Welcome to my retirement page. On this page you’ll find information, stories and essays from others who achieved financial independence and retirement income security. Read on and learn from them – how you can tailor your own retirement success story from their lessons learned.
How much do you need to retire?
I have no idea – for you 🙂
Well, that’s not entirely true. I could do the math for you….
I do know with a great deal of confidence with a $1 M personal portfolio (beyond our workplace pensions, beyond any Canada Pension Plan (CPP) or any Old Age Security (OAS) government payments) as long as we have NO DEBT (!) we should be able to semi-retire in our 50s.
Read on to learn more.
Quick Case Study #1 = $1 million saved
Let’s assume you have a paid off home and no debt when you retire. You are age 60.
Let’s also assume you have $1 million saved in various investment accounts (RRSP, TFSA) by age 60.
Do you have enough? For the most part: YES.
Excluding government benefits like CPP and OAS, I know almost for a fact you could spend $40,000-$50,000 per year (pre-tax) or up to $4,000 per month for life from your personal portfolio without outliving your money (age 100) assuming at least a 5% rate of return.
Quick Case Study #2 = $750,000 saved
Don’t have $1 million saved up?
Even with $750,000 invested, by age 60, assuming no debt, you should be able to spend $35,000-$40,000 per year (pre-tax) or up to $3,200 per month for life from your personal portfolio.
I have more tools to run some math on my Helpful Sites page – all FREE.
What about the 4% rule?
Heard of the 4% rule? I intend to use some form of it for my retirement planning.
Overall, I think the 4% rule is a decent retirement withdrawal rule of thumb to start with. Read on for more articles on this rule:
What about CPP and OAS?
Should you defer CPP to age 65 or even age 70? Here’s when to consider that.