Annette is 58 years old, and after 30 years of working for the same company, has decided to take the offered severance package of $50,000 at the end of the year. James is a 60 year old Engineer who has been with his current employer for long. Annette wants to proceed with retirement although James is not very much sure. They decide to find out if they have enough if they decide to retire now.
They have a small mortgage of $50,000 left on home of $700,000. They have a $300,000 recreational property in Muskoka with a small outstanding mortgage of $50,000.They are ready to downsize and move to a smaller home.
|Annette assets||James assets|
Proceeds generated from home downsizing: $120000
Their projected retirement income to survive is $54000 annualy.
FIG advisor made recommendation on basis of this information which was pretty tax effective. They both could retire in 1 year which made them happy.