Your Retirement is on Your Driveway!

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u/retire-free · Joined Oct 2024

See how much future wealth you’re missing by leasing and fueling your car! Find out if downsizing your ride today could drive up your retirement tomorrow.

Last update Nov 2024
  • Scenario 1: Missed Investment Value

This chart shows how much your car expenses could grow if invested instead. Watch the missed opportunity increase over time—most Canadians aim for $1M–$2M in retirement savings.

Age

Try your numbers:

Enter your age to help calculate project potential investment growth with regards to your retirement age.

A =

Add your current monthly leasing cost for your vehicle, including all taxes. This amount could be redirected into retirement savings.

B =

Enter the number of months in your lease term. This helps estimate total leasing costs over time.

C =

Include all yearly expenses for vehicle upkeep, like repairs and regular servicing, with tax included.

D =

Enter your average fuel costs per month.

E =
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  • Amount
    Any single amount ($).
  • Cash Flow
    Rent, insurance premium, salary, ...
  • Current Asset
    Real estate, commodity, bonds, ...
  • Installment Loan
    Mortgage, car loan, ...
  • Percentage
    Any percentage value (%).
  • Years / Months
    Any time horizon.
  • Age (already added)
    Show "Age" instead of "# Years from Now."
  • Retirement Age
    Enable "Investment Return After Retirement."

Time Value Assumptions

Heads Up!

If you're using Cost Basis (cb) for calculating capital gains:

Please be aware that very few countries currently use inflation-indexed cost basis. Double-check your local tax rules before publishing.

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How is Cash Value calculated?

This calculation totals your lease, inflation-adjusted maintenance, and fuel costs. It then projects these as missed investments, growing over time at an average market return rate, to show potential retirement savings if redirected.

Decisions / Expectations

(Expressions are evaluated at Year 0 only.)

F̃ =
Now
G̃ =
Now
Follow Inflation
H̃ =
Now
Follow Inflation

Calculations

(Expressions are evaluated at every year.)

Ĩ =
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Add Decision or Expectation
  • Buy Asset
    Buy an asset growing at its own rate.
  • Take Installment Loan
    Take a mortgage, loan, etc.
  • Invest
    Receive/Spend a lump sum.
  • Expect to Invest
    Expect to receive/spend a lump sum.
  • Expect Monthly Cash Flow
    Expect to receive/spend cash monthly.
  • Expect Yearly Cash Flow
    Expect to receive/spend cash yearly.
  • Define Variable (Numerical)
    Calculate an intermediate value.
Add Intermediate Calculation
  • Define Variable (Numerical)
    Calculate an intermediate value.
  • Define Variable (Cash Flow)
    Calculate a combined cash flow.