Where are you in your investing life cycle?

Asset allocation, risk, diversification and rebalancing. Pros/cons of hiring a financial advisor. Seeking advice on your portfolio?

Where are you in your investing life cycle?

Early accumulation phase
17
15%
Middle accumulation phase
23
20%
late accumulation phase
34
30%
Withdrawal phase
39
35%
 
Total votes: 113

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StuBee
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Where are you in your investing life cycle?

Post by StuBee »

Obviously, this may be quite subjective. However it is how we perceive ourselves to be which counts the most.

I define "Early accumulation" as someone who is beginning. The finances of this individual will still be dominated by a mortgage (or a potential mortgage) if they are (or anticipate being) a home owner. I would define them with the following descriptors: "I am just beginning" or "I am less than 1/3 of the way there" or "I must deal with my debt".
I define "Middle accumulation" as someone who feels that they are somewhere between 1/3 and 2/3 of the way to "goal".
I define "late accumulation" as: "almost there" or "more than 2/3 of the way there"
I define "withdrawal phase" the individual who is "withdrawing more than they are accumulating" generally or considers themselves to be "living off of their investments"

I voted for late accumulation.

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kcowan
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Re: Where are you in your investing life cycle?

Post by kcowan »

I voted for Late accumulation because I have only been retired for 10 years and I am still accumulating.

Maybe after Armageddon, I will enter withdrawal phase?
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Re: Where are you in your investing life cycle?

Post by j831robert »

I'll go along with Cowan except that I've been officially retired for 26 years. The Armageddon aspect hit the nail for me except that any additional investments just encourage the tax man and I can't foresee having to draw down in whatever lifetime I have left - kinder are being very polite and attentive these days ! :rofl:
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Re: Where are you in your investing life cycle?

Post by AltaRed »

Withdrawal phase though I suspect I am ahead overall (including liquid and RE assets not including PR) after 7 years of retirement. Hard to pinpoint it given I've not paid much attention to changes in the RE component over the years. Few of us would have likely answered that way 4 years ago in the Spring of 2009.
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Zipper
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Re: Where are you in your investing life cycle?

Post by Zipper »

Retired 16 years. :D

Withdrawal phase. :thumbsup:
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Re: Where are you in your investing life cycle?

Post by stardancer »

I chose late accumulation phase; both retired (12 and 9 years). We are withdrawing from 1 RIF but all that plus more is just rolled over to our TFSA. We have been saving up for a few planned expenses and have a small ways to go. Next year, the second RIF starts and again it will go into the TFSA and other savings projects. I see our true withdrawal stage starting in about 2025 when the RIFs deplete and we need to draw on our accumulated TFSAs.
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Re: Where are you in your investing life cycle?

Post by blonde »

This year our household will consume approx 60% of our Cash-Flow. The excess money is invested in 5 yr GICs. RRSP's were de-registered prior to age 71.
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Re: Where are you in your investing life cycle?

Post by nile »

age 47
working full time
no plans on retiring at least in the near term
probably when youngest finished first degree
dont know what my number is and dont really care
dont include cpp and oas into any calculation
just watch the increase in annual dividend stream
save approx 60 percent of before tax income no debt
very fortunate to have a great job , a non- spendthrift wife and some financial knowledge

i want you all to know-- most of the knowledge came from here -- an i am deeply grateful to this website for this.

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poedin
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Re: Where are you in your investing life cycle?

Post by poedin »

Voted late accumulation.
Freedom 55 40 a decade ago :o and initially projected for withdrawal mode by now; however, portfolio/investment returns continue to exceed our goals and by chance we find ourselves still accumulating. This despite volunteer and charitable work with one child in elementary school and requisite personal/assisted care for our parents.
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Re: Where are you in your investing life cycle?

Post by StuBee »

So far, the results are quite interesting:
#1 1/2 of the respondants are either retired or in the withdrawal phase (I have taken the three confessed retirees upthread and have added them to the 12 in "Withdrawal phase").
#2 An overwhelming majority are either in "Late accumulation" or "Withdrawal".

This confirms my suspicion. In this sense, I am quite sure that the FWF is a unique site (at least in Canada). So, we have here a healthy balance of knowledge and experience which I am sure is very profitable to all of the different people who visit (or lurk on) this site. (I know that it has been profitable to me).

All I can say to all those who do lurk (as I do) is: Feel free to ask questions! We (or FWF) will do its best to lend a helping hand!
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Re: Where are you in your investing life cycle?

Post by AltaRed »

StuBee wrote:This confirms my suspicion. In this sense, I am quite sure that the FWF is a unique site (at least in Canada). So, we have here a healthy balance of knowledge and experience which I am sure is very profitable to all of the different people who visit (or lurk on) this site. (I know that it has been profitable to me).
I am not sure this says anything....yet. What you might see so far is people who have had the time to see this thread AND are inclined to vote in it. I'd suggest most working stiffs who are members here and/or mostly lurk have yet to see, never mind vote, on this thread (perhaps they will Saturday morning over coffee). The numbers might change substantially over the weekend. Time will tell.
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JaydoubleU
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Re: Where are you in your investing life cycle?

