Planner Says Ontario Couple Can Retire at 50 With $2.4 Million, Not $5 Million
Updated
Updated · Financial Post · Aug 19
Planner Says Ontario Couple Can Retire at 50 With $2.4 Million, Not $5 Million
1 articles · Updated · Financial Post · Aug 19
Summary
$2.4 million already puts George and Eileen in an “exceptional” position for a couple in their 30s, and a planner said they do not need $5 million to support early retirement.
$100,000 of annual surplus invested at a 4.5% to 5% return could still lift their net worth to $5 million within 10 years, enough to fund about $175,000 a year at a 3.5% withdrawal rate.
$170,000 of annual spending is manageable now, but their portfolio is concentrated in Toronto-area real estate and technology stocks, leaving them exposed to sector, geography and liquidity risks.
$2 million to $2.5 million for a larger home could absorb roughly $1.2 million of extra capital and leave them with a $1.5 million-plus mortgage, sharply reducing cash flow available for investing.
Statistics Canada put median 2023 net worth for couples with children under 18 at $645,900, underscoring the planner’s advice to focus on retirement and tax planning rather than an arbitrary asset target.