Retiring - And Enjoying It

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Retiring – And Enjoying It
Richard, 68, and his wife Mary-Louise*, 66, have recently made the transition into full time retirement. They’re both healthy and active, and look forward to spending more time golfing and sailing, especially now that they’ll be spending winters in the south.

They recently spent just over $200,000 Canadian on a vacation condominium in Florida after taking advantage of the real estate price increases in their neighbourhood and downsizing their large home. The strength of the Canadian dollar made their purchase a real bargain, and, even after buying the condo, the proceeds from the sale of their house combined with their previous investments have resulted in a sizeable retirement nest egg of approximately $600,000 in non-registered assets.

Richard and Mary-Louise’s long-time relationship with their Investment Advisor has been very rewarding; Richard’s RRSP is now worth $300,000. Still, they’d like to revisit the investment mix to ensure that it remains appropriate. Mary-Louise has a $35,000 RRSP which is invested in mutual funds. Their $600,000 cash account has already been spread among a variety of investment products, $400,000 of which are US securities.

Richard collects a pension of $45,000 per year plus approximately $15,000 in CPP/OAS; Mary-Louise is collecting $6,800 per year in CPP/OAS.

Assessing the Situation
You may have entered retirement on the right foot like Richard and Mary-Louise, and realized that this stage of life introduces its own particular set of investment concerns. Let’s have a look at the issues and solutions for investors like Richard and Mary-Louise.

* Fictional characters. Any similarities between them and actual clients of BMO Nesbitt Burns Inc. are accidental.