Retirement Goals and Financial Planning for Successful Couple at 57 and 58

TORONTO, CANADA – A couple in Toronto, Sara and Rob, are planning for their retirement in two years. Sara, 58, is currently in a high-paying job earning over $370,000 annually, including bonuses and vested shares. Her husband, Rob, 57, is self-employed, making over $60,000 a year, in addition to earning net rental income of about $50,000 annually.

With their son in college and plans to retire in two years, Sara and Rob have mapped out their retirement goals. They aim to have 10 years of travel and are considering purchasing a new electric vehicle. They also plan to sell their current house, buy a downtown condo, and a townhouse north of Toronto. In addition, they have set a retirement spending target of $120,000 a year after tax.

A financial planner from Toronto, Warren MacKenzie, observed that the couple already has enough to achieve their retirement spending goal. He suggested that Sara could continue working part-time from home to maintain additional funds for spending or giving away. MacKenzie also offered advice on managing their finances, stressing the importance of strategic investment and tax planning for their retirement.

The couple’s financial portfolio, which is 100% invested in publicly traded stocks, is flagged for not being properly diversified, and their plan of holding accounts at seven different financial companies is deemed unnecessarily complicated. MacKenzie advised them to consolidate their accounts and establish a more disciplined investment process.

It was also suggested that they should consider inheritance advances for their son, allowing him to gain experience managing money. The couple will need to carefully plan their cash flow, as they approach retirement, and devise a strategy to ensure they meet their goal of extensive travel once retired.