For software engineers and engineering managers living in a major canadian city, at what age/stage do you reach certain financial milestones (500k net worth, 1 mill net worth). It's not uncommon to see bay area engineers in early 30s reach net worth of 1 mill. Wondering how our canadian counterparts fare. Any real data points out there? I'm esp. curious about those who work for large or US based tech companies, in Canada. tc: 280.
As a Canadian I’ll chime in here, HUGE F IN THE CHAT. New grads make about 1/2 what you’d get in Bay Area or Seattle. The major cities like Toronto and Vancouver have COL similarly to that of the bay, and your taxes are higher (yes even compared to California). I plan to move back home eventually, but not until I’m well north of 1M USD net worth. It sucks cause I love it back home, but I want financial independence. Financial independence as a swe in Canada is a much harder feat. I’m 24 nw 220k for reference.
Is Canadian tax based on Province? How large is the difference compared to US? Say in Ontario or BC.
The COL of Vancouver and Toronto is definitely cheaper than the Bay Area. You can easily find a 1 bedroom condo for 2000 CAD or about 1534 USD. You’re on point with TC and taxes tho.
F
Canadian income taxes are about 15% higher across all income levels even compared to California’s. For example, in Ontario your marginal tax reaches 47.97% at 150K CAD (vs 33.3% in California at $115K) and 53.53% when you make over 220K CAD (vs 41.3% in California at $170K). See https://www.taxtips.ca/taxrates/on.htm So your TC is about half and you pay more taxes. CoL in Toronto is comparable to Bay Area, so unless you have a rich daddy you’re not going to afford there.
I'm single in Toronto about to hit 27. Started my first full-time job when I just hit 24. So about 3 years for me to hit net worth 180k from 0. Probably another 5 years till it becomes 500k if I stay the course. But income grows so does living expenses, so who knows. (Only counting net worth created from employment income & investment returns generated by it)
That's good. 180k USD or CAD for reference?
I'm in Toronto and we use CAD up here :) Although part of my investment portfolio is in American and International companies.
I’m at around 150k net worth at 26. Living in Vancouver for reference. It’s harder to save here because of lower TC and higher taxes.
Then why are you still there tho?
I’m relocating to the US in February thankfully.