and a tough call to make.
I know this might be a soft spot for people who believe there is never a suitable time for parenthood.
In my 20s, when I bought my second house, I decided that career came first, then a family.
Growing up in the UK, I’ve seen an abundance of families living in poverty conditions, and it scared me.
My parents are not wealthy and oversaw their dollars by living a frugal lifestyle.
I had to work for whatever I wanted and often felt that I was different from some other kids.
Perhaps that’s where part of me said I wanted to wait, and I’m happy I did.
3.5 million children are growing up in poverty in the UK. It’s one of the worst rates in the industrialised world and successive governments continue to struggle to bring it into line. Struggling & without a voice, ‘Poor Kids’ shines a light on this pressing issue.
Reading The Newspaper Finance Section
Mrs. CBB and I delivered the newspapers for years when we were little kiddos.
We were responsible and knew how to return the correct money to our customers.
Some customers didn’t pay their weekly bill, so they were cut off from further deliveries.
We learned a valuable lesson about paying bills or facing the consequences.
You don’t pay; you don’t get—end of the story.
We would read the city newspaper almost daily as there was always an extra for our routes.
Lots can be said about a child reading the newspaper in a corrupt world of money and politics.
However, newspaper education allowed us to read what was happening and why.
We didn’t have mobile phones, computers or access to the internet in the ’70s and ’80s.
We knew we didn’t want to go without and opted for a better financial future.
You can translate that to, we didn’t want to live in poverty and wanted to make significant changes.
Early Bank Account Guides Our Retirement Nest Egg
Although we didn’t know each other, we saved all our money in a high-interest bank account.
My parents moved 20 times when I was two years old, and it caused me many social problems.
How is a kid supposed to make friends if they constantly change schools and lose friends?
My social anxiety carried into adulthood, so I had few close friends and sometimes closed up during a conversation.
We worked through high school (UK equivalent) and socked money away every chance.
At the same time as our education, there was a sense of wanting freedom from financial worry.
My ideal world was a career first, marriage and buying a house that would accommodate a family.
Mrs. CBB bought a new Dodge mini-van at 0% interest and paid it off in five years.
At 30 years old, Mrs. CBB and her partner bought a home that was 3000 sq feet from top to bottom.
The house was supposed to be a nest egg investment where her ex was set to retire.
That didn’t happen, and although she could buy another house, she did not choose that route.
Instead, she rented a room, kept saving money, and continued investing in a registered retirement savings plan (RRSP).
Her employer offered an employer pension where they matched, so she took advantage and went all-in.
Upon leaving, our financial advisor moved the pension into a Locked-In Retirement Account (LIRA), which started at around $1200.
Currently, her LIRA is just over $5000 after 13 years, but at least it’s growing.
How Much Nest Egg Do We Need To Retire?
Returning to the obituary conversation, Mrs. CBB and I discussed whether we needed three million dollars to retire.
In 2021, I wrote a blog post about how our retirement plans have changed.
Here we are a year later, and I wanted to revisit that post to see if our feelings are the same or changed.
The truth is that it hasn’t, and more than ever, we plan to stay put and renovate our house.
In the last two years, there have been many people we know who died before they retired.
What this means is that they don’t get to enjoy their retirement savings.
All of our friends who know we are debt-free think we are wealthy and live an extraordinary life.
Some people seem to forget that while they were out spending money we were saving it.
Being debt-free doesn’t mean you are shielded from life obstacles, although it does cushion the blow.
Often overlooked is the possibility of not being around to use a retirement nest egg.
How wealthy of a life does that become?
There’s a fine line between saving for a nest egg and watching it roller coaster until the day you need it.
That’s if the day ever comes.
Financial Responsibility With A Nest Egg
Although we are confident about our nest egg, we’ve set our son up so he will have no education debt or have to pay for life insurance.
There is a non-registered investment account that we invest in for him that comes with a withdrawal age.
We want to think he will be responsible for his finances; however, we don’t know and may never know.
