Retired at age 54. Left my ironworker career with a hefty pension, as I never turned down overtime, and there was lots of it. That pension payed for a two acre plot and a new bungalow. Sold our house in Toronto, for a stupid amount of money, which quadrupled my initial purchase price after 17 years.
Half my cash is in mutal funds, all dividend funds, which basically gives me a fund that does dollar cost averaging as my dividends continue to be reinvested. Annual average rates of return are around 5% net since inception. My FA only charges .73%.
That industry is quite regulated here up North. The other half of my funds are in insured GIC's making 3% over the next three years. Some are cashable. I also have a chunk of cash in general bank accounts, insured, making 2.5%.
We do alot of traveling and skiing, we are fortunate that money is not an issue. Just hired a personal trainer and a nutritionist, just to make sure I'm around to spend it, and have a good quality of life down the road.
My mum at 85 just sold her cottage for a good chunk of cash. We moving her into a retirement living apppartment the end of the month. It's a very nice place, full service. That's $4,600 a month. She does get a government pension of around $1,200 a month I think, which helps.
I'm hoping I can afford such a nice place when I'm 85!
Just to add, my strategy started when I was twenty five, and took advantage of every deferred tax saving incentive the government had to offer. The government also allows for TFSA's....tax free savings accounts, which allows one to grow your money...well...tax free.
Last edited by dal; 02/01/20 11:17 AM.
