For Horace and Belle, retirement planning is all about minimizing taxes and maximizing their investments
In a corner of southwest Manitoba, a couple we’ll call Horace, 65, and Belle, 62, are thinking about retiring in five years. They’d like to have a pre-tax income of $120,000 per year after they’ve left the farm. They also want to harvest $250,000 from the sale of their farm to finance the purchase of a house in town that they estimate would cost $250,000.
- Horace’s CPP at $1,200 per month;
- Belle’s CPP at $720 per month;
- two Old Age Security benefits of $546 per month;
- two monthly RRIF payments of $800; and,
- monthly payments from non-registered investments totaling $6,400 for the couple, assuming a four per cent return from invested money.