An exchange on Open with fellow blogger Tory inspired me this post. Dany told us that he wanted to retire 6 months a year in the sun. I hope he has put a lot of side! Today, to ensure a golden retirement, you must be a municipal, provincial or federal public servant. Otherwise, good luck.

We did not worry about governments

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A retired couple, who hope to live properly for 20 years, say with $ 60,000 net two should have accumulated a lot of money. If the portfolio is quite diversified in equities, bonds and liquidity, we can expect an average return of 6%. At age 65, the capital will have to be close to $ 900,000. Of course, you will take out your capital and at age 85, you will not have a penny.

We cross our fingers

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If you have an unshakable faith in the strength of the welfare state, then you can hope that with two, the QPP and Canada’s Old Age Security program will pay you $ 20,000 a year in total. Thus, to supplement your retirement income, the necessary capital will be less. We are talking about $ 700,000 or so. In 20 years, if you live again, the capital will also be dry. If you want to leave a legacy, it is better to subscribe to insurance for life. It costs less than locking up long-term assets.

Do not waste time

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If you are 40, do not waste time. To accumulate such a nest egg, you need to save $ 1,031 a month for 25 years. And … I did not consider inflation.

NB: If you have a marginal rate of 40%, investing $ 1,000 a month in an RRSP will only cost you $ 600. For custom scenarios or a financial plan, write to us.