Article content
In British Columbia, a woman we’ll call Teresa, 54, lives with her 11-year-old daughter, Kim. A freelance advertising consultant, she brings home $5,027 per month and receives an untaxable subsidy of $378 per month from the Canada Child Benefit for total monthly disposable income of $5,405.
Teresa has a home worth an estimated $600,000 with a $249,000 mortgage that costs $1,200 per month, but no other debts. After mortgage and property tax, $275 per month, she has $3,930 per month for costs including contributions of $400 to her RRSP, $200 to Kim’s RESP and $500 to her TFSA. Teresa is concerned that her income, which has been slashed by half due to the COVID-19 virus, won’t allow her to save enough to support her target income of $6,000 per month after tax in retirement, which is 11 years away.
Downsizing and eliminating the mortgage is key to this B C woman s retirement plan draytonvalleywesternreview.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from draytonvalleywesternreview.com Daily Mail and Mail on Sunday newspapers.