You’ve been living on $400,000 before taxes for the last 10 years and now you’re getting ready to retire.
You’ve accumulated $2.3 million in your RSPs.
Things are looking good, right?
How long will $2.3 million last if you continue to live the lifestyle that you’ve become accustomed to?
If you leave it in a savings account that $2.3 million will last you approximately 6 years.
If you’re invested then it’s possible that $2.3 million could last you approximately 12 years. That all depends on fees, market conditions, income generated earnings such as interest or dividends – all factors outside of your control.
You’re 61 and you’re not planning on checking out in the next 6 years, surely. Your parents lived till 87 and 91 so your longevity chances are good.
So what are your options?
Mary and Tom decided to take fewer vacations, once every 3 years, instead of every year. They sold one of their two cars and the biggest of all, Mary decided that she was ready to give up her pricey salon colouring treatments and went au naturel. Go Mary! Silver is so in the kids are paying to do it.
Robert and Arlene intended to leave their cottage in their will but when they realized their situation, they decided to sell the cottage and fund their own lifestyle instead. Leaving the cottage for their kids just wasn’t in the budget and they made their peace with that.
The Bradfords decided that renting was more cost effective and more convenient than running their own home.
The Smiths decided they didn’t want to drive anymore anyway, sold their car and saved a ton and surprise, surprise 75-year-old Mr Smith is now an Uber fan.
If you would like to talk about making smart changes that improve the quality of your life so you can enjoy the retirement you deserve, please remember that I am here to help you with that.
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