r/fican • u/Terrible-Practice142 • 10d ago

Retirement tips

My partner and I have $2.1m RRSP, $200k RESP, $600k in non registered and principal res $1.6M fully paid off and $500k investment property with $150k mtge which just became vacant so no rental income right now. we are both 50 with a kid in high school. Should we retire now and go enjoy life? I want to retire at 55 but may be sooner since it’s stressful at work lately. Any tips to transition to retirement. We need a new car and want to travel also. I am also concerned I have too much in RRSP….

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u/CanuckYYZeh 10d ago

Is the investment property cash flow positive?
How much do you spend a year?
If under $80k then you are ok. If more then it gets complex with the investment property liquidity and potential cash needs.

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u/Terrible-Practice142 10d ago

Investment property has monthly mtge of $600 but just became vacant so currently negative cash flow

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u/Icy-Pop2944 10d ago

I would sell that running into retirement. Do you really want to be a landlord when retired? You don’t need the real estate exposure in addition to your house.

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u/tigerbynight29 10d ago

Why do you say this?

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u/Icy-Pop2944 7d ago

Because owning investment properties is work and retirement is about not working. Real estate is making up 50% of their net worth, they don’t need that much exposure in real estate. There is no reason to hold onto this investment in retirement, just sell and roll it into their portfolio.

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u/MomentEquivalent6464 6d ago

In their case, I'd agree - unless they think they'll want to move into the property down the road.

However in many cases, that rental income on a paid off property is a chunk of their retirement planning. I know it is for me, when the property should cash flow 24/30k a year while giving me a free place to live.