Post by JaydoubleU »

Late accumulation, but I'd prefer to answer both accumulating AND withdrawing. In other words, I am still buying, selling, and reinvesting dividends, but I also began to take some money out of the account. Perhaps it was turning 50, I don't know, but I started thinking that I'd like to enjoy life more while I still have desire and energy, rather than pile it all up until my old age. So for the first time in 10 years, I took some $$$ out and spent it on home renovations and other STUFF. Boy, that was fun, and very satisfying!
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Re: Where are you in your investing life cycle?

Post by ghariton »

Retired for two months now, but still doing pro bono work and will continue to do so. Gradually drawing down retained earnings from my corporation, trying to keep below the OAS clawback for both me and my wife, but not spending all of it. So I'm in both decumulation (the corporation) and accumulation (non-registered accounts).

I see some spending coming up -- a new car, a new bathroom, and probably some work on the kitchen. Then I'll be in decumulation stage in the non-registered accounts too, at least temporarily.

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Re: Where are you in your investing life cycle?

Post by deaddog »

kcowan wrote:I voted for Late accumulation because I have only been retired for 10 years and I am still accumulating.

Maybe after Armageddon, I will enter withdrawal phase?
I'm in close to the same situation. Retired 10 plus years and in the withdrawal stage. Fortunately I'm with drawing less than I'm earning from my investing/trading. I voted withdrawal stage.
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Re: Where are you in your investing life cycle?

Post by DenisD »

StuBee wrote:I define "withdrawal phase" the individual who is "withdrawing more than they are accumulating" generally or considers themselves to be "living off of their investments"
Retired 21 years, no funds added except for CPP and OAS, portfolio approximately doubled in nominal terms = withdrawal phase.
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Re: Where are you in your investing life cycle?

Post by Dejavu »

I voted late accumalation phase, as we are planning to retire in Spring 2014. Dejavu
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Re: Where are you in your investing life cycle?

Post by StuBee »

JaydoubleU wrote:Late accumulation, but I'd prefer to answer both accumulating AND withdrawing. In other words, I am still buying, selling, and reinvesting dividends, but I also began to take some money out of the account. Perhaps it was turning 50, I don't know, but I started thinking that I'd like to enjoy life more while I still have desire and energy, rather than pile it all up until my old age. So for the first time in 10 years, I took some $$$ out and spent it on home renovations and other STUFF. Boy, that was fun, and very satisfying!
That more or less sums up my current situation! I have been in net withdrawal since 2010 (about 7K$ 2011, 8K$ 2012 and 12K$ anticipated this year). But, I still classify myself as late accumulation since I am not yet at what I consider to be my goal. That goal is to be able to choose to live without gainful employment. In fact, I have chosen to slow portfolio growth now so that I may slow down gainful employment now. ISTM that the "retirement transition" is often not "black and white" but it is rather from black through various shades of gray to eventually white.
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Re: Where are you in your investing life cycle?

Post by Descartes »

JaydoubleU wrote:Perhaps it was turning 50, I don't know, but I started thinking that I'd like to enjoy life more while I still have desire and energy, rather than pile it all up until my old age.
Near the same age - I've had a problem with the balance between security and luxury my whole life.
Perhaps the needle will edge more towards the latter when I get all of the kids out of the nest...presuming the last of them leaves before I do.
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Re: Where are you in your investing life cycle?

Post by mcbar »

Early accumulation - I'm about eight months on from coming up with my first investment policy statement after a couple years of humming, hawing, money market and expensive-ish mutual funds. Very thankful to have the opportunity to draw on the knowledge and experience of people who have been at it a lot longer than I have!
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Re: Where are you in your investing life cycle?

Post by Quebec »

I voted "Middle accumulation". Late thirthies; mortgage under control; investments/pension plans under control; kids often out of control :-)

Can't really answer the other poll, it's hard to put a number on productive assets at time of retirement in 20 years+ from now, way too many variables...
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Re: Where are you in your investing life cycle?

Post by queerasmoi »

Early accumulation but not accumulating.

On EI after my first year of full-time work. While on EI, my emergency fund should stay intact or only deplete very slowly. If I'm still unemployed after I run out of EI (which may only be 18 weeks due to the new rules) then I will be in my premature withdrawal phase.

And then hopefully back to early accumulation once I'm back in the workforce.
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Re: Where are you in your investing life cycle?

Post by northbeach »

Withdrawing about 1% of total investments which equals my dividend income.
Income from 1 defined benefit pension plan and 1 early CPP and from Solar Panel cash flow.
Would take money from High Interest Savings for major capital expenditures, as long as cash and bonds are greater than 50% of portfolio.
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Re: Where are you in your investing life cycle?

Post by SQRT »

i voted withdrawal phase but since am spending all divs and pensions but no principal, it really depends on the markets I guess. My mindset is certainly withdrawal.
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Re: Where are you in your investing life cycle?

Post by Peculiar_Investor »

Voted for Middle accumulation as we've built up a nice size nest egg yet continue to live below our means and put excess cash flow into investments. Other than a strategy to live below our means, eliminate debt and invest prudently for the long term, we don't have a "number" or goal, so cannot really draw a line distinction between the OPs "middle accumulation" and "late accumulation".
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Re: Where are you in your investing life cycle?

Post by Flights of Fancy »

Middle accumulation. I'm 45, retirement isn't even on my decision horizon yet. Mortgage well under control, two kids who are both still under 12, we save one of the two salaries generated in the household. My biggest ongoing financial commitment right now is private school/tutoring for a profoundly dyslexic (but crazy smart, natch!) child.
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