Apr 112006

I have the interview with clarity today, which I nailed. The head of HR told me I was one of the top candidates. I’m about 90% confident I’ll get the job, but I will have to wait a week before I hear back from them.

The other job I’ve got an interview for pays better (about 160 bucks a week better) but I think this experience would be more valuable in terms of getting a better job later. Not only because of the name on my resume but also because of the connections you can make at such a place. I think if I get offers from both places, I’ll pick this one. Hopefully the income shortfall will be made up by Canuck Connect.

I’m also tryin to work out the numbers for retirement. Laugh, yea. Anyhoo, by my estimation, with a bit of luck and discipline, I could retire in 10-15 years. Laugh some more, that’s right. Don’t hold it in, you could break a rib.

If I can save 20,000 dollars a year for 12 years and invest it at 12%, I’d have a portfolio worth over 600,000. 5% of that is 30 grand, which I think is a reasonable income for someone who does jack. A higher payout ratio, of say 10% may start to affect the growth of my portfolio (prolly not). Seeing as how stocks have averaged about 11% a year, that’s still a 1% spread. And because I have every intention of a growth of better than 11% a year (otherwise i can’t retire in ten years), the withdrawl doesn’t nullify the growth of my portfolio).

I love this compound calculator:

Some percentages to try:
11% – the market’s average, buy an index fund to get such a number
17% – the Dogs of Dow average. Keep in mind this is from backtesting, but a friend of mine has had good returns from it.
27% – Warren Buffett’s average for the past many, many, many years. Even after he dies, the value of the companies he’s bought won’t decline because they’re intended to pretty be owned forever. At the same time, his successor should have at least moderate success picking stocks and companies like Buffett did. So, buying Berkshire Hathaway stock may still be a good way to get great returns itno the future.
30.8% – Return from the magic formula of Joel Greenblatt. Also gotten from backtesting, but it’s something to consider.

20 grand a year works out to about 1,666.67 a month (in after-tax dollars). I could prolly save and invest in an RRSP to my contribution limit, however I’m having trouble finding out if there are limits to when I can declare myself retired and start taking income out of the RRSP. Anyhoo, if I was saving 50% of my paycheque, I would need a job that pays 40 grand a year and live like a pauper. Obviously since I don’t intend to make just 40 grand a year I hope to live decently well. We’ll see what happens here.

Heh, to think, in about ten years I’ll most likely be married, and prolly have a few kids to support. Weird, isn’t it?

My brother said it best, "work like hell now and reap the rewards for the rest of your life."

 Leave a Reply

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>