Confessions of an Average Joe: 'I've Saved $60,000 for Retirement on a $40,000 Salary' + MORE Oct 23rd

Filed under: Budgeting & Planning, Economizer, Family Finances, Saving
Danny Kofke, as told to Penny Wrenn
LearnVest via Daily Finance

In our popular Money Mic series, we hand over the podium to people with controversial views about money. People like Danny Kofke, a 38-year-old special education teacher in Georgia who says that anyone can squirrel away a $1 million nest egg for retirement — regardless of income.

Not convinced? You’re not alone. In a recent survey conducted by LearnVest and Chase Blueprint, one in three people said that they didn’t feel it was possible to save enough for retirement. So we asked Kofke to divulge how he’s managed to sock away $60,000 while supporting a family of four on a $41,000 annual salary.

Want to know my money secret? It’s simple: Trick yourself. Put money aside by pretending that you don’t have it in the first place.

hat’s what my wife, Tracy, and I do while raising our daughters Ava, 9, and Ella, 6. And even though we live on my moderate teacher’s salary of $41,000, we’ve managed to save $250 per month since 2002, allowing us to amass about $60,000 for retirement…

You may have reached retirement, but financial planning doesn’t stop once you stop working. Frugal living and wise financial foresight can help ensure a comfortable life, and these simple tips will help you maintain stability for decades.

Filed under: Economizer, Entrepreneurship, Retirement and RRSPsBy Joe Ud
Daily Finance

I know many of you are reading this at the office. Retirement sounds really good when you are stuck in a gray cubicle all day. But while it is great to avoid rush hour traffic, mindless meetings, jerky co-workers and stressful assignments, there are a few downsides to retirement. Not having to work anymore can be great, but you might be surprised by what you will miss about work:Continue reading 5 Things Retirees Miss About Work5 Things Retirees Miss About Work originally appeared on Walletpop Canada on Mon, 21 Oct 2013 16:01:00 EST. Please see our terms for use of feeds.Permalink | Email this | Comments

From the blindingly obvious file today comes a study conducted by the Boston Consulting Group that finds defined-benefit pensions provide major benefits to the economy and that DB recipients are far less likely to need Ottawa’s Guaranteed Income Supplement (GIS).
The group says only 10 to 15% of DB beneficiaries collect the GIS, compared with almost half (45 to 50%) of other Canadian retirees. Well, that should be obvious: as a supplement to Old Age Security, the GIS goes mostly to the poorest of Canada’s seniors. Anyone with a significant amount of Canada Pension Plan income and a DB plan is unlikely to collect much if any GIS. In fact, I’m surprised that even 10 to 15% do. Not for nothing do some quip that “a consultant is someone who borrows your watch and then tells you what time it is.”
Small towns especially benefit
In most cases, DB pension income means losing GIS income. The study finds DB pensions reduce the annual payout of GIS by $2 to $3 billion a year, which is a savings for Ottawa…

For the last three years Ottawa and the provinces have been debating ways to enhance retirement savings.