Nick and Heather plan financial strategy for retirement

Nick, 65, and Heather, 64, are planning for their retirement while aiming for financial security. Nick is retired, and Heather works part-time. They own rental properties and are looking to purchase a waterfront home in British Columbia for about $1.2 million. Their goal is to spend $148,000 a year after tax during retirement. They also want to help their children buy their first homes by opening First Home Savings Accounts (FHSAs) for each of them. A financial planner reviewed their situation and suggested strategies to help them achieve their goals. The planner noted that Nick and Heather should focus on financial stability. They aim to buy a new house, enjoy their retirement, and avoid complications for their heirs. The couple plans to contribute $40,000 to FHSAs for each child. Based on average investment returns and a controlled spending plan, projections suggest they can reach their retirement goals and potentially leave behind an estate valued at about $1 million. However, they are encouraged to reassess their investments regularly to address any changes. Nick is already receiving Old Age Security benefits, and his planner recommends delaying Canada Pension Plan (CPP) benefits until age 70. This approach would boost their future benefits significantly. They are also considering how best to manage their investments, as they have a complex portfolio. Their overall finances include cash savings, investments, and significant debt. The planner advised them to reconsider their high cash balance in the bank and focus on reducing debts where possible. Planning is essential for Nick and Heather. They should coordinate their taxable income and make use of tax-advantaged accounts. Their monthly spending is around $10,670, and they need to ensure they can afford their desired lifestyle while supporting their children. With a well-structured plan, they can achieve their goals and ensure a comfortable retirement.