# Retire in 6 Years at age 62



## Dufresne (Mar 4, 2015)

I've read a few money diaries with great interest, and felt compelled to add my own journey here.

Me: 56, financial advisor (self-employed, CCPC), draw $120K, plus $18K (income split with wife)
Wife: 49, Educational Assistant, 32K
Child 1:17
Child 2: 13

Net Worth:
Home- FMV $900K, ACB $275K (2003). Milton, Ont.
RRSP- $670K (combined). About 60% of portfolio in TD index e-series, balance in actively manged mutual funds.
RESP- $90K
Biz- $650K. My equity in the corp includes investments and life insurance CSV. Will sell my equity at retirement tax-free
Debt- $105K mortgage. $500 biweekly @ 2.84% (3 years left until renewal), 14 years left on amortization.

Original Plan: retire at 60 with three piles of money: $1M RRSP, $1M biz equity (tax-free), and $1.0M home equity

New Plan: retire at 62- $1.1M RRSP, $1.2M business equity, $1.1M home equity.

I am coasting towards financial independence on a longer flight path now. I love my kids dearly and wanted to be able to not only fully fund their post-secondary education, put have some funds available from the eventual sale of my biz to help them (home ownership, if it is important to them later).

My sole debt is a hangover from extensive renovations to our home. Need about $25K for new windows in the next 5 years. I will retire the debt (about $55K when i sell my biz interests in 2026). The balance of the sale proceeds will be used to max out TFSAs for wife and I, the residual will be invested in an open account.

Our retirement budget is about $6,000/month net, plus annual vacations ($10K).

I consider our home as a reserve asset. It has appreciated considerably over the time we bought it as new construction. It will be used to fund retirement home/LTC in the future (if needed).

My biz partner recently retired, I owe him approx. $800K for the buyout of his shares. I will finance this through a HELOC and cashflow from the operations. The business is somewhat stagnant, earning about $350K/year. I've developed a new associate whom I see as my successor- he is bright, ambitious, and very tech savvy. I am not, and am struggling to embrace the new digital way of the future. He is also very good with social media, where I have no interest or abilities. At 56, I feel that I'm getting too old to embrace this new way of doing business.

Together, we can push to grow the business, or I can concentrate on paying down the debt to increase my equity stake as I move towards my goal of achieving $1.2M, from the current $650K. My retiring biz partner (poor health, early 70s) has a corp owned whole life ins policy of $200K, which will help me fund the residual of the future buyout.

I would be happy to answer any of your questions, and receive feedback.

Dufresne


----------

