A man we’ll call Chuck lives in Ontario. Now 50, he wants to retire at the age of 55. An engineer, he takes home $6,500 per month. He has no spouse, no children and no debts. Frugal, he has accumulated about $1.18 million in stocks in a variety of RRSPs, a TFSA and unregistered accounts — or at least he had, before markets crashed due to the coronavirus pandemic.
Chuck spends $200 per week on groceries — mostly vegetables and fruit — he never goes to restaurants and reads books from the public library, rather than buying them. “In the downturn, Chuck’s extensive diversification provided some cushion,” Einarson explains. “His choices of ETFs were mostly to balanced funds with 25 per cent bond content. In the downturn, diversified bonds mostly held their own and very short bonds due in a year or less actually gained a few per cent. Chuck still lost, but his cushion saved him from a more devastating collapse.”
Other non-registered shares that had a value of $282,000 along with annual additions of $30,000 per year for five years would have grown to $490,970, and support payouts of $20,622 per year. Now, what impact has the crash had on his circumstances? With his starting capital depleted by about 20 per cent, the math shows that Chuck will only be able to generate $28,480 in annual retirement income from his RRSPs; $4,961 from his TFSAs; $17,875 from his non-registered shares; and $7,527 from his company shares.
Nobody gives a fuck. People are struggling to eat and make rent...he makes $6500 a month and I'm supposed to feel sorry for this guy? I think this shows who the National Post caters to. Not the average Canadian.
Just 20%? He did ok.
Dear Chuck, 🖕🏼
Join the club
Should have been a US senator.
This cancels mine.
Your paper's reporting throughout this crisis is really bringing to light your contempt for working people. Unfollowing.
🎻
Yep, the 'LinkedIn' of Tabloids.
Ontario man should have protected his captial in the markets. Too many blindly throw their money into the markets thinking they can only go up. At the end of the day, if he's been investing for years he's still up a lot of money. Sadly a lot of people are in the same boat...
He is not alone. There are thousands.
Nope best thing is to ignore the market and make regular withdrawals. By the time he finally 'feels' safe he'll have too much money and not enough health
Boo hoo, he earns $6,500 a month and KNLY has around $950,000 in his pension....
Poor Canadians.
Sadly a lot of folks may need too.
What about the 200% profits he and other have made over the last 10 years in this Ponzi rigged economy ?
You're lucky you have Any stolen money Left 300 million dead native Americans For your money The people who whine about money Should consider themselves lucky To have survived So far Just my opinion
Just stop, there are people that cannot afford milk, stock market is throwing this guy and many others under the bus, the sell off instead of investing in, put their money in the Caymans, tell him to complain to them, our tax dollars are not for this wealth
Ontario man may have to delay retirement while coronavirus kills a lot of people, many from the working class working service jobs to prop up an unfair economy.
Sad. I have to delay eating. On an inadequate disability pension and well in the instant death group, I'm isolated stretching one meal a day. I won't live til retirement.
Can't blame him. I'd be worried too.
I could only wish for that portfolio. I think he will do just fine. He has no family/spouse, just himself.
Couple of things: 1. It's not just one man; a lot of people are in this position; 2. He shouldn't have been fully-invested in stocks if he was so close to retiring; 3. Wait a bit. The markets will come back and his loss will lessen or disappear. 4. Live on dividends for a while.
Hard to feel sorry for this guy.
Is this really a story about a guy with over a million in stock value who still has over 800K in stocks?
Sooooo..... Hope he didn't end up in hospital with his investments
Take a number, dude
And this is precisely why Cdn. workers need Defined Benefit (DB) pension plans - not Defined Contribution (DC) plans or ‘shared risk’ plans or RRSP’s. What better time to begin doubling the Canada Pension Plan, as CanadianLabour has been calling for! covid19Canada canlab
This article is pretty tonedef for the current situation. You deserve the ratio 🤷
Engineer $6,500/month net! Can't retire at 55? Poor guy!🤔 Everyone's RRSPs are free falling. My piddly small nest egg, not enough to retire on, dropped by 30%. I don't even look any more. How about the many who lost their jobs & are trying to pay the rent? Put food on the table?
Kudos you’re investing in your own. We make mistakes. We never know if you don’t miss the opportunity.
Heard your story many times. All Your capital & money diversified in strong accounts & you will gamble in the stock markets? that’s down & earlier you’re up 80% more. nearly Retiring Your at $987M money in high stake stock is risky. Nowadays With kids Your income need $80M/annum
Retirement? What’s that?
And that’s the difference between defined benefit retirement plans and defined contribution plans.
and it will only get WORSE for EVERYONE as long as this INSANITY is allowed to control the govts
Only 20%? Lucky bstard!
Another stupid story. If 20% is the difference between retirement an working you were in trouble before this started.
Well, retirement is a concern there isn't anything you can do about it right now.
I thought all the casinos were supposed to be closed?
Anybody in the market with Retirement investments are in for the long-haul and should sit back and wait for the market to rebound which it will because we have a great leader in America that is working hard for that
Delay? Cancel!
Welcome to the club!
investing in the stock market is a risk that it might collapse your whole life savings so i don't feel sorry at all
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