@Jory
No kids here, so I’ll be opting for MAiD when the time comes.
Marley said:
@Tan
3% is very conservative. You could afford to take out more.
That’s why they said it’s a conservative estimate.
Marley said:
@Tan
3% is very conservative. You could afford to take out more.
At $900K, you could easily be earning 5-7%, which would allow you to spend more without touching the principal.
@Tan
With $900K in a GIC, you’d still be making more than 3%, so a low withdrawal rate isn’t necessary.
Zephyr said:
@Tan
With $900K in a GIC, you’d still be making more than 3%, so a low withdrawal rate isn’t necessary.
It’s not just about the withdrawal rate—it’s about keeping up with inflation over time. A GIC won’t cover inflation-adjusted costs in the long run.
@Reagan
A moderate ETF at 5% should cover both income and growth. With $900K, you should never have to touch the principal.
@Tan
Thanks so much!
We have a similar amount saved and make between $70K and $200K a year. We plan on spending a lot over the next 15 years and then selling the house for another $1.5M to $2M. With OAS and CPP, we’re more than comfortable
Congrats on getting to this point! I love seeing stories like this.
Xan said:
Congrats on getting to this point! I love seeing stories like this.
Same here! I also love using tools like CRA and Steadyhand to plan retirement.
You’ve shared your income but not much about your expenses beyond the $1K for the house. That said, with $900K and a 4% withdrawal rate, you’re looking at $36K a year, plus $45K from CPP and OAS. You should be in great shape.
At first, I thought this was a joke, but after reading your responses, I see you’re being serious. I’ll just see myself out…
With $900K in TFSAs and RRSPs, you could easily pull in $5K a month without touching the principal. Add $3,700 from OAS and CPP, and you’re looking at about $9K pre-tax. Time to retire and enjoy life!
Zephyr said:
With $900K in TFSAs and RRSPs, you could easily pull in $5K a month without touching the principal. Add $3,700 from OAS and CPP, and you’re looking at about $9K pre-tax. Time to retire and enjoy life!
Wait, doesn’t OAS get clawed back if you have too much income?
@Phoenix
There is a clawback, but it only starts around $90K of income. It’s not as big of a deal as people make it seem.
@Phoenix
Exactly. Unless you’re pulling in over $90K a year, you won’t be affected.
Zephyr said:
With $900K in TFSAs and RRSPs, you could easily pull in $5K a month without touching the principal. Add $3,700 from OAS and CPP, and you’re looking at about $9K pre-tax. Time to retire and enjoy life!
If you had $900K in a non-registered account, would your calculation change?
@Cary
Not really. If your portfolio is mainly dividend payers, you’d still be fine without triggering much tax.
Zephyr said:
@Cary
Not really. If your portfolio is mainly dividend payers, you’d still be fine without triggering much tax.
Interesting. Even with funds like VGRO or XEQT, which have a lower yield, you’d still be okay, right?
@Cary
Yes, but you might want to look into higher-yield options like ZPAY or ZWG for more income without having to dip into your principal.