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?