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Originally Posted by CliffFletcher
I get a kick out of the real-life financial and retirement planning advice on sites like the Globe and Mail.
She’s a 51 year old health care administrator who earns $130k. He’s a 53 year old engineering consultant who earns $150k. She has $310k in RRSPs and a pension that will pay out $50k a year. He has $240k in RRSPs and $110k in a TFSA. They have two years left until their mortgage is paid down, and owe $25k in car payments and $30k on a line of credit. They want to know when they can retire.
The advice is a little belt-tightening and to keep working for another 6-8 years.
For once I’d like to see an appraisal of a typical Canadian family.
He’s a 56 year old insurance estimator who earns $70k. She’s a 51 year old clerk at the license registry who earns $50k. She has $80k in RRSPs, and he has $60k. They have six more years on their mortgage.
So mister G&M financial advisor, what’s the plan?
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I think your 1st couple is far worse off. They have a combined income of 280k and only 600k in assets. So essentially have been spending 140+ per year after tax and are no where close to the 2.5 million+ they need to support that spending.
Your second couple will get about 3000 per month in CPP/OAS which replaces 1/2 of there likely after tax income right now. They will have a paid off house reducing there monthly expense by 1500 per month so may only need to draw $1500 per month from retirement funds.
So they need to target about 450k in retirement account of which they have 140k and one doubling period left. So in the next 10 years they need to save an additional 12k per year which is less than 10% of their income.