Anthony and Deirdre’s Retirement Strategy: A Comprehensive Plan
Anthony and Deirdre are set to retire in two years with an impressive portfolio exceeding $2.1 million. This financial cushion is expected to support their lifestyle while they embark on a global adventure, including extensive travel. Their investment strategy revolves around a balanced mix of assets, including registered accounts, TFSAs (Tax-Free Savings Accounts), and government benefits like CPP (Canada Pension Plan) and OAS (Old Age Security).
The couple has allocated significant portions of their wealth into dividend-paying investments within their registered accounts. This strategic move aims to enhance their future income needs by preserving these assets and adding more annually to the TFSAs, which will eventually become a tax-friendly estate asset.
A notable consideration is paying off their mortgage when it matures. This decision could reduce their post-tax income requirements by approximately 25%, allowing them to allocate an additional $2,000 monthly towards travel without tapping into their TFSA accounts or depleting home equity.
Anthony and Deirdre have also been advised to estimate their government benefits using the Canada Revenue Agency’s tools. Given their health and longevity history, they are encouraged to wait until age 65 to maximize their CPP and OAS benefits, which will be indexed for life.
The article emphasizes the importance of comprehensive retirement planning, suggesting consulting a financial advisor like Greg Goodwin at PMN Business. This expert can help navigate complex scenarios, such as managing responsibilities in a "sandwich generation" and optimizing income streams from various sources to ensure financial security.
In conclusion, Anthony and Deirdre are well-prepared for retirement, with a robust financial plan designed to maximize their lifestyle and secure their future. Their strategy highlights the significance of strategic asset allocation, government benefits, and proactive financial planning in achieving a comfortable retirement.
