Home Economy With $2.8 million in assets, biggest question surrounding this couple’s retirement is...

With $2.8 million in assets, biggest question surrounding this couple’s retirement is when can it start


Situation: Couple with solid savings wants to know if they can retire at 60, or should stick it out to 65

Solution: Perform a full financial analysis to assess both options

A couple we’ll call Jack and Martha, both 53, live in southern Ontario. Jack runs his own consulting company, which specializes in product management. Martha is a health care professional working part time in her practice and part time for Jack’s company. They bring home $10,375 and add tax refunds to make disposable income $11,845 per month. Their worry is that if they retire at 60 they won’t be able to maintain their present way of life nor travel as much as they do now.

“Will our plans work at 60 and 65?” Jack asks. “Would we have to sell our house to raise retirement cash?”

(E-mail [email protected] for a free Family Finance analysis.)

Family Finance asked Derek Moran, head of Smarter Financial Planning Ltd. in Kelowna, B.C., to work with Jack and Martha. As he sees it, Jack and Martha have done most things right. Their house, estimated to be worth $1.4 million, is just about half their net worth, which is a high ratio but typical for upscale Ontario communities. They manage taxes by carefully apportioning income, for Martha puts in significant time working for Jack’s consulting business.

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