The couple should be able to meet their spending goal of $120,000 a year after tax, even if they make a one-time outlay for a down payment on a vacation property
Bert is age 62 and hoping to retire by the end of next year from his well-paying job in finance. He earns a base salary of $170,000 a year plus a substantial bonus. His wife, Lois, who is a year older than Bert, retired a few years ago. They have a mortgage-free house in the Greater Toronto Area and two adult children, aged 30 and 31.
We asked Andrew Dobson, a certified financial planner at Objective Financial Partners Inc., based in Markham, Ont., an advice-only financial planning firm, to look at Bert and Lois’s situation. Mr. Dobson works remotely out of London, Ont.Bert and Lois should be able to meet their spending goal of $120,000 a year after tax even if they make a one-time outlay of $250,000 for a gift or a down payment on a vacation property, Mr. Dobson says.
Mr. Dobson assumed a 5.25 per cent rate of return on the couple’s non-registered stock portfolio, 4 per cent on their registered accounts and an inflation rate of 2.1 per cent. “A potential strategy to explore with regards to large expenses beyond the base $120,000 annually could be to realize capital gains on their non-registered portfolios prior to the start of other retirement income, which once started, cannot be cancelled or reversed; for example, Canada Pension Plan and Old Age Security benefits and RRIF/LIF withdrawals.”
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
SD57 building three new childcare centres in Prince George and MackenzieEach new centre will accommodate 62 spaces
Read more »
Police investigate Calgary motorcycle crash that sent man to hospital with serious injuriesThe Calgary Police Service is investigating what led to a motorcycle crash that sent a 62-year-old man to hospital with life-threatening injuries on Tuesday night.
Read more »
Turner Valley woman killed in multi-vehicle crashA 62-year-old woman has died following a multi-vehicle crash outside the town of Okotoks last week, authorities say.
Read more »
Six dead, 15 trapped underground in Zimbabwe mine accidentHARARE (Reuters) - Six miners died after a ground collapse at Zimbabwe's Bay Horse mine in Chegutu, 100 kilometres (62 miles) west of the capital ...
Read more »