Can I Retire in 2023 at age 55? - Page 3
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Thread: Can I Retire in 2023 at age 55?

  1. #21
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    Another question from a young investor... where can I get a job to build up a pension like that?

    Additionally, I understand you're receiving dividend income but since you're still employed you may want to reinvest all dividends and distributions to achieve the highest total returns. I don't see the point of starting on portfolio withdrawals before retirement, and those dividends are effectively withdrawals, unless you reinvest them.


  2. #22
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    Very well done Mookie...!!

    With assets over $2M now, your biggest hurdle is the liabilities.

    They say "life begins when you're debt free"!

    First of all, great work on tax-efficient dividends in non-reg. accounts.

    Your TFSAs are in great shape! I wouldn't count on them in early retirement for income though, I would deplete all RRSPs and potentially non-reg. accounts BEFORE TFSA assets.

    "Investments are generally invested in dividend paying large cap stocks, ETFs, and mutual funds." Absolutely the way to go I think, as long as mutual funds are low-cost...

    "Above investments currently generate a total of about $50,000/yr in dividends, of which only the portion in the non-registered accounts are taxable."

    Didn't understand this one. All dividends are taxable at some point? Unless you have no other income of course, which you do.

    Income plans:
    I think if you can live off the following, early in retirement, you are set:

    1. DB pension from current employer: $14,600/yr starting at age 55, with a bridge of $3,200/yr from 55 to 65, indexed to inflation.
    2. Dividend income.
    3. Rental income.
    4. RRSP-generated income.

    This is because your other pension ($24,000/yr starting at age 65, indexed to inflation) is fixed income and I'd delay earning that until 65.

    Ideally CPP + OAS will replace all your RRSP-generated income (RRSP gone in your 50s and 60s) and you can rely on the following in your 60s and 70s:

    1. Tax-efficient dividend income (say $25-$35K per year and always growing, and
    2. A healthy dose of pensions and government benefits as part of fixed income (upwards and likely north of $40K per year).

    Sounds like a dream
    Last edited by My Own Advisor; 2017-04-30 at 08:07 AM.
    Hidden Content - Working on a $1 million portfolio and $30k per year from it.

  3. #23
    Senior Member Mookie's Avatar
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    Quote Originally Posted by scorpion_ca View Post
    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.
    Here's a list of the securities I currently hold:
    • BCE
    • BMO
    • BNS
    • RBF1018
    • RY
    • VXC
    • XRE
    • ZDJ
    • ZWU
    • BPF.UN
    • TD


    As previously mentioned, I focus mostly on large cap dividend payers, and I'm very much a buy and hold investor. I believe that "time in the market" is better that "timing the market". I think the most important part of a buy and hold strategy is to not panic and sell when market downturns occur. So long as you're invested in good quality companies, then there is no need to panic. Just hang on, and remember Warren Buffet's famous quote: "Be Fearful When Others Are Greedy and Greedy When Others Are Fearful”
    If you fail to plan, you are planning to fail.

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  5. #24
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    Quote Originally Posted by coolbeans View Post
    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.
    Thanks coolbeans, my current estimate for CPP is based on some numbers I ran a few years back, which supposedly took into consideration the non contributory years, but it was not an official estimate from the CPP folks, so a couple weeks ago I mailed in a request (from the link below) to confirm my numbers. When I get a reply, I will update this thread with the numbers.

    http://www.servicecanada.gc.ca/fi-if...p1003&lang=eng

    Regarding DB pension indexing, mine are indexed 100% to inflation, so long as the index reserve fund is adequately funded. I guess there's never a guarantee of that, so something to be mindful of.
    If you fail to plan, you are planning to fail.

  6. #25
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    Quote Originally Posted by Mookie View Post
    When I get a reply, I will update this thread with the numbers.

    http://www.servicecanada.gc.ca/fi-if...p1003&lang=eng
    Interesting , gonna fill out this form too... I'm just not clear, when they ask about retirement age/year-month... is it date when my package ends or date when my IE ends?

  7. #26
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    Quote Originally Posted by james4beach View Post
    Another question from a young investor... where can I get a job to build up a pension like that?

    Additionally, I understand you're receiving dividend income but since you're still employed you may want to reinvest all dividends and distributions to achieve the highest total returns. I don't see the point of starting on portfolio withdrawals before retirement, and those dividends are effectively withdrawals, unless you reinvest them.
    Hi James, I know, DB pensions are not that easy to come by anymore. I definitely consider myself lucky in that regard. Government jobs and crown corporations are the place to be for DB pensions in general. I remember in my younger days people would have all these negative comments about public sector jobs. They thought they could do much better in the private sector, and who knows, maybe some of them did, but if they weren't disciplined in setting aside part of their salary for retirement, then they're probably starting to regret that by now.

    Having DB pensions allowed my wife and I to be more aggressive with the rest of our retirement savings because we already had a solid base to rely on in the DB pensions.

    Regarding dividends, in the TFSAs, RRSPs, and RESP dividends are all reinvested. In the non registered accounts, we don't reinvest, but instead use the extra cashflow to gradually pay down the investing HELOCs.
    If you fail to plan, you are planning to fail.

  8. #27
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    Government jobs and crown corporations are the place to be for DB pensions in general
    My wife just got a letter from her pension plan. Thus, if she retires at 55, she gonna get $23,200. At 60 - $37,700, At 65- $55,200 (last year statement showed $21,500 , $35,200 and $51,500). I tried to estimate what will be her pension if she retires at age 50 ,but couldn't figure out how .
    And she can take it as lump sum or wait until 55 and start getting it monthly

  9. #28
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    I think you also have some upside in your OAS when you take it 15 years from now as the amounts you have are the 2017 payouts. I would expect these to rise each year for 15 years and end up closer to $9K per year in 2033.

  10. #29
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    Quote Originally Posted by gibor365 View Post
    My wife just got a letter from her pension plan. Thus, if she retires at 55, she gonna get $23,200. At 60 - $37,700, At 65- $55,200 (last year statement showed $21,500 , $35,200 and $51,500). I tried to estimate what will be her pension if she retires at age 50 ,but couldn't figure out how .
    And she can take it as lump sum or wait until 55 and start getting it monthly
    Would they let her take a pension at 50? Doubtful. There should be pension documentation that gives rules and formulas. Even if she were to take a lump sum it would still have to go into a LIRA and be subject to withdrawal constraints of the LIRA rules and jurisdiction.
    Eschew obfuscation. Espouse elucidation

  11. #30
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    That's my understanding as well. LIRAs can be unlocked, depending on provincial rules, up to 50%.

    @gibor, any chance your wife can defer some pension - say until age 60? $37,700 is a good pension. Maybe she/you can draw down personal assets first?

    Hidden Content - Working on a $1 million portfolio and $30k per year from it.

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