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The ‘bulletproof’ retirement plan: Why this Alberta man can stop worrying about losing his job

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In Alberta, a man we’ll call Fred, 55, has thrived in his career as a marketing researcher, building up net worth of $952,500 on a salary of $8,150 per month before tax and $5,298 after tax and benefits deductions. He lives in a $250,000 condo and has a foreign rental property with an estimated value of $200,000. Fred has planned well for retirement, but worries about the durability of his job.

Fred would like to retire at age 60 but is unsure of his future income. His company might terminate his job with little notice and just modest, if any, termination pay.

Fred’s financial problem is to balance the choice to retire with the fact that he could be without a job. But, as we’ll see, it is a very manageable dilemma.

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Fred has no debt at all. Money for the nearly complete foreign rental is already designated for the builder. He has $142,000 cash and, given his frugal way of life, he should be able to add to savings as long as he is working. The unusual thing about Fred’s situation is his very precise view of what he has and where he wants to be. The issue is how he will get there.

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