This is hypothetical, but tell me what you suggest. I am calculating both my common-law and self's retirement savings plan. We both have company pensions currently, but I would rather not incorporate that income into anything.
My concern lies with the total amount of 'potential' RSP income at retirement - I think it's way too much, but I also don't want to under save for my RSP because it's a nice cushion to have. I should also mention the savings of $1500 is an easy and comfortable amount both of us can save per month (this could increase down the road).
Both age 25.
RSP - 500/month @ 6% annual return from age 25 - 65= 1 million (close to it). This is not including re-investing the amounts received after filing our taxes.
Non-Reg - 1k/month @ 5% annual return from age 25-55 = 800k
Retire @ 55 - Each withdrawal 55k/year from non-registered portfolio - will last 15 years (until age 70) - this is not considering dividends, strictly withdrawal of capital till zero dollars.
Use RSP for income after (if I make till 70).
Thoughts/suggestions?
Thanks.
My concern lies with the total amount of 'potential' RSP income at retirement - I think it's way too much, but I also don't want to under save for my RSP because it's a nice cushion to have. I should also mention the savings of $1500 is an easy and comfortable amount both of us can save per month (this could increase down the road).
Both age 25.
RSP - 500/month @ 6% annual return from age 25 - 65= 1 million (close to it). This is not including re-investing the amounts received after filing our taxes.
Non-Reg - 1k/month @ 5% annual return from age 25-55 = 800k
Retire @ 55 - Each withdrawal 55k/year from non-registered portfolio - will last 15 years (until age 70) - this is not considering dividends, strictly withdrawal of capital till zero dollars.
Use RSP for income after (if I make till 70).
Thoughts/suggestions?
Thanks.