Wed Sep 25 10:00:57 UTC 2024: ## Couple Aims for Early Retirement with $2.5 Million Portfolio

**Vancouver, BC** – Tom and Melanie, a couple in their mid-40s with two young children, are looking to retire early, aiming for age 50. Their decision is driven by health concerns and a potential ownership change at Tom’s engineering company that could impact his employment.

With a combined annual income of $229,000 and a $2.5 million portfolio, the couple believes early retirement is achievable. Their monthly expenses are around $12,300, including a mortgage on their $1.45 million home.

Financial planner Graeme Egan, of CastleBay Wealth Management, advises Tom to continue working for six more years, allowing their portfolio to grow to an estimated $3.55 million. Using $400,000 to pay off their mortgage, the couple would have $3.1 million, generating an estimated $155,000 in annual income, enough to cover their expenses and travel.

Egan recommends the couple work with a financial planner to analyze different retirement scenarios and adjust their investment mix, suggesting a 60/40 split between equities and fixed income. He also advises replacing mutual fund holdings with index-based ETFs for lower costs and diversification.

Tom continues to contribute to both his own and a spousal RRSP, as well as a company RRSP with a 100% matching program. Egan suggests maximizing contributions to RRSPs and TFSAs, with any surplus savings added to non-registered investments.

The couple’s current portfolio includes GICs, ETFs, and mutual funds. Egan recommends re-evaluating life insurance needs after the mortgage is paid off and exploring income splitting options for tax benefits.

Tom and Melanie are motivated to retire early and prioritize travel with their children. With careful planning and guidance from a financial planner, their early retirement goals appear achievable.

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