Provided nothing drastic happens in our little family, he will eventually be left with whatever we have.
Mrs. CBB and I are closer to 50 years old, which has triggered many emotions for us.
Although we don’t know when we will die, it’s safe to say that we don’t want to die without spending money.
Having no mortgage has been a blessing, and life has been fantastic from a financial standpoint.
We paid it off in 5 years, so we didn’t have to worry about interest rates ever again.
Probably not, especially if one or both of us becomes ill or has health problems which we anticipate.
Jetting off on vacation as we age, especially with health problems, can be costly for travel insurance.
Changing Our Wealth Mindset
Although we keep building our nest egg, it may end up in our son’s hands one day.
We’re excellent with that, but we also have taken the route that life and finances must balance.
For example, if you want to go on holiday and have the cash, then experience the world.
You don’t have to wear second-hand clothes; going on a date shouldn’t be riddled with guilt.
Being a finance blogger has taught me four essential rules about saving a nest egg for tomorrow.
- If you’re passionate about something early in life, do it while you’re young.
- Don’t sock everything you’ve got into your retirement nest egg.
- Understand what can happen as we age and the estimated costs involved
- Live for today and tomorrow with the possibility of an early exit.
When we are both gone, our son won’t care how much money we’ve left him.
Both of us have experienced losing a parent or passing away before age 65 due to heart conditions.
Everything they ever dreamed of is gone, and whispers of I don’t want to die to linger in our minds.
Nest Egg Expectations Often Become Dreams
Your nest egg is nothing more than a number left for those who survive you.
I’m sure someone will wish they had done something with you while you were still alive.
I feel budgeting and building a nest egg are just as crucial as paying off debt and experiencing life.
Please don’t wait until it’s too late to do what you want with your family, friends or both.
Check your Plan B, get your priorities in order and talk to your financial advisor about the impact of retirement expectations vs possible health concerns.
Don’t stop securing your future by being satisfied with a legal Will and a fat savings account.
Planning a cozy nest egg is necessary, but don’t take it so far as to put life on hold.
Discussion: Have you ever considered what will happen if you die, leaving everything you saved for retirement without enjoying it?
Please share your thoughts or comments below.
Thanks for stopping by to read.
CBB Net Worth For The Preceding 12 Months
Scroll close to the bottom if you already know how to calculate your net worth to see the breakdown of our July net worth.
Net Worth Increases And Decreases
The chart above reflects our net worth increases and decreases throughout 2021-2022.
What are your thoughts about seeing your investments increase and decrease?
Drop me your comments below.
How To Calculate Your Net Worth
Net worth adds up your assets (what you own) and then removes your liabilities (what you owe), giving you a net worth number.
We like calculating our monthly net worth to know if we are still on track.
Some people calculate it yearly or quarterly, but it’s up to you and how informed you want to stay.
Net Worth is only an estimate, and not everyone uses the same type of figures to tally it up.
Determining Net Worth
Net worth = Assets – Liabilities
Calculate your net worth with our Free Money saving Tool Net worth Calculator (Canadian Budget Binder.
Net Worth Losses And Gains 2022
Our investments, like many others, have been on a roller coaster for the last few months.
It’s nice to report that we did see a 2.78% increase in July to drive up a portion of what our portfolio has lost.
It’s for the long-term, so we have to keep reminding ourselves that numbers will go up and down.
Canadian Budget Binder Net Worth Updates 2022
Click the links below to read our net worth updates for 2022.
- January net worth update 2022
- February net worth update 2022
- March net worth update 2022
- April net worth update 2022
- May net worth update 2022 was not posted (see June 2022 update for May figures)
- June net worth update 2022
The following net worth report will be in September to look at our August 2022 net worth figures.
Subscribe To Canadian Budget Binder
I know I’ve already said it, but if you haven’t subscribed to Canadian Budget Binder, I’ll leave the sign-up form below. Mr.CBB
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