What is a coffee worth?

Many of us take a cup of “Timmy’s” coffee for granted. On the way to and from work. Maybe even one during the day.

Have you ever thought about the cost? Do you think it would be reasonable to expect to afford a “Timmy’s” a day when you retire?

When I first became a financial consultant, I needed to devise my own story about the importance of saving. The story needed to be something that most people could relate to. Thinking about how my father-in-law met his wife at Tim Horton’s, I realized that many of us likely buy at least a cup of coffee a day. Or more. This is often referred to as “The Latte Factor”. Try tracking every coffee or drink purchase for a month and see what that adds up to for you!

Coffee in retirement.

latteWhat is your latte factor?

In order to afford a cup of coffe a day when you retire, how much do you need to save? The calculations below don’t factor inflation and assumes a rate of return on investments of 8%. That would be considered an aggressive rate of return with no allowance for the expected coffee price increases.


You would need to have approximately $6,000 saved by age 65 to pay for a cup of coffee a day until the age of 92.

Now, let’s back up a bit. How much do you need save per month in order to have that money for a cup of coffee a day? If you start at age 45, you need to save approximately $11/month until age 65 just to pay for a small Tim’s a day.

Do you suffer from The Latte Factor? Will you be able to afford to buy a coffee a day when you retire? Use the links above to calculate your numbers!

This is the time of year we are starting to think about doing our income tax returns. You might want to think about getting together with your financial advisor to think about building a plan to include your latte factor. You are working hard and deserve that coffee a day!

Make it a great day,


P.S. What am I thankful for today? I’m thankful for financial advisors. I’m thankful for a job that allows me enough to afford a coffee a day. I’m thankful for Tim Horton’s!

What are you thankful for today?


Canadians and their coffee!

timsplash-leftI finally figured out why there are so many coffee shops and they all seem busy. We’re all addicted.


As I walked two blocks from where I get off the bus in downtown Toronto to my office, I must have passed at least two dozen people. I can’t remember seeing even one of them without a coffee in their hand. Myself included.


I’m starting to wonder if we are an obsessive, compulsive nation.


I can’t go without my coffee!


Do you think it’s the caffeine or the routine? Sure, caffeine is a drug in itself and there may be some addiction there but I believe it’s actually the routine we are addicted to. I think Tim Horton started it all with his “Friend along the way” slogan so many years ago. We got addicted to the routine and now we can’ stop.


Virtually without fail, I stop at Tim Horton’s as soon as I get off the Greyhound. In my two block walk, I have three opportunities! We have a coffee maker at the office, the coffee is actually a better blend and yet, it’s just not the same.


Who would have thought a hockey player would come up with an idea that would have almost every adult Canadian keeping coffee companies in business?


Is it really an addiction?


Here’s my story.


We went on vacation with friends and split responsibility for groceries. They brought the coffee. After about 3 days, my wife asked why I was so ornery. I snapped at her and said I had no idea. (You need to understand that I have a reputation for never losing my cool.)


Then, I went to make a coffee.


All of a sudden, I realized the label was green. No! It couldn’t be! Sure enough, it was decaffeinated. I went and bought a jar of regular instant coffee and knocked back about three cups. The rest of the vacation was wonderful. That’s the day I realized I was addicted!


Anyone up for a “Timmys”?


Make it a great day!




P.S. What am I thankful for today? I’m thankful for my “Friend along the way”. I’m thankful for my beautiful wife. I’m thankful for my faith in the human race.


What are you thankful for today?