Can I Retire in 2023 at age 55? - Page 2
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Thread: Can I Retire in 2023 at age 55?

  1. #11
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    Otherwise stick to the plan and still be retired before 99% of Canadians will.
    Really?! only 1% of Canadians retire before 55?


  2. #12
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    Would you mind to share the name of stocks and ETFs that you are holding? It would give an idea to young investor on what to invest.

  3. #13
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    Quote Originally Posted by gibor365 View Post
    If your wife is planning to get only RRIF minimum, you can continue to contribute until last day, SRRIF minimum withdrawals will be attrubuted to your wife's income, not yours (unless she withdraw more than RRIF minimum).

    Do you really need then 8M?! Not better to retire earlier and enjoy the life?!
    Thanks Gibor, I had heard about this trick regarding RRIF minimum withdrawals, but we plan to take out more than the minimum in the early years of retirement, to avoid higher taxes later. Anyway, it's OK, we will drain my wife's RRSP first, then the spousal.

    Regarding the $8M, this is a projection 37 years out. A lot can happen between now and then. We might end up with way more, or way less. I guess we'll just have to adjust our lifestyle accordingly.
    If you fail to plan, you are planning to fail.

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  5. #14
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    Quote Originally Posted by redsgomarching View Post
    My take, you have 2 kids set to hit post secondary 2 yrs and 5yrs which is still within the time you will be working. Those years will most likely be big expense years but it looks like you are covered with your RESP balance of 155k.
    Assuming per kid, tuition + living ends up nearly at a estimate of 20k (on the higher end) depending if they are close to home or not. This means 80k per child 160k altogether, if you continue with your contributions you will be over that. Most likely you will be ok here, jsut remember your 2nd child will be in university while you plan to retire.

    The only thing really to keep in mind is if they plan on doing graduate studies etc. Do they work? Do you know what they plan on studying?
    Are you in a position to help them with a job??
    Our older daughter plans on doing a Bachelor of Science in Nursing. The younger one is not sure yet, but maybe engineering. Both will be living at home while attending a local university. We expect them both to chip in at least a little bit towards their education so they have some skin in the game. We've already told them that we will fund them for a bachelor's degree, but if they want to go beyond that, they will need to contribute more to the cost (although I think we could afford to pay for it anyway).
    If you fail to plan, you are planning to fail.

  6. #15
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    Quote Originally Posted by frase View Post
    You look in pretty good shape to me,, particularly with the DB plans. You may be surprised at the reduced payouts for retiring early. You may wish to watch your incomes and income splitting to avoid OAP clawback. Also, asset allocation could effect income. You didn't mention your plans post retirement which will of course affect your disposable income. I retired at 55 yrs (now 71) and live an active lifestyle. Inflation, low interest rates, and activities (travel, sports, hobbies, etc) do take their toll. I guesstimate my annual expenditures are about $60,000. PA plus extraordinary expenses such as new vehicles, condo special assessment of 15,000., major home updates or repairs eg roof, special gifts to children (family vacation 15,000.) etc. Good job.
    Thanks Frase, good to hear from someone who's been there and done that. The amounts I mentioned above for the various pensions are the reduced amounts based on my planned retirement date of 2023. I realize OAS clawback may become an issue, and I will definitely have to keep an eye on that. This is another reason to retire early. If I retire later, I may lose my OAS completely. I added the $10,000 per year of contingency for exactly the reason you stated of various expenditures popping up. I've also allowed for new cars every 10 years. Our plans for retirement will probably include more travel, we've budgeted $10,000/year for that. Apart from travel, we would just spend more time on hobbies and local activities.
    If you fail to plan, you are planning to fail.

  7. #16
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    Quote Originally Posted by Steve Divi View Post
    I think you are looking pretty good for 55.

    Just learn to live as frugal as you can and see how much you like it.
    Hi Steve, my wife and I lived frugally in our younger days, which is partly how we got to where we are today. I believe our plan is solid enough that living frugally going forward is not required.
    If you fail to plan, you are planning to fail.

  8. #17
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    Quote Originally Posted by Mookie View Post
    Hi Steve, my wife and I lived frugally in our younger days, which is partly how we got to where we are today. I believe our plan is solid enough that living frugally going forward is not required.
    That might have sounded different than I meant it :P

    My line of thinking was you could always test your estimated retirement income in real time to see how much you enjoy living that way as a base line. For instance, I know I can live comfortably off around $3000 a month with a family of 5.

    This gives me a baseline to know what I will need in retirement.

    Cheers.

  9. #18
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    Thanks Gibor, I had heard about this trick regarding RRIF minimum withdrawals, but we plan to take out more than the minimum in the early years of retirement, to avoid higher taxes later. Anyway, it's OK, we will drain my wife's RRSP first, then the spousal.
    In any case, I'd first start withdraw SRRIF rignt now, and leave RRSP for later (when you will be retired) or also convert her RRSP into RRIF and withdraw from both. I don't know what brokerage you use, but in CIBC IE minimum withdrawals from RRIFs are free and from RRSP - you pay fees. Also with RRSP withdrawals you pay withholding tax on day of redemption, that's OK if you do it in end of December, but not so good if earlier

  10. #19
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    Based on your posts, you've probably already checked this, but:
    - The CPP benefit calculation is quite involved. Retiring at 55 and waiting until 70 messes with the eligible benefit as you only have <8 drop-out years. Waiting until 70 means you have 7 zero income years dragging down your benefit calc (not to mention any zero or low pensionable earnings years after 18).
    - Some DB pensions are indexed to say 0.6x of inflation, not 1x.

    Ps. I hadn't known about SRIFF min withdrawal avoiding the 3 year rule.

  11. #20
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    Looks remarkably similar to our position with the same age and retirement target. Technically we have higher net worth but you have more DB. Higher salary but you have extra rental income. We have a smaller outstanding financial commitment to kids' education as ours are older, at university and earning but you have a large RESP.

    I think your growth projections are plausible but optimistic. Regardless; the plan is financially sound. Good luck.


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