ScottishCanadian
Dryer sheet wannabe
Hello, Questions on asset allocation in retirement and accumulation
Hi, I have read many posts and would be interested in retiree’s experiences.
About myself, I am 50 and my wife is 51. I am retired from the military collecting a current indexed pension of $35,000. I currently work for the public service, and have an approximate retirement date of 58. Reason for this date is my wife is a high school vice principle and doesn’t reach retirement until 59.
Our combined income exceeds $200,000 per year. Jobs are secure.
Assets
House $700,000 in Edmonton AB area
Mortgage finished next year
Starting March 2014, savings of $5,000/month, currently going to pay our mortgage off. No change to our lifestyle once in savings mode as we still spend freely and pay cash for all purchases. No debt otherwise.
Combined RRSP’s $120,000 mostly mine and maxed out.
My wife will have about 50,000 in available contribution room next year, after which we will fill tax free savings accounts and then move to dividend etf's to minimize taxes.
Pensions on retirement $50,000 each ($100,000 total) before tax, mostly fully indexed although my wifes will be slightly lower at 80%, and I will have better after tax net due to military benefits
Both have carry forward medical and dental benefits. I have double dental policies through a military retirement dental plan
I estimate our savings through the next 8 years to be $480,000. Investment returns…no idea but I plan on 4.5% related to my current portfolio as I am conservative and plan to keep that way.
I invest mostly in Canadian dividend ETF’s and laddered government and corporate bonds with short durations, and retain 10% min cash for deployment when an opportunity presents itself.
My wife has not set a retirement date but I believe she will retire by 60 at latest. For myself, I may work an extra year if she does not retire until 60, dependant on my job satisfaction. I could retire with full benefits at 56 as I have worked for one employer since 18 YOA.
I have an interest in at least two 2 or 3 week vacations during winter months, specifically between Jan-end Apr each year. Winters are long up here. And at least one summer vacation within continental America.
Here is my question, so far the retirement plan is working well in the fact we can bring debt down without any risk to portfolio, pensions are the fundamental anchor and diversified, one Fed, the other backed by billions of dollars in oil.
On the accumulation phase how are you dealing with risk? In retirement, have you structured your portfolio to ensure you minimize losses, and how has this affected your retirement goals?
At a minimum I plan to live up to our pension income in retirement. About 75,000-80,000 after tax. Investments will be the juice to slide on vacations.
Thanks in advance
ScottishCanadian
Hi, I have read many posts and would be interested in retiree’s experiences.
About myself, I am 50 and my wife is 51. I am retired from the military collecting a current indexed pension of $35,000. I currently work for the public service, and have an approximate retirement date of 58. Reason for this date is my wife is a high school vice principle and doesn’t reach retirement until 59.
Our combined income exceeds $200,000 per year. Jobs are secure.
Assets
House $700,000 in Edmonton AB area
Mortgage finished next year
Starting March 2014, savings of $5,000/month, currently going to pay our mortgage off. No change to our lifestyle once in savings mode as we still spend freely and pay cash for all purchases. No debt otherwise.
Combined RRSP’s $120,000 mostly mine and maxed out.
My wife will have about 50,000 in available contribution room next year, after which we will fill tax free savings accounts and then move to dividend etf's to minimize taxes.
Pensions on retirement $50,000 each ($100,000 total) before tax, mostly fully indexed although my wifes will be slightly lower at 80%, and I will have better after tax net due to military benefits
Both have carry forward medical and dental benefits. I have double dental policies through a military retirement dental plan
I estimate our savings through the next 8 years to be $480,000. Investment returns…no idea but I plan on 4.5% related to my current portfolio as I am conservative and plan to keep that way.
I invest mostly in Canadian dividend ETF’s and laddered government and corporate bonds with short durations, and retain 10% min cash for deployment when an opportunity presents itself.
My wife has not set a retirement date but I believe she will retire by 60 at latest. For myself, I may work an extra year if she does not retire until 60, dependant on my job satisfaction. I could retire with full benefits at 56 as I have worked for one employer since 18 YOA.
I have an interest in at least two 2 or 3 week vacations during winter months, specifically between Jan-end Apr each year. Winters are long up here. And at least one summer vacation within continental America.
Here is my question, so far the retirement plan is working well in the fact we can bring debt down without any risk to portfolio, pensions are the fundamental anchor and diversified, one Fed, the other backed by billions of dollars in oil.
On the accumulation phase how are you dealing with risk? In retirement, have you structured your portfolio to ensure you minimize losses, and how has this affected your retirement goals?
At a minimum I plan to live up to our pension income in retirement. About 75,000-80,000 after tax. Investments will be the juice to slide on vacations.
Thanks in advance
ScottishCanadian
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