# Mr. Maritimes Seas His Finances

Well hello there!

What a financial story we do have. It’s a story about Mr. Maritimes and his fishermen friends, as he seeks for retirement in the ocean that has no ends.

He lives in the maritimes, but that’s not all, he’s a fishermen you see, overalls and all. He lives in a boat house above the sea floor, makes 40,000 a year, and boy does he love his lobster claws.

He wants to retire at some point but doesn’t know how. Let’s try to figure this out for Mr. Maritimes as we read on down.

#### How much he be spending?

That’s a good question, I do think so. How much does Mr Maritime’s spend is the question we must know. Retirement comes cheap, to those who know how much it costs to eat.

Boat phone: 780
Fishing gear: 5,820
Seafood: 4,000
Boat House’s Mortgage: 14,400
= 25,000 yearly expenses

#### How much does he need?

He must need a few million dollars to live on that, the other fishermen say.

But let’s just wait and do the math before we say what we say.

Now that we know his expenses, there’s a rule that is widely known. It’s called the 4% rule and it’s something you’ll take home.

If you can withdraw 4% of your total retirement fund each year it’ll have a 98% of lasting 30+ years. This is because the average return on an investment portfolio is 11.9% over 40 years of research, and 7% over 15 years of research. Both these periods return on average, higher than 4%. So you should be able to withdraw 4% each year and still have your portfolio grow as each year goes on. Meaning you’re not actually lowering the amount of the retirement fund even though you’re taking money out.

Ok, ok! The fishermen shout, let’s takes the 25,000 and multiply it by 25 (100/4) and see the amount!

25,000 * 25 = 625,000

625,000!? That’s not a few million the fishermen yelp! How could he possible retire on such a measly amount?

#### Let’s make him a plan!

The fishermen, still filled with doubt, don’t believe this could be the end of the story, and so continue to pout.

That would take years to save up to, they say, he wont be able to do it, no way!

Mr. Maritimes, let’s go on, let’s see how we can get this amount that we’ve been talking about for so long.

As you makes money and invest, it doesn’t sit still, it does not, it does not! It grows and grows as investments do, overtime they’ll be worth double, or triple, and continue as investments do!

In Nova Scotia, Mr. Maritimes grosses 40,000 a year, and nets 32,309 like he nets his fish. Let’s subtract his cost of living, 25,000 if I do remember right, and see what he gets at the end of the night!

32,309 – 25,000 = 7,309

That’s 140 a week that he can contribute to his fund. The fishermen all seem intrigued to know about how this can be done.

Contributing \$140 a week at a 7% return for 28 years will equal 607,413.78.

28 years to retire is no joke! But if he could reduce his expenses he’d retire a happy ol’ bloke. The more money he saves, less time he spends, this is the rule that cannot be broken, as-it-does-not-bend.

140 = 28 years
200 = 24 years
300 = 19 years
600 = 13 years (that’s his entire yearly income, but he might be able to do this if he was living with Momma Maritimes, or if he received a pay increase)

With this you’ll see, we’ve come to the end of the ocean for Mr. Maritime’s wonderful story. Now where he’ll be, all salt covered and sun bathed, is on a beach, as a retiree. The other fishermen now know too, how they’ll plan their sea life to become as financially fit as can be.

If you liked the story and want to know more, leave a comment below, I’m sure Mr. Maritime’s has time for one more. A press on the ol’ green heart is sea worthy as well!