Pull trigger next year, or in two years?

[strathglass]

This is a follow up to my four year old (this week) "Hi I Am..." post found here:
<original post>.

Well, my four years are up this week, so I thought an update would be appropriate:

We are half retired: wife retired a couple years ago but I am still working.
We did sell the house at the peak of the GTA housing market in spring 2017 and bought a much nicer and cheaper house on a couple acres outside outside the GTA (still in Ontario but several hours from GTA), and I took a new job in the new town.

So now I am questioning WHEN I should retire.
I could probably retire now but I feel working two more years would be prudent.
And I don't really mind: like the job...just don't like the lack of free time for myself and the early rising.

So the portfolio is in good shape, and I run numbers through FIRECALC assuming:

• die at age 90
• retire in two years (when we are both age 58)
• no further savings
• retirement spending $7,500 per month (based on income splitting, and using E&Y 2019 tax calculator rates)
• using 45% equity allocation (which is where we are at currently)
• Government pensions as follows (total for both):
  • OAS starting at 65: ~ $14k/yr
  • CPP starting at 70: ~ $33k/yr

The results:
100% success with lowest portfolio value of over $600k!
Heck even if I retire 1 year from now instead of two (and accounting for slightly smaller CPP), I am still 100% with a minimum portfolio size at age 90 of over $300k!
And these are somewhat conservative numbers because some of the portfolio is not taxed as income on withdrawal (TFSAs and non-registered stuff).
Also doesn't count value of house: could take out $500k from that and still get a nice house in town with the remainder.

I think I could tolerate two more years nicely, especially if I took a leave next summer to get an extra month or two off for a nice vacation!

I guess I thought an update would be nice, and I don't really have much in the way of questions here! But would appreciate any comments on the situation and the analysis.

 

[joeea]

Sounds like "two more years" is a good plan for you!

And if it turns out not to be as good as you expect, you can always change your mind.

Good luck!

 

[DrRoy]

Anytime you are at 100% then I suggest you go. You can never replace the extra time in RE.

 

[euro]

Anytime you are at 100% then I suggest you go. You can never replace the extra time in RE.

Yes, this! More money will not buy more time. Go for it now!

 

[Dtail]

I would also say go for it now, especially since your wife is retired. I am never bored in retirement even while sitting here typing.....

 

[Katiek]

Those pensions give you a nice base. So whether one or two more years, it looks like you are in good shape. Sometimes it's easier sticking it out a little longer when you know you don't have to and that you have the freedom to stop whenever you want.