SEMI-RETIRED COUPLE FIND THEY CAN GET BY ON LESS AND ENJOY A SLOWER PACE

Financial Facelift Revisited: Special to The Globe and Mail – By Dianne Maley

web_gmmSix years ago, Jill and Darby were hoping to ease into retirement gradually. He had just quit his media job to strike out on his own. She ran her own profitable business. Both age 62, they were netting $10,000 a month between them. Could they get by on less when they retired, they wondered.

At the time, they were up to their ears in real estate. They had a cottage on Georgian Bay, a home in a Toronto bedroom community and three rental properties. While they had substantial assets – including loans to their children – they also had $565,000 of mortgage debt. They planned to sell the rental properties one day. Their retirement spending goal was $80,000 a year. “Can we survive in retirement?” Jill asked in an e-mail at the time.

Gina Macdonald, a financial planner at Macdonald, Shymko & Co. Ltd. in Vancouver, saw some potential problems with the couple’s plan. Their savings and investments, plus government benefits, would give them an income stream of $92,000 a year, but would that be enough, the planner asked.  Click here to read the rest of the story.

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