Can You Retire On $1 Million

In our third video in this series, can you retire on $1 million, we look at Richard & Sharon Smith’s financial situation.

Let’s see what their financial picture looks like.

 

Let’s start with Sharon. She is currently 60 years old and has the following,

RRIF: $400,000

TFSA: $100,000

 

Richard is 60 years old and has the following,

RRIF: $400,000

TFSA: $100,000

In total, they have $1,000,000, and together they jointly own their home with no debt against it valued at $450,000.

Their total net worth today is $1,200,000

 

Assumptions

Moving forward what does the retirement picture look like? To find that out, we will need to make some assumptions.

Life expectancy – Age 90.

Growth of home per year – 4%.

Investment returns per year (RRIF & TFSA) – 5%

Inflation – 4%

*This means their expenses every year are going to grow by a 4%

Richard started taking his CPP at age 60 and is receiving $767 per month. Sharon also started taking her CPP at age 60 and is receiving $682 per month

They will both start receiving the max Old Age Security (OAS) which is $686 each per month at age 65.

 

Can You Retire on $1 Million?

Watch the video above to see how much Richard and Sharon will be able to spend on a monthly basis. Starting at age 60, 63, 65 and 68, we cover their cash flow needs, where there income will be sourced and what their estate will look like in the end.

 

Watch past videos

This is the third video in our Can You Retire Series. To watch the first two videos, see the links below:

Can You Retire on $750,000?

Can You Retire on $500,000?

Marc Sabourin is a Winnipeg-based Financial Advisor and Retirement Specialist with Harbourfront Wealth Management. His specialty is working with pre-retirees and retirees who are looking for retirement, investment, & tax advice. 

Disclaimer: The views expressed are those of Marc Sabourin, Certified Financial Planner, and Investment Advisor, and not necessarily those of Harbourfront Wealth Management Inc., a member of the Canadian Investor Protection Fund

20 Retirement Tips

When entering retirement or having recently retired, these 20 tips should be considered. A thorough retirement plan will touch on all 20.

Drastically change the lookout of your retirement

Get your guide below