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


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


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


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.