Can a person retirer with 500 000$?

[Jon_Snow]

I could probably retire with about $500000 portfolio.... should reach that point in a year or two - I just turned 40. I would only consider doing so because my wife loves her high paying "dream job" and has no desire to quit anytime soon. She is okay with me being her "kept man", with the management of our investments as my main "job". Instead of saving about 80k per year like we are now, we would be saving about 50k - perhaps more depending on investment returns. My work life is slowly but surely killing me... looking at our financial picture, and the support of my wife, I think I'd be a fool to work any longer than I have to.

[marina628]

Jon
I will introduce you to my husband who was in very similar situation , he was working in the trades and had some high physical demands that has taken toll on his health over the years.He retired in May 2009 and no regrets.I enjoy him being home and so does the kids.He works on Tuesdays at old job in different role just to keep the benefits and keep a bit busy.

I should add that my husband has a wife that works at home so he has a stressful new job at home lol

[Jon_Snow]

Thanks for that Marina... nice to hear that it worked out well for your hubby. My job is gruelling physically - pretty good way to keep fit when I was in my 20's and 30's... now that I am north of 40, the aches and pains that used to go away, tend to linger. I think though, that the mental stress will do me in before the physical aspects of the job. A few more years of this then I think it is time to sit down with my wife to discuss the next phase of my life.

[Four Pillars]

My parents retired 13 years ago with a new car ,house paid for about $350,000 in mixed savings,gic , stocks and RSP and roughly about $1800 a month(after taxes) in pensions(private pension ,OAS ,cpp)They spend $3000 after tax money today but they eat well ,entertain ,have snow mobiles ATV etc and enjoy that sort of active life.A couple years ago my Dad told me he is screwed if he lives past 80 lol .They are 73 now and all RSP has been taken out and the taxes are paid.They still have $150,000 left of their retirement cash which is largely in Canadian dividend stocks.So it is possible to have a great retirement on $500,000.

The problem is that in your example, they didn't have $500k. They had $500k in investments plus a pension that was probably worth at least another half a million or more.

That's a pretty far cry from 'retiring with $500k"

[MoneyGal]

The present value of full CPP at age 65 is about $250K...multiply that by two (or some fraction), add OAS and you're sitting on a million bucks before investing a penny.

[marina628]

They retired at 60 with $350,000 ,pensions kicked in 5 years later.My father has a Pension which today is worth about $6600 a year .

[steve41]

OK...... how much extra do I need in my RRSP to offset the loss of both my CPP & OAS, assuming full entitlement. I make it $417 K..... taking income tax into account.

Starting with a $100K RRSP and based on 4% rate of return and 2% inflation, living in BC.

[marina628]

Steve since you love playing with the numbers how much do you need to have $20,000 a month revenue to retire at 55 and live to 90?

[ddkay]

$20k expenses per month? 35 years.. $8.4 million

[marina628]

Better play WSOP lol Actually I better plan to work to 90 lol