# Article: Manitoba Couple on the Brink of Early Retirement
Traditional financial planning models often focus on funding retirement for individuals who plan to retire after the age of 65. However, for couples like Frank and Heather from Manitoba, their retirement goals are a bit different. They are aiming to retire early, with Heather planning to retire fully at 50 and Frank partially retiring at 59. Despite saving diligently and eliminating debt, they are still just short of their financial goal to retire before age 65.
## Article Content:
Frank and Heather have been working hard to achieve their dream of early retirement. With a combined annual income of $200,000 before tax, they have a significant investment portfolio worth $1.6 million. However, to maintain their lifestyle post-retirement, they would need about $113,000 per year before tax, equating to a total of $2.25 million. This leaves them 18% short of their financial goal.
To bridge this gap, financial planner Ed Rempel suggests that they stick to their high equity allocation strategy, invest additional funds monthly, and consider income-splitting strategies in retirement. They also need to be mindful of their withdrawals and tax planning to ensure a smooth transition into retirement.
## FAQ:
**1. Can Frank and Heather achieve their goal of early retirement?**
– While they are a bit short of their financial target, with proper planning and additional investments, they can potentially achieve their goal.
**2. What strategies are recommended for their retirement planning?**
– Maintaining high equity allocation, investing additional funds regularly, income-splitting, and careful tax planning are some strategies recommended by the financial planner.
**3. How can they utilize their home equity for retirement funding?**
– Options include selling and investing proceeds, borrowing against home equity for spending or investment, or keeping the home for future use.
## Conclusion:
Frank and Heather’s story highlights the importance of personalized financial planning, especially when aiming for early retirement. With the right strategies and adjustments, they can work towards achieving their retirement dreams. Consultation with a financial planner experienced in retirement planning can provide valuable insights and guidance to help them navigate their path to a comfortable and secure retirement.
By: BMO Global Asset Management
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This article was produced in partnership with BMO Global Asset Management. The content was created independently by the editorial department with no influence from the client. For more information, visit [BMO Global Asset Management](https://www.bmogam.com/ca-en/products/mutual-funds/fund-detail).
[Original Article Source](https://financialpost.com/category/personal-finance/retirement/)
