I want to track my progress towards my retirement in 5 years and get some feedback along the way. I thought this forum might be simpler than creating a blog.
Background
Married couple: Me = 45yo. Her = 39yo
No kids. Still TBD but unlikely at this point.
Goal to each retire at age 50. Not exactly sure what I'd be doing during the 6 years between my retirement and her retirement.
Current financial situation
Me
Cash Savings ~ $10k
Non-Registered Investments ~ $625k
Her
Cash Savings ~ $40k
Non-Registered Investments ~ $160k
Combined Total ~ $1.575M and her DB pension.
House ~ $1.5M per BC Assessment.
Liabilities: None
Current Annual Spend
$45k-$52k depending on how much we travel.
Goals
Plan
Comments, Concerns, and Issues
I feel pretty confident about being able to meet our base target to maintain our current lifestyle and corresponding spending in retirement. It’s more of a situation of being able to stay the course for the next 5-10 years to be able to meet our stretch targets due to occasionally shaky employment situations at both our workplaces.
I likely need a more efficient retirement income plan. My dividend income is going to impact my ability to withdraw funds from my RRSP and DC Pension in a tax efficient manner. It will likely also prevent me from collecting any OAS.
Background
Married couple: Me = 45yo. Her = 39yo
No kids. Still TBD but unlikely at this point.
Goal to each retire at age 50. Not exactly sure what I'd be doing during the 6 years between my retirement and her retirement.
Current financial situation
Me
Cash Savings ~ $10k
Non-Registered Investments ~ $625k
- Yielding approximately $25k in dividends this year. Primarily individual Canadian dividend growth stocks.
- Mix of US, EAFE, EM index ETF’s with about 20% Canadian bond ETF.
- Mix of Canadian, US, EAFE, EM index funds with about 10% corporate bond fund
- Mix of Canadian, US, and International index funds with about 25% Canadian bond index fund.
Her
Cash Savings ~ $40k
Non-Registered Investments ~ $160k
- Mix of US and Global index ETF’s and Canadian Dividend Fund.
- 75% in a bond fund with rest in a balanced fund, dividend fund, and global fund.
- Primarily a balanced fund with US low volatility ETF, US Index, and 10% in a bond fund.
- Based on her pension statements, if she works to age 50 but holds off from collecting her pension until age 55, she’ll get approximately $35k/yr plus a $5k bridge to 65.
Combined Total ~ $1.575M and her DB pension.
House ~ $1.5M per BC Assessment.
Liabilities: None
Current Annual Spend
$45k-$52k depending on how much we travel.
- Food & Eating Out ~ $13k
- Housing and Utilities ~ $11k
- Transportation ~ $4k
- Personal ~ $5k
- Entertainment ~ $1k
- Travel ~ $10-18k
Goals
- We each retire at age 50.
- We want to travel 6 months per year once we both retire.
- Base target combined retirement spend ~ $60k after tax to maintain current lifestyle (allows for major one off expenses like house repairs, health issues, car replacement, etc.)
- Stretch target retirement spend ~ $85-95k+ after tax to allow for our travel goals.
Plan
- Grow the dividends in my non-registered portfolio to approximately $50k/yr by age 50 and maintain that level by taking the occasional capital gains.
- Grow my RRSP to $450k by age 50.
Will withdraw ~$40k/yr (~$30k/yr after tax) from age 51-71 - Grow my DC Pension to $350k by age 50.
Unsure when to start withdrawing from LIRA but the tentative plan is to let the DC pension grow and then withdraw ~$40k/yr once the RRSP is exhausted. - Grow my TFSA to $135k by age 50.
Perhaps use the TFSA for car replacement, major house repairs, major health expenses, etc. Perhaps use it for an additional income stream. - Overall, I’m hoping my non-registered portfolio dividends and RRSP withdrawals will generate approximately $75-80k of after tax income annually. Supplemental cash not needed for annual spend would likely go into a HISA or GICs ladder.
- Clean up her portfolio so it has a more unified strategy/direction.
- Grow her non-registered portfolio to $500k by her age 50.
- Grow her RRSP to $100k by her age 50.
- Grow her TFSA to $200k by her age 50.
- I’m hoping her non-registered portfolio and RRSP withdrawals will generate $25k/yr and then her DB pension kicks in with $40/yr at her age 55.
Comments, Concerns, and Issues
I feel pretty confident about being able to meet our base target to maintain our current lifestyle and corresponding spending in retirement. It’s more of a situation of being able to stay the course for the next 5-10 years to be able to meet our stretch targets due to occasionally shaky employment situations at both our workplaces.
I likely need a more efficient retirement income plan. My dividend income is going to impact my ability to withdraw funds from my RRSP and DC Pension in a tax efficient manner. It will likely also prevent me from collecting any OAS.